Audit report, Georgia Public Telecommunications Commission, a component unit of the state of Georgia, year ended June 30, 2007

STATE OF GEORGIA
----------------- DEPARTMENT OF AUDITS AND ACCOUNTS ................................... - - Russell W. Hinton State Auditor
AUDIT REPORT GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION
A COMPONENT UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2007

GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S REPORT ON BASIC FINANCIAL STATEMENTS

ACCOMPANIED BY REQUIRED SUPPLEMENTARY INFORMATION AND

SUPPLEMENTARY INFORMATION

1

MANAGEMENT'S DISCUSSION AND ANALYSIS

5

EXHIBITS

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET ASSETS

12

B

STATEMENT OF ACTIVITIES

13

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET - GOVERNMENTAL FUNDS

14

D

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES-GOVERNMENTAL FUNDS

15

E

NOTES TO THE FINANCIAL STATEMENTS

16

SCHEDULES

SUPPLEMENTARY INFORMATION

1 SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND

ACTUAL-GENERAL FUND

36

COMBINING FUND STATEMENTS

2

COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL

FUNDS

38

3

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - NONMAJOR

GOVERNMENTAL FUNDS

39

ANALYSIS OF FINANCIAL ACTIVITY OF BLENDED COMPONENT UNIT

4

ANALYSIS OF BALANCE SHEET ACTIVITY OF BLENDED

COMPONENT UNIT

42

5

ANALYSIS OF OPERATING ACTIVITY AND CHANGES IN FUND

BALANCES OF BLENDED COMPONENT UNIT

43

GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION - TABLE OF CONTENTS -

SECTION II

INTERNAL CONTROL AND COMPLIANCE REPORT

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT

AUDITING STANDARDS

47

SECTION I FINANCIAL

DEPARTMENT OF AUDITS AND ACCOUNTS

270 Washington St. S.W. Suite 1-156

w. RUSSELL HINTON

Atlanta, Georgia 30334

STATE AUDITOR (404) 656-2174

August 23, 2007

The Honorable Sonny Purdue, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Georgia Public Telecommunications Commission
and Honorable Nancy Hal!, Executive Director
INDEPENDENT AUDITOR'S REPORT ON BASIC FINANCIAL STATEMENTS ACCOMPANIED BY REQUIRED SUPPLEMENTARY INFORMATION AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Georgia Public Telecommunications Commission, a component unit of the State of Georgia, as of and for the year ended June 30, 2007, which collectively comprise the Commission's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Commission's management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Georgia Public Telecommunications Commission, as of June 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 1 to the basic financial statements, the general fund includes the financial activity of its blended component unit, The Foundation for Public Broadcasting in Georgia, Incorporated (Foundation). Blending the Foundation's financial activity with the

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general fund of the Commission, however, is not in accordance with accounting principles generally accepted in the United States of America (GAAP) as promulgated by the Governmental Accounting Standards Board (GASS statement 14, as amended by statement 34) which prescribes that a general fund of a component unit be reported as a special revenue fund. We believe, however, this departure from GAAP does not cause the financial statements to be misleading, but rather more accurately depicts the unique relationship between the Commission and the Foundation
In accordance with Government Auditing Standards, we have also issued a report dated August 23, 2007, on our consideration of the Georgia Public Telecommunications Commission's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
The management's discussion and analysis information on pages 5 through 9 are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Georgia Public Telecommunications Commission's basic financial statements. The accompanying supplementary information (Schedules 1 through 5) is presented for purposes of additional analysis and is not a required part of the basic financial statements. The accompanying supplementary information (Schedules 1 through 5) has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Respectfully submitted,

RWH:wlt

Ru sell W. Hinton, CPA, CGFM State Auditor

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MANAGEMENT'S DISCUSSION AND ANALYSIS
The following is a discussion and analysis of the financial performance of Georgia Public Telecommunications Commission (d/b/a Georgia Public Broadcasting, GPB). It provides an overview of the activities for the fiscal year ended June 30, 2007 and compares them to fiscal year ended June 30, 2006. Georgia Public Broadcasting provides educational, instructional and public broadcasting services to the citizens of the State of Georgia. It is designed to be read in conjunction with the Georgia Public Broadcasting financial statements that follow this section.
HIGHLIGHTS
Net Assets As of the close of fiscal year 2007, Georgia Public Broadcasting's combined ending net assets totaled $39,457,360.74. Of this total, $23,060,248.10 is invested in capital assets; $36,500.00 is restricted for the WSVH Endowment; and $16,360,612.64 is unrestricted.
Long-term Debt GPB's total long-term debt obligations consist of $1,241,650.00 in compensated absences.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to Georgia Public Broadcasting's basic financial statements. GPB's basic financial statements have three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains additional supplementary information to the basic financial statements themselves.
Government-wide Financial Statements The government-wide financial statements are designed to provide a broad overview of Georgia Public Broadcasting's finances, in a manner similar to private-sector business reports.
The Statement of Net Assets presents information on all GPB assets and liabilities, with the difference between the two reported as Net Assets. Over time, increases or decreases in net assets should serve as a useful indicator of whether the financial position of Georgia Public Broadcasting is improving or deteriorating.
The Statement of Activities presents information showing how GPB's net assets have changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing
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of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned unused vacation leave).
The government-wide financial statements only include the operations of Georgia Public Broadcasting. The Commission is considered a component unit of the State of Georgia for financial reporting purposes because of the significance of GPB's 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's Codification of Governmental Accounting and Financial Reporting Standards.
Fund Financial Statements A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. Georgia Public Broadcasting, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All GPB funds can be classified into the category of governmental funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
Georgia Public Broadcasting maintains four individual governmental funds. The General Fund is a major fund and is used to account for all activities of the Commission not otherwise accounted for by specific funds. The Capital Projects Fund, also a major fund, is used to account for the financial resources provided for the digital conversion of towers and transmitters. Data from the other two governmental funds are combined into a single, aggregated presentation. Individual fund data for these two non-major governmental funds is provided in the form of combining statements elsewhere in this report.
Notes To Financial Statements. Notes to financial statements provide additional information essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found in the Basic Financial Statements section of this report.
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents a General Fund Statement of Revenues and Expenditures Budget And Actual statement. The combining statements referred to earlier in connection with non-major governmental funds are presented as supplementary information.
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GOVERNMENT-WIDE FINANCIAL ANALYSIS

Georgia Public Telecommunications Commission Net Assets

FY 2007

FY 2006

Capital Assets, Net of Depreciation Other Assets

$ 23,060,248.10 20,556,068.83

$ 24,286,853.93 18,189,626.79

Total Assets

$ 43,616,316.93 $ 42,476,480.72

Other Liabilities Long-Term Liabilities
Current Noncurrent

$ 2,917,306.19
465,857.31 775,792.69

$ 1,468,811.94
442,916.47 594,245.64

Total Liabilities

$ 4,158,956.19 $ 2,505,974.05

Net Assets Invested in Capital Assets Restricted Unrestricted

$ 23,060,248.10 36,500.00
16,360,612.64

$ 24,286,853.93 385,341.18
15,298,311.56

Total Net Assets

$ 39,452,360 Z4 $ 39 9ZQ 506 6Z

The largest component (58%) of GPB's net assets is the investment in Capital Assets (e.g. land, buildings and equipment) of $23,060,248.10. Less than 1% ($36,500.00) of current assets is a restricted fund for the WSVH endowment. The remaining balance of $16,360,612.64 (41%) is unrestricted and may be used to meet the Commission's ongoing obligations to citizens and creditors.

