FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR FISCAL YEAR ENDED DECEMBER 31, 2001
COMMISSION FILE NUMBER ____________
THE 401(k) SAVINGS PLAN FOR ACS-GSG
(FULL TITLE OF THE PLAN)
----------
AFFILIATED COMPUTER SERVICES, INC.
(NAME OF ISSUER)
2828 NORTH HASKELL AVENUE
DALLAS, TEXAS 75201
(PRINCIPAL EXECUTIVE OFFICE)
Notices and communications from the Securities and Exchange Commission relative
to this report should be forwarded to:
William L. Deckelman, Jr., Esq.
Executive Vice President, Secretary And General Counsel
Affiliated Computer Services, Inc.
2828 North Haskell Avenue
Dallas, Texas 75201
(214) 841-6144
REQUIRED INFORMATION
The 401(k) Savings Plan for ACS-GSG is subject to the requirements of the
Employee Retirement Income Security Act of 1974. Attached hereto is a copy of
the most recent financial statements and schedules of the Plan prepared in
accordance with the financial reporting requirements of ERISA.
INDEX TO EXHIBITS
Exhibit No. Description
23 Consent of Salmon, Beach & Company, P.C.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrative Committee (or other persons who administer the employee benefit
plan) has duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE 401(k) SAVINGS PLAN FOR ACS-GSG
By: Lora Villarreal
-------------------------------
Name: Lora Villarreal
Title: Administrative Committee Member
Date: June 28, 2002
ACS GOVERNMENT SAVINGS PLAN
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORT
FOR THE YEAR ENDED DECEMBER 31, 2001
ACS GOVERNMENT SAVINGS PLAN
TABLE OF CONTENTS
DECEMBER 31, 2001
Independent Auditors' Report .......................... 1
Statements of Net Assets Available for Benefits
December 31, 2001 and 2000 ......................... 3
Statement of Changes in Net Assets Available for
Benefits-For the Year Ended December 31, 2001 ...... 4
Notes to Financial Statements ......................... 5
Supplemental Schedule ................................. 15
INDEPENDENT AUDITORS' REPORT
To the Participants and Plan Committee of the
ACS Government Savings Plan
We have audited the accompanying statements of net assets available for plan
benefits of ACS Government Savings Plan (Plan) as of December 31, 2001 and
December 31, 2000, and the related statement of changes in net assets available
for plan benefits for the year ended December 31, 2001. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion 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. 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 opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan as
of December 31, 2001 and 2000, and the changes in net assets available for plan
benefits for the period ended December 31, 2001 in conformity with accounting
principles generally accepted in the United States of America.
Our audit of the Plan's financial statements was conducted for the purpose of
forming an opinion on the basic financial statements taken as a whole. The
supplemental schedule on page 15 is presented for the purpose of additional
analysis and is not a required part of the basic financial statements, but is
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974.
ACS Government Savings Plan
Page two
The supplemental schedule is the responsibility of the Plan's management. The
supplemental schedule has been subjected to the auditing procedures applied in
the audits 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.
Salmon, Beach & Company
a Professional Corporation
Certified Public Accountants & Consultants
Dallas, Texas
June 24, 2002
ACS GOVERNMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2001 AND 2000
2001 2000
------------ ------------
Cash in CIGNA Direct $ -- $ 53,689
Cash in Fidelity interest bearing accounts 39,041,993 --
Funds held in Connecticut General Life Insurance
Guaranteed Income Fund -- 13,601,059
Participant directed investments:
Pooled separate accounts held by Connecticut
General Life Insurance
At fair value -- 56,284,565
Pooled separate accounts held by Fidelity
At fair value 86,909,799 --
ACS stock 7,467,519 1,319,355
Non-employer corporate stock 114,696 --
Participant loans 3,219,207 2,486,846
------------ ------------
136,753,214 73,745,514
------------ ------------
Accounts receivable
Participants 1,176 1,051
Employer 1,910,997 403
Other 9,856 --
------------ ------------
Total Accounts Receivable 1,922,029 1,454
------------ ------------
TOTAL ASSETS 138,675,243 73,746,968
------------ ------------
LIABILITIES
Benefit claims payable 26,627 --
Operating payables 27,723 --
------------ ------------
54,350 --
------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS $138,620,893 $ 73,746,968
============ ============
The accompanying notes are an integral part of these financial statements.
