Georgia comprehensive annual financial report, June 30, 1997

- - - - - S t a t e of GeorfJia--------
&e(( ~[[er, Go-vernor
Compreftensi've Annua[ (financia[
~port gune 30~ 1997
Prepared by GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
Oauae ~C{)ickers, State7\uaitor

cr - - - - - - - - - - - - - -

Georgia's Sta
Cover q]rllwino6l

te
Scott

o:ursese

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qn 1937. the Ci'\le oak was adopted as the officia[ tree at the rell.uest of the c.Edmund c:Burli:e (Jtapter of the q)allfftters of the American ~o[ution.
qt f[ourisftes a[ollfJ the coasta[ pains and on the is[ands where the first settlers made their homes. S\\.an! famous GeorfJians. as ear[! as Genera[ EJames c.Edward Ofjdhorpe. were a&Ce to enjo! it s lieaut!.

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- - - - - - - - - State of GeorfJia - - - - - - - - -
Table of Contents
June 30, 1997

INTRODUCTORY SECTION

Letter of Transmittal

i

Organizational Chart

xiii

Principal State Officials

xv

FINANCIAL SECTION

Independent Auditor's Report on General Purpose Financial Statements

1

General Purpose Financial Statements

Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Units

6

Combined Statement of Revenues, Expenditures and Changes in Fund Balances -

All Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units

10

Statement of Funds Available and Expenditures Compared to Budget - Budget Fund

14

Combined Statement of Revenues, Expenses and Changes in Fund Equity/Fund Balances-

All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units

16

Combined Statement of Cash Flows -

All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units

20

Statements of Plan Net Assets - Pension Trust Funds and Discretely Presented Component Units

22

Statements of Changes in Plan Net Assets - Pension Trust Funds and Discretely Presented Component Units

24

Combined Statement of Changes in Fund Balances - College and University Funds

26

Combined Statement of Current Funds Revenues, Expenditures and Other Changes -

College and University Funds

30

Notes to the Financial Statements

31

Combining Statements and Schedules

Primary Government

Capital Projects Funds

Capital Projects Funds Descriptions

93

Combining Balance Sheet

94

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

96

Internal Service Funds

Internal Service Funds Descriptions

101

Combining Balance Sheet

104

Combining Balance Sheet - Risk Management..

106

Combining Statement of Revenues, Expenses and Changes in Fund Equity

108

Combining Statement of Revenues, Expenses and Changes in Equity - Risk Management

ll0

Combining Statement of Cash Flows

112

Combining Statement of Cash Flows - Risk Management

116

Trust and Agency Funds

Combining Balance Sheet

121

- - - - - - - - - State of Georsia - - - - - - - - -
Table of Contents June 30, 1997

Expendable Trust Funds

Expendable Trust Funds Descriptions

123

Combining Balance Sheet.

124

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

126

Nonexpendable Trust Funds

Nonexpendable Trust Funds Descriptions

129

Combining Balance Sheet

131

Combining Statement of Revenues, Expenses and Changes in Fund Balances

132

Combining Statement of Cash Flows

133

Pension Trust Funds

Pension Trust Funds Descriptions

135

Combining Statement of Plan Net Assets

136

Agency Funds

Major Agency Funds Descriptions

;

139

Combining Statement of Changes in Assets and Liabilities

141

College and University Funds

College and University Funds Descriptions

147

Combining Balance Sheet

148

General Fixed Assets Account Group

General Fixed Assets Account Group Description

153

Schedule of General Fixed Assets by Function

154

Schedule of Changes in General Fixed Assets by Function

155

Component Units

Governmental Fund Types

Governmental Fund Types Descriptions

159

Combining Balance Sheet

160

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

161

Proprietary Fund Types

Proprietary Fund Types Descriptions

165

Combining Balance Sheet

168

Combining Statement of Revenues, Expenses and Changes in Fund Equity

172

Combining Statement of Cash Flows

174

Fiduciary Fund Types

Fiduciary Fund Types Descriptions

181

Combining Statement of Plan Net Assets

182

STATISTICAL SECTION

Index to Statistical Tables

187

- - - - - qntt'oductot'! Section

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400

May 19, 1998

The Honorable Zell Miller Governor of Georgia
and Members of the General Assembly Citizens of the State of Georgia
The Comprehensive Annual Financial Report of the State of Georgia for the year ended June 30, 1997, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the State. All disclosures necessary to enable the reader to gain an understanding of the State's financial activities have been included.
This report is presented in three sections: Introductory, Financial and Statistical. The Introductory Section, which is unaudited, includes this transmittal letter, an organization chart and a listing of principal officials. The Financial Section includes the general purpose financial statements and the combining financial statements, and the auditor's report on the financial statements. The Statistical Section, which is unaudited, includes selected financial and demographic information, generally presented for multiple years.
Federallaws and regulations require that the State undergo an annual audit in conformity with the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Information related to the single audit, which includes a schedule of expenditures of federal awards, a report on internal control and compliance applicable to each major program, and a schedule of findings and questioned costs, is included in a separately issued State of Georgia Single Audit Report. Also included is a report on internal control over financial reporting and compliance with certain laws, regulations, contracts and grants in accordance with Government Auditing Standards.
This Comprehensive Annual Financial Report presents information on the financial position and operations of state government as one reporting entity. The various agencies, departments, boards, commissions and funds of Georgia state government which constitute the State financial reporting entity are included in the Comprehensive Annual Financial Report in accordance with criteria established by

the Governmental Accounting Standards Board. These criteria define the financial reporting entity as the primary government, organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
The reporting entity is based primarily on the concept of financial accountability. A primary government is financially accountable for the organizations which make up its legal entity and for legally separate organizations if its officials appoint a voting majority of the organization's governing board and either the primary government is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific burdens on the primary government. The primary government may also be financially accountable for governmental organizations that are fiscally dependent upon it.
The State of Georgia provides a variety of governmental services as set forth in its Constitution and statutes. These services include education, health and welfare, transportation, public safety, economic development, recreation and conservation.
ECONOMIC CONDITION AND OUTLOOK
As late as 1995, popular expectation in Georgia held that the economy in 1996 would be caught in an updraft from the Olympic Games. Georgia's economy would be pushed towards greater productivity and, especially near the game sites, would be carried to record levels of activity. Once the outputstimulating whirlwind had passed, the anticipation continued, growth in Georgia would subside temporarily as a post-Games economic landscape emerged.
But, things have not gone quite as expected. A narrow bubble did in fact develop on Georgia's growth line during the events. Also, the Games did contribute to Metro-Atlanta's growth advantage in 19961997. However, the asymmetry of growth before and after the Games has not been so exaggerated as had been supposed. Aside from a continuing boost from the world-wide publicity, the economic condition and outlook for Georgia in mid-1997 then depends on traditional factors. The Olympics enter as a factor of account in recent growth rather than as a force which has ratcheted Georgia's economy on to a new plane.
Turning first to the stock of resources, Georgia's labor force climbed by 4.9 percent from mid-1996 to mid-1997. This was its largest percentage increase of the nineties. Certainly the7-year growth of jobs at roughly 1.5 times the rate of population had tightened labor markets enough to induce people to enter the labor force. Besides, an acceleration in the rise of employee pay offered an incentive for work. After adjustment for inflation, average hourly compensation climbed by 1.2 percent from mid-1996 through mid-1997. In the prior two years, the gains had been only 0.2 and 0.5 percent. Finally, worker skills and job requirements may have been more closely aligned in mid-1997 than earlier because of the evolving emphasis by business and governments in the nineties on training, retraining, and general education. However these influences interacted, the proportion of Georgia's population in the labor force climbed to 52.3 percent in mid-1997 from 50.9 percent in mid~1996 and 50.7 percent at the economic peak in mid1990.
11

As the labor force has grown, new spending has emerged to absorb it. Besides the additional outlays that an inflow of employed (or retired) people introduced, business spending on equipment, especially information-processing equipment, continued a surge that had begun in 1993. Taking national data as guide, spending on producers' durable equipment advanced at an annual rate of roughly 10 to 12 percent. In addition, the U.S. economy, Georgia's principal "export market", was enlivened. Output grew by 3.4 percent from mid-1996 to mid-1997 compared to rates of 3.2 and 1.6 percent in the two prior years. At the same time, employment growth in the U.S. rose from 2.0 percent in 1995-1996 to 2.3 percent in 1996-1997. Pushed by the new spending and the expanded market opportunities, Georgia businesses offered jobs to newly-available workers. Georgia's unemployment rate remained low (and steady) at about 4.7 percent in 1996-1997. This was slightly above the 4.5 percent rate achieved during the Olympic Games but well below the pre-Games levels which, though dropping, were still at 5.0 percent in 1995.
Georgia's employment at 1997's mid-year was only 1.7 percent above the level at the start of the Games. Compared to two years previous, however, employment was up by 5.6 percent. Had the Games not "intervened", the advance in 1996-1997 might then have been about 2.8 percent. Only 13 states registered a higher two-year gain. Of mid-1997's total employment, service industries accounted for roughly 26 percent, wholesale and retail trade for 25 percent, and each of manufacturing and government for about 16 percent. These proportions incorporated growth from the pre-Games levels (mid-1995) by 11.7 percent for services and 6.1 percent for wholesale and retail trade. The two-year gains for manufacturing and government were virtually zero. Significantly, the employment gain in MetroAtlanta, which had accounted for about 75 percent of the state's growth during the Games, was still responsible for about 70 percent of the increase from mid-1996 to mid-1997.
The utilization of Georgia's expanded and redirected labor stock generated increases in income. From mid-1996 to mid-1997, total personal income climbed by 6.8 percent and reached a level 59 percent above that at the cyclical peak ofmid-1990. These rates of increase in income placed Georgia fifth and sixth respectively among all the states. The corresponding U.S. gains were 5.7 and 43 percent. At the same time, income per job in Georgia rose by roughly 2.6 percent (after allowing for inflation), almost a percentage point more than the average annual gain in the years 1990-1996. Of the statewide increase in income, roughly 30 percent came from service industries, 15 percent from wholesale and retail trade, and 8 percent from manufacturing. On a per capita basis, personal income (after adjustment for inflation) rose by 3.2 percent in 1996-1997, more than in either 1994-1995 or 1995-1996. Nevertheless, relative to the U.S. level, Georgia's per capita income slipped from 0.942 to 0.940. This was the first decline in this income ratio since 1990.
For the state government (the State), Fiscal Year 1997 (mid-1996 to mid-1997) showed strong but not exceptional growth. Overall, revenues for the fiscal year climbed by 6.6 percent, below the increments of 8.5 percent in 1996 and 8.1 percent in 1995. Partly of account was a 50 percent reduction in the sales tax rate on food starting in October of 1996. Sales tax revenues rose by only 2.4 percent compared to 8.7 percent and 7.7 percent in the two preceding years. In contrast, the yield of individual income taxes, buoyed by the noted increases in employment and wages, climbed by 12.3 percent in Fiscal Year 1997. In 1996 and 1995, the gains had been 10.3 and 7.1 percent respectively. Corporate income taxes, historically the least stable among the major tax yields, rose by only 1.4 percent in Fiscal Year 1997. Since they had risen by 8.9 and 30.1 percent in Fiscal Years 1996 and 1995 respectively, the leveling of collections in Fiscal Year 1997 was (and remains) of concern because of this tax's frequent role as a lead-indicator.
iii

A third to a half of the income-tax increments in Fiscal Years 1996 and 1997 were realized in the quarter preceding (1996) or the quarter coinciding (1997) with the Games. For sales taxes, revenues scarcely increased in the second, third, and fourth quarters of Fiscal Year 1997. Considering all revenue sources, roughly 40 percent of the annual gain in each fiscal year was linked to the Olympics-induced growth bubble. In Fiscal Year 1997, revenues advanced by 13.3 percent in the quarter of the Games and then by only 3 t05 percent in the remaining quarters of the year.
In total, the State's outreach into the private economy with taxes and fees claimed 6.2 percent of Georgia's personal income in Fiscal Year 1997. This proportion was essentially the same as in each year since 1990. Cuts in income taxes in 1994 and 1995 and, as mentioned, in the sales tax in 1996, of course tended to lower the claim ratio. However, a slow easing of progressivity in the State's tax-and-fee structure has been ongoing since the early seventies. The percentage-claim of the State on income reached a high of about 6.4 percent in 1974 and, except for years of economic downturn, has declined each year since.
The prospect for growth in the State's collections in Fiscal Year 1998 depends fundamentally on the expansion of tax bases in the private sector. Private-sector growth, in turn, will depend upon the increase in resources, the expansion in calls placed upon them, and the improvements in the technology which connects the two. Since Georgia's gains in employment and income recently showed signs of losing rank among the states, the inflow of population can be expected to slip slightly from the 2 percent rate that has characterized the expansion of the nineties. In particular, economic opportunity in states like California, New York, and New Jersey, states which have been slow to regain their 1990 peaks in employment, has started to improve and will weaken Georgia's advantage in attracting households and businesses. At the same time, rates of participation of the population in employment in Georgia are likely to increase only slightly after their surge (relative to the nineties pace) in 1997. Consequently, the potential increase in employment in Georgia in Fiscal Year 1998 will probably not be more than 2.5 to 3.0 percent.
A continued growth in U.S. Gross Domestic Product in 1997-1998 at an annual rate of around 3 percent will help to absorb the additional workers as Georgia businesses exploit national opportunities. This market absorption would be aided if worker productivity in Georgia were to rise and unit labor costs were to falL Unfortunately, both in Georgia and the Nation, productivity increaSes have proven surprisingly resistant to sustained growth in business purchases of information-processing equipment and to the competitively-driven downsizing, core-aligning, and cost-cutting of all kinds of businesses. Accordingly, increases in per-hour outputs in Georgia in 1998 and 1999 are unlikely to average more than 1.5 percent per year. If inflation holds to a 2 to 3 percent rate, compensation, in turn, will then not likely rise by more than 3.5 to 4.5 percent annually. As a result, personal income in Georgia in Fiscal Years 1998 and 1999 will probably climb by no more than 6 to 7 percent per year. In turn, the State's reach-in with taxes and fees, restrained by a complete elimination of the sales tax on food, will likely increase by no more than 5.5 to 6.5 percent in each year. With growth in corporate profits easing, the revenue advance will flow from the ever more productive individual income tax.
Budgetary expenditures accommodate changes in both population and economic activity. Should gains in productivity fall behind the rise in needs which a growing population and a rising level of activity . impose, there is a possibility that the State's expenditure function will overtake its revenue function in
IV

the budgets of Fiscal Year 1998 or (more likely) Fiscal Year 1999. Barring recession induced by some external shock (like a collapse of a stock market somewhere), however, accommodative fiscal comfort of the style of Fiscal Year 1997 rather than fiscal distress of the style of the expansion-ending late eighties will probably characterize these budgets.
MAJOR INITIATIVES
Economic Development State funds will assist in launching a new marketing program by the Georgia Legacy Division to target recruitment and development of growth industries important to Georgia's future, and to create a new Strategic Planning and Research Division to formulate and coordinate state economic development strategy. The state funds will be matched by private donors.
Existing marketing funds will be redirected to the development of a multi-year marketing strategy to promote Georgia's research and technology development efforts and to establish an Incoming BuyersNisitor Program to increase the state's presence with foreign buyers of Georgia products.
Environment Funds were allocated for the Environmental Protection Division to establish total maximum daily pollution for Georgia's rivers and streams in compliance with a federal court ruling that such action be taken within five years. In addition, the state increased funding to finance the clean-up of hazardous waste sites not covered under federal laws.
Human Resources On January 1, 1997, Georgia abolished the existing welfare entitlement program and implemented a new program known as Temporary Assistance for Needy Families (TANF). The new welfare program, which emphasizes the goal of employment for those who are willing to help themselves, focuses on education and training as the way to end the cycle of poverty. TANF benefits are not an entitlement, but are limited to four years.
In support of the welfare reform, Indigent Care Trust Funds were set aside to implement teen pregnancy prevention. In the past, the need for welfare assistance has been triggered by a high rate of teenage pregnancies. TANF block grant funds were set aside to annualize teen pregnancy prevention sites.
Medicaid The number of Medicaid recipients in Georgia has almost tripled since 1980. A projected increase in Medicaid utilization, including a reduction in the federal financial participation rate, prompted the state to direct funds to the Medicaid program.
Revenue A five year strategy to modernize the Department of Revenue was launched to create a new department that will be capable of administering the state's tax, tag and title laws in the most accurate, fair and costeffective manner.
v

