Georgia Department of Audits and Accounts, Performance Audit Division Employee Annual and Sick Leave Addendum Purpose This special examination updates selected information from our December 2011 special examination on Employee Annual and Sick Leave.1 This review was conducted at the request of the House Appropriations Committee, which asked us to: expand our analysis of the trend in payouts to include fiscal years 2012 and 2013, and compare payout trends to government employment trends during recessionary periods and years with more employment stability. A draft of the report was provided to the Department of Administrative Services and the Board of Regents of the University System of Georgia for their review and comment. In their written responses, the agencies indicated that they have no disagreements with the report. Background Annual and sick leave policies allow employees to receive full pay when absent from work. The specific policies that govern the accrual and use of leave depend on the employer. As noted in our original report, the State Personnel Board (SPB) sets many of the leave rules affecting a majority of state agency employees, while the Board of Regents (BOR) of the University System of Georgia (USG) sets rules governing its employees. For both state employees and USG employees, annual leave may be used for any purpose chosen by the employee (with advance approval), while sick leave may be used for personal illness, medical care, medical appointments, preventing the spread of contagious diseases, or illness/death of an immediate family member. State Employees SPB sick and annual leave rules apply to all executive branch agencies, except the USG. Many judicial and legislative branch entities have chosen to follow these rules as well. As shown in Exhibit 1, employees earn annual leave based on their years of service, but sick leave is a set amount regardless of tenure. The exhibit also shows that employees may accumulate leave over a period of several years up to a maximum amount. Any sick or annual leave earned over the maximum amount allowable is not available for use by the employee as time off, but is placed in a separate forfeited leave account. Under SPB rules, only those employees separating from state employment are paid for any balance of unused annual leave, up to the 360-hour maximum. The annual leave payment is the responsibility of the employee's agency at the time of separation from state service, regardless of whether the employee previously held positions with other state agencies. In addition to the payment to terminating employees, agencies pay the employer's contribution for the State Health Benefit Plan (SHBP) to the Department of Community Health and the employer's share of the two Federal Insurance Contributions Act (FICA) components Old Age, Survivor's and Disability Insurance (e.g., social security) and federal Health Insurance (e.g., Medicaid). 1 A copy of the 2011 special examination report, Employee Annual and Sick Leave (Report No. 11-19), may be accessed at http://www.audits.ga.gov/rsaAudits/download/14101. www.audits.ga.gov Report No. 13-27 1 Exhibit 1 Leave Hours Earned by State Employees per Month1 Months of Service Annual Leave2 Sick Leave2 0 60 10 hours 10 hours 61 120 12 hours 10 hours 121 or more 14 hours 10 hours Maximum Accumulation 360 hours (45 days) 720 hours (90 days) 1Employees paid on a semi-monthly basis earn 1/2 of the monthly leave each pay period. 2Part-time employees earn leave on a pro-rata basis. Source: State Personnel Board Policy Like other terminating employees, employees retiring from state service may also receive a payment for any balance of unused annual leave. Additionally, the Employees Retirement System (ERS) will recognize any balance of at least 960 hours (120 days) of unused sick, forfeited, and previously unused leave as service credit towards retirement. As noted in our original report, a balance of 960 hours results in an additional six months of service credit, with each additional 160 hours counting as another month of service. The employee's agency must pay the employer contribution to ERS for the period of service credit granted to the employee. This payment represents the employer contributions that would have been made had the employee worked those months at the current rate of pay. USG Employees BOR leave policies apply to faculty and staff employed at 33 USG institutions and BOR offices.2 As shown in Exhibit 2, the policies set different accrual rates