The following is a summary of the Revenues, Expenses and changes in Net Assets for FY 2007:

Revenues Program Revenues Charges for Services Operating Grants and Contributions Capital Grants and Contributions General Revenues Intergovernmental - Other Unrestricted Investment Earnings
Total Revenues
Expenses Culture and Education
Increase {Decrease) in Net Assets
Net Assets - Beginning {Restated)
Total Net Assets - Ending

FY 2007
$ 3,622,207.50 9,330,264.51 0.00 17,023,143.00 1,305,583.22
$ 31,281,198.23
31,796,538.75 $ {515,340.52)
39,972,701.26 $ 39 45Z 360 Z4 -7-

FY 2006
$ 3,815,544.40 9,102,106.89 209,436.18 16,958,649.00 538,263.72
$ 30,624,000.19
33,816, 167,88 $ (3,192,167.69)
43,162,674.36 $ 39 9ZO 506 6Z

The increase in revenues from FY 2006 to FY 2007 is primarily attributable to the increased activity in the Unrestricted Investment Earnings. However, expenses exceeded revenues in FY 2007 when depreciation expense is recorded in the governmental-wide financials resulting in a decrease of total net assets.
FINANCIAL ANALYSIS OF THE COMMISSION'S FUNDS
General Fund. The General Fund is the chief operating fund of Georgia Public Broadcasting. It consists of two components: the general fund of The Foundation for Public Broadcasting in Georgia, Inc., and the budget fund for GPB. Although legally separate, the Foundation is in substance a part of the Commission's operations. Funds raised by the Foundation are devoted entirely to the benefit of the Commission. The budget fund for GPB is the fund responsible for all activities of the Commission not otherwise accounted for in the Foundation or by the specific funds described in the following paragraph. At June 30, 2007, the General Fund has $760,442.41 reserved for encumbrances and unreserved, designated fund balances of $16,841,320.23 described in the Notes to the Financial Statements.
Capital Projects Fund. The Capital Projects Fund is used to account for financial resources designated for the digital conversion of the towers and transmitters. At June 30, 2007, total assets are $1,806,882.68 of which $1,765,025.53 is due from other intergovernmental agencies.
Other Non-major Governmental Funds. Two funds comprise the Other Non-major Governmental funds and are detailed individually on Schedules 2 and 3 of this report.
+ The assets of the Special Revenue Fund for the Singleton Trust were bequeathed to
the Foundation and are restricted to providing programming about the environment and the evil of child abuse. The Foundation Board authorized the transfer of $376,491.66 in remaining available funds to be used in accordance with the Singleton Trust guidelines for Commission productions.
+ The WSVH Endowment is a Permanent Fund of which $36,500.00 is held in perpetuity.
The designated fund balance of $500.00 is being held for future use in accordance with the needs of WSVH.
BUDGET COMPARISON ANALYSIS
The original budget for Georgia Public Broadcasting was maintained during the fiscal year. Expenditures on a budgetary basis were under budget and less than revenues by $1.2 million.
CAPITAL ASSETS
Georgia Public Broadcasting's investment in capital assets as of June 30, 2007, amounts to $50,500,735.38, which--with accumulated depreciation of $27,440,487.28--leaves a net book value of $23,060,248.10. This investment in capital assets includes land, buildings and equipment. The actual depreciation charges for the year totaled $1,408,855.68.
The Commission has transferred to the Board of Regents Other Property and Equipment located at the thirty-one (31) transmitter sites throughout the State. The value of the equipment transferred is $24,827,754.57 and the accumulated depreciation is
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$21,079,601.94 for a net value of $3,748,152.63. In addition to the equipment, the Commission transferred to the Board of Regents the WGPB-FM tower site on Mount Alto in Rome, Georgia valued at $200,000.00. This site was purchased by the Foundation and donated to the State of Georgia in 2007.
The transfer of equipment was required for the Commission to obtain the use of five-year general obligation bonds sold in the name of the Board of Regents on behalf of the Commission. The Commission, an authority created after 1967, cannot have bonds sold on its behalf. An intergovernmental agreement has been executed between the Commission and the Board of Regents that allows the Commission to utilize these funds for the digital conversion of the towers and antennae. The bonds were sold September 7, 2005, and the agreement with the Board of Regents expires at the end of the five-year period, and the bonds are paid in full. All equipment will be transferred back to the ownership of the Commission at the expiration of the intergovernmental agreement.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Georgia's economy remained stable in FY 2007 and is projected to maintain modest growth in FY 2008. The proposed budget for FY 2008 requested five additional positions; an increase in funding for utilities and across the board increases in expenses that affected all state agencies. The total increases for these items totaled $1,046,471.00, which is a 3.3 % increase in the Commission's budget. Georgia's monthly revenue collections continue to equal or slightly exceed expectations; therefore, Georgia Public Broadcasting is not projecting additional budget cuts in the amended FY 2008 appropriation. However, the Commission, like most other state agencies, was not permitted to request additional state funding in the FY 2008 general appropriations budget.
The state appropriation is approximately 55% of GPB's annual budget. To meet expenditures, GPB must raise approximately $14 million each year. Our revenue generation from outside sources reflects modest increases in FY 2007, and this trend is expected to improve into FY 2008.
Georgia Public Broadcasting has begun our transition to digital broadcast. Over the next year, GPB will be working to upgrade, rebuild, and enhance our broadcast transmitter equipment and facilities. We will soon be able to provide the experience of high definition television (HDTV), multiple channel choices and educational datacasting to our Georgia viewers. This digital initiative in Georgia is made possible through the efforts of our Board of Directors with funding from the Governor's Office, the General Assembly and some federal grants. In addition to digital television, we will be adding digital radio broadcast.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of Georgia Public Broadcasting's finances for all those individuals having an interest in the Commission's finances. Questions concerning any of the information grovided in this report should be addressed to: Georgia Public Broadcasting, 260 14 Street, NW, Atlanta, Georgia 30318-5360.
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BASIC FINANCIAL STATEMENTS - 11 -

GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION STATEMENT OF NET ASSETS JUNE 30, 2007

EXHIBIT"A"