Redirection Redirection, in its third year, will provide most of the growth needs of state agencies, with enhancement funds mostly going to fund the Governor's priorities in education. In keeping with the Governor's promise to place his budget emphasis on improving education, eighty nine percent of enhancement funds went to education. The remaining eleven percent of enhancement funds were divided between prisons, children and youth detention facilities and indebtedness on new bonds approved for sale.
FINANCIAL INFORMATION
Internal Controls Management of the State is responsible for establishing and maintaining internal accounting controls designed to ensure that assets are safeguarded and that financial transactions are properly recorded and adequately documented. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and that the valuation of costs and benefits requires estimates and judgments by management.
Budgetary Controls The objective of budgetary control is to ensure compliance with legal provisions embodied in the General Appropriations Act enacted by the General Assembly. Annual appropriated budgets are adopted at the departmental level and are applicable to the general, debt service and capital projects funds. All unencumbered annual appropriations lapse at fiscal year end unless otherwise specified by the Constitution or statute. The Constitution further authorizes the passage of additional Supplementary Appropriation Acts for specific purposes, provided sufficient unappropriated funds are available or additional revenue measures have been enacted. Federal funds received by the State are continually appropriated in the exact amounts and for the purposes authorized and directed by the awarding federal agency.
The budgetary basis of accounting required by state law differs materially from the basis used to report revenues and expenditures in accordance with generally accepted accounting principles (GAAP). In addition, the fund structure utilized to implement the annual budget differs extensively from the fund structure presented in these fmancial statements.
The State of Georgia Report of the State Auditor is issued annually by the undersigned prior to the issuance of this report. The sole purpose of the Report of the State Auditor is to provide the General Assembly with information concerning fmancial compliance with the Amended Appropriations Act for the fiscal year. In contrast to issuing financial statements in accordance with generally accepted accounting principles, the financial statements presented in the Report of the State Auditor are reported in conformity with statutory requirements.
General Governmental Functions The following schedules present summaries of general fund, special revenue fund, capital projects fund and debt service fund revenues and expenditures. These revenues and expenditures are reported on the modified accrual basis of accounting. Revenues from governmental fund type sources for fiscal years 1997 and 1996 are compared in the following table:
vi

Revenues and Other Sources
Taxes Licenses and Permits Intergovernmental Sales and Services Fines and Forfeits Interest and Other Investment Income Rents and Royalties Contributions and Donations Penalties and Interest on Taxes Unclaimed Property General Obligation Bond Proceeds Other Revenue

FY 1997

FY 1996

Amount

Percent of Total

Amount

Percent of Total

$ 10,483,497,704 351,181,927
5,549,805,877 513,909,314 50,426,165 239,306,741 9,992,943 190,841,985 6,699,639 20,118,021 373,248,075 32,522,511
$17,821,550,902

58.8% 2.0% 31.l% 2.9% 0.3% 1.3% 0.06% 1.l% 0.04% 0.1% 2.1% 0.2% 100.0%

$ 9,891,126,837 343,118,630
5,457,487,877 363,320,801 32,022,270 242,059,488 17,600,277 169,020,652 9,082,163 25,809,698 960,650,338 6,781,951
$17,518,080,982

56.46% 1.9%
31.2% 2.1% 0.2% 1.3% 0.1% 1.0% 0.1% 0.1% 5.5% 0.04% 100.0%

Increase (Decrease)
From FY 1996
$ 592,370,867 8,063,297
92,318,000 150,588,513
18,403,895 (2,752,747) (7,607,334) 21,821,333 (2,382,524) (5,691,677) (587,402,263) 25,740,560 $303,469,920

Percent of
Increase (Decrease)
6.0% 2.4% 1.7% 41.4% 57.5% (1.l)% (43.2)% 12.9% (26.2)% (22.1)% (61.l)% 379.5 % 1.7 %

1997 Revenues and Other Sources

-Unclaimed Property
I_penalties & Interest
~ I-Contributions & Donations _Rents & Royalties Interest & Other Investment Income -Fines and Forfeits Sales and Services
vii

Expenditures by governmental fund type function for fiscal years 1997 and 1996 are compared in the following table:

FY 1997

FY 1996

Expenditures by Function

Amount

Percent of Total

Amount

Percent of Total

General Government Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay Debt Service

$ 637,247,287 5,700,389,994 6,796,847,561 1,113,788,591 1,124,542,047 263,090,507 170,667,100 48,769,799 373,677,146 629,588,332
$16,858,608,364

3.8% 33.8% 40.3%
6.6% 6.7% 1.6% 1.0% 0.3% 2.2% 3.7% 100.0%

$ 471,240,748 4,998,994,142 6,558,077,298 1,287,172,005 1,104,443,315 294,112,317 169,961,642 46,557,857 391,876,879 571,524,445
$15,893,960,648

3.0% 31.4% 412%
8.1% 6.9% 1.9% 1.1% 0.3% 2.5% 3.6% 100.0%

Increase (Decrease)
From FY 1996

Percent of
Increase (Decrease)

$ 166,006,539 701,395,852 238,770,263
(173,383,414) 20,098,732
(31,021,810) 705,458
2,211,942 (18,199,733)
58,063,887 $964,647,716

352% 14.0% 3.6% (13.5)%
1.8% (10.5)%
0.4% 4.8% (4.6)% 10.2% 6.1 %

The increase in General Government expenditures during the fiscal year is primarily due to disaster grants disbursed to assist flooded regions of the State.

1997 Expenditures by Function

I I Education
viii

,,:,../ , , - - - General Government Debt Service

Capita! Outlay

Ll

Conservation Culture and Recreation Economic Development

Public Safety

Proprietary Operations The State maintains various proprietary funds which account for ongoing activities and organizations that are similar to those found in the private sector. Proprietary funds include such primary government activities as the Georgia Building Authority and the service centers of the Department of Administrative Services. Discretely presented component unit proprietary funds include, among others, the Georgia Ports Authority and the George L. Smith II Georgia World Congress Center Authority. Financial activities of the proprietary funds are presented in the combined and combining financial statements of the enterprise and internal service funds.

Pension Trust Funds The State maintains sixteen pension plans, nine of which are included within the primary government. The major pension plans are the Employees' Retirement System of Georgia, which is included within the primary government, and the Teachers Retirement System of Georgia, which is included within these fmancial statements as a discretely presented component unit. Financial activities of the pension trust funds are presented in the combining financial statements of pension trust funds for the primary government (except for the Regents Retirement Plan, which is included in the college and university funds), and the combining financial statements of fiduciary fund types for the component units.

Debt Administration At June 30, 1997, outstanding general obligation debt issues of the State of Georgia totaled $4,635,930,000. Outstanding revenue bonds of certain blended and discretely presented component units totaled $1,245,146,505, of which $ 177,975,505 are guaranteed by the State of Georgia.

During fiscal year 1997, general obligation bonds in the amount of$ 392,165,000 were retired. General obligation debt issued during fiscal year 1997 totaled $372,535,000.

At June 30, 1997, the State of Georgia maintained the following investment service bond ratings:

Moody's Investors Service Standard & Poor's Corporation Fitch's Investor's Service, Incorporated

Aaa AA+ AAA

In July, 1997, Standard & Poor's Corporation rated the State's general obligation bonds as AAA.

Under the Constitution of the State of Georgia, the highest aggregate annual debt service for all outstanding general obligation and guaranteed revenue debt may not exceed 10 percent of the previous fiscal year's revenue collections.

Further detailed information on outstanding bonds is reflected in the Financial Section, Notes to the Financial Statements and Statistical Section of this report.

Cash Management The State's investment policy is to maximize the protection of State funds on deposit while accruing an advantageous yield of interest by investing the funds in excess of those required for current operating expenses. Cash is managed in pooled funds to maximize interest earnings. Types of investments are dictated by legislation and are reviewed quarterly.

ix

Risk Management The State assumes substantially all risks associated with the following:
Claims of covered employees for medical insurance and group life insurance benefits;
Claims with respect to death or permanent disability of any law enforcement officer, fireman, or prison guard in the line of duty (limited to a five year disbursement totaling $75,000 or an immediate lump sum settlement of $65,221 per occurrence);
Claims of covered employees for workers' compensation benefits;
Claims of State employees for unemployment compensation benefits;
Liability claims against employees of the University System of Georgia; and
Liability claims in connection with abatement and removal of asbestos and other hazardous materials.
The State also purchases commercial insurance coverage and self-insures to cover risks associated with the following:
State owned real and personal property;
Liability claims actionable under the law which parties may file against the State, its agencies, officials, employees or appointees;
Liability claims against State authorities arising from their operations; and
Honesty and faithful performance bonds on employees.
Various risk control techniques are utilized to minimize accident-related losses. These techniques include safety inspections, assistance in establishing safety programs, training and certification of employees as American Automobile Association instructors, and maintenance of an extensive safety library.
OTHER INFORMATION
Independent Audit The financial statements of all organizations comprising the State reporting entity have been separately examined and reported on by either the State Auditor or independent certified public accountants. The
x

accompanying financial statements for the State of Georgia have been prepared from the results of those examinations. The State Auditor's opinion thereon appears at the beginning of the Financial Section of this report. Compilation of Transmittal Letter This transmittal letter has been compiled utilizing information contributed by various State management sources.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
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GEORGIA ELECfORATE :}:::
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1997 GEORGIA GOVERNMENT ORGANIZATION CHART

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ELECIEIl API'OINIED

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- - - - - - - State of Georgia--------
Prindpal State Offidals June 30. 1997
Executive:
Zell Miller Governor Lewis A. Massey Secretary ofState Thurbert E. Baker Attorney General David B. Poythress Commissioner ofLabor Linda C. Schrenko State Superintendent ofSchools John W. Oxendine Commissioner ofInsurance Thomas T. Irvin Commissioner ofAgriculture Stan Wise, Chairman Dave Baker Bobby Baker Mac Barber Bob Durden Public Service Commission
Legislative:
Pierre Howard Lieutenant Governor/President ofthe Senate -Thomas B. Murphy Speaker ofthe House ofRepresentatives
Judicial:
Robert Benham ChiefJustice ofthe Supreme Court
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- - - - - - ~inancia[Section- - - - - -

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400

INDEPENDENT AUDITOR'S REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS

The Honorable Zell Miller Governor of Georgia
and Members ofthe General Assembly of the State of Georgia
We have audited the accompanying general purpose financial statements of the State of Georgia, as listed in the Table of Contents, as of and for the year ended June 30, 1997. These general purpose financial statements are the responsibility ofthe State's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We did not audit the financial statements of certain organizations which, combined, represent less than 1% ofthe assets and revenues ofthe general fund, 100% of the assets and revenues of the capital projects funds, 62% of the assets and 29% of the revenues of the internal service funds, 68% ofthe assets ofthe fiduciary funds and less than 1% ofthe expendable trust funds revenues and 100% ofthe pension trust funds revenues, and 7% ofthe assets and less than 1% of the liabilities of the general :fixed assets and general long-term debt account groups, respectively. In addition, we did not audit certain discretely presented component units which represent less than 1% of the assets and revenues of the component unit governmental fund types, 83% ofthe assets and 95% ofthe revenues of the component unit proprietary fund types and 98% of the assets and 99% of the revenues of the component unit fiduciary fund types. The financial statements of these organizations and component units were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for those financial statements, is based solely upon the reports of the other auditors.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. The financial statements of the Employees' Retirement System of Georgia, Georgia Lottery Corporation, Georgia Ports Authority, Georgia State Financing and Investment Commission, and Teachers' Retirement System of Georgia were not audited in accordance with Government Auditing Standards. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinion.

The State ofGeorgia's accounting system is decentralized in nature. The management of each organizational unit is responsible for maintaining accounting records pertinent to its operations and each retains complete responsibility and control over their operations, including revenue collections and disbursements. The State's principal accounting system, the Fiscal Accounting and Control System (FACS), is utilized by 66 state organizations. This accounting system allows for the accumulation of financial data, by state organization, on a basis of accounting prescribed or permitted by the budgetary statutes and regulations of the State of Georgia. Constitutional and statutory provisions of the State of Georgia do not provide for a position or organizational unit responsible for the preparation ofstatewide financial statements. It was necessary for staff of the Department of Audits and Accounts to consolidate financial information presented in individual organization financial statements and to prepare adjusting journal entries necessary for the production ofthe general purpose financial statements. We are therefore not independent with regard to the preparation of accounting entries required to convert the consolidated budgetary financial statements to general purpose financial statements prepared in accordance with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, the State of Georgia did not maintain adequate systems to account for or to depreciate (when required) fixed assets in conformity with generally accepted accounting principles. We were unable to determine the effect of these limitations on the general purpose financial statements.
As discussed in Note 1 to the general purpose financial statements, the accounting systems of the State of Georgia did not facilitate recording encumbrances in conformity with generally accepted accounting principles. Contractual obligations for services performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. The recognition of encumbrances as expenditures and liabilities is not consistent with generally accepted accounting principles. We were unable to determine the effect of these limitations on the general purpose financial statements.
As discussed in Note 1 to the general purpose financial statements, revenues for certain expenditure-driven programs were accrued based on the unexecuted portion of contracts for goods and services. These accruals primarily affected the Intergovernmental and Sales and Services revenue categories. We were unable to determine the effect of this departure from generally accepted accounting principles on the general purpose financial statements.
As discussed in Notes 9 and 10 to the general purpose financial statements, the State of Georgia did not maintain adequate systems to identify, classify, and report leases as operating or capital leases in conformity with generally accepted accounting principles. We were unable to determine the effect of these limitations on the general purpose financial statements.
As discussed in Note 1 to the general purpose financial statements, the State of Georgia maintained certain pension trust funds on essentially the cash basis of accounting. This basis of accounting is not in conformity with generally accepted accounting principles. We were unable to determine the effect of this departure from generally accepted accounting principles on the general purpose financial statements.
As discussed in Note 1 to the general purpose financial statements, the State's accounting system has limitations in identifying transactions between organizations whose financial activity is included within an individual fund. State accounting policies and procedures allow the recording of revenues, receivables, expenses and payables for such transactions. All such intrafund transactions have not been eliminated as required by generally accepted accounting principles. We were unable to determine the effect of these overstatements on the general purpose financial statements.
2

The State of Georgia did not maintain adequate systems to determine the accuracy of the amounts of salesbased taxes collected by the Department of Revenue on behalf of local governments and the disbursements of those taxes to local governments. State statutes require that all sales-based taxes be collected by the Department ofRevenue and remitted to the Office of Treasury and Fiscal Services. Amounts of sales-based taxes collected on behalf of local governments are subsequently returned to local government jurisdictions based on information compiled by the Department of Revenue from sales tax returns. The Department of Revenue did not maintain adequate information systems to properly identify amounts of sales-based taxes collected on behalf of local governments. We were unable to determine the accuracy of the sales-based taxes retained by the State of Georgia or the accuracy of the amounts collected and subsequently disbursed to local governments for sales-based taxes.
In our opinion, based on our audit and the reports of other auditors, except for the effects of the matters discussed in the preceding paragraphs, the general purpose financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of the State of Georgia as of June 30, 1997, and the results of its operations, the cash flows of its proprietary fund types and its nonexpendable trust funds, and the changes in fund balances of the State's colleges and universities, for the year then ended in conformity with generally accepted accounting principles.
As discussed in Note 2 to the general purpose financial statements, the State of Georgia adopted Statement No. 25 of the Governmental Accounting Standards Board (GASB), Financial Reportingfor Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans in fiscal year 1997. In addition, as discussed in Note 4 to the general purpose financial statements, the State implemented GASB Statement No. 28, Accounting and Financial Reportingfor Securities Lending Transactions.
In accordance with Government Auditing Standards, we have also issued a report dated May 19, 1998 on our consideration of the State of Georgia's internal control over financial reporting and on our tests of its compliance with certain laws, regulations, contracts and grants. Those reports are included in the State of Georgia Single Audit Report.
Our audit was made for the purpose offorming an opinion on the general purpose financial statements taken as a whole. The combining financial statements identified in the Table ofContents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the State of Georgia. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, except for the effects of the matters noted above, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole.
The Introductory and Statistical Sections, identified in the Table of Contents, were not audited by us and, accordingly, we express no opinion on such information.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
May 19, 1998
3