3
ACS GOVERNMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2001
ADDITIONS:
Contributions:
Participants $ 12,214,533
Employer 6,233,484
Rollover from other plans 1,002,002
-------------
Total contributions 19,450,019
-------------
Earnings on investments:
Net realized/unrealized depreciation on investments (8,571,299)
Interest/dividends 1,129,945
-------------
Total earnings on investments (7,441,354)
-------------
Total Additions 12,008,665
-------------
DEDUCTIONS:
Benefits paid to participants 10,847,991
Plan expenses 38,337
-------------
Total Deductions 10,886,328
-------------
Increase in net assets before net transfers to this plan 1,122,337
Net transfers to this plan 63,751,588
-------------
INCREASE IN NET ASSETS 64,873,925
NET ASSETS AVAILABLE FOR BENEFITS:
BEGINNING OF PERIOD 73,746,968
-------------
END OF PERIOD $ 138,620,893
=============
The accompanying notes are an integral part of this financial statement.
4
ACS GOVERNMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001
NOTE 1. PLAN DESCRIPTION
The following description of ACS Government Savings Plan (Plan) provides only
general information. Affiliated Computer Services, Inc. (ACS) is the sponsor and
administrator of the Plan. Fidelity Management Trust Company is the Trustee.
Participants should refer to the Plan agreement for a more complete description
of the Plan's provisions.
GENERAL
The Plan was established on July 1, 1988 and was amended and restated on January
1, 1999. Until January 1, 1999, the Plan was known as The 401(k) Savings Plan
for Employees of Computer Data Systems, Inc. From January 1, 1999 until July 1,
2001, the Plan was known as The 401(k) Savings Plan for ACS Government Solutions
Group. The Plan was amended and restated as of July 1, 2001 to merge the assets
of ACS Defense, Inc. Profit Sharing and 401(k) Plan, and ACS Desktop Solutions,
Inc. 401(k) and Profit Sharing Plan. The Plan is subject to the provisions of
the Employee Retirement Income Security Act of 1974 (ERISA) and Section 401(a)
of the Internal Revenue Code (IRC) of 1986.
The Plan changed administrators in July 2001 from Connecticut General Life
Insurance (CIGNA) to Fidelity Investments. Participants of the Plan had the
option of investing their contributions in the following funds held at CIGNA
during the year ended December 31, 2001:
GENERAL ACCOUNT
CIGNA Charter Guaranteed Income Fund is a fixed income fund that invests
in a diversified portfolio of high quality, fixed income instruments
(primarily intermediate-term bonds and commercial mortgages) within
Connecticut General Life Insurance Company's General Account. The
principal and interest earnings are guaranteed by CIGNA.
SEPARATE ACCOUNTS
CIGNA Lifetime Funds are comprised of five distinct funds offering a
range of risk/return characteristics for 20, 30, 40, 50 and 60 year olds.
These funds include different bond/stock mixes that are appropriate for
individuals at different stages of their lives.
Large Company Stock Index Fund, managed by CIGNA, invests in stocks that
comprise the S&P 500 stock index.
Large Company Stock - Growth Fund, managed by Putnam, invests primarily
in the equity securities selected from 600 to 1,000 companies that have
market capitalization of at least $2 billion, a minimum of 10% earnings
per share growth on a five-year basis and evidence of ample liquidity.
Fidelity Advisor Growth Opportunities Fund invests in common stocks and
securities which are convertible to the common stock of companies
believed to have long-term growth potential.
American Century Ultra Fund invests primarily in large companies that
will maximize growth of capital over time.
5
ACS GOVERNMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2001
NOTE 1. PLAN DESCRIPTION (CONTINUED)
SEPARATE ACCOUNTS (CONTINUED)
Balanced Fund, managed by Invesco Capital Management, Inc., seeks to
achieve a high total return by investing in a combination of equity and
fixed income securities.
Invesco Dynamics Account invests in common stocks of mid-sized companies
with market capitalizations between $1 billion and $10 billion to provide
capital appreciation.
Small Company Stock - Growth Fund, managed by TimesSquare Capital
Management, invests primarily in the common and preferred stock of U.S.
companies with market capitalization between $30 million and $3 billion
with a focus on growing companies involved in new product development and
technological breakthroughs.
Janus Worldwide Account invests primarily in common stocks of foreign and
domestic stocks to provide long-term growth of capital and preservation
of capital.
Foreign Stock II Fund, managed by the Bank of Ireland Asset Management
team, invests in common stocks of well-established companies outside the
U.S. to provide long-term capital appreciation.
