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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, 1999
COMMISSION FILE NUMBER________
ACS SHARED SERVICES SAVINGS PLAN
(FULL TITLE OF THE PLAN)
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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
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REQUIRED INFORMATION
The ACS Shared Services Savings Plan 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.
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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.
ACS SHARED SERVICES SAVINGS PLAN
By: /s/ Lora Villarreal
----------------------------------------
Name: Lora Villarreal
Title: Administrative Committee Member
Date: May 31, 2001
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ACS SHARED SERVICES SAVINGS PLAN
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORT
FOR THE YEAR ENDED DECEMBER 31, 1999
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ACS SHARED SERVICES SAVINGS PLAN
TABLE OF CONTENTS
DECEMBER 31, 1999
Independent Auditors' Report......................................................................................1
Statements of Net Assets Available for Benefits
December 31, 1999 and 1998.....................................................................................3
Statement of Changes in Net Assets Available for
Benefits-For the year ended December 31, 1999..................................................................4
Notes to Financial Statements.....................................................................................5
Supplemental Schedules...........................................................................................10
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INDEPENDENT AUDITORS' REPORT
To the Participants and Plan Committee of the
ACS Shared Services Savings Plan
We have audited the accompanying statement of net assets available for benefits
of ACS Shared Services Savings Plan ("Plan") as of December 31, 1999 and 1998,
and the related statement of changes in net assets available for benefits for
the year ended December 31, 1999. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on the financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in
accordance with generally accepted auditing standards. 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.
As permitted by 29 CFR 2520.103-8 of the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, the plan administrator instructed us not to perform, and
we did not perform, any auditing procedures with respect to the information
summarized in Note 6, which was certified by Connecticut General Life Insurance
Company, the trustee of the Plan, except for comparing the information with the
related information included in the financial statements and supplemental
schedules. We have been informed by the plan administrator that the trustee
holds the plan's investment assets and executes investment transactions. The
plan administrator has obtained a certification from the trustee as of and for
the year ended December 31, 1999 that the information provided to the plan
administrator by the trustee is complete and accurate.
In our opinion, except for the effects of such adjustments, if any, as might
have been determined to be necessary had we performed procedures with respect to
the information summarized in Note 6, the financial statements referred to above
present fairly, in all material respects, the net assets available for benefits
of the plan as of December 31, 1999 and the changes in net assets available for
benefits for the year ended December 31, 1999 in conformity with generally
accepted accounting principles.
Our audit of the Plan's financial statements were conducted for the purpose of
forming an opinion on the basic financial statements taken as a whole. The
supplemental schedule on page 11 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.
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INDEPENDENT AUDITORS' REPORT (CONTINUED)
The fund information in the financial statements referred to above is presented
for purposes of additional analysis rather than to present the net assets
available for benefits and changes in net assets available for benefits of each
fund. The supplemental schedule and fund information have been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, except for the effects on the Schedule of Assets Held For
Investment Purposes of such adjustments, if any, as might have been determined
to be necessary had we performed procedures with respect to the information
summarized in Note 6 as described in the second preceding paragraph, are 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
October 12, 2000
Dallas, Texas
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ACS SHARED SERVICES SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1999 AND 1998
1999 1998
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Funds held in uninvested cash accounts $ -- $ 74,403
Funds held in Connecticut General Life Insurance
Guaranteed Income Fund 2,134,246 2,305,046
Pooled separate accounts held by an insurance company:
Corporate Bond Fund 17,517 8,712
High Yield Bond Fund 1,438 241
Cigna Lifetime60 1,925 218
Cigna Lifetime50 19,514 12,016
Cigna Lifetime40 27,539 7,947
Cigna Lifetime30 131,451 97,378
Cigna Lifetime20 50,186 9,776
Invesco Total Return 68,369 85,714
Large Company Stock Index Fund 338,747 239,977
Fidelity Equity Income II 15,008 11,737
Large Growth Putnam 307,043 190,034
Neuberger & Berman Partners 55,943 66,710
Fidelity Advisor Equity Growth 149,553 16,274
Fidelity Advisor Growth Opportunity 73,290 63,623
American Century Ultra Fund 98,161 20,364
Small Growth Fiduciary 780 113
Lazard Small Cap 14,482 7,258
Janus Worldwide 194,829 57,199
ACS Stock 104,996 74,852
Participant Loans 169,910 161,500
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NET ASSETS AVAILABLE FOR BENEFITS $ 3,974,927 $ 3,511,092
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The accompanying notes are an integral part of these financial statements.