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- - Genera[ Wurpose ~inancia[ Statements---

State of GeorfJia - - - - - - - -
Combined Balance Shed All Fund Tvpes, Account Groups and Discretelv Presented Component Units
June 30, 1997

Assets and Other Debits
Assets: Cash and cash Equivalents Cash and Cash Equivalents in Nonexpendable Trust Funds Investments Receivables (Net ofAllowances for Unconectibles) Intergovernmental- Federal Interest and Dividends Notes and Loans Taxes Other Due from Other Funds Due from PrimaIy Government Due from Component Units Inventories Prepaid Items Restricted Assets Cash and Cash Equivalents Investments Receivables Interest and Dividends Loans Advances to Other Funds Advances to Component Units Deferred Compensation Plan Assets Fixed Assets (Net, Where Applicable, of Accwnulated Depreciation) Deferred ChaIges Other Assets Other Debits: Amount Available in Debt Service Fund Amount to be Provided for Retirement of General Long-Term Debt
Total Assets and Other Debits
Liabilities, Equity and Other Credits
Liabilities: Cash Overdraft Accounts Payable and Other Accmals Compensated Absences Payable Claims and Judgmenls Payable Contracts Payable SalarieslWithholdings Payable Benefits Payable Due to Other Funds Due to PrimaIy Government Due to Component Units Accrued Interest Payable Deferred Revenue Capital LeaseslInstallment Purchases Payable Mortgage Loans under Repurchase Agreements Funds Held for Others Other Liabilities Deposits and Overpayments Advances from Other Funds Advances from PrimaIy Government Long-Term Debt Payable (Net ofUnamortized Discounts)
Total Liabilities

General

Govenunental Fund Types

Special Revenue

Debt Service

Capital Projects

PrimaIy Government

Proprietny Fund Types

Enterprise

Internal Semce

S 2,628,862,273 S
600,398,816
1,728,213,699 17,675,652
664,360,025 164,182,456
67,540 41,878,493 72,415,975

1,762,517 S 668,399

208,653,344 S

S

1,091,615,474

76,983,949 S 174,978,124

272,299,546 584,772,437

11,480,997

2,802,452

1,865,404

965,443

13,523,053

10,892,781 32,343,724
470,419 11,177,328
659,846

6,925 161,250
88,523,030

230,662

402,588,254

S 6,006,746,134 S

4,296,320 $ 208,653,344 S 1,104,061,914 S 268,518,240 S 1,315,204,335

$

$

610,639,917

1,540,985,327 568,945,094 453,540,192 28,020,157
1,393,024
158,003,752

40,894,516 349,835

$ 2,106
1,800

$ 3,402,771,814 S

3,906 S

$

20,191,665 S

S

15,779,528

2,349,599

23,716,644

151,931

7,632,640

258,497,047

15,616,910

440,462

13,460,711

120,275

148,196,779

13,117,287 10,618,996

67,317 2,062,763
581,399

1,335,714

S

62,207,099 S 164,256,058 $ 307,474,510

The notes to the financial statements are an integral part ofthis statement. 6

Fiduciary Fund Type
Trust and Agency

College and University

Account Groups

General

General

Fixed

Long-Tenn

Assets

Debt

Totals (Memorandum
Only)
PrimaIy Government

Governmental Fund Types

Component Units
Proprietary Fund Types

Fuluciary Fund Types

Totals (Memorandum
Only)
Reporting Entity

3,449,920,761 19,102
10,024,517,246 707,627
87,700,223 4,311,922 86,595,170 60,475,924
22,788
314,206,807
139,913

473,593,239 S

S

S 7,112,075,629 S

19,102

101,798,437

12,578,748,933

44,639,644 46,1l0
47,843,318 150,351,575
26,826,099 9,178,825

1,773,560,970 119,705,434 52,155,240 750,955,195 402,256,636 32,343,724 0 537,959 79,881,920 82,277,434

0 0

0 0 6,925 161,250 314,206,807

4,234,572,093

2,707,240,447

7,344,631,456 0
88,662,943

208,653,344

208,653,344

4,639,920,336

4,639,920,336

2,153,739 S 274,791 102,219
2,859,426 164,256 233,819
73,906,597
6,069,631

235,1l6,239 S

2,050,471 S 7,351,396,078

19,102

121,609,722

28,871,305,417

41,571,938,863

93,106,069 13,591,857 873,890,791
86,743,653
1,393,024
5,433,251 3,991,821

229,029,590 176,832,155
39,650

1,866,667,039 362,326,881 926,148,250 750,955,195 668,691,870 32,343,724 1,393,024 537,959 85,479,427 86,542,724

134,103,413 370,043,252

134,103,413 370,043,252

6,858,741 581,124,003

6,858,741 581,124,003
6,925 161,250 314,206,807

811,1l5,756 16,455,000 91,426,657

693,725

8,230,347,534 16,455,000 180,089,600

208,653,344

4,645,989,967

S 14,028,617,483 S 5,088,849,340 S 2,707,240,447 S 4,848,573,680 S 35,580,761,237 S

85,764,478 S 3,446,003,249 S 29,279,951,008 S 68,392,479,972

S

S

S

5,518,308

239,920,703

100,463,642

20,110 707,670

5,023,914 20,900,000 3,615,897

23,735 2,657,071,592
6,925

71,566,348 10,940,762
18,961,673 113,283
1,707,821

S 2,663,348,340 S

14,000 473,228,043 S

S

S

20,191,665 S

897,926,805

203,717,363

311,965,576

697,979

259,195,026

1,570,503,410

574,109,393

622,636,971

32,343,724

0

1,393,024

0

242,780,239

5,319,332

18,322,857

0

2,716,927,781

1l,082,114

2,289,220

6,925

0

4,638,839,006

4,640,188,720

0 S 4,848,573,680 S 11,921,863,450 S

S 4,318,785
969,319
36,317

S 88,686,632
2,694,679
2,472,261 538,791

328,877

183,024

635,000 5,100,312

18,566,782 81,052,557
126,110 30,446,467 281,684,101
8,836,793 15,201,360

161,250

1,461,927,233

1l,388,610 S 1,992,578,040 S

S 1,850,697
58,985 26,058

20,191,665 992,782,919 315,629,574 259,195,026 1,572,975,671 574,743,486 622,636,971
32,343,724 537,959
1,393,024 18,566,782 324,467,796 23,549,279 30,446,467 2,998,611,882 19,918,907 17,490,580
6,925 161,250

6,102,1l5,953

1,935,740 S 13,927,765,840

(continued)

7

State of GeorSla - - - - - - - -
Combined Balance Sheet All Fund Tvpcs, Account Groups and Discretelv Prcsented Component Units (continued)
June 30, 1997

PrimaIy Government

Governmen!<ll Fund Types

Proprietary Fund Types

General

Special Revenue

Debt Senice

Capi!<ll Projects

EnteIprise

Internal Service

Equity and Other Credits: Other Credits: Investment in General Fixed Assets

$

-$

-$

-$

-$

-$

Equity: Net Investment in Plant Colleges and Universities Contributed Capi!<ll Retained Earnings
Reserved Unreserved Fund Balances Reserved for Encumbrances Reserved for Advances Reserved for Inventories Reserved for Debt SeNee Reserved for Disaster Assistance Reserved for Distance Learning and Telemedicine Reserved for Pension Benefits Reserved for Guaranteed Revenue Debt Common Reserve Fund Reserved for Hazardous Waste Trust Fund Reserved for LotleIy for Education Reserved for Midyear Adjustment Reserved for Motor Fuel Tax Funds Reserved for Revenue Shortf.ll1 Reserved for Underground Storage Trust Fund Reserved for Other Specific Purposes Unreserved, Designated
Designated for Liability Trust Fund Designated for Future Capital Outlay Designated for Other Specific Purposes Unreserved, Undesignated To!<llEquity

$

$

4,820,880 168,175
43,899,457
13,496,656 19,825,508
19,029,945 24,132,040 226,140,670 111,313,936 912,617,015 333,941,806 32,524,619 73,243,786
9,704,819
3,085,000 776,030,008 $ 2,603,974,320 $

$

$

208,653,344

$

$

274,506,302

104,262,182

587,211,843 146,011,680

1,311,077

4,292,414 4,292,414 $

1,037,148,472
3,395,266 208,653,344 $ 1,041,854,815 $

104,262,182 $ 1,007,729,825

To!<ll Equity and Other Credits

$ 2,603,974,320 $

4,292,414 $ 208,653,344 $ 1,041,854,815 $ 104,262,182 $ 1,007,729,825

To!<ll Liabilities, Equity and Other Credits

$ 6,006,746,134 $

4,296,320 $ 208,653,344 $ 1,104,061,914 $ 268,518,240 $ 1,315,204,335

The notes to the financial statements are an integral part ofthis statement. 8

Fiduciary Fund Type
Trust and Agency

Conege and University

Account Groups

General

General

Flxed Assets

Long-Tenn Debt

Totals (Memorandwn
Only)
Primaty Govenunent

Govenunental Fund Types

Component Units
Proprietaty Fund Types

Fiduciary Fund Types

Totals (Memorandwn
Only)
Reporting Entity

$

-$

- $ 2,707,240,447 $

- $ 2,707,240,447 $

73,906,597 $

270,903 $

- $ 2,781,417,947

$

$ 4,223,590,203 $

$

392,031,094

9,499,471,214

1,837,849,473

27,948,456

$ 11,365,269,143 $ 4,615,621,297 $

0$

$ 11,365,269,143 $ 4,615,621,297 $ 2,707,240,447 $

$ 4,223,590,203 $ 392,031,094 274,506,302
691,474,025 146,011,680
4,820,880 168,175
43,899,457 208,653,344
13,496,656 19,825,508 9,499,471,214 19,029,945 24,132,040 226,140,670 111,313,936 912,617,015 333,941,806 32,524,619 1,912,404,336
9,704,819 1,037,148,472
3,085,000 811,666,144 0 $ 20,951,657,340 $
$ 23,658,897,787 $

$

$

944,928,794

$ 4,223,590,203 392,031,094
1,219,435,096

73,862,000 414,157,204

765,336,025 560,168,884

11,314,857

29,278,015,268

4,820,880 168,175
43,899,457 208,653,344
13,496,656 19,825,508 38,777,486,482 19,029,945 24,132,040 226,140,670 111,313,936 912,617,015 333,941,806 32,524,619 1,923,719,193

469,271 469,271 $

8,891,451 1,453,154,306 $

29,278,015,268 $

9,704,819 1,037,148,472
3,085,000 821,026,866 51,683,296,185

74,375,868 $ 1,453,425,209 $ 29,278,015,268 $ 54,464,714,132

$ 14,028,617,483 $ 5,088,849,340 $ 2,707,240,447 $ 4,848,573,680 $ 35,580,761,237 $

85,764,478 $ 3,446,003,249 $ 29,279,951,008 $ 68,392,479,972

9

State of Georgia
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
All Governmental Fund Tvpes, Expendable Trust Funds and Discretelv Presented Component Units For the Year Ended June 30, 1997

Primary Government

General

Governmental Fund Types

Special

Debt

Revenue

Service

Revenues: Taxes Licenses and Penmts Intergovernmental Federal Other Sales and Services Fines and Forfeits Interest and Other Investment Income Rents and Royalties Contributions and Donations Penalties and Interest on Taxes Unclaimed Property Other

$ 10,483,497,704 $ 351,181,927
5,515,982,683 33,823,194
495,535,328 50,426,165 160,825,540 9,948,603 190,841,985 6,699,639 20,118,021 30,840,942

$
18,373,986 361,311

Total Revenues

$ 17,349,721,731 $

18,735,297 $

0

Expenditures: Current: General Government Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay Debt Service: Principal Interest Other Debt Service Charges

$

633,990,021 $

5,700,389,994

6,796,847,561

1,113,788,591

1,124,542,047

263,090,507

170,667,100

48,769,799

3,187,232 $
392,165,000 236,835,498

Total Expenditures

$ 15,852,085,620 $

3,187,232 $

629,000,498

Excess (Deficiency) of Revenues Over (Under) Expenditures

$ 1,497,636,111 $

15,548,065 $ (629,000,498)

The notes to the financial statements are an integral part ofthis statement. 10

Capital Projects

Fiduciary Fund Type Expendable
Trust

Totals (Memorandum
Only) Primary Government

Component Units Governmental Fund Type

Totals (Memorandum
Only) Reporting
Entity

$

$

400,146,643 $ 10,883,644,347 $

$ 10,883,644,347

351,181,927

351,181,927

78,119,890 44,340
1,681,569

21,563,745 146,557
113,951,115 38,650
163,182

5,537,546,428 33,823,194
514,055,871 50,426,165
353,257,856 9,992,943
190,880,635 6,699,639
20,118,021 32,685,693

27,000 2,879,976
375,470 32,388
11,550,110
646,041

5,537,573,428 33,823,194
516,935,847 50,426,165
353,633,326 10,025,331
202,430,745 6,699,639
20,118,021 33,331,734

$

79,845,799 $

536,009,892 $ 17,984,312,719 $

15,510,985 $ 17,999,823,704

$

70,034 $

36,360 $ 637,283,647 $

123,711

5,700,513,705

63,810,821

6,860,658,382

1,113,788,591

1,124,542,047

310,769,347

573,859,854

128,738

170,795,838

48,769,799

373,677,146

373,677,146

44,340 160,980 382,514

392,209,340 236,996,478
382,514

$

374,335,014 $

374,868,977 $ 17,233,477,341 $

$ 33,033,963

637,283,647 5,700,513,705 6,860,658,382 1,113,788,591 1,124,542,047
573,859,854 203,829,801
48,769,799 373,677,146

392,209,340 236,996,478
382,514

33,033,963 $ 17,266,511,304

$ (294,489,215) $

161,140,915 $ 750,835,378 $

(17,522,978) $

733,312,400 (continued)

11

- - - - - - - State of Georgia-------
Combined Statement of Revenues. Expenditures and Changes in Fund Balances
All Governmental Fund Tvpes, Expendable Trust Funds and DiscreteIv Presented Component Units (continued) For the Year Ended June 30, 1997

Primary Government

General

Governmental Fund Types

Special

Debt

Revenue

Service

Other Financing Sources (Uses): Operating Transfers In Operating Transfers from Primary Government Operating Transfers from Component Units Operating Transfers Out Operating Transfers to Component Units Proceeds of General Fixed Asset Dispositions Capital Leases General Obligation Bond Proceeds

$

171,652,886 $

582,180,317 (2,081,658,683)
(57,431,561) 2,673,289 48,410

$

703,381,512

(14,500,000)

Total Other Financing Sources (Uses)

$ (1,382,535,342) $

(14,500,000) $

703,381,512

Excess (Deficiency) ofRevenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses

$

115,100,769 $

1,048,065 $

74,381,014

Fund Balances, July 1 Adjustments (Net) Residual Equity Transfers In Residual Equity Transfers from Component Units Residual Equity Transfers Out Residual Equity Transfers to Component Units Increase in Inventories