ASSETS Cash and Cash Equivalents nvestments Accounts Receivable Other nventories Capital Assets Land Buildings and Building Improvements Other Property and Equipment Less: Accumulated Depreciation
Total Assets
LIABILITIES Accounts Payable and Other Accruals Deferred Revenue Noncurrent Liabilities Due Within One Year Compensated Absences Due in More Than One Year Compensated Absences
Total Liabilities
NET ASSETS Invested in Capital Assets Restricted for WSVH Endowment Nonexpendable Unrestricted
Total Net Assets

Governmental Activities

$

4,004,548.69

13,727,176.80

2,813,209.28 11,134.06

1,278,948.00 26,127,162.00 23,094,625.38 -27,440,487.28

$

43,616,316.93

$

1,100,891.90

1,816,414.29

465,857.31 775,792.69

$

4,158,956.19

$

23,060,248.10

36,500.00 16,360,612.64

$

39,457,360.74

The notes to the financial statements are an integral part of this statement. -12 -

GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION - STATEMENT OF ACTIVITIES YEAR ENDED JUNE30 1 2007

EXHIBIT "B"

Fu nctions/P rog rams Gove rnm enta I Activities Culture and Education
Tota I Governmental Activities
......
(,)

Exp_enses

Program Revenues

Operating

Charges for

Grants and

Services

Contributions

Net (Expense) Revenue and Changes in Net Assets Governmental
Activities

$

31,796,538.75 $

3,622,207.50 $

9,330,264.51 $

-18,844,066.74

$

31,796.538.75 $

3.622.207.50 $

9.330.264.51 $

-18,844,066.74

General Revenues Intergovernmental- Other Unrestricted Investment Earnings Total General Revenues Change in Net Assets

$

17,023,143.00

1 305 583 .22

$

18,328,726.22

$

-515 340.52

Net Assets - Beginning Adjustment for Prior Year Capital Projects Fund Balance
Net Assets - Beginning (Restated)
Net Assets -Ending

$

39,970,506.67

2,194.59

$

39,972,701.26

$

39.457,360.74

The notes to the fin ancia I statements are an integ ra I pa rt of this statement.

GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION
BALANCE SHEET GOVERNMENTAL FUNDS
JUNE 30, 2007

EXHIBIT"C"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Other Inventories
Total Assets

General Fund
$ 3,962,691.54 $ 13,690,176.80
1,048,183.75 11,134.06
$ 18,712,186.15 $

Capital Projects
Fund

Nonmajor Governmental
Funds

Total Governmental
Funds

41,857.15 $

$ 37,000.00

4,004,548.69 13,727,176.80

1,765,025.53

2,813,209.28 11134.06

1,806,882.68 $

37,000.00 $ 20,556,068.83

LIABILITIES AND FUND BALANCES Liabilities
Accounts Payable and Other Accruals Deferred Revenue
Total Liabilities
Fund Balances Reserved for: Encumbrances WSVH Endowment Unreserved Designated
Total Fund Balances
Total Liabilities and Fund Balances

$

571,512.33 $

529,379.57 $

538,911.18

1,277,503.11

$ 1,110,423.51 $ 1,806,882.68 $

0.00 $ 0.00 $

1,100,891.90 1,816,414.29
2,917,306.19

$

760,442.41

16,841,320.23 $ $ 17,601,762.64 $ $ 18i7121186.15 $

$ 0.00 0.00 $ 118061882.68 $

$ 36,500.00
500.00
37,000.00 $
371000.00

760,442.41 36,500.00
16,841,820.23
17,638,762.64

Amounts reported for governmental acthAties in the Statement of Net Assets are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. These assets consist of: Land Buildings and Building mprovements Other Property and Equipment Accumuated Depreciation Total Capital Assets
Long-term liabilities are not due and payable in the current period and therefore are not reported asliabilities in the funds. Long-term Liabilities at year-end consist of: Compensated Absences

$ 1,278,948.00 26,127,162.00 23,094,625.38 -27,440,487 .28

23,060,248.10

-1,241,650.00

Net Assets of Governmental Activities (Exhibit "A") The notes to the financial statements are an integral part of this statement.

$ 39A57,360.74

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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION

EXHIBIT"D"

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007

REVENUES ntergoverrmertal- Federal U.S. Department of Agriculll.re U.S. Department of Commerce ntergoverrmertal - Other State Appropriations tlv'Ough the Board of Regents of the Uriversity System of Georgia Corporation for Plblic Broadcasting - Gram GSFIC PBS-Gram Cortributions and Donations Foundation for Plbtic Broadcasting in Georgia, Inc. Interest and Other lnvesbnent Income Production Gram Rents and Royalies Sales and Services Underwriting Miscellaneous
Total Reveru,s
EXPENDITURES Current
CL.lture and Education
Excess Of Reveru,s Over (Under) Expendill.res
OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers QI.(
Total Other Financing Sources (Uses)
Excess of Reveru,s and Other Financing Sources Over (Under) Expenditures and Other Financing Uses

General Fund

Capital Projects
Fund

Normajor Goverrmental
Funds

Total Goverrmertal
Funds

$

448,857.54

396,453.96

$

448,857.54

396,453.96

$

17,023,143.00

3,503,493.00

5,826,771.51 1,276,003.51
594,321.86 845,290.59 844,201.84 1,263,867.46 74 525.75

$

31,251,618.52 $

1,066,840.87 5,450,168.75
228,656.78 $
7,590,977.90 $

29,579.71 29 579.71 $

17,023,143.00 4,570,333.87 5,450,168.75
228,656.78
5,826,771.51 1,305,583.22
594,321.86 845,290.59 844,201.84 1,263,867.46 74525.75
38,872,176.13

$

30,365,415.03 $

$

886,203.49 $

$

379,728.79

$

379 728.79

$

1,265,932.28 $

7,588,783.31 $ 2194.59 $
$ $ 2,194.59 $

30.00 $ 29 549.71 $

37,954,228.34 917,947.79

$ -379,728.79
-379, 728. 79 $

379,728.79 -379,728.79
0.00

-350, 179.08 $

917,947.79

FUND BALANCES - BEGINNING FUND BALANCES ENDING

16,335,830.36

$

17,60\762.64 $

-2,194.59 0.00 $

387,179.08 37,000.00 $

16,720,814.85 17,638,762.64

Net change infl.nd balances -total govemmertalfunds
Amoum reported for govemmertal activities in the Statement of Activities are different because:
Capital Projects Activity should not be reported in GPTC audit in the Goverrment-wide financial statemem Less: Capital Oitlay Excess of Reveru,s Over Expendill.res
Capital oitlays are reported as expendill.res in goverrmertal 11.nds. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: Capital Oltlay Depreciation Expense
Some ~ems reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as reveru,s or expendilu"es in goverrmental 11.nds. Ttis activity consists of: Increase in Compensated Absences

Change in net assets of goverrmental activities (Exhibit "B") The notes to the financial statemem are an integral part of this statement.