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ACS SHARED SERVICES SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1999
ADDITIONS:
Contributions:
Participants $ 241,000
Employer 416,864
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Total contributions 657,864
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Earnings on investments:
Net realized/unrealized appreciation on investments 293,245
Interest/dividends 131,725
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Total earnings on investments 424,970
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Total additions 1,082,834
DEDUCTIONS:
Benefits paid to participants 612,116
Plan expenses 6,883
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Total deductions 618,999
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Increase in net assets 463,835
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of period 3,511,092
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End of period $3,974,927
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The accompanying notes are an integral part of this financial statement.
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ACS SHARED SERVICES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
NOTE 1. PLAN DESCRIPTION
The following description of the ACS Shared Services, Inc. (Company) Savings
Plan (Plan) provides only general information. Participants should refer to the
Plan agreement for a more complete description of the Plan's provisions.
GENERAL
The Plan was established on April 1, 1998 and 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 has not received a
determination letter from the Internal Revenue Service as of the report date.
However, the Plan administrator and Trustee believe that the Plan complies with
the applicable provisions of the IRC.
Participants in the Plan have the option of investing their contributions to the
Plan in the following funds:
GENERAL ACCOUNT
Guaranteed Income Fund is a fixed income fund that invests primarily in
intermediate-term bonds and commercial mortgages within Connecticut
General Life Insurance Company's (CIGNA) General Account. The principal
and interest earnings are guaranteed by CIGNA.
SEPARATE ACCOUNTS
Corporate Bond Fund invests in investment grade, publicly traded U.S.
dollar denominated corporate bonds.
High Yield Bond Fund invests in high yield publicly traded U.S.
Corporate bonds.
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.
Invesco Total Return Fund invests in both equity and fixed income
securities to achieve capital appreciation.
Large Company Stock Index Fund, managed by TimesSquare Capital
Management, Inc., invests in stocks that comprise the S&P 500 stock
index.
Fidelity Equity-Income II Fund invests in income driven domestic and
foreign common stocks, preferred stocks, convertible securities and
bonds. The Fund also seeks capital appreciation.
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.
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ACS SHARED SERVICES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
NOTE 1. PLAN DESCRIPTION (CONTINUED)
SEPARATE ACCOUNTS (CONTINUED)
Neuberger Berman Partners Fund invests in stocks that are perceived to
be selling below market value in order to obtain growth of capital.
Fidelity Advisor Equity Growth Fund invests in stocks of companies that
have above-average growth potential to obtain capital appreciation.
Fidelity Advisor Growth Opportunities Fund invests in common stocks and
securities which are convertible into 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.
Small Company Stock - Growth Fund, managed by Fiduciary Trust Company
International, invests primarily in the common and preferred stock of
U.S. companies with market capitilazation between $30 million and $3
billion with a focus on growing companies involved in new product
development and technological breakthroughs.
Lazard Small Cap Portfolio invests primarily in small-cap equity
securities.
Janus Worldwide Account invests primarily in common stocks of foreign
and domestic stocks to provide long-term growth of capital and
preservation of capital.
Affiliated Computer Services (ACS) stock is an investment in the
Company's stock. This stock is the parent company of the Plan's
sponsor.
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 employees of the Company who are not covered by a
collective bargaining agreement, who have one year of service, attained the age
of 18, have at least 500 hours of service, and elect to participate.
Participating employees may contribute up to fifteen percent of covered
compensation through payroll deductions or the maximum amount permitted under
applicable Internal Revenue Service provisions. The Company may make a
discretionary contribution to the Plan based on a percentage of employee
compensation and Company profitability as decided by the Company's Board of
Directors. Matching contributions are funded bi-weekly. For the year ended
December 31, 1999, the Company made matching contributions of 100% up to 3% of
employee compensation.
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ACS SHARED SERVICES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
NOTE 1. PLAN DESCRIPTION (CONTINUED)
ALLOCATION
Each participant's account is credited with the participant's contribution and
allocated to each participant's account upon receipt. Investment income or loss
is allocated daily based on the ratio of each participant's account balance at
the end of each day.
VESTING
Employee contributions are 100% vested. Employer matching contributions have the
following vesting schedule:
Years of Vesting Service Vested Interest
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Less than 1 0%
1 but less than 2 20%
2 but less than 3 40%
3 but less than 4 60%
4 but less than 5 80%
5 or more 100%
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 percent of their account balance.