2,472,800,480 8,957,903 82,000 14,123,115
(7,514,977) 425,030

3,244,349

134,272,330

Fund Balances, June 30

$ 2,603,974,320 $

4,292,414 $ =:::::::::2=08=,6=:5::3,=34=4=

The notes to the financial statements are an integral part ofthis statement. 12

Capital Projects

Fiduciary Food Type Expendable
Trust

Totals (Memorandum
Only) Primary Government

Component Units Governmental Food Type

Totals (Memorandum
Only) Reporting
Entity

$

$

1,401,130 (214,201,995)

373,248,075

$

160,447,210 $

3,400,000 $

878,434,398 $ 0
583,581,447 (2,310,360,678)
(57,431,561) 2,673,289 48,410
373,248,075

3,400,000 $ (529,806,620) $

$ 16,326,489

878,434,398 16,326,489
583,581,447 (2,310,360,678)
(57,431,561) 2,673,289 48,410
373,248,075

16,326,489 $ (513,480,131)

$ (134,042,005) $

164,540,915 $ 221,028,758 $

1,228,059,648
(2,885,570) (49,277,258)

1,701,041,188

5,539,417,995 8,957,903 82,000 14,123,115 (2,885,570)
(56,792,235) 425,030

(1,196,489) $

219,832,269

686,331 979,429

5,540,104,326 9,937,332 82,000 14,123,115 (2,885,570)
(56,792,235) 425,030

$ 1,041,854,815 $ 1,865,582,103 $ 5,724,356,996 $

469,271 $ 5,724,826,267

13

- - - - - - - - State of Georgia-------
Statement of Fmds Available and Expenditures Compared to Budget
Budget Fund For the FISCal Year Ended June 30. 1997

Funds Available
Revenues: State Appropriation Lottery Proceeds Federal Revenues Other Revenues Retained
Total Revenues
Carry-Over from Prior Year: Transfer from Fund Balance
Total Funds Available

Original Appropriation

Final Budget

Actual

Variance Favorable (Unfavorable)

$ 10,794,986,380 $ 11,145,256,617 $ 11,122,716,878 $

546,198,773

680,069,448

679,819,448

4,567,668,639

5,614,829,287

4,942,663,953

2,959,288,902

4,338,270,266

3,804,573,030

(22,539,739) (250,000)
(672,165,334) (533,697,236)

$ 18,868,142,694 $ 21,778,425,618 $ 20,549,773,309 $ (1,228,652,309)

1,672,666,173

1,446,324,703

(226,341,470)

$ 18,868,142,694 $ 23,451,091,791 $ 21,996,098,012 $ (1,454,993,779)

Expenditures
Administrative Services, Department of Agricultural Exposition Authority Agriculture, Department of Agrirama Development Authority Audits and Accounts, Department of Banking and Finance, Department of Building Authority Children and Youth Services, Department of Community Affairs, Department of Corrections, Department of Defense, Department of Education, Department of Employees' Retirement System -
Administrative Expense Fund Forestry Commission General Assembly General Obligation Debt Sinking Fund Governor, Office ofthe Guaranteed Revenue Debt Common Reserve Fund Human Resources, Department of Industry, Trade and Tourism, Department of Insurance, Department of Investigation, Georgia Bureau of Judicial Branch Labor, Department of Law, Department of Medical Assistance, Department of Natural Resources, Department of

$

185,912,104 $

290,312,166 $

266,433,598 $

4,921,827

5,705,964

5,692,679

49,751,824

52,446,553

51,606,982

1,375,300

1,118,677

1,072,672

19,706,494

20,967,654

20,484,013

9,318,265

9,318,265

9,189,889

37,538,499

45,025,906

44,450,931

142,719,890

163,305,260

159,014,407

76,410,979

184,488,458

172,834,213

695,760,881

724,281,283

701,007,059

15,780,248

27,229,349

26,619,111

4,818,221,159

5,124,275,856

5,084,841,287

4,389,972 40,350,065 26,278,571 414,482,451 50,704,653
0 2,382,300,078
21,097,481 16,512,068 46,619,323 87,045,066 155,808,877 13,427,658 3,739,739,927 139,063,103

4,677,051 42,939,243 28,742,632 621,465,791 267,356,246
0 2,602,566,978
39,171,995 17,460,449 56,509,738 89,330,946 170,935,947 15,447,956 4,242,144,852 213,374,361

4,318,083 42,254,221 22,175,657 621,465,791 212,872,574
0 2,496,971,621
20,828,880 16,828,620 55,329,318 90,113,856 147,902,627 14,700,696 3,766,742,466 206,687,460

23,878,568 13,285
839,571 46,005 483,641 128,376 574,975 4,290,853 11,654,245 23,274,224 610,238 39,434,569
358,968 685,022 6,566,975
0 54,483,672
0 105,595,357
18,343,115 631,829
1,180,420 (782,910) 23,033,320 747,260 475,402,386 6,686,901

The notes to the fmancial statements are an integral part of this statement 14

- - - - - - - - - State of GeorfJia - - - - - - - - -
Statement of Fmds Available and Expenditures Compared to Budget
Budget Fund For the FISCal Year Ended Jme 30, 1997

Original Appropriation

Final Budget

Actual

Variance Favorable (Unfavorable)

Pardons and Paroles, State Board of

$

Personnel Board, State - Merit System of

Personnel Administration

Public Safety, Department of

Public School Employees' Retirement System-Expense Fund

Public Service Commission

Public Telecommunications Commission

Regents ofthe University System of Georgia, Board of

Revenue, Department of

Secretary of State

Soil and Water Conservation Commission

Student Finance Commission

Teachers' Retirement System - Expense Fund

Technical and Adult Education, Department of

Transportation, Department of

Veterans Service, Department of

Workers' Compensation, State Board of

43,239,164 $
1,099,766,134 121,187,740 14,212,500 10,536,019 23,713,135
2,525,081,073 97,058,269 31,791,948 2,657,810
202,538,239 10,805,196
285,807,286 1,164,343,369
29,275,348 10,892,701

44,395,511 $
1,119,892,356 134,118,633 14,212,500 11,117,558 31,811,927
3,377,794,580 113,514,059 33,996,415 2,371,698 193,887,469 11,802,389 395,063,083
2,866,807,448 28,544,888 11,161,701

44,059,461 $
1,033,717,757 130,176,826 14,212,500 10,809,510 32,919,818
3,087,392,181 99,728,495 32,323,452 2,240,538
200,847,282 10,655,007
375,080,760 1,146,946,888
28,247,731 10,943,437

336,050
86,174,599 3,941,807
0 308,048 (1,107,891) 290,402,399 13,785,564 1,672,963 131,160 (6,959,813) 1,147,382 19,982,323 1,719,860,560 297,157 218,264

Total Expenditures

$ 18,868,142,694 $ 23,451,091,791 $ 20,522,740,354 $ 2,928,351,437

Excess of Funds Available over Expenditures

$ 1,473,357,658 $ 1,473,357,658

The notes to the ftnancial statements are an integral part of this statement 15

State of Georgia

Combined Statement of Revenues, Expenses and
Changes in Fund Equitv/Fund Balances All Proprietalv Fund Tvpes,Nonexpendable Trust Funds and
Discretelv Presented Component Units For the FISCal Year Ended June 30. 1997

Primary Government

Proprietary Fund Types

Enterprise

Internal Service

Fiduciary Fund Type
Nonexpendab1e Trust

Operating Revenues: Contributions Insurance Recoveries Interest and Other Investment Income Intergovernmental Rents and Royalties Sales and Services Taxes Other
Total Operating Revenues

$ 974,191,768 $ 128,187,894 $

7,861,703

14,983,383

128,643,328

31,587

32,992,291 265,021,475

1,549,918

$ 989,206,738 $ 564,256,609 $

11,679 11,679

Operating Expenses: General and Administrative Goods and Services Interest Benefits Claims and Judgments Prizes Scholarships Depreciation Other

$ 190,381,605 $ 148,687,122 $ 164,204,806

820,471,531

15,871,000 105,228,182

1,387,958

3,847
1,300 903

Total Operating Expenses

$ 1,010,853,136 $ 435,379,068 $

6,050

Operating Income (Loss)

$ (21,646,398) $ 128,877,541 $

5,629

Nonoperating Revenues (Expenses): Contributions and Intergovernmental Revenue Interest and Other Investment Income Gain on Sale of Loans HotelJMote1 Tax (Net) Interest Expense Other Debt Service Charges Other
Total Nonoperating Revenues (Expenses)
Net Income (Loss) Before Operating Transfers

$

$

$

794,867

(69,439)

(30,873)

(11,648,671)

$

(30,873) $ (10,923,243) $

$ (21,677,271) $ 117,954,298 $

0 5,629

The notes to the financial statements are an integral part ofthis statement. 16

Totals (Memorandum
Only) Primary Government

Component Units Proprietary Fund Types

Totals (Memorandum
Only)
Reporting
Entity

$ 1,102,379,662 $ 7,861,703
143,638,390 0
32,992,291 265,053,062
0 1,549,918
$ 1,553,475,026 $

38,928 $
80,031,640 28,253,099 65,288,058 1,836,327,617
1,439,287 16,573,581

1,102,418,590 7,861,703
223,670,030 28,253,099 98,280,349
2,101,380,679 1,439,287
18,123,499

2,027,952,210 $ 3,581,427,236

$ 339,072,574 $ 164,204,806 0 836,342,531 105,228,182 0 1,300 1,387,958 903
$ 1,446,238,254 $
$ 107,236,772 $

140,399,898 $ 323,522,300
58,720,450
857,283,000
33,092,551 55,510,140

479,472,472 487,727,106
58,720,450 836,342,531 105,228,182 857,283,000
1,300 34,480,509 55,511,043

1,468,528,339 $ 2,914,766,593

559,423,871 $

666,660,643

$

0$

794,867

0

0

(69,439)

0

(11,679,544)

$ (10,954,116) $

$

96,282,656 $

518,498 $ 25,258,853
527,514 17,247,578 (35,232,947) (3,003,122)
933,242
6,249,616 $
565,673,487 $

518,498 26,053,720
527,514 17,247,578 (35,302,386) (3,003,122) (10,746,302)
(4,704,500)
661,956,143
(continued)
17

- - - - - - - - - State of Georgia - - - - - - - - -

Combined Statement of Revenucs, Expenscs and
Changes in Fund EquilvIFund Balances All ProprietarY Fund Tvpes,Nonexpendrole Trust Funds and
DiscreteIv Presented Component Units (continued) For the FISCal Year Ended June 30, 1997

Primary Government

Proprietary Fund Types

Internal

Enterprise

Service

Fiduciary Fund Type
Nonexpendab1e Trust

Operating Transfers: Transfers In Transfers from Primary Government Transfers Out Transfers to Primary Government

$

$

39,697,821 $

(21,189,792)

Net Operating Transfers

$

0$

18,508,029 $

0

Net Income (Loss)

$ (21,677,271) $ 136,462,327 $

5,629

Deficiency ofRevenues under Expenditures from Governmental Operations and Expendable Trust Funds

Fund Equity/Fund Balances, July 1 Adjustments (Net) Contributed Capital Contributed Capital from Primary Government Contributed Capital from Federal Government Contributed Capital from Other Sources Transfer of Contributed Capital Transfer of Contributed Capital to Primary Government Increase (Decrease) in Inventories

125,939,453

1,027,788,074 (158,951,179)
2,885,570

(82,000) (372,967)

210,197

Fund Equity/Fund Balances, June 30

$ 104,262,182 $ 1,007,729,825 $

215,826

The notes to the financial statements are an integral part ofthis statement. 18

Totals (Memorandum
Only) Primary Government

Component Units Proprietary Food Types

Totals (Memorandum
Only) Reporting
Entity

$

39,697,821 $

0

(21,189,792)

0

$

18,508,029 $

$ 114,790,685 $

$ 53,331,561 (583,039,856) (529,708,295) $ 35,965,192 $

39,697,821 53,331,561 (21,189,792) (583,039,856)
(511,200,266)
150,755,877

0
1,153,937,724 (158,951,179)
2,885,570 0 0 0
(82,000) 0
(372,967)

(4,263,322)
1,364,973,768 (35,955,508)
56,792,235 28,615,928 21,126,652
(14,123,115) 22,476

(4,263,322)
2,518,911,492 (194,906,687)
2,885,570 56,792,235 28,615,928 21,126,652
(82,000) (14,123,115)
(350,491)

$ 1,112,207,833 $ 1,453,154,306 $ 2,565,362,139

19

State of Georgia
Combined Statement of Cash Flows All Proprietmv Fmd Tvpes, Nonexpcndtble Trust Fmds and
DiscreteI'! Presented Component Units For the FISCal Year Ended Jme 30, 1997

Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Required Contributions Cash Received from Insurance Proceeds Principal Payments Received on Program Loans Interest Received on Program Loans Cash Paid to Venders Cash Paid to Employees Cash Paid for Benefits Cash Paid for Claims and Judgments Cash Paid for Lottery Prizes Cash Paid for Scholarships Origination ofProgram Loans Governmental and Fiduciary Fund Type Activity (Net) Other Operating Items (Net)
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Noncapital Financing Activities: Operating Transfers In Operating Transfers from Primary Government Proceeds from Assignment ofProgram Loans Under Repurchase Agreements Issuance ofBondslLoanslNotes Contributed Capital HotellMotel Tax (Net) Operating Transfers Out Operating Transfers to Primary Government Repayment ofAdvances Principal Paid on BondslLoanslNotes Interest Paid on BondslLoanslNotes Return ofContributed Capital Other Debt Service Payments Other Noncapital Items (Net)
Net Cash Provided by (Used in) Noncapital Financing Activities
Cash Flows from Capital and Related FinancingActivities: Issuance ofBondslLoanslNotes HotellMotel Tax Received Contributed Capital Sale of Capital Assets Acquisition and Construction of Capital Assets Principal Paid on BondslLoanslNotes Interest Paid on BondsILoanslNotes Other Debt Service Payments Other Capital and Related Items (Net)
Net Cash Used in Capital and Related Financing Activities
Cash Flows from Investing Activities: Purchase ofInvestments (Net) Interest on Investments Net Increase in Fair Value ofInvestments Other Investing Items (Net)
Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1

Primary Government

Fiduciary

ProprielaIy Fund Types

Fund Type

Intemal

Nonexpendable

Entexprise

Service

Trost

Totals (Memorandum
Only)
Primary Government

Component Units ProprielaIy Fund Types

Totals (Memorandum
Only) Reporting
Entity

$

31,587 $ 286,158,359 $

976,344,710

126,647,464

7,861,703

(186,422,391) (2,182,191)
(831,648,569)

(237,879,223) (80,518,070) (15,871,000) (86,676,768)

-$
(903) (3,847) (1,300)

286,189,946 $ 1,102,992,174
7,861,703 0 0
(424,302,517) (82,704,108)
(847,519,569) (86,676,768) 0 (1,300) 0 0 0

1,937,506,263 $
105,494,635 70,248,615
(444,518,764) (104,098,685)
(839,989,000)
(170,010,786) 9,278,983 234,000

2,223,696,209 1,102,992,174
7,861,703 105,494,635
70,248,615 (868,821,281 ) (186,802,793) (847,519,569)
(86,676,768) (839,989,000)
(1,300) (170,010,786)
9,278,983 234,000

$ (43,876,854) $

(277,535) $

(6,050) $ (44,160,439) $ 564,145,261 $ 519,984,822

$

- $ 39,697,821 $

- $ 39,697,821 $

- $ 39,697,821

0

53,331,561

53,331,561

(21,189,792)
(82,000) 96,789,117

0 0 0 0 (21,189,792) 0 0 0 0 (82,000) 0 96,789,117

11,602,888 156,349,835
47,397,522 3,334,037
(582,933,770) (53,750)
(136,185,819) (48,383,179) (14,123,115) (1,824,658) (1,902,899)

11,602,888 156,349,835
47,397,522 3,334,037
(21,189,792) (582,933,770)
(53,750) (136,185,819)
(48,383,179) (14,205,115)
(1,824,658) 94,886,218

$

o $ 115,215,146 $

o $ 115,215,146 $ (513,391,347) $ (398,176,201 )