for staff and faculty members. Full-time staff members earn annual leave based on their years of service, while 12-month faculty members' accrual rate does not change over time. Faculty members who have 9- or 10-month contracts receive no annual leave. All faculty and full-time staff earn the same rate of sick leave, regardless of the length of service. Unlike state employees whose excess annual and sick leave is placed in a forfeited leave account, USG employees lose any annual leave accumulated over the 360-hour maximum at the end of each calendar year and sick leave has no maximum accrual. Exhibit 2 Annual Leave Hours Earned by USG Employees per Month Annual Leave Sick Leave Months of Service Full-time Staff1 Faculty 12-Month and Admin 9-10 Officers Month Full-time Staff & All Faculty 0 60 10 hours 61 120 121 or more 12 hours 14 hours 14 Hours Not Eligible 8 hours Maximum Accumulation 360 hours (45 days) 1Part-time employees earn leave on a pro-rata basis. Source: BOR Policy Manual and USG Administrative Practice Manual No Maximum 2 BOR leave policies also apply to the Georgia Archives and the Georgia Public Library Service. www.audits.ga.gov Report No. 13-27 2 Current USG employees may receive an annual leave payment under two primary circumstances: 1) the employee transfers from a benefit-eligible position to an ineligible position or 2) the employee transfers from one USG institution to another. Annual leave payments may be made to both employees separating from USG service and current employees. For both groups, the annual leave payment is made directly to the employee and is the responsibility of the employing institution at the time of separation or transfer. USG institutions are also responsible for the employer's share of the FICA components paid by state agencies. However, no payments are made toward employees' health benefit plans because, unlike state agencies, USG does not make contributions to its health plan based on salaries/payments to employees. USG institutions make payments to ERS for retired USG employees who previously transferred from state employment and retained their ERS membership.3 USG institutions must pay the employer contribution to ERS for the period of service credit granted to the employee. USG employees who are members of the Teachers Retirement System (TRS) may also apply unused sick leave balances of 60 days (480 hours) or more toward additional service credits, receiving one month of service credit for every 20 days accrued.4 However, according to TRS policy, compensation paid as terminal annual or personal leave, and compensation paid for as unused or forfeited sick leave, is not subject to TRS contributions. As noted in our original report, USG employees who participate in the USG Optional Retirement Plan instead of TRS do not have the option to apply unused sick leave towards retirement. 3ERS will recognize as service credit any forfeited or previously unused leave earned as a state employee, and any unused sick leave earned as a USG employee. 4 Unused sick leave may include any sick leave forfeited during previous employment with a state agency. www.audits.ga.gov Report No. 13-27 3 Questions and Answers What is the trend in annual leave payouts? How do payout trends compare to employment trends in recessionary periods and years with more employment stability? Overall, payout costs and turnover rates among state agency and USG employees have increased over time.5 State agency payout costs increased annually between fiscal years 2008 and 2013, despite a reduction in turnover among state employees during the recessionary period (which covers portions of fiscal years 2008 through 2010). Although we were unable to fully assess USG's payout and employment trends during the recessionary period, we found that USG payout costs and turnover rates increased annually between fiscal years 2010 and 2013. Details related to payouts and employment trends for state agency and USG employees are discussed below. State Employees Payout Costs (Fiscal Years 2008 to 2013) Between fiscal years 2008 and 2013, state agencies paid out a total of $257.7 million associated with unused annual and sick leave.6 This amount includes payments to terminating state agency employees, SHBP, ERS, and FICA.7 As shown in Exhibit 3, annual state payout costs ranged from $36 to $45 million between fiscal years 2008 and 2012, but increased to nearly $60 million in fiscal year 2013. The fiscal year 2013 increase in payout costs was due to a