CIGNA Direct is a self-directed account where a participant can select
publicly traded stocks or mutual funds up to 50% of the participant's
total account balance.
Legg Mason Value Trust invests in securities that are believed to be
undervalued in relation to the long-term earning power of the invested
companies.
ACS stock is an investment in common stock. This stock belongs to the
parent company of the Plan's sponsor.
Participants in the Plan had the option of investing their contributions to the
Plan in the following funds held at Fidelity during the year ended December 31,
2001:
SEPARATE ACCOUNTS
Fidelity BrokerageLink seeks to provide a broad range of investment
products allowing the employee to manage their retirement savings more
actively. The participant can invest in most listed stocks, options,
corporate bonds, zero-coupon bonds, U.S. Treasury securities, mortgage
securities and U.S. government agency bonds, certificates of deposit,
unit investment trusts, foreign securities, and other securities.
Fidelity Diversified International Fund is a growth mutual fund that
seeks to increase the value of investments over the long term through
capital growth by investing at least 65% of total assets in foreign
securities.
6
ACS GOVERNMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2001
NOTE 1. PLAN DESCRIPTION (CONTINUED)
SEPARATE ACCOUNTS (CONTINUED)
Fidelity Equity-Income Fund is a growth and income mutual fund, which
seeks to provide a reasonable income by attempting to provide a yield
that exceeds the composite yield of the S&P 500 Index. At least 65% of
total assets are invested in income-producing equity securities, mostly
large-cap "value" stocks.
Fidelity Freedom Income Funds (General, 2000, 2010, 2020, 2030 and 2040)
offers a blend of stocks, bonds, and short-term investments within a
single fund. The general fund seeks high current income and capital
appreciation while the target retirement dates seek to provide high total
returns.
Fidelity Growth Company Fund is a growth mutual fund that seeks to
provide capital appreciation by investing primarily in common stocks with
above average growth potential.
Fidelity Low-Priced Stock Fund is a growth mutual fund that seeks to
provide capital appreciation by normally investing at least 65% of total
assets in low-priced common stocks of small and medium-sized companies.
Fidelity Retirement Money Market Portfolio is a money market mutual fund
that seeks to provide a high level of current income that is consistent
with the preservation of capital and liquidity. The fund invests in U.S.
dollar-denominated money market securities and repurchase agreements for
those securities, and may enter into reverse repurchase agreements.
Fidelity Spartan U.S. Equity Index Fund is a growth and income mutual
fund seeking to provide investment results that correspond to the total
return performance of common stocks publicly traded in the United States
by investing at least 80% of assets in common stocks included in the S&P
500.
ACS Stock Fund is a fund that seeks to increase the value of investments
over the long term by investing in the common stock of the parent company
employer by pooling employee's money to buy shares of stock in the parent
company or its affiliates. Ownership is measured in units of the fund
rather than shares of stock.
Brazos Real Estate Securities Fund is a growth and income mutual fund
that seeks to provide exposure to the real estate market, with the
flexibility and control offered by a portfolio of real estate securities.
The fund's assets are invested primarily in stocks of companies in the
real estate industry, including real estate investment trusts.
Davis New York Venture Fund, Inc. - Class A is a value mutual fund which
seeks to increase the value of investments over the long term through
capital growth by investing primarily in stocks of large U.S. companies
with market capitalizations of at least $5 billion, with prospects for
long-term sustainable growth.
7
ACS GOVERNMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2001
NOTE 1. PLAN DESCRIPTION (CONTINUED)
SEPARATE ACCOUNTS (CONTINUED)
Franklin Small-Mid Cap Growth Fund I - Class A is a growth mutual fund
seeking to increase the value of investment over the long term through
capital growth by normally investing at least 80% of its assets in the
equity securities of U.S. small-capitalization companies and U.S.
mid-capitalization companies.
INVESCO Dynamics Fund is a growth mutual fund that seeks to increase
investments over the long term through capital growth by investing
primarily in domestic common stocks of companies traded on both the U.S.
securities exchanges and the over-the-counter market.
PIMCO High Yield Fund - Administrative Class Shares is an income mutual
fund which seeks to provide a combination of high current income and
capital growth by investing primarily in U.S. dollar-denominated bonds of
domestic and foreign issuers rated below investment grade, but at least a
B rating.
PIMCO Total Return Fund - Administrative Class Shares is an income mutual
fund that seeks to provide a high total return that exceeds general bond
market indices by investing in all types of bonds, including U.S.
government, corporate, mortgage, and foreign.