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$

917,947.79

-2,194.59

$

182,249.85

-1,408,855.68

-1,226,605.83

-204,487.89
s______-s_15_,,.34......,o._52_

GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY The Georgia Public Telecommunications Commission ("the Commission") is an instrumentality of the State of Georgia and a public corporation. The Commission was created by an Act of the General Assembly of the State of Georgia for the purpose of providing educational, instructional and public broadcasting services to the citizens of the State of Georgia.
The overall management of the business and affairs of the Commission is vested in a Board of Directors. State law provides that the Board is to be comprised of nine members. Board members serve on a part-time basis and are appointed by the Governor for specific periods of time. The Board of Directors appoints an Executive Director who is responsible for the day-to-day operations of the Commission.
A component unit is an entity for which the Commission is considered to be financially accountable. Financial accountability includes the ability of the Commission to appoint a voting majority of a Commission's governing board and to impose will upon the organization or to have exist the potential for the organization to provide specific financial benefits or impose specific financial burdens on the Commission.
As required by accounting principles generally accepted in the United States of America (GAAP), these financial statements present the Commission and its blended component unit, The Foundation for Public Broadcasting in Georgia, Inc. ("the Foundation"). The Foundation assists the Commission in fulfilling its statutory responsibility for providing educational and public broadcasting to the citizens of the State of Georgia. Funds raised by the Foundation are almost entirely devoted to the benefit of the Commission. The Foundation's Board of Directors is composed of the Chairperson and the Vice Chairperson of the Commission's Board, two directors elected by the Commission's Board, two directors elected by the Foundation's Board and the Executive Director of the Commission.
Because the Foundation, a legally separate entity, is in substance a part of the Commission's operations, the financial statements of the Foundation have been blended with the financial statements of the Commission. Blending the Foundation's financial activity with the general fund of the Commission is a departure from GAAP, however this does not cause the financial statements to be misleading, but rather more accurately depicts the unique relationship between the Commission and the Foundation. Information on obtaining the individual financial statements of the blended component unit is available from the Finance Office of the Commission.
The Georgia Public Telecommunications Commission, with its blended component unit, is considered a component unit of the State of Georgia 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.
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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT "E"

B. BASIS OF PRESENTATION A key feature of the governmental financial reporting model is its unique combination of government-wide and fund financial reporting. This combination of governmentwide and fund financial reporting is designed to accomplish two goals: (1) to provide information using the economic resources measurement focus and the accrual basis of accounting for functions reported in governmental funds, and (2) to provide net cost information by function for governmental activities. This is accomplished through government-wide financial statements and fund financial statements.
Government-Wide Financial Statements The Statement of Net Assets and Statement of Activities report information on all the non-fiduciary activities of the Commission and its blended component unit.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. The only exception to this general rule are in those instances where the elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable within a specific function. Program revenues include (a) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Annual appropriations received from the State of Georgia through the Board of Regents of the University System of Georgia and other items not meeting the definition of program revenues are instead reported as general revenue.
Fund Financial Statements Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. All remaining governmental funds are aggregated and reported as nonmajor funds.
The financial activities of the Commission and its blended component unit are recorded in individual funds, each of which is deemed to be a separate accounting entity. The Commission uses fund accounting to report on its financial position and results of operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a selfbalancing set of accounts.
The Commission reports the following major governmental funds:
The General Fund is used to account for all financial transactions not required to be accounted for in another fund. These transactions relate to resources obtained and used for providing educational, instructional and public broadcasting
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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

services to the citizens of the State of Georgia.
The Capital Projects Fund is used to account for the financial resources provided by the Georgia State Financing and Investment Commission (GSFIC) and other intergovernmental agencies for the digital conversion of towers and transmitters.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of cash flows.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. 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. Major revenue sources susceptible to accrual include intergovernmental revenue. Appropriations from the State of Georgia, passed through the Board of Regents of the University System of Georgia to the Commission, are recognized when they become measurable and available to the extent they are collected within the current period. All other revenue items become measurable and available when they are earned.
Expenditures generally are recorded when the related fund liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
D. ASSETS, LIABILITIES AND NET ASSETS OR EQUITY Cash and Cash Equivalents
The Commission's Cash and Cash Equivalents are considered to be cash on hand, demand deposits with banks and other financial institutions and certificates of deposits; and money market funds and the State investment pool that have the general characteristics of demand deposit accounts in that the Commission may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty.
The State investment pool (Georgia Fund 1) is an external investment pool that is not registered with the Securities and Exchange Commission (SEC) but does operate in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. The State of Georgia's Office of Treasury and Fiscal Services (OTFS) manages Georgia Fund 1 in accordance with policies and procedures established by State law and the State Depository Board, the oversight Board of OTFS. This investment is valued at the pool's share price, $1.00 per share.
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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

Funds held in money market mutual funds and certificates of deposit are valued at cost which approximates fair value.

The Commission does not have any risk exposure related to investments in derivatives or similar investments in Georgia Fund 1 as the investment policy of OTFS does not provide for investments in derivatives or similar investments through the Georgia Fund 1.

Investments Investments are defined as those financial instruments with terms in excess of three months from the date of purchase and certain other securities held for the production of revenue. Investments are presented at fair value.

Accounts Receivable Accounts receivable for service are recorded when either the asset or revenue recognition criteria have been met. Estimates of allowances for uncollectible receivables are based on aging schedules. No allowance for uncollectible accounts has been established.

Capital Assets Capital assets, which include property, plant and equipment, are reported in the applicable governmental activities in the government-wide financial statements. All land is capitalized regardless of cost. Buildings and Building Improvements are capitalized when the cost of individual items or projects exceed $100,000.00. Equipment is capitalized when the cost of individual items exceed $5,000.00. Such assets are recorded at historical costs or estimated historical cost if historical cost information is unavailable. Donated capital assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Capital assets of the Commission are depreciated using the straight-line method over the following estimated useful lives:

Buildings and Building Improvements Equipment

40 Years 3-7 Years

Compensated Absences Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employee's 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 fiscal year to cover the cost of annual leave of terminated employees.

Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Sick leave does not vest with the employee. Unused accumulated sick leave is forfeited upon retirement or termination of employment. However, certain employees who retire with one hundred and twenty days or more of forfeited annual and

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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.

Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities.

Net Assets In the government-wide financial statements, the difference in the Commission's assets and liabilities is reported as net assets. Net assets are reported in three categories:

Invested in capital assets consists of capital assets, net of accumulated depreciation. Restricted net assets result when constraints placed on net asset use are either externally imposed by creditors, granters, contributors, and the like, or imposed by law through constitutional provisions or enabling legislation. Unrestricted net assets consist of net assets that do not meet the definition of the two preceding categories. Unrestricted net assets often are designated, indicating they are not available for general operations. Such designations have internally imposed constraints on resources, but can be removed or modified.

Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change.

The Commission receives an annual appropriation from the State of Georgia through the Board of Regents of the University System of Georgia. In general, Georgia law requires that unencumbered annual state appropriations lapse at fiscal year end, however, statutory provisions allow the Commission to carry over unencumbered appropriations to future periods. Encumbrance accounting is employed in the governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent fiscal year.

E. BUDGET

.