variety of factors, including higher average annual leave payments (ALP), additional terminating employees, and higher SHBP and ERS contribution rates. The proportion of payout costs attributable to annual leave payments to terminating employees has decreased since our initial review. While annual leave payments represented approximately 65 to 70% of payout costs in our original analysis of fiscal years 2008 to 2011, annual leave payments accounted for only 53% of payout costs by fiscal year 2013. As shown in Exhibit 3, the combination of employer contributions to ERS, SHBP, and FICA comprised the remaining share of payout costs. The increase in payments to ERS and SHBP was largely driven by the increase in employer contribution rates. Employer contribution rates to SHBP fluctuated significantly over the six-year period, reaching as high as 35% in fiscal year 2013. Similarly, ERS payments were significantly impacted by employer contribution rates which increased from 10.41% in fiscal year 2008 to nearly 15% in fiscal year 2013.8 After fiscal year 2013, ERS retirees were no longer eligible to receive an offset from state taxes of up to 3% of retirement earnings.9 According to ERS personnel, the number of retirees increased by 33% between fiscal years 2012 and 2013 in anticipation of this reduced tax benefit. 5 Our review covers activities related to state agency employees in fiscal years 2008 through 2013 and USG employees in fiscal years 2010 through 2013. 6 To calculate payout costs for unused annual and sick leave, the audit team obtained annual leave payment data for each state employee from the State Accounting Office's payroll system, calculated employer contributions for SHBP and FICA based on rates in effect at the time of the annual leave payment, and added payments made by state agencies for retirees as reported by ERS. 7 It should be noted that, unlike annual leave and FICA payments, those made to SHBP and ERS are transfers to other state entities. 8 Rates refer to the ERS Old and New Plans, the two largest plans managed by ERS. 9 Per the minutes of the August 16, 2012 meeting of the ERS Board of Trustees, this benefit was for up to $35,000 for members 6265 years old and $65,000 for members 66 years or older. www.audits.ga.gov Report No. 13-27 4 Exhibit 3 Total Amount Paid Out for Unused Leave by State Agencies, Fiscal Years 2008 - 20131 $60,000,000 ERS FICA2 SHBP2 ALP $59.6 $50,000,000 $40,000,000 $30,000,000 $36.3 $4.8 $1.8 $5.5 $36.7 $5.6 $2.0 $3.1 $37.2 $6.1 $1.8 $5.1 $42.7 $5.6 $2.1 $7.1 $45.2 $8.0 $2.0 $8.1 $16.0 $2.4 $9.4 $20,000,000 $10,000,000 $24.2 $26.0 $24.2 $27.9 $27.0 $31.8 $0 2008 Average ALP $2,505 Terminating Employees3 9,676 Retiring Employees4 888 2009 $3,025 8,606 1,000 2010 $3,084 7,859 1,033 2011 $3,144 8,872 965 2012 $3,052 8,859 1,166 2013 $3,380 9,416 1,550 1Annual figures may not total due to rounding. 2An estimate of the employer's share of payments to FICA and SHBP was calculated using the rates in effect at the time the annual leave payment was made. 3Employees who received an annual leave payment upon termination or retirement from state service. 4Retirees with enough unused sick and forfeited leave to incur a payment to ERS. Source: State Accounting Office, Department of Family and Children Services and Employee's Retirement System records, Department of Community Health and Social Security Administration policies As shown in Exhibit 4, 53% of all payout costs associated with unused leave from fiscal years 2008 to 2013 are concentrated in five state agencies. The Departments of Corrections and Human Services had the highest payout costs, at $43.3 and $42.6 million respectively. The Department of Behavioral Health and Developmental Disabilities (DBHDD) was next at $19.0 million. As shown in Appendix A, agencies with the highest payout costs associated with unused leave typically have a very high number of terminations. However, a significant portion of the Department of Transportation's payout costs (37% over the six-year period) are associated with payments made to ERS for a large number of retirees with service credit. Complete details of the amounts paid out by each state agency and the number of employees associated with annual leave payments and ERS payments in fiscal years 2008 through 2013 are included in the appendix. www.audits.ga.gov Report No. 13-27 5 Exhibit 4 Five State Agencies Comprise More than Half of Payout Costs, Fiscal Years 2008 2013 Corrections $43.3m (17%) Human Services1 $42.6m (16%) All Others $120.5m (47%) DBHDD2 $19.0m (7%) Transportation $17.4m (7%) Juvenile Justice $14.8m (6%) 1Includes the Division of Family and Children Services (all years), Department of Public Health (fiscal years 2008-2011), and DBHDD (fiscal years 2008-2009). 