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 rates,
unless otherwise determined by the trustee, range from 9 percent to 10.5
percent. Principal and interest is paid ratably through weekly 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
The Company may reduce employer contributions by forfeitures occurring during
the Plan Year that are not used to pay Plan expenses. At December 31, 1999, the
Plan maintained a balance of $3,895 in a forfeiture account.
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ACS SHARED SERVICES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
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 generally
accepted accounting principles and have been consistently applied in the
preparation of the financial statements.
ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles 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.
INVESTMENT VALUATION AND INCOME RECOGNITION
CIGNA Retirement and Investment Services 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 or losses and the unrealized
appreciation (depreciation) on those investments.
PAYMENT OF BENEFITS
Benefit payments are recorded when paid.
NOTE 3. INCOME TAX STATUS
The Plan has not received a determination letter from the Internal Revenue
Service as of the report date. However, the Plan administrator and the Plan's
tax counsel believe that the Plan complies with the applicable provisions 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 balances of $175,032 for 18 terminated employees at December 31,
1999.
NOTE 5. INVESTMENTS
The Plan maintains the following investments, which represent 5% or more of net
assets available for benefits at December 31, 1999:
Guaranteed Income Fund $ 2,134,246
Large Company Stock Index Fund 338,747
Large Growth Putnam 307,043
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ACS SHARED SERVICES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
NOTE 6. INFORMATION CERTIFIED BY TRUST COMPANY
Under the Department of Labor's ("DOL") regulations, certain assets and related
information held by a bank, trust company, or similar institution or an
insurance company that is regulated and subject to periodic examination by a
state or federal agency does not have to be audited, provided the plan
administrator exercises this option and the institution holding the assets
certifies the required information. CIGNA has provided certification as to the
completeness and accuracy of all information presented in the accompanying
statements of net assets available for plan benefits as of December 31, 1999,
and in the statement of changes in net assets available for plan benefits for
the year then ended, except for participant loan information. The accompanying
supplemental schedule also includes information certified by CIGNA as being
complete and accurate except for information related to participant loans and
investment costs.
NOTE 7. RELATED PARTY TRANSACTIONS
The Plan invests in units of pooled separate accounts managed by a subsidiary of
CIGNA, who acts as custodian 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.
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ACS SHARED SERVICES SAVINGS PLAN
DECEMBER 31, 1999
SUPPLEMENTAL SCHEDULES
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ACS SHARED SERVICES PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1999
EIN# 75-2652235
PLAN NUMBER: 001
(b) IDENTITY OF ISSUE, (c) DESCRIPTION OF INVESTMENT, INCLUDING
BORROWER, LESSOR, OR MATURITY DATE, RATE OF INTEREST, (e) CURRENT
(a) SIMILAR PARTY COLLATERAL, PAR, OR MATURITY VALUE (d) COST VALUE
--- ---------------------- ----------------------------------------- ------------ -------------
* CIGNA Chtr Guaranteed Income Fund $ 2,134,246 $ 2,134,246
* CIGNA Chtr Corporate Bond-CIGNA 17,500 17,517
* CIGNA Chtr High Yield Bond-CIGNA 1,383 1,438
* CIGNA CIGNA Lifetime60 1,831 1,925
* CIGNA CIGNA Lifetime50 17,408 19,514
* CIGNA CIGNA Lifetime40 23,684 27,539
* CIGNA CIGNA Lifetime30 109,001 131,451
* CIGNA CIGNA Lifetime20 42,000 50,186
* CIGNA CIGNA Chtr Balanced Fund I-Invesco 65,328 68,369
* CIGNA Chtr Large Co Stk Index-CIGNA 267,133 338,747
* CIGNA Fid Adv Equity Income 14,456 15,008
* CIGNA Chtr Lg Co Stk Growth-Putnam 212,038 307,043
* CIGNA Neuberger & Berman Partners 47,463 55,943
* CIGNA Fid Adv Equity Growth 122,112 149,553
* CIGNA Fid Adv Growth Opportunities 66,686 73,290
* CIGNA American Century Ultra Account 73,112 98,161
* CIGNA Chtr Sm Co Stk Growth-Fiduciary 545 780
* CIGNA Lazard Small Cap Portfolio 14,045 14,482
* CIGNA Janus Worldwide Account 128,629 194,829
* NATL FINANCIAL Affiliated Computer Services Stock 89,540 104,996
SERVICES CORP
Participant Loans at 9% to 10.5% -- 169,910
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$ 3,448,140 $ 3,974,927
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* Denotes a party-in-interest
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INDEX TO EXHIBITS
Exhibit No. Description
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23 Consent of Salmon, Beach & Company, P.C.