The annual budget of the commission is prepared on the modified accrual basis. The

budget is prepared by the Commission and approved by the Board. Liabilities and

expenditures are recorded upon issuance of completed purchase orders. Goods and

services need not have been received for liabilities and expenditures to be recorded.

NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State of Georgia (and thus the Commission) cannot be placed in a depository paying interest longer than ten days without the depository providing a

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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT "E"

surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more of the 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 of indebtedness or other obligations of the counties or municipalities of the State of Georgia.

3. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.

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

5.

Bonds, bills, certificates of indebtedness, notes or other obligations of a

subsidiary corporation of the United States government, which are fully

guaranteed by the United States government both as to principal and interest

and debt obligations issued by the Federal Land Bank, the Federal Home Loan

Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives,

the Farm Credit Banks, the Federal Home Loan Mortgage Association and the

Federal National Mortgage Association.

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

As authorized in the OCGA Section 50-17-53, the State Depository Board has adopted policies that allow agencies of the State of Georgia the option of exempting demand and special deposits from the collateral requirements.

NOTE 3: DEPOSITS AND INVESTMENTS

A. Deposits The custodial credit risk for deposits is the risk that in the event of a bank failure, the Commission's deposits may not be recovered. At June 30, 2007, $4,202,189.66 of the Commission's deposits were uninsured and not collateralized.

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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

Per Statement of Net Assets
Reclassifications from Investments to Cash Certificate of Deposit

Cash and Cash Equivalents

Investments

$4,004,548.69 $13,727,176.80

37,000.00

(37,000.00)

Reclassifications to Investments for Risk Assessment Disclosures Money market mutual fund State investment pool
Per notes to the financial statements

(251,862.49) (12,430.10)

251,862.49 12,430.10

$ 3,777,256.10 $ 13 954 469,39

B. Investments
The Commission's investments as of June 30, 2007, other than those on deposit with the Office of Treasury and Fiscal Services, are presented below. All investments are presented by investment type and debt securities are presented by maturity.

Investment Type Debt Securities Corporate Debt Money Market Mutual Fund Mortgaged-Backed Securities Municipal Bonds U. S. Agencies U. S. Treasury Obligations
Other lm.estments Equity Securities - Domestic

Fair Value

Less than 1 Year

$ 1,712,674.69 251,862.49 $
1,858,952.73 517,296.00
3,306,213.69 1,767,448.44

$ 251,862.49

$ 9,414,448.04 $

251,862.49 $

4,527,591.25

$ 13,942,039.29

Investment Maturi~

1-5

6-10

Years

Years

More than 10 Years

1,375,941.94 $

336,732.75

581,302.15 136,024.00 2,228,344.40 934,734.55

349,707.69 $ 381,272.00 940,233.83 790,128.89

927,942.89
137,635.46 42,585.00

5,256,347.04 $ 2,798,075.16 $ 1,108,163.35

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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

The Commission also holds $12,430.10 of investments in the Office of Treasury and Fiscal Services Georgia Fund 1 Investment Pool. The Georgia Fund 1 Investment Pool, managed by the Office of Treasury and Fiscal Services, is not registered with the Securities and Exchange Commission as an investment company, but does operate in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. This investment is valued at the pool's share price, $1.00 per share. At June 30, 2007, the holdings of the Georgia Fund 1 Investment Pool were composed of debt securities with a weighted average maturity of 15 days and other investments that are not subject to interest rate risk.
Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. The organization does not have a formal policy for managing interest rate risk.
Credit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Commission's investment policy includes the following investing restrictions to manage credit quality risk:
1. Acceptable Equity Investments should consist of the following: Domestic (U.S.) common stock-includes preferred and convertible issues; ADR's of foreign companies; mutual funds (excluding those managed or sponsored by advisory firm(s)); Exchange Traded Funds (ETF's) and Publicly-traded Real Estate Investment Trusts (REIT's).
2. Unacceptable Equity Investments include the following, but not limited: Unlisted stocks; "Penny Stocks," Options (puts and calls) and Non U.S. Dollar denominated foreign stocks
3. Acceptable Fixed Income Investments may be comprised of the following: Domestic bonds, of "A3/A-"(as rated by Moody's and/or S&P) or better with sufficient liquidity; bonds issued by or guaranteed by the U.S. Treasury or U.S. Government agencies are considered AAA rating; Convertible bonds; Treasury Inflation Protected Securities (TIP's); Exchange Traded Funds (ETF's) and Fixed Income mutual funds.
4. Acceptable Cash Equivalent Investments may be comprised of the following: Certificates of Deposit ($100,000 maximum investment per issuer, as insured by FDIC); Money Market Funds, U.S. Treasury bills and any other high quality fixed income investment with a yield to maturity of less than one (1) year (see ratings restrictions in above Fixed Income).
5. Unacceptable/Restricted Investments and/or Transactions are as follows: Borrowing of money; Purchasing of securities on margin or short sales; Pledging, mortgaging, or hypothecating of any securities; Purchase of securities of the investment advisor, its parent or its affiliates; Purchase of illiquid securities (i.e. private placements, real estate or mortgages, Limited Partnerships); Purchase or sale of commodities, commodity contracts and Purchase or sale of futures of options for speculation or leverage.
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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

The following table provides information about the Commission's exposure to credit quality risk.

Rated Debt lnveslments Corporate Debi Money Market Mutual Fund Mortgaged-Backed Securities Municipal Bonds U. S. Agencies

Fair

Value

AAA

$ 1,712,674.69 $

139,521.33 $

251,862.49

1,858,952.73

1,512,497.55

517,298.00

517,298.00

3,306,213.69

3,188,578.23

Quality Ratings

AA

A

645,237.22 $

927,916.14

$

Unrated
251,862.49 346,455.18
137,635.46

$ 7,646,999.60 $ 5,337,893.11 $

645,237.22 $

927,916.14 $

735,953.13

The Georgia Fund 1 was rated AAA by Standard and Peer's.
Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event of a failure of the counterparty to a transaction, the Commission will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The Commission's policy for managing custodial credit risk for investments is to have all investments managed through an investment account custodian. This custodian provides Securities Investor Protection Corporation (SIPC) which protects securities customers of its member institutions for up to $500,000 (including $100,000 for claims for cash). In addition to this coverage, the custodian has secured protection through additional commercial insurance to $150 million per customer.
At June 30, 2007, $13,942,039.29 of the Commission's applicable investments were held by the investment account custodian.
Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The Commission's policy for managing concentration of credit risk is no individual security, except diversified funds, shall make up more than 5% of each portfolio. The Fixed Income Securities portfolio has additional stipulations stating that in the case of asset backed securities and private label mortgage obligations the maximum limit shall relate to obligations from a specific "master trust" which holds the assets collateralizing the securities. There shall be no such limit on U.S. Government securities or U.S. Government-sponsored agency securities or mortgage obligations that are collateralized entirely by U.S. Government or U.S. Government agency securities. The maximum exposure to any single municipal obliger shall not exceed 5% of the total portfolio.
The investment advisor for the Fixed Income portfolio which represents approximately 75% of the Commission's total funds available for investment has additional restrictions to limit the relative sector exposure of the investments and additional restrictions on the type of investments. The restrictions include: No obligations of BB&T Corporation which own the investment advisor's company; No Private Placements; No Derivatives; No Non-U.S. Dollar Denominated Issues. The restrictions to limit the relative sector exposure include: Exposure to corporate debt