Vanguard Balanced Index Fund seeks to provide investment results that
match the combined performance of the Wilshire 5000 Index and Lehman
Brothers Aggregate Bond Index. The fund invests 60% of its assets in
equity securities and 40% in debt securities.
Vanguard Global Equity Fund is a growth stock mutual fund that seeks to
provide the potential for long-term growth of capital by investing in
U.S. and foreign stocks that offer attractive prospects for total return.
FUNDING
The Plan is a defined contribution plan wherein participants elect to reduce
their compensation and have such reductions contributed to the Plan on their
behalf. The Plan covers all eligible employees of the Company who elect to
participate except those covered by a collective bargaining agreement, leased or
who are nonresident aliens not receiving U.S. source income.
Participating employees may contribute up to the lesser of 15% (18% effective
September 1, 2001) of covered compensation through payroll deductions or the
maximum amount permitted under applicable Internal Revenue Service provisions.
The Company may make a discretionary matching contribution each pay period to
the Plan equal to a uniform percentage of each such participant's pre-tax
contribution to be determined each year by the employer.
8
ACS GOVERNMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2001
NOTE 1. PLAN DESCRIPTION (CONTINUED)
FUNDING (CONTINUED)
The Company made the following contributions for the associated companies during
the year ended December 31, 2001:
ACS Government Solutions Group, Inc.
For non-utility contract employees - 100% of the first 2% of employee
contributions and then 25% of the next 4% not to exceed 3% of
compensation, determined each payroll period.
For utility contract employees - 100% of employee contributions limited
to 6% of employee pre-tax contributions determined each payroll period.
ACS Defense, Inc.
25% of employee contributions limited to 5% of compensation, determined
on a payroll-by-payroll basis.
Group A employees are eligible to receive matching contributions but are
not eligible for profit sharing contributions.
Group G employees are eligible to receive matching contributions based on
100% of the first 2% of an employee's pre-tax contribution and a
discretionary match of 25% of the next 4% of an employee's pre-tax
contribution.
Group M employees are not eligible for matching or profit sharing
contributions.
Additional employer contributions that have been made to certain
participant accounts include prior post-tax contributions and Betac
International Corporation ESOP shares.
ACS Desktop Solutions, Inc.
Discretionary matching may be made at least annually. For the year ended
December 31, 2001, the Company matched participant contributions up to 2%
of compensation.
All contributions made by the Company will be invested in the ACS Stock Fund but
can be redirected at any time at the discretion of the participant.
The Company may make a discretionary profit sharing contribution based on
compensation. Employees generally must complete 1,000 hours of service during
the plan year and be employed on the last day of the plan year. For the year
ended December 31, 2001 the Company made $534,636 in profit sharing
contributions to employees of ACS Defense, Inc. An additional $1,910,977 was
recognized as an account receivable from the employer for the year, resulting in
a total profit sharing contribution of $2,445,613 for the year ended December
31, 2001.
9
ACS GOVERNMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2001
NOTE 1. PLAN DESCRIPTION (CONTINUED)
ALLOCATION
The participants' and Company's matching contributions are allocated on a
semi-monthly basis to each participant's account. Investment income or loss is
allocated daily based on the ratio of each participant's account balance at the
end of each day.
Company profit sharing contributions are allocated among the participants on the
last day of the Plan year and in the same proportion that the entitled
participant's compensation for such Plan year bears to the total compensation of
all entitled participants.
VESTING
Employee contributions are 100% vested. An employee is credited with a year of
service for each fiscal year in which the employee completes at least 1,000
hours of service.
ACS Government Solutions Group, Inc. employer contributions vests at the
following rates (after January 1, 1999):
Years of Vesting Service Vested Interest
------------------------ ---------------
Less than 2 0%
2 but less than 3 50%
3 or more 100%
Prior to January 1, 1999, the vesting schedule for the employees of ACS
Government Solutions Group, Inc. was as follows:
Years of Vesting Service Vested Interest
------------------------ ---------------
Less than 1 0%
1 to 2 20%
2 to 3 40%
3 to 4 60%
4 to 5 80%
5 or more 100%
10
ACS GOVERNMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2001
NOTE 1. PLAN DESCRIPTION (CONTINUED)
VESTING (CONTINUED)
ACS Defense, Inc. employer contributions vest at the following rates:
Years of Vesting Service Vested Interest
------------------------ ---------------
Less than 1 0%
1 20%
2 40%
3 60%
4 80%
5 or more 100%
Group G employees vest in accordance with the following schedule:
Years of Vesting Service Vested Interest
------------------------ ---------------
Less than 2 0%
2 to 3 50%
3 or more 100%
Participants in Betac International Corporation 401(k)/Tax Deferred Savings Plan
were 100% vested in Betac International Corporation employer contributions as of
September 30, 1999 and early vesting provisions apply to employees hired before
that date.