$

-$

-$

2,885,570

(98,377)

(21,297,953) (242,857) (69,439)

$

(98,377) $ (18,724,679) $

-$
o$

0$ 0 2,885,570 0 (21,396,330) (242,857) (69,439) 0 0
(18,823,056) $

15,000,000 $ 13,565,899 24,626,605
465,962 (67,818,097) (10,131,015) (40,748,092)
(1,424,804) (21,113)
(66,484,655) $

15,000,000 13,565,899 27,512,175
465,962 (89,214,427) (10,373,872) (40,817,531)
(1,424,804) (21,113)
(85,307,711 )

$ 57,040,591 $ 10,707,135 $

15,596,017

40,336,595

89,101,600

$ 72,636,608 $ 140,145,330 $

$ 28,661,377 $ 236,358,262 $

48,322,572

35,941,284

(4,723) $ 15,679

67,743,003 $ 55,948,291 89,101,600
0

79,707,721 $ 40,893,005
(26,648)

147,450,724 96,841,296 89,101,600 (26,648)

10,956 $ 212,792,894 $ 120,574,078 $ 333,366,972

4,906 $ 265,024,545 $ 104,843,337 $ 369,867,882

14,196

84,278,052

264,376,315

348,654,367

Cash and Cash Equivalents, June 30

$ 76,983,949 $ 272,299,546 $

19,102 $ 349,302,597 $ 369,219,652 $ 718,522,249

The notes to 1he financial statements are an integral part of1his statement. 20

State of Georgia
Combined Statement of Cash Flows All Propridarv Fund Tvpes, Nonexpendable Trust Funds and
Discretelv Presented Component Units For the Hscal Year Ended June 30, 1997

Operating Income (Loss)
Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities: Depreciation!Amortization
Interest Other Changes in Assets and Liabilities: Decrease in Intergovernmental Receivables Increase in Interest and Dividends Receivable Increase in Notes and Loans Receivable Decrease (Increase) in Other Receivables Increase in Due from Other Funds Increase in Due from Component Units Decrease (Increase) in Inventories Decrease (Increase) in Prepaid Items Decrease in Deferred Charges
Decrease in Other Assets Increase (Decrease) in Accounts Payable and Other Accruals Increase in Compensated Absences Payable Increase in Claims and Judgments Payable Increase (Decrease) in Contracts Payable Increase in SalariesIWithholdings Payable Decrease in Benefits Payable Decrease in Due to Other Funds Decrease in Due to Primary Government Increase (Decrease) in Deferred Revenue Decrease in Funds Held for Others Increase in Other Liabilities Decrease in Deposits and Overpayments Increase in Grand Prizes Payable
Total Adjustments

Primary Government

Fiduciary

Proprietary Fund Types

Fund Type

Internal

Nonexpendable

Enterprise

Serviee

Trost

Totals (Memorandum
Only)
Primary Government

Component Units Proprietary Fund Types

Totals (Memorandum
Only)
Reporting Entity

$ (21,646,398) $ 128,877,541 $

5,629 $ 107,236,772 $ 559,423,871 $ 666,660,643

$

-$

1,387,958 $

(14,983,383)

(39,541,728)

(87,652,979)

2,022,928

(4,218,312) (6,073,269)
(318,230) 344,920
29,900

1,617,617 11,773 147,633
(11,177,038)
130,014

(6,321,721) 70,304
18,551,414 (748,691) 26,710
(188,747)
(3,762,703)

(739,902)

$ (22,230,456) $ (129,155,076) $

-$ (11,679)

1,387,958 $ (54,536,790) (87,652,979)

0 0 0 (2,195,384) (6,073,269) (318,230) 344,920 29,900 0 0 (4,704,104) 82,077 18,551,414 (601,058) 26,710 (11,177,038) (188,747) 0 (3,632,689) 0 0 (739,902) 0

(11,679) $ (151,397,211) $

34,783,856 $ 40,889,127
716,913

36,171,814 (13,647,663) (86,936,066)

909,985 (2,104,682) (64,507,748) (30,056,551)
(81,212) (167,365)
10,054 123,014 (34,546,824) 140,241
633,183 185,307
(143,063) 1,518,890 (420,345) 1,272,755 (279,145) 55,845,000

909,985 (2,104,682) (64,507,748) (32,251,935) (6,073,269)
(318,230) 263,708 (137,465)
10,054 123,014 (39,250,928) 222,318 18,551,414
32,125 212,017 (11,177,038) (188,747) (143,063) (2,113,799) (420,345) 1,272,755 (1,019,047) 55,845,000

4,721,390 $ (146,675,821)

Net Cash Provided by (Used in) Operating Activities

$ (43,876,854) $

(277,535) $

(6,050) $ (44,160,439) $ 564,145,261 $ 519,984,822

Noncash Investing, Capital, and Financing Activities: Disposal ofFixed Assets Donation ofFixed Assets Interest Earned on Grand Prize Investments and Grand Prizes Payable Write offofFixed Assets

$

(30,873) $ (12,417,687) $

17,899

(16,544,667)

$

(30,873) $ (28,944,455) $

- $ (12,448,560) $ 17,899
0 (16,544,667)

(425,323) $ 21,705,422
16,343,000

(12,873,883) 21,723,321
16,343,000 (16,544,667)

o $ (28,975,328) $ 37,623,099 $

8,647,771

The notes to 1he financial statements are an integral part of1his statement. 21

State of Georgia - - - - - - -
Statements of Plan Net Assets
Pmsion Trust Funds and Discretelv Presented Component Units
Jme30,1997

Assets
Cash and Cash Equivalents Investments Receivables (Net ofAllo'W3Jlces for Uncollectibles)
Interest and Dividends
Other Prepaid Items FJxedAssets (Net, Where Applicable, of
Accumulated Depreciation)
Total Assets
Liabilities
Accounts Payable and Other Accruals Sa1aIiesIWi1hholdings Payable Due to Other F\mds Due to PrimalY Govenunent
Total Liabilities

Defined Contribution
Plan

$

77,000

20,186,000

306,000 1,006,000

District Attorneys Retirement
F\md

District Attorneys Retirement
System

Primary Government

Employees' Retirement
System

Legislative Retirement
System

3,000

25,000 25,257,000

2,939,866 S 9,179,587,000

20,000 22,729,000

46,000

87,393,000 26,511,000
14,014

32,000

S

21,575,000 S

3,000 S

25,328,000 S 9,296,444,880 S

22,781,000

S

1,000 S

S

1,000 S

3,000 3,000

65,000 S 65,000

5,344,886 20,110
682,670
6,047,666 S

10,000 25,000
35,000

Superior Court Judges Retirement
F\md

Superior Court Judges Retirement
System

Trial Judges and Solicitors
Retirement F\md

44,000 S 1,259,000

52,000 S 93,455,000

104,000 44,203,000

2,000

241,000

215,000

1,305,000

93,748,000

44,522,000

37,000

41,000 S

6,000

37,000 S

41,000 S

6,000

Fund Balances Reserved for Pension Benefits

S

21,574,000 S

(Schedules offundingprogress are presented on pages 77 and 80)

oS

25,263,000 S 9,290,397,214 S

22,746,000 S

1,268,000

93,707,000 S

44,516,000

The notes to the financial statements are an integral part ofthis statement. 22

Total Prima<y Government

ruemen's Pension
Fund

Judges ofthe Probate Courts
Retirement Fund

Component Units - Fiduciary Fund Types

Public School

Peace Officers'

Employees

Sheriffs'

Annuityand Benefit Fund

Retirement System

Retirement Fund

Superior Court Clerks' Retirement
Fund

Teachers Retirement
System

3,264,866 $ 9,386,676,000

48,167 $ 261,644,190

20,702 30,793,275

1,771,747 $ 214,754,374

131,000 578,396,000

55,739 32,157,003

12,531 32,294,575

10,585 27,721,266,000

87,699,000 28,053,000
14,014

$

9,505,706,880 $

2,455,668
249,253 264,397,278 $

297,232
9,189 31,120,398

2,280,888

403,162 219,210,171 $

578,527,000

238,802
16,662 32,468,206 $

223,757,000 176,832,155
39,650
15,459
32,322,565 $ 28,121,905,390

Total Component
Units

Totals (Memorandmn
Only)
Reporting Entity

2,050,471 28,871,305,417

5,315,337 38,257,981,417

229,029,590 176,832,155
39,650
693,725
29,279,951,008

316,728,590 204,885,155
53,664
693,725
38,785,657,888

5,507,886 $ 20,110
707,670 0
6,235,666 $

$

$

228,000

$

$

228,000

0

1,622,697 58,985

26,058

$

1,707,740

1,850,697 58,985 0 26,058
1,935,740

7,358,583 79,095 707,670 26,058
8,171,406

9,499,471,214 $

264,397,278 $

31,120,398 $

219,210,171 $

578,299,000 $

32,468,206 $

32,322,565 $ 28,120,197,650 $ 29,278,015,268 $

38,777,486,482

23

State of Georgia - - - - - - -
Statements of Changes in Plan Net Assets
Pension Trust Funds and DiscretelY Presented Component Units For the FISCal Year Ended June 30, 1997

Additions: Contributions Employer and Employee FIDes and Foneits FIDes and Bond Foneitores Interest and Other Investment Income Dividends and Interest Net Appreciation in Fair Value ofInvestments
Less: Investment Expense Net Gain on Disposal ofInve_ent Securities Sales and Services CivilC. .es Marriage License Fees Real Estate Recording Fees Taxes Insurance Companies Other Miscellaneous
Total Additions
Deducti~:
Genesal and Administrative Expenses Benefits Refunds
Total Deductions
Net Increase Before Operating Transfers
Operating Transfers: Txansfers from Primary Govenunent Txansfers to Primary Govenunent
Net OperatingTransfers
Net Increase

Defined Contribution
Plan

District Attorneys Retirement
Fund

District Attorneys Retirement
System

Primary Govenunent

Employees' Retirement
System

Legislative Retirement
System

Superior Court Judges Retirement
Fund

Superior Court Judges Retirement
System

Trial Judges and Solicitors Retirement
Fund

$

9,511,000 $

183,000 $

566,000 $ 339,751,000 $

351,000 $

1,844,000 $

2,338,000 $

1,426,000

1,025,000 178,000 (3,000)

876,330 3,635,646
(17,976)

341,292,760 1,414,915,112
(7,298,872)

951,210 3,946,302
(19,512)

65,715 272,633
(1,348)

3,440,775 14,274,805
(70,580)

1,519,830 6,305,346
(31,176)

$ 10,711,000 $

$

245,000 $

7,317,000

$

7,562,000 $

$

3,149,000 $

$

-$

$

-$

$

3,149,000 $

183,000 $

5,060,000 $ 2,088,660,000 $

5,229,000

-$ 183,000
183,000 $ $

-$ 284,000
59,000

3,188,699 $ 320,165,000
9,641,000

343,000

332,994,699 $

4,717,000 $ 1,755,665,301 $

-$ 915,000
47,000
962,000
4,267,000

-$

-$

-$

-$

$

$

$

0$

4,717,000

1,755,665,301 $

4,267,000

2,181,000

19,983,000 $

9,220,000

$ 1,970,000
1,970,000 $ 211,000
-$

$ 2,193,000
51,000 2,244,000 $ 17,739,000 $
-$

534,000 175,000
709,000
8,511,000

$ 211,000

-$ 17,739,000 $

8,511,000

Fund Balances Reserved for Pension Benefits, July 1 Adjustments Change in Accounting Principle

18,647,000 (222,000)

Fund Balances Reserved for Pension Benefits, JW1e 30 $ 21,574,000

17,453,000 3,093,000

6,122,246,913 1,412,485,000

o $ 25,263,000 $ 9,290,397,214

13,858,000 4,621,000
22,746,000 $

687,000 370,000

65,159,000 10,809,000

28,882,000 7,123,000

1,268,000 $

93,707,000 $ 44,516,000

The notes to the financial statements are an integral part ofthis statement. 24

Total Primary Govenunent

rtremen's Pension
FUnd

Judges of1he Probate Courts
Retirement FUnd

Component Unit> Fiduc:iaIy FUnd Types

Public School

Peace Officers'

Employees

Sherifft

AJ1l11lityand

Retirement

Retirement

BenefitF\md

System

FUnd

Superior Court Clerl<s' Retirement
FUnd

Teachers Retirement
System

Total Component
Unit>

Totals (Memorandum
Only)
Reporting Entity

355,970,000 $

1,407,265

349,171,620 1,443,527,844
(7,442,464) 0 0 0 0
2,141,227,000 $

12,613,173 16,912,573
11,075,091 89,952
42,098,054 $

190,845 $ 395,219 1,728,386
1,797,001

955,132 $ 11,503,511 11,259,353
9,563,707

15,358,000
21,602,295 89,621,829
(443,124)

139,643

6,192 4,257,286

188.628 33,470,331 $

126,139,000

101,931 $ 1,912,745 1,478,981
493,440
1,461 3,988,558 $

110,755 $ 572,489 1,878,753

930,841,591
1,008,618,000 4,245,539,000
(20,635,000)

278,403 1,125,031

3,965,431 $ 6,164,363,591

948,965,519 $ 1,304,935,519

14,383,964

14,383,964

1,059,178,941 4,335,160,829
(21,078,124) 28,766,721

1,408,350,561 5,778,688,673
(28,520,588) 28,766,721

278,403 139,643 1,125,031

278,403 139,643 1,125,031

11,075,091

11,075,Q91

286,233

286,233

6,378,282,251

8,519,509,251

3,433,699 326,244,000
17,290,000
346,967,699
1,794,259,301 $

1,282,733 $ 9,995,563
184,764
11,463,060
30,634,994 $

161,789 $ 940,805
1,102,594 $ 3,154,692 $

1,035,024 $ 9,203,209
123,246
10,361,479 $
23,108,852 $

575,000 $ 22,879,000
418,000
23,872,000
102,267,000

333,787 $ 2,004,367
17,628
2,355,782
1,632,776

85,355 $ 1,974,144
2,059,499 $ 1,905,932 $

6,150,431 $ 706,032,000 36,415,000
748,597,431
5,415,766,160 $

9,624,119 $ 753,029,088 37,158,638

13,057,818 1,079,273,088
54,448,638

799,811,845

1,146,779,544

5,578,470,406 $ 7,372,729,707

$ 1,794,259,301 $

$ 30,634,994

$

$ 3,154,692 $

23,108,852 $ 102,267,000 $

$ 1,632,776 $

$ 1,905,932 $

4,100,000 $ (541,591)
3,558,409
5,419,324,569 $

4,100,000 $ (541,591)

4,100,000 (541,591)

3,558,409 $

3,558,409

5,582,028,815

7,376,288,116

6,266,932,913 1,438,279,000

233,762,284

27,965,706

196,101,319

371,014,000 105,018,000

30,835,430

30,416,633

18,117,673,081 4,583,200,000

19,007,768,453 4,688,218,000

25,274,701,366 6,126,497,000

9,499,471,214

264,397,278 $

31,120,398 $ 219,210,171 $ 578,299,000

32,468,206 $

32,322,565 $ 28,120,197,650 $ 29,278,015,268 $ 38,777,486,482

25

- - - - - - - State of GeorfJia--------
Combined Statement of Changes in Fund Balances College and L1niversilv Funds
For the FIscal Year Ended June 30. 1997

Revenues and Other Additions: Unrestricted Revenues Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants and Contracts Investment Income
Endowment Other Sales and Services Net Gain/(Loss) on Investments Interest on Loans Receivable Expended for Plant Facilities Current Funds Plant Funds
Unexpended Renewals and Replacements Georgia State Financing and Investment Commission Other Additions (Net) Insurance Recoveries Other Recovery ofPnor Year's Cancelled Loans and Collection Costs
Total Revenues and Other Additions
Expenditures and Other Deductions: Education and General Expenditures AuxiliaryEnterprises Expenditures Hospital Expenditures Indirect Cost Recoveries Loans Assigned to Federal Govemment Loan Cancellations and Write-offs Administrative and Collection Costs Expended for Plant Facilities Capitalized N on-Capitalized Other Deductions (Net) DisposalsIDe1etions/Adjustments
Total Expenditures and Other Deductions