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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT "E"

will be maintained at a minimum of 50% and restricted to a maximum of 150% of the weighting of corporate debt of the Lehman Intermediate Government/Corporate Index; Exposure to mortgage-backed securities will be restricted to a maximum of 30% of the weighting of the portfolio; Asset-backed securities will be restricted to a maximum of 25% of the portfolio; Commercial Mortgage Backed Securities will be restricted to a maximum of 25% of the portfolio; Yankee debt will be restricted to a maximum of 10% of the fund and Total exposure to municipal obligations shall not exceed 15% of the overall account.
NOTE 4: ACCOUNTS RECEIVABLE
Receivables at June 30, 2007, consist of the following:

Governamental Activities

Other (Services)

$ 2 813 209 28

NOTE 5: CAPITAL ASSETS

Capital asset activity for the year ended June 30, 2007, was as follows:

Governmental Activities: Capttal Assets, Not Being Depreciated:
Land

Beginning Balance

$

1,278,948.00

Increases

Decreases $

Ending Balance
1,278,948.00

CapHal Assets, Being Depreciated: Buildings and Building lmproyements Other Property and Equipment
Total Capital Assets Being Depreciated

$

26,127,162.00

23,307,894.53 $

$

49,435,056.53 $

182,249.85 $ 182,249.85 $

$ 395,519.00 395,519.00 $

26,127,162.00 23,094,625.38 49,221,787.38

Less: Accumulated Depreciation For: Buildings and Building lmprowments Other Property and Equipment
Total Accumulated Depreciation

$

(5,241,761.87} $

(21,185,388.73)

$ (26,427,150.60) $

(587,861.14) (820,994.54) $ (1,408,855.68) $

$ 395,519.00 395,519.00 $

(5,829,623.01) (21,610,864.27) (27,440,487.28)

Gowmmental Activities Capttal Assets, Net

$

24,286,853.93 $

(1,226,605.83) $

0.00 $

23,060,248.10

Depreciation expense for the fiscal year ended June 30, 2007, was $1,408,855.68 and the total amount was charged to Culture and Education function of the Commission.
The Commission transferred Land and Other Property and Equipment located at the tower sites through an Intergovernmental agreement to the Board of Regents of the University System of Georgia. This agreement provides general obligation bonds to fund the digital conversion of the Commission's towers and transmitters. The value of the land is $200,000.00 and the equipment is $24,827,754.57 and the accumulated depreciation is $21,079,601.94 for a net value of $3,948,152.63 at June 30, 2007.
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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

NOTE 6: OPERATING LEASES
The Commission has entered into certain agreements to lease equipment and transmitter space, which are classified for accounting purposes as operating leases. These leases generally contain provisions that, at the expiration date of the original term of the lease, the Commission has the option of renewing the lease on a year-to-year basis. Total expenditures for the rental of real property under.such leases were $1,148,474.32 for the year ended June 30, 2007. The future minimum commitments for operating leases as of June 30, 2007, 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 Ended June 30 2008 2009 2010 2011 2012 2013-2018

$ 1,639, 199.84 1,506,456.22 933,797.40 938,376.24 889,731.48 4,629,744.00

Total Minimum Commitments

$ 10,537,305.18

NOTE7: LONG~ERMDEBT

Compensated Absences Compensated absences are liquidated by the fund they are reported in and do not have scheduled future debt service requirements beyond one year.

Long-term obligations at June 30, 2007, and changes for the fiscal year then ended are

as follows:

July 1, 2006

Increases

Decreases

June 30, 2007

Amounts Due Within One Year

Compensated Ansences

$ 1,037,162.11 $ 726,838.69 $ 522,350.80 $ 1,241,650.00 $

465,857.31

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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT "E"

NOTE 8: UNRESERVED - DESIGNATED FUND BALANCES
Designations of fund balances are used to show the amounts within the unreserved fund balances intended to be used for specific purposes, but not legally restricted. The Commission has designated unreserved fund balances for future year's expenditures as follows:

Purpose

Governmental Funds

Digital Conversion General operational support lllges fund Programming and educational content productions WSVH-FM

$ 7,500,000.00 320,439.14
1,020,881.09 8,000,000.00
500.00

Total Designations

$16,841,820.23

NOTE 9: RISK MANAGEMENT
Public Entity Risk Pool The Department of Community Health administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia, units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The Department of Community Health has contracted with various outside parties to process claims in accordance with the State Employees' Health Benefit Plan as established by the Department. Details on the liability for unpaid claims are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2007.
Other Risk Management The Commission is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and injuries to employees. The State of Georgia utilizes self-insurance programs established by individual agreement, statute or administrative action, to provide property insurance covering fire and extended coverage and automobile insurance and to pay losses that might occur from such causes; liability insurance for employees against personal liability for damages arising out of performance of their duties; survivors' benefits for eligible members of the Employees' Retirement System; consolidating processing of unemployment compensation claims against State agencies and the payment of sums due to the
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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

Department of Labor; and workers' compensation insurance coverage for employees of the State and for the receipt of benefits as prescribed by the workers' compensation statutes of the State of Georgia. These self-insurance funds are accounted for as internal service funds of the State of Georgia where assets are set aside for claim settlements. The majority of the risk management programs are funded by assessments charged to participating organizations. A limited amount of commercial insurance is purchased by the self-insurance funds applicable to property, employee and automobile liability, fidelity and certain other risks to limit the exposure to catastrophic losses. Otherwise, the risk management programs service all claims against the State for injuries and property damage. Financial information relative to the self-insurance funds will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2007.
In addition, the Commission has purchased a liability insurance policy for broadcasters and producers and another liability and crime policy for the Foundation's Board of Directors.
NOTE 10: RELATED PARTY TRANSACTIONS
As further described in Note 1, the Commission, through its board members, the State of Georgia, and other State agencies, participates in related party transactions which are inherent to its organizational and funding structure. Agencies that fund the Commission also contract with the Commission for goods and services and the Commission purchases goods and services from funding agencies.
NOTE 11: POST EMPLOYMENT BENEFITS
In addition to the pension benefits described in Note 12 that follows, the State of Georgia provides postretirement health care benefits through the State Health Benefit Plan to retirees pursuant to OCGA Section 45-18. An individual eligible for these benefits must have been a full time employee at the time of retirement of either the State of Georgia or a county social service agency and must be receiving monthly retirement benefits from either the ERS or a county employees' retirement system.
The State Heath Benefit Plan (Plan) is a public entity risk pool funded by employee and employer contributions. Employees and retirees subject to the Plan contribute amounts determined by the Department of Community Health for various health insurance plans. The various agencies of the State contribute to the health insurance fund based upon amounts recommended by the Department on Community Health and set forth in the State of Georgia's Appropriations Act. The Plan is funded on a "pay-as-you-go" basis. Expenses of the Plan include provisions for incurred but not reported claims. The portion of the employer contributions and expenses attributable to postretirement health care benefits cannot be reasonably estimated.