ACS Desktop, Inc. employer contributions vest at the following rates (after
January 1, 1999):
Years of Vesting Service Vested Interest
------------------------ ---------------
Less than 2 0%
2 but less than 3 50%
3 or more 100%
Prior to January 1, 1999, the vesting schedule for the employees of ACS Desktop,
Inc. was as follows:
Years of Vesting Service Vested Interest
------------------------ ---------------
Less than 1 0%
1 20%
2 50%
3 or more 100%
11
ACS GOVERNMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2001
NOTE 1. PLAN DESCRIPTION (CONTINUED)
PARTICIPANT NOTES RECEIVABLE
Participants may borrow from their fund accounts a minimum of $1,000 up to a
maximum equal to the lesser of $50,000 or 50% of their account balance. A
participant may not have more than two loans outstanding at the same time. Loan
transactions are treated as a transfer to (from) the investment fund and from
(to) the Participant Notes fund. Loan terms range from 1-5 years or within a
reasonable time if the purpose of the loan is to acquire a primary residence.
The balance in the participant's account secures the loans. The interest rate is
a reasonable rate commensurate with current rates. Interest rates range from
6.6% to 10.75%. Principal and interest is paid ratably through regular payroll
deductions. Participant notes receivable are valued at cost, which approximates
fair values.
TERMINATION
The Company's Board of Directors may terminate the Plan at any time. Upon
termination, the Board of Directors may elect to distribute to each participant,
or his or her beneficiary, the proportionate share of the Plan's assets as
determined by the individual account balances on the date of termination, or
continue the existence of the trust for the purpose of paying benefits as they
become due under the terms of the Plan. In addition, upon termination of the
Plan, participants' vested interest in employer contributions shall be 100%.
Upon termination of service, a participant may elect to receive either a
lump-sum amount equal to the value of his or her account, or one of various
installment payments available under the Plan.
FORFEITURES
Forfeitures amounting to approximately $92,000 were used to offset employer
contributions to the Plan and $229,017 was held in forfeited, non-vested
accounts at December 31, 2001.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of significant accounting policies of the Plan is presented to
assist in understanding the financial statements. The financial statements and
notes are representations of the Plan's administrator, who is responsible for
their integrity and objectivity. The accounting policies conform to accounting
principles generally accepted in the United States of America and have been
consistently applied in the preparation of the financial statements.
ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires the plan
administrator to make estimates and assumptions that affect certain reported
amounts and disclosures, such as fair value. Accordingly, actual results may
differ from those estimates.
12
ACS GOVERNMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2001
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INVESTMENT VALUATION AND INCOME RECOGNITION
Fidelity Management Trust Company (Fidelity) holds the Plan's investments. The
fair value per unit/share is stated at quoted market prices. Purchases and sales
of securities are recorded on a trade-date basis. Interest income is recorded on
the accrual basis.
The Plan presents, in the Statement of Changes in Net Assets Available for
Benefits, the net appreciation (depreciation) in the fair value of its
investments, which consists of the realized gains (losses) and the unrealized
appreciation (depreciation) on those investments.
PAYMENT OF BENEFITS
Benefit payments are recorded when paid.
NOTE 3. INCOME TAX STATUS
The Internal Revenue Service has determined by letter dated February 1, 1996,
that the Plan, as then designed, was in compliance with the applicable sections
of the Internal Revenue Code (IRC). The Plan has since been amended and restated
and a request for a new determination was filed on February 28, 2002. The Plan
administrator and the Plan's tax counsel believe that the Plan is designed and
is currently being operated in compliance with the applicable requirements of
the IRC. Therefore, no provision for income taxes has been included in the
Plan's financial statements.
NOTE 4. TERMINATED EMPLOYEE INFORMATION
The Plan holds funds for 1,809 terminated employees with account balances
totaling $39,611,694 at December 31, 2001.