2Department of Behavioral Health and Developmental Disabilities. Source: State Accounting Office, Division of Family and Children Services and Employee's Retirement System records, Department of Community Health and Social Security Administration policies Impact of the Recession The Great Recession had a significant impact on state employment trends and, thus, payouts associated with unused leave. During the recessionary period10 (which covers portions of fiscal years 2008 through 2010), average turnover among state agency employees dropped from 16.4% to 13.4%, as shown in Exhibit 5.11 The reduction in turnover during that time was driven by fewer employees leaving state employment and an overall reduction in state employment levels. Despite reduced turnover, state agency payout costs associated with annual leave payments remained relatively stable, with year-to-year increases of about 1%. However, during the post-recessionary period (fiscal years 2011 through 2013), both turnover and payout costs saw an upward trend. By fiscal year 2013, turnover rates had exceeded rates recorded just prior to the start of the recession. As previously discussed, the dramatic increase in payout costs was primarily due to an increase in ERS payments in fiscal year 2013. 10 For the purposes of this report, the Great Recession includes the second half of fiscal year 2008 through the end of fiscal year 2010 (i.e., January 2008 June 2010). While official estimates place the recession as beginning in December 2007 and ending June 2009, we include fiscal year 2010 to capture residual effects of the recession. 11 Turnover is calculated by dividing the total number of annual employee separations by average monthly employment. Turnover rates include only benefit-eligible employees and do not include temporary employees. Turnover figures differ slightly from those reported by the Department of Administrative Services' State Human Resources Division because, other than the Department of Family and Children Services, we exclude entities that do not utilize the State Accounting Office's payroll and human resources data systems. www.audits.ga.gov Report No. 13-27 6 Payouts in Millions Turnover Exhibit 5 Payouts and Turnover of Benefit-Eligible State Employees, Fiscal Years 2007 - 20131 $70 Recessionary Period 20.00% 17.15% $60 16.37% 17.84% 16.63% 18.00% $50 15.09% 13.72% 13.35% $59.6 16.00% 14.00% $40 $45.2 $42.7 12.00% 10.00% $30 $36.3 $36.7 $37.1 8.00% $20 6.00% 4.00% $10 2.00% $0 2007 2008 2009 2010 2011 2012 2013 Retirements 1,694 1,721 1,839 1,893 2,143 2,028 2,729 Separations2 12,132 11,672 9,597 8,892 9,705 10,350 10,794 Employment 70,732 71,280 69,939 66,623 64,295 62,227 60,500 0.00% 1Turnover is calculated by dividing the total number of annual employee separations by the average monthly employment count. 2Figures include all separations, including retirements and employees who did not receive an annual leave payment. Source: Department of Administrative Services, State Accounting Office, Division of Family and Children Services and Employee's Retirement System records, Department of Community Health and Social Security Administration policies USG Employees Payout Costs (Fiscal Years 2010 to 2013) Between fiscal years 2010 and 2013, USG institutions paid out a total of $64.8 million associated with unused leave. Like state agencies, these payout costs consisted of the amount paid to employees separating from USG service, associated taxes, and retirement system contributions.12 As shown in Exhibit 6, annual payout costs increased from $12 to $19 million over the four-year period. The increase in payout cost is primarily due to the 48% increase in the number of employees who received annual leave payments (ALP) from 3,052 in fiscal year 2010 to 4,505 in fiscal year 2013. The increase in 12 To calculate payout costs for unused annual and sick leave, the audit team obtained annual leave payment data for each state employee from USG's Shared Services Center, Georgia Institute of Technology, Georgia Regents University, and the University of Georgia, calculated employer contributions for FICA based on rates in effect at the time of the annual leave payment, and added payments made by USG institutions for retirees