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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

NOTE 12: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA Plan Description
The Commission participates in the Employees' Retirement System of Georgia ("ERS"), a single-employer defined benefit plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. The benefit structure of ERS is defined by State statute and was significantly modified on July 1. 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.
Under both the old plan and the new plan, 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 60. 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 25 years of service regardless of age.
Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest twenty-four consecutive calendar months 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.
In addition, the ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415.
The ERS issues a financial report each fiscal year which may be obtained through ERS.
Funding Policy As established by State statute, all full-time employees of the State of Georgia and its political subdivision, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are
established by State statute. The Commission's payroll for the year ended June 30, 2007, for employees covered by ERS was $8,113,687.27. The Commission's total payroll for all employees was $9,182,492.82.
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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

Under the old plan, member contributions consist of 4% of annual compensation up to $4,200.00 and 6% of annual compensation in excess of $4,200.00. Of these member contributions, the employee pays the first 1.25% and the employer pays the remainder on behalf of the employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Commission also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 2007, the ERS employer contribution rate for the Commission amounted to 10.17% of covered payroll and included the amounts contributed on behalf of the employee under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees.

Total contributions to the plan made during fiscal year 2007 amounted to $926,776.67, of which $825,333.07 was made by the Commission and $101,443.60 was made by employees. These contributions met the requirements of the plan. There is no net pension obligation for the plan. Employer contributions (annual pension cost) for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year 2007 2006 2005

Annual Pension Cost {APC) $825,333.07 $765,795.76 $780,163.21

Percentage OfAPC
Contributed 100.00% 100.00% 100.00%

Net
Pension
Obligation
N/A N/A N/A

The required contribution for 2007 was determined as part of the June 30, 2005, actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 7.25% investment rate of return, (b) projected salary increases ranging from 5.45% to 9.25% per year. Both (a) and (b) included an inflation component of 4.00%. The assumptions did not include postretirement cost-of-living adjustments. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The employer contributions are projected to liquidate the actuarial accrued funding excess within 10 years based upon the actuarial valuation at June 30, 2006.
Actuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2007, financial audit report which may be obtained through the ERS.
GEORGIA DEFINED CONTRIBUTION PLAN Plan Description
Certain employees of the Commission participate in the Georgia Defined Contribution Plan ("GDCP"), a single-employer defined contribution plan established by the Georgia General Assembly for the purpose of providing retirement coverage for State employees who are not members of a public retirement or pension system. The ERS Board of Trustees administers GDCP.
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GEORGIA PUBLIC TELECOMMUNICATJONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

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 their account, the Board has the option of requiring 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 their account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute.
The Employees' Retirement System of Georgia (ERS) issues a financial report each fiscal year which may be obtained through ERS.
Contributions and Vesting Member contributions are 7.5% of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board. Upon termination of employment, the amount of the member's account is refundable upon request by the member. The Commission's payroll for the year ended June 30, 2007, for employees covered by GDCP was $416,769.66. The Commission's total payroll for all employees was $9, 182,492.82.
Total contributions made by employees during fiscal year 2007 amounted to $31,263.40 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
TEACHERS' RETIREMENT SYSTEM OF GEORGIA Plan Description
The Commission also participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from TRS.
Benefits A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service.
Normal retirement (pension) benefits paid to members are equal to 2.0% of the average of the member's 2 highest paid consecutive years of service multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of 1/12 of 7.0% for each month the member is below age 60, or by 7.0% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based
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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

on the CPI, will be made in future years. Retirement benefits are payable monthly for life. Death, disability and spousal benefits are also available.
Funding Policy TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Member contributions are 5% of annual salary, and employer contributions are 9.28%, as required by the annual actuarial valuation. The Commission's payroll for the year ended June 30, 2007, for employees covered by TRS was $453,597.27. Total contributions to the plan made during fiscal year 2007 amounted to $64,773.86, of which, $42,093.71 was made by the Commission and $22,680.15 was made by employees. These contributions represented 9.28% (Commission) and 5% (employees) of covered payroll.
Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year 2007
2006
2005

Percentage Contributed
100.00%
100.00%
100.00%

Required Contribution $42,093.71
$39,249.49
$41,627.97

NOTE 13: NONMONETARY TRANSACTIONS
During the year ended June 30, 2007, the Commission received in-kind contributions from the following institutions that housed local GPB radio operations throughout the state. The in-kind contributions are administrative, communication, facilities and departmental support. These amounts are not reflected on the Commission's financial statements.

Institution

GPB Facility

In-kind Contribution

Augusta State University Highlands College Mercer University Piedmont College State University of West Georgia University of Georgia

WACG-FM WGPB-FM WMUM-FM WPPR-FM WUWG-FM WUGA-FM

$ 29,667.04 1,328.03
90,507.65 4,840.00 18,846.11
735,326.23

Total In-kind Contributions

$ 880,515.06

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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2007

EXHIBIT"E"

NOTE 14: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustments by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the Commission expects such amounts, if any, to be immaterial.
Litigation, claims and assessments filed against the Commission, if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2007.

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SUPPLEMENTARY INFORMATION - 35 -

GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION
SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL GENERAL FUND
YEAR ENDED JUNE 30, 2007

SCHEDULE "1"

Funds Available Revenues Other Revenues Retained
Expenditures Culture and Education

Original Budget

Final Budget

Actual Amounts (Budgets!}'. Basis)

Variance-
Favorable
(Unfavorable l

$ 31,247,434.00 $ 31,247,434.00 $ 31,250,905.24 $

3,471.24

$ 31,247,434.00 $ 31,247,434.00 $ 29,982,242.07 $ 1,265,191.93

Excess of Funds Available over Expendillres
The budget for the Commission is adopted on a basis consistent with accounting practices prescribed or pennitted by staMes and regulations of the State of Georgia, which is a basis other than prescribed by Generally Accepted Accounting Principles (GAAP). The following is an explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sourcesflntlows of resources Actual amounts (budgetary basis) "Funds available"
Differences - Budget to GAAP:
For budget purposes, certain adjustments to prior
year revenue/receivable items are considered fund balance adjustments rather than revenue items for financial reporting purposes.
Total revenues as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds (Eldlibit "D")
Uses/outflows for resources Actual amolllts (budgetary basis) "expenditures"
Differences - Budget to GAAP:
For budget purposes, certain adjlstments to prior year expendillre/payable items and inventory adjlstments are considered fund balance adjlstments rather than expendillre items for financial reporting purposes.
For budget purposes, encumbrances are reported as expenditures in the year purchase orders are issued but are expensed when invoiced for financial reporting purposes.
For budget purposes, expenditures in the Foundation are non-budgetary.
Total expenditures as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances -Governmental Funds (Exhibit "D")