NOTE 5. INVESTMENTS
The Plan maintains the following participant directed investments, which
represent 5% or more of net assets available for benefits at December 31, 2001:
Fidelity Retirement Money Market Portfolio $ 38,696,906
Fidelity Growth Company Fund 35,955,553
Spartan US Equity Index 12,930,059
Fidelity Freedom 2020 Fund 8,464,829
ACS Stock 7,467,519
Fidelity Diversified Int'l Fund 7,344,827
13
ACS GOVERNMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2001
NOTE 6. RELATED PARTY TRANSACTIONS
The Plan invested in units of pooled separate accounts managed by a subsidiaries
of CIGNA and Fidelity, who acted as custodians of the Plan's assets as defined
by the Plan. These transactions qualify as party-in-interest transactions.
However, they are exempt from the prohibited transaction rules.
NOTE 7. SUBSEQUENT EVENT
The Company intends to consolidate additional plans into the ACS Government
Savings Plan in 2002.
NOTE 8. PLAN MERGERS
All assets of ACS Defense, Inc. Profit Sharing & 401(k) Plan and ACS Desktop
Solutions, Inc. 401(k) Plan, previously held by CIGNA, were merged into the ACS
Government Plan in July 2001. The assets transferred totaled approximately
$60,000,000 and $4,0000,000 respectively, and were reinvested with Fidelity in
similar investments. The Statement of Changes in Net Assets Available for
Benefits includes the activity for the employees of ACS Defense, Inc. and ACS
Desktop Solutions, Inc. from July 2001 through December 31, 2001.
NOTE 9. FORM 5500
The Form 5500 is not available for review at the time of filing the audit with
the S.E.C. However, in order to comply with ERISA, a comparison and
reconciliation of the audited financial statements with the Form 5500 will occur
before the Form 5500 is finalized and filed (with the accompanying audited
financial statements). The Plan Administrator does not anticipate any changes to
these financial statements as a result of this reconciliation, but it is always
possible for something to occur which could require re-issuance of these
financial statements.
14
ACS GOVERNMENT SAVINGS PLAN
DECEMBER 31, 2001
SUPPLEMENTAL SCHEDULE
15
ACS GOVERNMENT SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 2001
EIN# 51-0310342
PLAN NUMBER: 002
(b)IDENTITY OF
ISSUE, BORROWER,
LESSOR, OR SIMILAR (c)DESCRIPTION OF INVESTMENT, INCLUDING MATURITY DATE, RATE OF (e) CURRENT
(a) PARTY INTEREST, COLLATERAL, PAR, OR MATURITY VALUE VALUE
--- ------------------ -------------------------------------------------------------- -----------------
* Fidelity Interest Bearing Cash $ 82,211
* Fidelity Non-employee Corporate Common Stock 114,695
* Fidelity Growth Oriented Mutual Funds 108,120
* Fidelity PIMCO Total Return Fund-Admin Class 1,064,474
* Fidelity Franklin Small Cap Growth Fund I-Class A 5,055,649
* Fidelity INVESCO Dynamics Fund 4,955,208
* Fidelity Brazos Real Estate Securities Fund 54,715
* Fidelity PIMCO High Yield Fund-Admin Class 168,620
* Fidelity Davis NY Venture Fund 405,709
* Fidelity Vanguard Global Equity Fund 60,097
* Fidelity Vanguard Balanced Fund 276,160
* Fidelity Interest Bearing Cash 262,876
* Fidelity ACS Stock Fund 7,467,519
* Fidelity Fidelity Equity-Income Fund 2,975,455
* Fidelity Fidelity Growth Company Fund 35,955,553
* Fidelity Fidelity Low-Priced Stock Fund 2,443,371
* Fidelity Fidelity Diversified Intn'l Fund 7,344,827
* Fidelity Fidelity Freedom Income Fund 68,248
* Fidelity Fidelity Freedom 2000 Fund 2,041,741
* Fidelity Fidelity Freedom 2010 Fund 644,724
* Fidelity Fidelity Freedom 2020 Fund 8,464,829
* Fidelity Fidelity Freedom 2030 Fund 742,932
* Fidelity Fidelity Money Mkt Trust: Retirement 38,696,906
* Fidelity Fidelity Spartan US Equity Index Fund 12,930,059
* Fidelity Fidelity Freedom 2040 Fund 1,149,309
Participant Loans at 6.6% to 10.75% 3,219,207
----------------
$ 136,753,214
================
* Denotes a party-in-interest
16
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
------- -----------
23 Consent of Salmon, Beach & Company, P.C.