as reported by ERS. www.audits.ga.gov Report No. 13-27 7 employees receiving annual leave payments coincides with BOR's efforts to consolidate several USG institutions during the review period. Approximately 93% of USG payout costs each year were for annual leave payments, with the remaining costs associated with payments to FICA and ERS. Despite the increase in ERS contribution rates and tax policy changes described earlier, ERS payments had a very minimal impact on USG payout costs due to the small number of USG employees who are ERS members. Over the four-year period, three institutions made payments to ERS on behalf of five retiring employees totaling $37,693. Exhibit 6 Total Amount Paid Out for Unused Leave by USG Institutions, Fiscal Years 2010 2013 $20,000,000 FICA1 ALP $19.0 $18,000,000 $16,000,000 $14,000,000 $12.4 $16.5 $1.2 $15.3 $16.9 $1.1 $15.8 $1.3 $17.7 $12,000,000 $0.9 $10,000,000 $11.5 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2010 2011 2012 2013 Average ALP Terminating Employees2 Retiring Employees3 $3,900 3,052 2 $3,900 3,603 0 $3,957 3,997 1 $3,935 4,505 2 1An estimate of the employer's share of payments to FICA was calculated using the rates in effect at the time the payout was made. 2Employees who received an annual leave payout upon termination or retirement from USG service or transfer to another USG institution. 3Retirees with enough unused sick and forfeited leave to incur a payment to ERS, which totaled $37,694 over the four-year period. Source: University System of Georgia and Employee's Retirement System records, Social Security Administration policies As shown in Exhibit 7, USG's four research institutions accounted for approximately 65% of payout costs between fiscal years 2010 and 2013. Georgia Regents University, the University of Georgia, and the Georgia Institute of Technology had the highest payout costs ranging from $11.7 to $13.5 million. At $4.9 million, Georgia State University had the lowest payout cost among research institutions. Details of the amounts paid out by USG institutions and the number of employees associated with annual leave payments in fiscal years 2010 through 2013 are listed in Appendix B. www.audits.ga.gov Report No. 13-27 8 Exhibit 7 Research Institutions Account for the Majority of USG Payout Costs, Fiscal Years 2010 2013 University of Georgia $12.1m (19%) Georgia Tech $13.5m (21%) Georgia Regents University1 $11.7m (18%) All Others $22.5m (35%) Georgia State University $4.9m (7%) 1Includes Augusta State University after January 2013. Source: University System of Georgia, Employee's Retirement System records, and Social Security Administration policies Impact of the Recession We were unable to obtain data to fully demonstrate the impact of the recession on USG employment.13 However, as shown in Exhibit 8, turnover14 among USG employees has increased since fiscal year 2010, which includes some residual effects of the recession. This trend is similar to that experienced by state agency employees during the same period and suggests USG was experiencing the effects of an improved economy. In addition, according to USG officials, the increase in turnover might also be due to certain hiring practices used to contain costs. For example, USG institutions have the ability to fill vacant fulltime faculty positions with one or more adjunct instructors who typically work under an annual contract.15 At the end of the contract period, these individuals are essentially terminated in the payroll system, which could contribute to the increased turnover rate. As the exhibit shows, the increase in turnover is commensurate with the increase in payout costs between fiscal years 2010 and 2013. It should be noted that total employment figures also increased 13 Information for years preceding fiscal year 2010 was unavailable through USG's Shared Services center and could only be acquired through individual USG institutions. 14 Turnover is calculated by dividing the total number of annual employee separations by average monthly employment. Turnover rates are for benefit eligible employees only, including some benefit eligible temporary employees. 