$ 1,268,663.17 $ 1,268,663.17
$ 31,250,905.24 713.28
$ 31,251,618.52 $ 29,982,242.07
-236, 134.85 478,105.53 141,202.28 $ 30,365,415.03

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NONMAJOR GOVERNMENTAL FUNDS Special Revenue Fund - The Special Revenue Fund for the Commission is used to account for funds bequeathed to The Foundation for Public Broadcasting in Georgia, Inc. (blended component unit of the Commission). The funds are restricted to providing programming about the environment and the evil of child abuse. Permanent Fund - The Permanent Fund for the Commission is used to account for funds bequeathed to The Foundation for Public Broadcasting in Georgia, Inc. (blended component unit of the Commission). The permanent fund is divided into two parts: reserved and unreserved. The reserved portion of the endowment is held in perpetuity. The interest earned on the endowment can be used in accordance with periodic determinations of the needs of WSVH as determined by the Foundation Board of Directors.
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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2007

SCHEDULE "2"

ASSETS Investments
FUND BALANCES Reserved for: WSVH Endowment Unreserved Designated
Total Fund Balances

Seecial Revenue Singleton Trust

Pennanent Fund WSVH
Endowment

Total Nonmajor Governmental
Funds

$

0.00 $

37,000.00 $

37,000.00

$

36,500.00 $

36,500.00

$

0.00

500.00

500.00

$

0.00 $

37,000.00 $

37,000.00

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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007

SCHEDULE "3"

REVENUES Interest and Other Investment Income
EXPENDITURES Current Culture and Education
Excess Of Revenues Over {Under) Expenditures
OTHER FINANCING {USES) Operating Transfers Out
Excess of Revenues Over (Under) Expenditures and Other Financing Uses
FUND BALANCES -BEGINNING
FUND BALANCES ENDING

Seecial Revenue Singleton Trust

Permanent Furd WSVH
Endowment

Total Nonmajor Governmental Funds

$ 27,680.48 $ 1,899.23 $ 29,579.71

$

30.00 $

$ 27,650.48 $

0.00 $ 1,899.23 $

30.00 29,549.71

-376,491.66

-3,237.13 -379,728.79

$ -348,841.18 $

348,841.18

$

0.00 $

-1,337.90 $ -350,179.08

38,337.90

387,179.08

37,000.00 $ 37,000.00

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ANALYSIS OF FINANCIAL ACTIVITY OF BLENDED COMPONENT UNIT (FOUNDATION FOR PUBLIC BROADCASTING IN GEORGIA, INC.)
-41 -

GEORGIA PUBLIC TELECOMMUNICATION COMMISSION ANALYSIS OF BALANCE SHEET ACTIVITY OF BLENDED COMPONENT UNIT JUNE 30, 2007

SCHEDULE "4"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Other Inventories
Total Assets

Commission

Foundation

Total

$ 1,054,467.21 $ 2,908,224.33 $ 3,962,691.54

13,690,176.80

13,690,176.80

1,048,183.75 11 134.06

1,048,183.75 11,134.06

$ 2,113,785.02 $ 16,598,401.13 $ 18,712,186.15

LIABILITIES AND FUND BALANCES Liabilities
Accounts Payable and Other Accruals Deferred Revenue
Total Liabilities
Fund Balances Reserved for: Encumbrances Unreserved Designated
Total Fund Balances
Total Liabilities and Fund Balances

$ 570,939.89 $
538,911.18
$. 1,109,851.07 $

572.44 $

571,512.33 538,911.18

572.44 $ 1,110,423.51

$ 760,442.41

$

760,442.41

243,491.54 $ 16,597,828.69

16,841,320.23

$ 1,003,933.95 $ 16,597,828.69 $ 17,601,762.64

$ 2,113,785.02 $ 16,598,401.13 $ 18,712,186.15

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GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION SCHEDULE "5" ANALYSIS OF OPERATING ACTIVITY AND CHANGES IN FUND BALANCES
OF BLENDED COMPONENT UNIT YEAR ENDED JUNE 30, 2007

Commission

Foundation

Total

REVENUES

Intergovernmental- Other

State Appropriations through the Board of Regents of the

University System of Georgia

$ 17,023,143.00

$ 17,023,143.00

Corporation for Public Broadcasting - Grants

3,503,493.00

3,503,493.00

Contributions and Donations

Foundation for Public Broadcasting in Georgia, Inc.

$ 5,826,771.51

5,826,771 :51

Interest and Other Investment Income

55,889.60

1,220,113.91

1,276,003.51

Production Grants

594,321.86

594,321.86

Rents and Royalties

845,290.59

845,290.59

Sales and Services

844,201.84

844,201.84

Underwriting

1,263,867.46

1,263,867.46

Miscellaneous

741525.75

74,525.75

Total Revenues

$ 241204z733.10 $ 710461885.42 $ 3112511618.52

EXPENDITURES Current Culture and Education

$ 3012241212.75 $ 141,202.28 $ 30,365,415.03

Excess Of Revenues Over (Under) Expenditures

$ -610191479.65 $ 6,9051683.14 $

886,203.49

OTHER FINANCING SOURCES (USES) Operating Transfers In ntra-Fund Transfers

$ 379,728.79

$

61431 I 130.37 $ -61431 I 130.37

379,728.79 0.00

Total Other Financing Sources (Uses)

$ 61810,859.16 $ -61431.130.37 $

379,728.79

Excess of Revenues andOther Financing Sources Over (Under) Expenditures and Other Financing Uses $

791,379.51 $

474,552.77 $ 1,265,932.28

FUND BALANCES - BEGINNING

212,554.44 16,123,275.92

16,335,830.36

FUND BALANCES - ENDING

$ 1,003,933.95 $ 16,597,828.69 $ 17,601,762.64

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SECTION II INTERNAL CONTROL AND COMPLIANCE REPORT
-45 -

DEPARTMENT OF AUDITS AND ACCOUNTS

270 Washington St. S.W. Suite 1-156

Atlanta, Georgia 30334

RUSSELL W. IIINToN

STATE AUDITOR (404) 656-2174

August 23, 2007

The Honorable Sonny Purdue, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Georgia Public Telecommunications Commission
and Honorable Nancy Hall, Executive Director
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Georgia Public Telecommunications Commission as of and for the year ended June 30, 2007, which collectively comprise the Georgia Public Telecommunications Commission's basic financial statements and have issued our report thereon dated August 23, 2007.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Georgia Public Telecommunications Commission's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Georgia Public Telecommunications Commission's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Georgia Public Telecommunications Commission's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control.

-47-

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Georgia Public Telecommunications Commission's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, members of the Georgia Public Telecommunications Commission Board, others within the entity, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:wlt

R sell W. Hinton, CPA, CGFM State Auditor

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