Current Funds

Unrestricted

Restricted

Loan Funds

$ 1,045,579,557 $

$ 590,261,367 157,642,364
5,262,242 139,923,391
8,017,938 76,483
4,831,684

(48,652) 2,627
165,870
646,283 19,498
1,187,755

2,897,494 $ 1,048,477,051 $ 906,015,469 $

186,913 2,160,294

$ 2,007,649,578 $ 166,711,996 187,349,712

835,303,413 $
7,597,627 54,077,811

89,497

118,806 549,412 140,910

44,321

375,478

$ 2,361,711 ,286 $ 897,112,669 $

1,184,606

The notes to the financial statements are an integral part ofthis statement. 26

Endowment
and Similar
Funds

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Total (Memorandum
Only)

$

$

$

69,096,513

2,151,147

891,232

7,041,749

2,932,299

12,798,132

7,829,640 317,192

$

3,823,531 $

99,234,373 $

$

$ 1,045,579,557

659,309,228

159,793,511

5,264,869

48,592,388

196,614,630

505,098 1,173

8,017,938 14,025,996 4,831,684 2,952,970
1,187,755

191,837,076

191,837,076

130,799,797 9,465,183 89,411,446

130,799,797 9,465,183
89,411,446

14,189

7,829,640 3,228,875

186,913

520,460 $ 470,105,890 $ 2,530,337,068

$

$

$

$

$ 2,842,952,991

166,711,996

194,947,339

54,077,811

118,806

549,412

40,614

271,021

130,799,797 21,458,474

9,465,183 1,937,776

55,999,492

140,264,980 23,396,250
419,799 55,999,492

$

0 $ 152,298,885 $

11,402,959 $

55,999,492 $ 3,479,709,897

(continued)

27

- - - - - - - State or GeorfJia-------
Combined Statement of Changes in Fund Balances College and Universifv Funds (conmued) For the FISCal Year Ended June 30, 1997

Transfers Between Funds, Net In (Out) Mandatory Nonmandatory
Total Transfers Between Funds
Operating Transfers: Transfers In Transfers Out Transfers to Component Units
.Total Operating Transfers
Net Increase (Decrease) in Fund Balances
Fund Balances, July 1
Fund Balances, June 30

Current Funds

Unrestricted

Restricted

Loan Funds

$

752,514 $

(25,570,982)

$ (24,818,468) $

(398,752) $ (2,690,177)
(3,088,929) $

(176,233) (4,924)
(181,157)

$ 1,363,372,659 $ (6,191,914) (16,326,489)

$ 1,340,854,256 $

$

2,801,553 $

121,112,456

-$
0$ 5,813,871 $ 49,448,130

0 794,531 58,657,611

$ 123,914,009 $

55,262,001 $

59,452,142

The notes to the financial statements are an integral part ofthis statement. 28

Endowment and Similar
Funds

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Total (Memorandum
Only)

$

(177,529) $

$

$

(716,413)

15,946,555

13,035,941

$

0

0

$

(893,942) $

15,946,555 $

13,035,941 $

0$

0

$

$

56,743,969 $

561,443 $

$ 1,420,678,071

(1,067,906)

(7,259,820)

(16,326,489)

$

0$

55,676,063 $

561,443 $

0 $ 1,397,091,762

$

2,929,589 $

18,558,106 $

2,714,885 $ 414,106,398 $ 447,718,933

78,809,686

20,115,802

30,274,874

3,809,483,805

4,167,902,364

$

81,739,275 $

38,673,908 $

32,989,759 $ 4,223,590,203 $ 4,615,621,297

29

- - - - - - - - - State of Georgia - - - - - - - - -
Combined Statement of Current Funds Revenues,
Expenditures and Other Changes College and Universifv Funds
For the FISCal Year Ended June 30, 1997

Revenues: Tuition and Fees Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants and Contracts Investment Income Sales and Services of Educational Departments Sales and Services ofAuxiliary Enterprises Sales and Services ofHospital Other Sources
Total Revenues
Expenditures and Mandatory Transfers: Education and General Instruction Research Public Service Academic Support Student Services Institutional Support Plant Operations and Maintenance Scholarships and Fellowships Auxiliary Enterprises Student Housing Faculty and StaffHousing Food Services Stores and Shops Intercollegiate Athletics Other Service Units Hospital Expenditures Medical College of Georgia Hospital Georgia War Veterans Nursing Home Mandatory Transfers, Net (In) Out
Total Expenditures and Mandatory Transfers
Other Transfers and Additions (Deductions): Excess ofRestricted Receipts over Transfers to Revenues Nonmandatory Transfers, Net In (Out) Other Additions (Deductions), Net Operating Transfers Transfers In Transfers Out Transfers to Component Units
Total Other TransferS and Additions (Deductions)

Current Funds

Unrestricted

Restricted

Total (Memorandum
Only)

$ 481,300,286 $ 54,470,445 4,511,487 267,533 7,577,426 108,049 44,552,352 161,383,527
203,041,315 88,367,137
$ 1,045,579,557 $

$ 543,796,656 154,346,772
4,754,301 131,554,665
3,027,711 4,606,070

481,300,286 598,267,101 158,858,259
5,021,834 139,132,091
3,135,760 49,158,422 161,383,527 203,041,315 88,367,137

842,086,175 $ 1,887,665,732

$ 803,538,977 $ 84,272,564 $ 887,811,541

218,635,385

226,341,644

444,977,029

132,873,946

57,548,622

190,422,568

196,419,002

7,330,571

203,749,573

105,447,948

4,074,366

109,522,314

286,510,035

22,186,665

308,696,700

197,316,064

251,642

197,567,706

66,908,221

433,297,339

500,205,560

52,093,574 1,731,980
32,219,491 19,233,204 25,780,992 35,652,755

52,093,574 1,731,980
32,219,491 19,233,204 25,780,992 35,652,755

187,349,712 (752,514)

7,597,627 398,752

187,349,712 7,597,627 (353,762)

$ 2,360,958,772 $ 843,299,792 $ 3,204,258,564

$

-$

(25,570,982)

2,897,494

1,363,372,659 (6,191,914)
(16,326,489)

$ 1,318,180,768 $

9,851,483 $ (2,690,177)
(133,818)

9,851,483 (28,261,159)
2,763,676

1,363,372,659 (6,191,914)
(16,326,489)

7,027,488 $ 1,325,208,256

Net Increase in Fund Balances The notes to the financial statements are an integral part ofthis statement.
30

$

2,801,553 $

5,813,871 $

8,615,424

- - - - - - - - State of Georgia--------
Notes to the Flf1andal Statements
Index

Note 1 Summary of Significant Accounting Policies

Note 2 Other Accounting Disclosures

Note 3 Budgetary Accounting

Note 4 Deposits and Investments

Note 5 Receivables

Note 6 Fixed Assets

Note 7 Risk Management

Note 8 Construction and Other Significant Commitments

Note 9 Operating Leases

Note 10 Capital Leases and Installment Purchases

Note 11 Long-Term Debt

Note 12 Interfund Balances

Note 13 Contributed Capital

'"

Note 14 Contingencies

:

Note 15 Subsequent Events

Note 16 Deferred Compensation Plan

Note 17 Retirement Systems

Note 18 Nonmonetary Transactions

Note 19 Postemployment Benefits

Note 20 Fund Deficits

;

Note 21 Major Discretely Presented Component Unit Condensed Financial Statements

Page
32 43 45 48 53 55 57 58 58 60 61 67 68 69 70 71 72 82 83 83 84

31

- - - - - - - - State of Georgia--------
Notes to the Flnandal Statements Jmc 30, 1997

Note 1. Summary of Significant Accounting Policies
With the exception of the departures from generally accepted accounting principles (GAAP) disclosed in the following paragraphs, the fmancial statements of the State ofGeorgia have been prepared in conformity with GAAP as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and fmancial reporting principles. The financial statements of the College and University Funds have been prepared in conformity with GAAP as promulgated by the provisions of the American Institute of Certified Public Accountants' "Industry Audit Guide - Audits of Colleges and Universities."
The more significant of the State's accounting policies are described below:
A. Reporting Entity
In evaluating how to define the government for fmancial reporting purposes, management has considered both the organizations which compose the primary government and potential component units. The primary government consists of all the organizations that compose the legal entity of the State of Georgia. All agencies, departments, authorities, commissions, courts, councils, boards, universities, colleges, retirement funds, associations and other funds that are not legally separate are, for fmancial reporting purposes, considered part of the primary government. In addition, included within the primary government are organizations which are legally separate but so intertwined with the primary government that they are, in substance, part of the primary government.
The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in Section 2100 ofthe GASB Codification ofGovernmental Accounting and Financial Reporting Standards. This Section defmes a component unit as a legally separate organization for which the primary government is fmancially accountable and other organizations for which the primary government is not accountable, but for which the nature and the significance of the relationship with the primary government are such that exclusion would cause the fmancial statements to be misleading or incomplete.

Financial accountability is the ability to appoint a voting majority of an organization's governing board and to impose will upon the organization or to have exist the potential for the organization to provide specific fmancial benefits or impose specific fmancial burdens on the primary government. In addition, organizations which are fiscally dependent upon the primary government were considered as potential component units.
As required by GAAP, these fmancial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations and therefore data from these units are combined with that ofthe primary government. The blended component units are as follows:
GeorgiaNet Authority (Special Revenue Fund) is an instrumentality of the State of Georgia and a public corporation. The authority is responsible for the centralized marketing of certain information maintained in electronic format to the public. Three of the five members of the Board are appointed by the Governor. Any funds in excess ofthose needed for the corporate purposes of the authority are required to be transferred to the General Fund.
Georgia Building Authority (Hospital) (Capital Projects Fund) is a body corporate and politic. The authority is responsible for the construction and management of hospitals, health care facilities, dormitories and housing accommodations for the use of patients, officers and employees under the control of any State agency. The Board consists of four State officials designated by statute and one member appointed by the Governor.
Georgia Building Authority (Markets) (Capital Projects Fund) is a body corporate and politic. The authority is responsible for the construction and management of farmers'markets. The Board consists offour State officials designated by statute and one member appointed by the Governor.
Georgia Building Authority (Penal) (Capital Projects Fund) is a body corporate and politic. The authority was created for the purpose ofconstructing and managing penal institutions, penitentiaries, prisons and prison institutes, detention and corrections institutions, rehabilitation facilities and county correctional institutions. The Board consists offour State officials designated by statute and one member appointed by the Governor.

32

- - - - - - - - State of GeorfJia- - - - - - - -
Notes to the Flf\andal Statements June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Georgia Education Authority (University) (Capital Projects Fund) is a body corporate and politic. The authority is charged with the overall responsibility of the construction and management of housing accommodations, classrooms, laboratories, libraries, dormitories and instructional, administrative and recreational facilities for students, faculty, officers and employees of any institution under control of the Board of Regents. The Board consists offive State officials designated by statute and one member appointed by the Governor.
Georgia Building Authority (Internal Service Fund) is a body corporate and politic. The purpose of this authority is to construct and manage buildings and facilities intended for use as office space, public parks and public parking facilities, the executive mansion and laboratories. The Board consists of four State officials designated by statute and one member appointed by the Governor.
Georgia Correctional Industries Administration (Internal Service Fund) is a public corporation which utilizes inmates in the manufacturing of products for sale to State agencies and others. The Governor appoints one Board member from each congressional district in the State, as well as appointing five additional members from the State at large.
Employees' Retirement System of Georgia (Pension Trust Fund) is a single-employer, public employee retirement system established to provide benefits for employees of the State. The system is governed by a seven member Board of Trustees, three of which are State officials designated by statute, and one of which is appointed by the Governor. The system administers seven blended defmed benefit pension plans: the Employees' Retirement System Fund, the District Attorneys' Retirement Fund, the District Attorneys' Retirement System, the Legislative Retirement System, the Superior Court Judges Retirement Fund, the Superior Court Judges Retirement System, and the Trial Judges and Solicitors Retirement Fund. The State provides a substantial amount of funding for these retirement systems in the form of employer contributions and administrative expenses.
Georgia Military College (College and University Funds) is a body corporate and politic. This institution is dedicated to providing a high-quality military education to the youth ofthe State. The Board consists of the mayor ofthe City of Milledgeville, and one trustee elected from each of the six municipal voting districts of the City of Milledgeville, as required by statute.

Discrete presentation entails reporting component unit fmancial data in columns separate from the fmancial data of the primary government. The discretely presented component units are as follows:
Georgia Education Authority (Schools) (Governmental Fund Type) is a body corporate and politic. The authority is responsible for the construction of buildings and facilities intended for use as school buildings, classrooms, laboratories, libraries and instructional, administrative and recreational facilities for students, faculty, officers and employees of any institution under control of a county or city board of education or governing body of any independent district or system. The Board consists of six State officials designated by statute and one member appointed by the Governor.
Georgia Public Telecommunications Commission (Governmental Fund Type) is a body corporate and politic. This commission is a public charitable organization created for the purpose of providing educational, instructional and public broadcasting services to citizens of Georgia. The budget of the commission must be approved by the State. The Board consists of three State officials designated by statute and six members appointed by the Governor.
Georgia Agricultural Exposition Authority (Proprietary Fund Type) is a body corporate and politic. This authority is responsible for provision of a facility for the agricultural community, for public events, exhibits and other activities and for promotion and staging of a statewide fair. The nine Board members are appointed by the Governor.
Georgia Agrirama Development Authority (Proprietary Fund Type) is a body corporate and politic. The purpose of this authority is to utilize all funds for the purpose of beautifying, improving, developing, maintaining, administering, managing and promoting an agricultural museum in or around Tifton, Georgia; this museum is designated as the State Museum of Agriculture. Of the fourteen members of the Board, four are State officials designated by statute and seven members are appointed by the Governor.
Georgia Development Authority (Proprietary Fund Type) is a body corporate and politic. The authority was created to assist agricultural and industrial interests by providing credit and servicing functions to better enable farmers and businessmen to obtain needed capital funds. The Board consists of three State officials designated by statute and four members appointed by the Governor.
Georgia Environmental Facilities Authority (Proprietary Fund Type) is a body corporate and politic. The authority

33

- - - - - - - State of GeorfJia--------
Notes to the Flnandal Statements Jmc 30. 1997

Note 1. Summary of Significant Accounting Policies (continued)
provides assistance to local governments in constructing, extending, rehabilitating, repairing, replacing and renewing environmental facilities by providing financial and technical assistance. The Board consists of three State officials designated by statute and eight members appointed by the Governor.
Georgia Higher Education Assistance Corporation (Proprietary Fund Type) is a public authority, body corporate and politic. The corporation was created to improve the higher educational opportunities of eligible students by guaranteeing educational loan credit to students and to parents of students. The corporation is governed by the Board ofCommissioners ofthe Georgia Student Finance Commission. The Board consists of five State officials designated by statute and eleven members appointed by the Governor.
Georgia Highway Authority (Proprietary Fund Type) is a body corporate and politic. This authority was created to build, rebuild, relocate, construct, reconstruct, surface, resurface, layout, grade, repair, improve, widen, straighten, operate, own, maintain, lease and manage roads, bridges and approaches. The Board consists of three State officials designated by statute.
Georgia Housing and Finance Authority (Proprietary Fund Type) is a body corporate and politic. The authority is responsible for facilitating housing and housing fmance, and fmancing for health facilities and health care services throughout the State. The Board consists of two State officials designated by statute and ten members appointed by the Governor.
Georgia International and Maritime Trade Center Authority (Proprietary Fund Type) is a body corporate and politic. The authority was created to develop and promote the growth ofthe State's import and export markets through its ports and other transportation modes. The Board consists of eleven members, eight of whom are appointed by State officials.
Georgia Lottery Corporation (Proprietary Fund Type) is a public body, corporate and politic. The corporation operates lottery games to provide continuing entertainment to the public and maximize revenues, the net proceeds of which are utilized to support improvements and enhancements for educational purposes. The corporation is governed by a board of directors composed of seven members, all of which are appointed by the Governor. The

State is legally entitled to residual resources of the corporation.
Georgia Music Hall ofFame Authority (Proprietary Fund Type) is a body corporate and politic whose purpose is to construct, operate and maintain the Music Hall of Fame, as well as promoting music events at the facility and throughout the State. All nine members of the Board are appointed by the Governor.
Georgia Ports Authority (Proprietary Fund Type) is a body corporate and politic. The purpose of the authority is to develop and improve the harbors or seaports ofthe State for the handling of waterborne commerce and to acquire, construct, equip, maintain, develop' and improve said harbors, seaports and their facilities. The Board consists of nine members, all of which are appointed by the Governor.
Georgia Rail Passenger Authority (Proprietary Fund Type) is a body corporate and politic. This authority is responsible for construction, fmancing, operation and development of rail passenger service and other public transportation projects. The Board includes one member appointed by the Governor from each congressional district, as well as two appointed members from the State at large.
Georgia Seed Development Commission (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State whose purpose is to purchase, process, and resell breeders' and foundation seeds. The commission consists of ten members who are accountable as trustees. Ofthe ten members serving on the Board, six members are State officials or are appointed by State officials.
Georgia Student Finance Authority (Governmental Fund Type) is a body corporate and politic. This authority was created for the purpose of improving higher educational opportunities by providing educational scholarship, grant and loan assistance. A substantial amount of funding is provided to the authority by the State. The Board consists of fifteen members, four ofwhom are State officials and the remaining eleven are appointed by the Governor.
Geo. L. Smith 11 Georgia World Congress Center Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The authority is responsible for acquiring, constructing, equipping, maintaining and operating the World Congress Center to promote trade shows, conventions and political, musical, educational, entertainment, recreational, athletic or other events. The eleven members of the Board are appointed by the Governor.