15Adjunct faculty members are less costly because they are paid on a per class basis versus an annual salary. The extent to which adjunct faculty can be used to fill full-time teaching positions is limited by the accreditation process. www.audits.ga.gov Report No. 13-27 9 Payouts in Millions Turnover during this period. According to USG officials, this was likely driven by the increase in student enrollment, which increased by approximately 4% between fall 2009 and fall 2012.16 Exhibit 8 Payouts and Turnover of Benefits-Eligible USG Employees, Fiscal Years 2010 - 20131, 2 $20 $18 Recessionary Period $16 $14 $12.4 $12 $16.5 $16.9 15.29% $19.0 16.22% 16.50% 16.00% 15.50% 15.00% $10 $8 $6 14.00% $4 $2 14.46% 14.50% 14.00% 13.50% 13.00% $0 2010 Retirements 924 Separations2,3 6,117 Employment3 43,705 2011 978 6,463 44,696 2012 1,069 7,049 46,089 2013 1,138 7,550 46,553 12.50% 1 Turnover is calculated by dividing the total number of annual employee separations by the average monthly employment count. 2 Figures include all separations, including retirements and employees who did not receive an annual leave payment. 3 Figures are estimates and are based on employment data provided by USG's Shared Services Center, Georgia Institute of Technology, and Georgia Regents University, as well as the audit team's calculations of University of Georgia employment activity using the Department of Audits and Accounts salary and travel expense data. Source: University System of Georgia and DOAA records 16 These periods correspond to fiscal years 2010 and 2013. www.audits.ga.gov Report No. 13-27 10 Appendix A: Leave Payout Costs by State Agency, Fiscal Years 2008 2013 State Agency 1 Department of Corrections 2 Department of Human Services4 3 DBHDD5 4 Department of Transportation 5 Department of Juvenile Justice 6 Department of Labor 7 Department of Natural Resources 8 Department of Public Safety 9 Department of Revenue 10 Georgia Bureau of Investigation 11 Department of Education 12 Georgia Technology Authority 13 Department of Community Health 14 Prosecuting Attorneys' Council 15 Department of Driver Services 16 Public Defender Standards Council 17 Forestry Commission 18 Board of Pardons & Paroles 19 Department of Agriculture 20 Office of the Governor 21 Secretary of State 22 Georgia World Congress Center 23 Department of Administrative Services 24 Department of Public Health 25 Department of Community Affairs 26 Department of Defense 27 Department of Audits & Accounts 28 Georgia Public Broadcasting 29 Chattahoochee Technical College6 30 Georgia Correctional Industries 31 Department of Economic Development 32 Superior Courts 33 Central Georgia Technical College7 34 Department of Insurance 35 General Assembly of Georgia 36 West Georgia Technical College8 37 Technical College System of Georgia 38 Georgia Piedmont Technical College 39 State Personnel Administration9 40 Department of Banking & Finance 41 Savannah Technical College 42 Wiregrass Georgia Technical College10 43 Department of Law 44 Georgia Building Authority 45 Southern Crescent Technical College11 46 Administrative Office of the Courts 47 Atlanta Technical College 48 Georgia Northwestern Technical College12 ALP $27,542,880 $27,606,264 $12,435,799 $8,420,128 $9,891,351 $7,234,500 $5,465,512 $3,814,321 $3,251,161 $2,324,522 $3,364,587 $3,232,284 $2,949,177 $2,396,615 $1,871,679 $2,210,520 $1,469,705 $1,559,362 $1,573,624 $1,710,371 $1,411,824 $1,149,268 $1,104,054 $1,001,514 $975,191 $1,019,658 $999,346 $904,362 $1,065,608 $636,208 $826,618 $793,830 $823,302 $672,748 $733,893 $798,915 $735,956 $766,256 $668,890 $543,992 $698,364 $666,539 $465,871 $432,161 $520,895 $458,965 $505,247 $498,872 SHBP FICA1 $6,649,091 $2,104,809 $6,187,101 $2,093,146 $3,333,712 $936,194 $2,008,519 $637,065 $2,397,084 $751,426 $1,720,560 $550,770 $1,317,903 $415,656 $921,997 $289,494 $711,869 $247,391 $518,723 $172,974 $787,427 $251,650 $433,087 $245,315 $706,348 $217,205 $553,725 $181,755 $449,397 $142,951 $524,923 $166,127 $361,384 $112,432 $385,367 $119,291 $382,492 $120,382 $418,264 $126,864 $344,376 $106,901 $261,648 $86,013 $271,564 $82,010 $292,056 $76,616 $248,056 $74,602 $252,333 $74,770 $234,445 $72,138 $182,376 $69,184 $264,110 $81,221 $161,596 $48,391 $202,226 $62,483 $189,108 $60,170 $201,463 $62,417 $161,723 $51,465 $173,749 $51,396 $197,668 $60,222 $175,737 $54,150 $201,685 $53,854 $168,925 $48,798 $133,132 $40,052 $172,176 $49,514 $170,778 $47,095 $114,416 $35,389 $109,612 $33,060 $130,536 $39,092 $86,635 $34,989 $119,318 $37,682 $127,734 $37,630 ERS $7,002,918 $6,685,845 $2,354,632 $6,364,831 $1,784,241 $2,174,274 $3,008,149 $2,999,052 $741,384 $1,767,160 $261,854 $625,286 $603,923 $777,934 $499,005 $25,271 $974,961 $745,027 $663,607 $255,629 $275,542 $319,165 $308,159 $209,646 $249,051 $171,893 $209,754 $299,246 $3,004 $390,069 $135,549 $166,784 $15,027 $197,117 $123,160 $17,336 $104,664 $33,792 $89,864 $245,932 $1,768 $7,716 $209,088 $235,652 $38,216 $125,135 $21,434 $3,270 Total Terminations2 Retirements3 $43,299,698 12,429 1,200 $42,572,356 9,345 1,273 $19,060,337 5,989 473 $17,430,544 2,536 755 $14,824,103 4,890 293 $11,680,104 2,167 417 $10,207,220 1,291 277 $8,024,864 766 256 $4,951,806 755 110 $4,783,379 402 119 $4,665,519 715 52 $4,535,972 421 86 $4,476,653 596 84 $3,910,029 368 56 $2,963,032 596 89 $2,926,840 557 6 $2,918,483 363 126 $2,809,047 318 88 $2,740,105 463 117 $2,511,128 370 27 $2,138,643 346 41 $1,816,094 491 27 $1,765,786 233 36 $1,579,832 248 26 $1,546,899 224 25 $1,518,654 526 29 $1,515,683 212 20 $1,455,168 171 33 $1,413,944 316 1 $1,236,265 131 54 $1,226,877 152 22 $1,209,893 211 24 $1,102,208 285 3 $1,083,054 147 31 $1,082,198 150 15 $1,074,140 268 3 $1,070,508 136 13 $1,055,587 139 4 $976,477 113 15 $963,107 76 22 $921,822 215 1 $892,127 179 1 $824,764 98 13 $810,485 104 34 $728,739 145 4 $705,725 86 10 $683,681 131 1 $667,506 129 1 www.audits.ga.gov Report No. 13-27 11 Appendix A (cont.): Leave Payout Costs by State Agency, Fiscal Years 2008 2013 State Agency ALP SHBP FICA1 ERS Total Terminations2 Retirements3 49 Athens Technical College $482,878 $127,307 $35,871 $12,442 $658,498 160 2 50 Gwinnett Technical College $481,567 $119,114 $36,840 $637,521 153 51 Department of Early Care & Learning $421,203 $105,645 $32,222 $62,324 $621,394 112 14 52 State Accounting Office 53 Oconee Fall Line Technical College13 $414,260 $419,757 $108,497 $105,256 $28,927 $32,111 $45,878 $33,922 $597,561 $591,046 70 6 113 3 54 Columbus Technical College $436,554 $105,427 $32,828 $12,546 $587,355 131 2 55 Board of Workers' Compensation $320,407 $77,237 $24,511 $160,170 $582,326 60 21 56 North Georgia Technical College $358,416 $79,138 $27,419 $98,715 $563,687 91 14 57 Teachers Retirement System $389,000 $87,228 $26,351 $57,556 $560,135 70 6 58 Court of Appeals $334,766 $77,395 $23,052 $100,493 $535,706 44 9 59 Employees' Retirement System $325,949 $78,217 $24,130 $100,743 $529,039 59 9 60 Finance & Investment Commission $355,782 $86,993 $26,578 $51,019 $520,372 69 9 61 Augusta Technical College $372,162 $87,006 $28,470 $27,279 $514,918 121 4 62 Supreme Court $268,498 $61,250 $20,540 $140,581 $490,869 33 15 63 State Road & Tollway Authority $357,117 $89,325 $26,628 $15,006 $488,076 47 2 64 Lanier Technical College $350,491 $96,414 $26,813 $12,607 $486,325 103 4 65 Public Service Commission $263,952 $61,984 $20,192 $92,761 $438,889 33 14 66 South Georgia Technical College 67 Southeastern Technical College14 $234,089 $323,162 $57,261 $73,244 $17,908 $24,722 $113,456 $1,279 $422,715 $422,407 49 10 106 1 68 Department of Veterans Services $244,302 $56,959 $18,689 $61,621 $381,571 86 15 69 Albany Technical College $283,940 $74,438 $21,721 $380,099 98 70 Moultrie Technical College $241,114 $59,055 $18,445 $7,206 $325,821 95 2 71 Student Finance Commission $187,537 $44,107 $14,347 $76,660 $322,651 19 11 72 Ogeechee Technical College $220,732 $55,808 $16,886 $8,263 $301,689 92 1 73 Southwest Georgia Technical College $244,498 $55,265 $18,704 $0 $318,467 75 0 74 Regional Transportation Authority $167,454 $42,444 $12,588 $17,087 $239,574 27 1 75 Altamaha Technical College $165,449 $42,559 $12,657 $1,454 $222,120 62 1 76 Okefenokee Technical College $152,656 $38,225 $11,678 $202,560 66 77 Subsequent Injury Trust Fund $109,088 $26,929 $8,345 $45,597 $189,959 11 6 78 Soil & Water Conservation Commission $95,850 $23,513 $7,333 $37,856 $164,551 24 5 79 State Properties Commission 80 Middle Georgia College15 $33,154 $5,747 $7,050 $1,313 $2,052 $440 $16,443 $58,699 $7,500 7 2 3 Grand Total $161,264,241 $38,329,754 $12,194,204 $45,932,983 $257,721,183 53,288 6,602 1FICA estimates may be slightly higher than actual costs because the Technical College System of Georgia and its institutions do not pay the OASDI portion of FICA for employees who are members of TRS. 2The number of employees separating from service who received an annual leave payment. 3The number of retirees with enough unused sick and forfeited leave to incur a payment to ERS for additional service credit. 4Includes the Division of Family and Children Services for all 6 fiscal years, the Department of Public Health for 2008-2011, and DBHDD for 2008-2009. 5Department of Behavioral Health and Developmental Disabilities. 6In July of 2009, Appalachian Technical College, North Metro Technical College, and Chattahoochee Technical College consilidated into Chattahoochee Technical College. 7In July of 2013, Central Georgia Technical College and Middle Georgia Technical College consolidated into Central Georgia Technical College. 8In July of 2009, West Georgia Technical College and West Central Technical College consolidated into West Georgia Technical College. 9The State Personnel Administration was abolished beginning in fiscal year 2013, with some functions moving to the Department of Administrative Services. 10In July of 2010, Valdosta Technical College and East Central Technical College consolidated into Wiregrass Georgia Technical College. 11In July of 2010, Griffin Technical College and Flint River Technical College consolidated into Southern Cresent Technical College. 12In July of 2009, Coosa Valley Technical College and Northwestern Technical College consolidated into Georgia Northwestern Technical College. 13In July of 2011, Sandersville Technical College and Heart of Georgia Technical College consolidated into Oconee Fall Line Technical College. 14In July of 2009, Swainsboro Technical College and Southeastern Technical College consolidated into Southeastern Technical College. 15In 2007, Georgia Aviation Technical College became part of Middle Georgia College, which is under the Board of Regents of the University System of Georgia. Source: State Accounting Office, Division of Family and Children Services, Employees' Retirement System www.audits.ga.gov Report No. 13-27 12 Appendix B: Leave Payout Costs by USG Institution, Fiscal Years 2010 20131 Institution ALP FICA ERS Total Terminations2 1 Georgia Tech $12,640,305 $897,372 $13,537,677 2,248 2 University of Georgia3 $11,310,297 $833,756 $12,144,053 2,748 3 Georgia Regents University4 $10,873,958 $753,144 $10,871 $11,637,973 2,947 4 Georgia State University $4,589,454 $331,444 $4,920,898 1,200 5 Kennesaw State University $2,813,265 $210,759 $3,024,024 698 6 Georgia Southern University $1,879,468 $138,884 $15,521 $2,033,873 722 7 Georgia Perimeter College $1,526,478 $115,779 $1,642,257 501 8 University of West Georgia $1,160,126 $83,630 $1,243,756 333 9 Board of Regents (USG) $995,907 $71,441 $1,067,348 120 10 Valdosta State University $951,826 $70,551 $1,022,377 313 11 Fort Valley State University $920,464 $70,416 $990,880 256 12 Georgia College & State University $920,325 $70,405 $990,730 234 13 University of North Georgia5 $836,585 $61,522 $898,107 210 14 Middle Georgia State College6 $822,474 $59,164 $11,302 $892,940 231 15 Armstrong Atlantic State University $827,676 $63,317 $890,994 215 16 Savannah State University $798,020 $59,948 $857,968 220 17 Columbus State University $763,620 $57,030 $820,649 249 18 Albany State University $727,145 $55,627 $782,771 201 19 Clayton State University $635,076 $47,152 $682,228 191 20 Augusta State University4 $533,502 $40,354 $573,856 186 21 Southern Polytechnic State Unviversity $440,791 $33,721 $474,511 137 22 Georgia Gwinnett College $389,441 $29,792 $419,233 116 23 Abraham Baldwin Agricultural College $381,301 $29,170 $410,471 92 24 College of Coastal Georgia $360,791 $25,757 $386,548 125 25 South Georgia State College7 $329,664 $25,219 $354,883 89 26 Georgia Southwestern State University $281,398 $21,527 $302,925 64 27 Bainbridge College $276,596 $21,160 $297,755 81 28 Georgia Highlands College $265,536 $18,167 $283,704 71 29 Dalton State College $256,981 $19,659 $276,640 107 30 Darton College $244,286 $18,688 $262,974 81 31 Atlanta Metropolitan College $205,928 $15,754 $221,682 52 32 Skidaway Institute3 $163,222 $12,487 $175,709 32 33 Gordon College $134,551 $10,293 $144,845 55 34 East Georgia College $111,682 $8,544 $120,225 32 Grand Total $60,368,141 $4,381,630 $37,694 $64,787,465 15,157 1Several Institutions were consolidated during fiscal years 2012-2013. 2The number of employees who received an annual leave payments. Includes transfers from 12-month to 10-month faculty positions. 3Skidaway Institute became part of the University of Georgia beginning fiscal year 2014. 4Augusta State University and Georgia Health Sciences University consolidated into Georgia Regents University in January of 2013. 5North Georgia College and State University and Gainesville StateCollege consolidated into the University of North Georgia. 6Middle Georgia College and Macon State College consolidated into Middle Georgia State College. 7South Georgia College and Waycross College consolidated into South Georgia State College. Source:University System of Georgia records www.audits.ga.gov Report No. 13-27 13