34

- - - - - - - - - State of Georgia---------
Notes to the Finandal Statements
June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Georgia Sports Hall ofFame Authority (Proprietary Fund Type) is a body corporate and politic. This authority was created to construct and maintain a facility to house the Georgia Sports Hall of Fame to honor those who have made outstanding and lasting contributions to sports and athletics, and to operate, advertise and promote the Sports Hall of Fame. The thirteen members ofthe Board are appointed by State officials. The issuance ofbonds must be approved by the Georgia State Financing and Investment Commission.
Jekyll Island State Park Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The authority was created to operate and manage resort recreational facilities on Jekyll Island. The Board consists of one State official designated by statute and eight members appointed by the Governor.
Lake Lanier Islands Development Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The purpose ofthe authority is to develop, manage, preserve and protect projects on Lake Lanier Islands. The Board consists of one State official designated by statute and eight members appointed by the Governor.
North Georgia Mountains Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality . and public corporation of the State responsible for the construction and management ofrecreation, accommodation and tourist facilities and services. The nine members of the Board are appointed by the Governor.
Sapelo Island Heritage Authority (Proprietary Fund Type) is a body corporate and politic. The purpose of the authority is the preservation of the cultural and historic values of Hog Hammock Community located on Greater Sapelo Island. The three members serving on the Board are State officials. The State has assumed the obligation to provide fmanciaI support for real property acquisition.
State Tollway Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The authority was created to construct, operate and manage a system of roads, bridges and tunnels and facilities related thereto. The three Board members are State officials; therefore, the State can impose its will on the authority.
Stone Mountain Memorial Association (Proprietary Fund Type) is a body corporate and politic and an instrumentality

and public corporation of the State. The authority is responsible for the proper development, management, preservation and protection of Stone Mountain as a Confederate memorial and public recreational area. The Board consists of one State official designated by statute and eight members appointed by the Governor.
Superior Court Clerks' Cooperative Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State created to provide a cooperative for the development, acquisition and distribution of record management systems, information, services, supplies and materials for superior court clerks of the State. Of the seven members of the Board, three are appointed by the Governor. The nature of this organization is such that it would be misleading to exclude it from the reporting entity.
Georgia Firemen's Pension Fund (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the firemen of the State of Georgia. The Board of Trustees consists of two State officials designated by statute and three members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Judges ofthe Probate Courts Retirement Fund ofGeorgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the judges of the Probate Courts of the State of Georgia. The Board consists of one State official designated by statute and six members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Peace Officers' Annuity and Benefit Fund of Georgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the peace officers ofthe State ofGeorgia. The Board of Commissioners ofthe Annuity and Benefit Fund consists of two State officials designated by statute and four members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Public School Employees Retirement System (Fiduciary Fund Type) is a single-employer, defmed benefit pension plan established for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. This retirement fund is administered by the Employees' Retirement System Board of Trustees and two other Governor's appointees not on the Employees' Retirement System Board.

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Notes to the FD1andal Statements Jme 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Sheriffs' Retirement Fund oj Georgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the sheriffs of the State of Georgia. The Board consists of one State official designated by statute and five members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Superior Court Clerks' Retirement Fund oj Georgia (Fiduciary Fund Type) is a multiple-employer, defined benefit pension plan established for the purpose of paying retirement, death and disability benefits to the Superior Court Clerks ofthe State of Georgia. The Board consists of one State official designated by statute and six members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Teachers Retirement System oj Georgia (Fiduciary Fund Type) is a cost-sharing multiple-employer plan created by an act of the Georgia General Assembly to provide retirement, service, disability and survivors' benefits for qualifying teachers. The Board of Trustees is comprised of ten members, eight of which are State officials or are appointed by State officials. The State provides a substantial amount of funding to this retirement system in the form of employer contributions.
B. Fund Accounting
The State of Georgia uses funds and account. groups to report on its fmancial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial management by segregating transactions related to certain government functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available fmancial resources.

Primary Government - The fmancial statements of the primary government are divided into four fund categories (further divided by fund type) and two account groups, all of which are described below. The four fund categories include governmental, proprietary, fiduciary and college and university funds. The two account groups presented are the general fixed assets account group and the general long-term debt account group.
Governmental Fund Types are used to account for all or most of a state's general activities. Governmental fund types include:
General Fund - 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 services traditionally provided by a State government.
Special Revenue Funds - Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for specified purposes.
The primary government special revenue fund is the GeorgiaNet Authority. The GeorgiaNet Authority is responsible for centralized marketing, sales, leasing and licensing of certain public information.
Debt Service Funds - Debt Service Funds are used to account for the payment ofprincipal and interest on general long-term debt.
The primary government debt service fund is the General Obligation Debt Sinking Fund, which is administered by the Office of Treasury and Fiscal Services. The Debt Sinking Fund is responsible for the accumulation of resources for the payment of principal and interest on general obligation bonds.
Capital Projects Funds - Capital Projects Funds are used to account for the acquisition or construction of capital facilities.
Proprietary Fund Types are used to account for activities similar to those found in the private sector, where cost recovery and the determination of net income is necessary or useful for sound fmancial administration.
Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis

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Notes to the Flnandal Statements
June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic detennination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.
The primary government enterprise fund is the State Employees' Health Benefit Plan, which is administered by the State Personnel Board, Merit System of Personnel Administration. The State Employees' Health Benefit Plan is a self-insured 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.
Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other State departments or agencies, or to other governmental entities, on a cost-reimbursement basis.
Fiduciary Fund Types are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the State. These fund types include:
Expendable Trust Funds - Expendable Trust Funds are used to account for the activities of trusts in which both principal and income may be used for the purposes of the trust.
Nonexpendable Trust Funds - Nonexpendable Trust Funds are used to account for the activities of trusts when the government is under an obligation to maintain the trust principal.
Pension Trust Funds - Pension Trust Funds are used to account for State-administered retirement systems.
Agency Funds - Agency Funds are used to account for assets that the State holds on behalf of others as their agent.
College and University Funds are used to account for the operations of State colleges and universities in accordance with existing authoritative accounting and reporting principles applicable to government-operated colleges and universities. Accordingly, college and university funds are an aggregation of the following funds.

Current Funds - Current Funds are used to account for current operating expenditures and related resources and include (1) unrestricted funds over which the college or university retains full control in achieving the institutions' purposes, and (2) restricted funds which may be utilized only in accordance with externally-restricted purposes.
Loan Funds - Loan Funds are used to account for transactions of related resources obtained and used for loans to students.
Endowment and Similar Funds - Endowment and Similar Funds are used to account for resources held by the institutions that must be administered in accordance with trust agreements.
Plant Funds - Plant Funds are used to account for institutional property acquisition, renewal and replacement, debt retirement and investment.
Agency Funds - Agency Funds are used to account for arnounts held in custody for students, university-related organizations and others.
The General Fixed Assets Account Group is used to account for all fixed assets acquired or constructed for use by the State, other than those accounted for in the proprietary, fiduciary, and college and university funds.
The General Long-Term Debt Account Group is used to account for general obligation bonds outstanding, accrued annual and compensatory leave, capital lease obligations and other long-tenn liabilities not otherwise recorded in proprietary, fiduciary, and college and university funds.
Discretely Presented Component Units - The fmancial statements of the component units, other than the component units which fmancial statements were blended with the financial statements ofthe primary government due to their relationship with the primary government, are presented in separate columns. The three columns presented reflect fmancial activity for the following fund types:
Governmental Fund Types are used to account for component unit general activities.
Proprietary Fund Types are used to account for activities similar to those found in the private sector, where the detennination ofnet income is necessary or useful for sound fmancial management.

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Notes to the FD1andal Statements June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Fiduciary Fund Types are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the State.
The fmancial data presented in these columns are discretely presented with the balances and transactions for each component unit being aggregated within the component unit's predominant fund type.
C. Basis of Accounting
The accounting and fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current fmancial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (Le., revenues and other fmancing sources) and decreases (Le., expenditures and other fmancing uses) in net current assets.
All proprietary funds, nonexpendable trust funds and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
The modified accrual basis of accounting is used by all governmental fund types, expendable trust funds and agency funds. Under 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. Principal revenue sources which are susceptible to accrual include income taxes, sales and use taxes, federal grants and shared revenues. Revenues applicable to expendituredriven programs, however, may be accrued based on the unexecuted portion of contracts for goods and services. Expenditures are recorded when the related fund liability is incurred, as required by GAAP, with the exception of year-end encumbrances which are recorded as expenditures

rather than as a reservation of fund balance. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the subsequent fiscal year.
The accrual basis of accounting, as required by GAAP, is utilized by proprietary fund types, nonexpendable trust funds and pension trust funds with the exception of the following individual pension trust funds which are reported essentially on the cash basis:
Discretely Presented Component Units Fiduciary Fund Types Firemen's Pension Fund Judges of the Probate Courts Retirement Fund Peace Officers' Annuity and Benefit Fund of Georgia
Sheriffs' Retirement Fund of Georgia Superior Court Clerks' Retirement Fund of Georgia
Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Depreciation of fixed assets has not been reported for all funds included within the proprietary fund types as required by GAAP.
The College and University Funds are reported using the modified accrual basis of accounting (which is materially the same as the accrual basis of accounting applicable to colleges and universities), with the exception that contractual obligations for services which have not been performed and for goods which have not been delivered at the end ofthe fiscal year are recognized as expenditures and liabilities in the accompanying fmancial statements.
As permitted by generally accepted accounting principles for colleges and universities, no depreciation is provided for the physical properties.
D. Budgets
The annual budget ofthe State of Georgia is prepared on the modified accrual basis utilizing encumbrance accounting with the following exceptions: federal and certain other revenues are accrued based on the unexecuted portion of long-term contracts; and intrafund transactions are disclosed as revenue and expenditures. The budget represents departmental appropriations recommended by the Governor and adopted by the General Assembly prior to the beginning ofthe fiscal year. Annual appropriated budgets are adopted at the departmental level. The appropriated budget covers most governmental funds included in the State reporting entity but excludes the special revenue fund, capital projects

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Notes to the Fl1andal Statements
June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
funds and certain debt service funds which are not subject to appropriation. The budget includes certain proprietary funds, the college and university funds, and the administrative costs of operating certain public employee retirement systems. All unencumbered annual appropriations lapse at fiscal year end unless otherwise specified by constitutional or statutory provisions. Supplementary and amended appropriations may be enacted during the next legislative session by the same process used for original appropriations. Encumbrances are used to indicate the intent to purchase goods or services. Liabilities and expenditures are recorded upon issuance of completed purchase orders. Goods or services need not have been received for liabilities and expenditures to be recorded.
Because the budgetary basis differs from GAAP, budget and actual amounts in the accompanying Statement of Funds Available and Expenditures Compared to Budget - Budget Fund are presented on the budgetary basis. A reconciliation of the excess of funds available over expenditures on the budgetary basis at June 30, 1997, to the excess of revenues over expenditures and other fmancing sources (uses)/net income (loss)/net increase in plan net assets/net increase (decrease) in fund balances - current funds presented in conformity with GAAP is set forth in Note 3.
E. Deposits and Investments
Cash and Cash Equivalents Cash and cash equivalents include currency on hand and demand deposits with banks and other financial institutions. Cash and cash equivalents also include short-term, highly liquid investments with maturity dates within three months of the date acquired, with the exception of the college and university funds, which report all time deposits as cash.
Investments Investments are defined as those fmancial instruments with terms in excess of three months from the date of purchase and certain other securities held for the production of revenue.
The investment policy of the State of Georgia is to maximize the protection of State funds on deposit while accruing an advantageous yield on those funds in excess of those required for current operating expenses (Official Code of Georgia Annotated [OCGA] 50-17-51). The State Depository Board may permit any department, board, bureau or other agency to invest funds collected directly by

such organization in short term time deposit agreements, provided that the interest income of those funds is remitted to the Director ofthe Office of Treasury and Fiscal Services as revenues of the State of Georgia. As a matter of general practice, however, demand funds of any department, board, bureau or other agency in excess of current operating expenses are required to be deposited with the Director of the Office of Treasury and Fiscal Services for the purpose of pooled investment (OCGA 50-17-63). Such cash is managed in a pooled investment fund to maximize interest earnings. Investments are stated at cost. Authorized pool investments are limited to the following (OCGA 36-83-4 and 36-83-8):
1) Obligations of the State of Georgia or of other states; 2) Obligations issued by the United States government; 3) Obligations fully insured or guaranteed by the United
States government or a United States government agency; 4) Obligations of any corporation of the United States government; 5) Prime banker's acceptances; 6) Repurchase agreements; and 7) Obligations of other political subdivisions ofthe State.
Other organizations ofthe State of Georgia reporting entity invest in a variety offinancial activities. These investments may include brokered certificates of deposit, commercial paper, convertible bonds, corporate bonds, notes and obligations, foreign bonds, investment agreements, mortgages, municipal bonds, mutual funds, real estate, real estate mortgages and notes, real estate investment trust limited partnerships, repurchase agreements, short-term investments, stocks, and U. S. Treasury bonds, notes, and bills. Investments are stated at cost or amortized cost at June 30, 1997, with the exception of deferred compensation plan assets which are stated at market value (See Note 16), as well as investments of Teachers Retirement System and all funds administered by Employees' Retirement System of Georgia, which are stated at fair value.
In accordance with State statutes and investment policy and guidelines adopted by the State Depository Board, the State of Georgia invests a portion of the assets of the various portfolios in certain structured notes and certain mortgagebacked securities, such as collateralized mortgage obligations and adjustable rate mortgages. These securities are reported as U. S. Government Securities in the disclosure of custodial credit risk (See Note 4).
As of June 30, 1997, the State had $34,976,371 in two portfolios invested in U. S. agency mortgage and assetbacked securities. Investments in these portfolios are transacted by external investment management firms under

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Notes to the Fnandal Statements Jme 30. 1997

Note 1. Summary of Significant Accounting Policies (continued)
direction of investment advisory agreements executed between the State and the investment management fIrms.
The Commissioner of the Department of Agriculture is directed by statute to require dealers in certain agricultural products and livestock to make and deliver to the Department a surety or cash bond to secure the faithful accounting for and payment to producers ofthe proceeds of agricultural products or livestock handled or sold by the dealer. Cash bonds are required to designate the Department as trustee ofthe funds and may take the fonn of certifIcates of deposit, letters of credit, money orders or cashiers' checks. At June 30, 1997, the Department held surety bonds in the amount of $24,621 ,366 and cash bonds in the amount of $11,232,037. These bonds are not recorded on the Combined Balance Sheet.
Securities are held pursuant to statutes which require licensed insurance companies to deposit securities with the Department of Insurance prior to issuance ofa certifIcate of authority to transact insurance by the Commissioner of Insurance. These securities remain in the name of the licensed insurance company as long as the company has a pending claim in the State of Georgia or until a proper order of a court of competent jurisdiction has been issued to the receiver, conservator, rehabilitator, or liquidator of the insurer or to any other properly designated official or officials who succeed to the management and control of the insurer's assets. The purchase and redemption of such securities is allowed as long as the required levels of deposits are maintained. At June 30, 1997, securities in the amount of $195,342,785 were held by the Department of Insurance. These securities are not recorded on the Combined Balance Sheet.
Construction contracts awarded by the Department of Transportation (Primary Government) and the State Tollway Authority (Discretely Presented Component Units) usually include provisions to withhold a percentage of the payments until the project reaches a specifIed state of completion. Georgia law requires that these funds be deposited in a state or national bank chartered within this State. The State controls only the release ofthese funds; the assets in the accounts are considered to be the property of the contractor. Therefore, no assets and liabilities for these escrow accounts have been included in these fInancial statements. At June 30, 1997, $43,363,105 in escrow deposits were administered by the Department of Transportation and $74,732 by the State Tollway Authority.

F. Receivables
Receivables in the State's governmental funds pertain primarily to Federal revenues and revenues applicable to charges for services. Receivables in all other funds have arisen in the ordinary course of business. Receivables are recorded when either the asset or revenue recognition criteria (See Note I-e) have been met. Estimates of allowances for uncollectible receivables have not been made for the majority ofreceivables included within the fmancial statements.
G. Due To/From Other Funds
Equally offsetting asset and liability accounts are used to account for amounts owed to a particular fund by another fund for short term obligations on goods sold or services rendered.
H. Advances to Other Funds
Noncurrent portions oflong-tenn interfund loans receivable are reported as advances and are offset equally by a fund balance reserve account which indicates that they do not constitute expendable available fmancial resources and therefore are not available for appropriation.
I. Inventories
Inventories of supplies and materials are detennined by physical count and/or perpetual inventory records and are valued at cost, current purchase price, fair market value, lower of cost or market using the frrst-in/frrst-out (FIFO) method, moving average cost, standard cost, or weighted average cost, depending on the individual organization's preference. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased for larger agencies and agencies with material inventories. Other agencies may use either the purchase or consumption method.
Under the purchase method, a portion of the fund balance is reserved for inventories to indicate that it is not available for appropriation. Organizations under the consumption method normally reserve a portion offund balance equal to the average monthly inventories on hand for the fIscal year.
USDA Donated Food Inventories are shown at a value established by the U. S. Department of Agriculture.

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Notes to the F01andal Statements
June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Donated food inventories are equally offset by an amount to indicate that they do not constitute "available expendable resources" even though they are a component of net current assets. The fund balance reserve is based on values established by the U. S. Department of Agriculture.
J. Prepaid Items
Payments made to vendors and local government organizations for services that will benefit periods beyond June 30, 1997, are recorded as prepaid items.
K. Restricted Assets
Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants.
L. Fixed Assets
General fixed assets of governmental fund types are reflected as expenditures in the funds used to acquire or construct them and the related assets are reported in the general fixed assets account group. Proprietary and trust fund fixed assets are capitalized in their respective funds, except for trust fund fixed assets, which are reported in the general fixed assets account group. College and university funds report expenditures for fixed assets in the funds used to acquire or construct them and the related assets are reported within the plant funds.
Due to the lack of complete and accurate inventory records applicable to State-owned land and buildings and the lack of historical cost values for certain parcels of land and buildings, the general fixed assets account group does not represent a comprehensive valuation ofthe assets owned by the State of Georgia.
All purchased fixed assets are valued at cost or at estimated historical cost if historical cost is not practically determinable. Certain fixed assets acquired through capital leases in prior years have not been recorded on the fmancial statements at the net present value of the minimum lease payments as is required by GAAP. Donated fixed assets are

valued at their estimated fair market value on the date received.
Costs of normal maintenance and repairs that do not add to the value ofthe asset or materially extend asset lives are not capitalized. Material improvements adding to the value of assets are capitalized. Interest costs during construction are not capitalized for construction or acquisition of assets funded by governmental fund types and college and university funds. Interest costs during construction for proprietary fund types are not capitalized with the exception of construction projects funded through the Stone Mountain Memorial Association (discretely presented component unit).
With the exception of the college and university funds, public domain ("infrastructure") fixed assets consisting of such assets as roads, bridges, curbs, streets and sidewalks, drainage systems and lighting systems are not generally reported, as these assets are immovable and of value only to the State of Georgia.
Assets in the general fixed assets account group and the college and university funds are not depreciated. The majority of proprietary funds do not record depreciation on fixed assets as required by GAAP.
M. Compensated Absences
The State's liability for accumulated unpaid annual leave is reported in the accompanying general long-term debt account group for governmental fund types. These amounts are not shown as a liability in the funds but are recorded as expenditures when paid. In the proprietary fund types and the college and university funds this obligation is reported as a liability in the respective funds.
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 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 ofninety 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 sick leave

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Notes to the FJnandal Statements Jmc30,1997

Note 1. Summary of Significant Accounting Policies (continued)
are entitled to additional service credit in the Employees' Retirement System of Georgia. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits.
N. Deferred Revenue
The State reports deferred revenue on the combined balance sheet. Deferred revenues arise when a potential revenue does not meet the "available" criterion for recognition in the current period. Deferred revenues also arise when resources are received by the State before it has a legal claim to them, as when grant monies are received prior to qualifying expenditures being incurred. In subsequent periods, when the revenue recognition criterion is met, or when the State has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized.
O. Mortgage Loans Under Repurchase Agreements
At June 30,1997, mortgage loans totaling $30,446,467 have been transferred and assigned to lenders under repurchase agreements by the Georgia Development Authority (Discretely Presented Component Units). The agreements give the lenders the option to have the Authority repurchase the mortgage loans for an amount equal to the then outstanding balance of principal and interest due during a specified period of time.
In addition, the Authority guarantees the principal and interest payment by the borrower to the lender within thirty (30) days ofthe due date. Any payment not received within thirty (30) days is considered advanced to the borrower and paid to the lender by the Authority. The Authority then charges the borrower interest on these advances for the period outstanding at a penalty rate agreed upon at the loan origination date. Fund balance in the amount of fifteen percent (15%) of the principal balances outstanding of mortgage loans under repurchase agreements is reserved.
P. Long-Term Obligations
Long-term debt and other long-term obligations are recognized as a liability of a governmental fund when due,

or when resources have been accumulated in the debt service fund for payment early in the subsequent fiscal year. Other long-term obligations, with the exception of the long-term portion of some capital leases, are reported in the general long-term debt account group.
Long-term debt expected to be fmanced from proprietary fund operations are accounted for in those funds.
Q. Fund Equity
Contributed capital is recorded in proprietary funds that have received capital or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of fmancial resources.
R. Bond Discounts/Premiums/lssuance Costs
In governmental fund types, bond discounts, premiums and issuance costs are recognized in the current period. Bond discounts, premiums and issuance costs for proprietary fund types are deferred and amortized over the term of the bonds using a method which approximates the effective interest method or the straight-line method. Bond premiums (discounts) are presented as increases (reductions) in the face amount of bonds payable whereas issuance costs are recorded as deferred charges.
s. Interfund Transactions
The State has the following types of interfund transactions:
Quasi-external transactions for services rendered by one fund to another are accounted for as revenues by the recipient fund and expenditures or expenses by the disbursing fund.
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.

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Notes to the F01andal Statements
June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Operating transfers are recorded for all other interfund transactions.
T. Intrafund Transactions
State accounting policies and procedures allow for the recording of revenues, receivables, expenses and liabilities for transactions between State organizations whose fmancial activity is included within a single fund. State accounting systems do not facilitate the identification of all such transactions. Adjustments have been made for material transactions and balances which have been identified during the preparation of the State's general purpose fmancial statements; however, all such intrafund transactions and balances were not identifiable and, accordingly, revenues, receivables, expenses and liabilities are overstated, primarily in the general and college and university funds.
u. Memorandum Only - Total Columns
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present fmancial position, results of operations or cash flows in conformity with GAAP. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
v. Fiscal Reporting Periods
The fmancial statements include fmancial activity for the Stone Mountain Memorial Association whose fiscal reporting period differs from that of the State of Georgia (July 1, 1996 through June 30,1997). The applicable fiscal reporting period for the Stone Mountain Memorial Association is based on a fifty-two/fifty-three week period ending on the last Sunday of each calendar year. Financial activity is reported for the period January 1, 1995 through December 29, 1996.

Note 2. Other Accounting Disclosures
Change in Accounting Policy and Restatements
The State's Regional Educational Service Agencies and DeKalb Technical Institute have been added to the reporting entity as a part ofthe General Fund for the year ended June 30, 1997. The beginning fund balance for the general fund has been increased by $8,957,903 due to the inclusion of these organizations. These organizations also had beginning fixed assets balances of $4,384,840, and this amount is shown as "Retroactive Restatement of Prior Year Balance" in Note 6.
In fiscal year 1997, certain internal service (risk management) funds adopted the accrual basis of accounting in accordance with GAAP. The beginning fund equity of the internal service funds has been decreased by $239,893,133 for this change in accounting principle.
In fiscal year 1997, the State Employees' Assurance Department early implemented GASB Statement 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools." The statement requires investments to be reported at fair value rather than at cost. The beginning fund equity of the internal service funds has been increased by $96,038,000 for this change in accounting principle.
A reconciliation of the EDP equipment inventory records of the Department of Administrative Services revealed an unidentified difference between the computed balance based on current year purchases/deletions and the actual balance on the fmancial statements. The beginning fund equity of the internal service funds has been decreased by $16,544,667 for this correction.
In fiscal year 1997, the State implemented GASB Statement 25, "Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defmed Contribution Plans" for all primary government pension trust funds and for the Public School Employees' Retirement System and the Teachers' Retirement System (discretely presented component units - fiduciary fund types). The statement requires, among other things, that the investments of the pension trust funds be reported at fair value rather than at cost. This change is reflected as an adjustment in the applicable funds.

43

- - - - - - - - - State of GeorfJia---------
Notes to the FlI1andal Statements June 30, 1997

Note 2. Other Accounting Disclosures
The Foundation for Public Broadcasting in Georgia, Inc., a blended component unit of the Georgia Public Telecommunications Commission has been added to the reporting entity for the year ended June 30, 1997. The beginning fund balance of the discretely presented component units - governmental fund types has been increased by $979,429 due to the inclusion of the Foundation.
Effective May 16, 1996, the Lake Lanier Islands Development Authority entered into a management agreement with KSL Lake Lanier, Incorporated, to manage the properties previously operated by the Authority. Terms of the management agreement called for KSL to utilize certain accounts for maintaining the fmancial records of the project and stated that these accounts were to remain the property of the Authority during the term of the management agreement. As a result of this agreement, certain fmancial activity maintained by KSL was included in the fmancial statements of the Authority for the year ended June 30, 1996. The privatization agreement was entered into on August 1, 1997, and was retroactive to May 16, 1996. As a result, the beginning fund equity of the discretely presented component units - proprietary fund types has been decreased by $35,366,099 to reflect the retroactive clause of the privatization agreement.
In prior years, the Student Finance Authority did not record a reserve for the estimated portion of voided serviced loans that the Authority is required to purchase under the terms of the existing servicing agreements. The Authority also had overstated certain amounts due to the U. S. Department of Education. The correction of these errors resulted in a net decrease of $1,731,608 in the beginning fund equity of the discretely presented component units - proprietary fund types.
Fund balances/fund equity at July 1, 1996, have been adjusted as follows:

Primary Government

General Fund

Restatement of Beginning Fund Balance

for the Inclusion ofRESA's and

DeKaib Technical Institute

$

8.957.903

Internal Service Funds Conversion to Accrual Basis Investments Reported at Fair Value Fixed Assets Correction Other (Georgia Building Authority)

$ (239,893,133) 96,038,000 (16,544,667) 1.448.621
$ (158.951.179)

Pension Trust Funds Investments Reported at Fair Value

$1.438279.000

Discretely Presented Component Units

Governmental Fund Types

Restatement ofBeginning Fund Balance

for the Inclusion of Foundation for Public Broadcasting

$ 979429

Proprietary Fund Types Retroactive Privatization Agreement Correction ofErrors Other

$ (35,366,099) (1,731,608) 1.142199
$ (35.955.508)

Fiduciary Fund Types Investments Reported at Fair Value

$4.688.218.000

44

- - - - - - - State of GeorfJia-------
Notes to the FH1andal Statements Jme30,1997

Note 3. Budgetary Accounting
The Official Code of Georgia Annotated (OCGA), Title 45, Chapter 12, Article 4 sets forth the process for the development and monitoring of an appropriated budget for the State of Georgia. Not later than September 1 of each year, the head of each executive branch budget unit must submit estimates of the fmancial requirements for the subsequent fiscal year to the Office of Planning and Budget, which operates under the direction ofthe Governor. Budget estimates relative to the legislative and judicial branches of State government are provided to the Office ofPlanning and Budget for the purpose of estimating the total fmancial needs ofthe State, but are not subject to revision or review by the Office of Planning and Budget.
The Governor, through the Office of Planning and Budget, examines the estimates and may investigate and revise executive branch submissions as necessary. Upon the completion and revisions of the estimates, the Governor must prepare and submit a budget report to the General Assembly within five days o(the date on which the General Assembly convenes. The Governor possesses the responsibility and authority to establish the revenue estimate for the corresponding fiscal year.
The General Assembly, after adopting such modifications to the Governor's budget report as it deems necessary, enacts the General Appropriations Act for.the subsequent fiscal year. Each General Appropriations Act enacted, along with amendments as are adopted, continues in force and effect for the next fiscal year after adoption. In accordance with the Constitution of the State of Georgia, Article III, Section IX, Paragraph 4, the General Assembly is prohibited from appropriating funds for any given fiscal year which, in the aggregate, exceeds the amount of unappropriated surplus funds expected to have accrued at the beginning ofthe subsequent fiscal year together with the total estimated amount of receipts from existing revenue sources, less refunds, anticipated to be collected in the subsequent fiscal year. The Constitution further authorizes the passage ofadditional Supplementary Appropriation Acts for specific purposes, provided sufficient unappropriated funds are available or additional revenue measures have been enacted. Federal funds received by the State are continually appropriated in the exact amounts and for the purposes authorized and directed by the awarding federal

agency. Internal transfers within a budget unit and between objects of functional or activity budget units are subject to the condition that no State funds shall be transferred for the purpose of initiating a new program area not currently having a State funds appropriation.
The Governor, through the Office of Planning and Budget, requires each budget unit, other than those of the legislative and judicial branches, to submit an annual operating budget based on the activities and functions set forth in the Appropriations Act. Budget units submit quarterly allotment requests which must be approved in conjunction with quarterly work programs prior to release of appropriated funds. Further monitoring of budget unit activities is accomplished by review of expenditure reports which are submitted quarterly to the Office of Planning and Budget.
Budget units (Le., agencies, commissions) of the State are responsible for budgetary control oftheir respective portion of the total State appropriated budget. The legal level of budgetary control is at the departmental level. Due to the complex nature ofthe State appropriated budget, a separate budgetary report entitled, "Report of the State Auditor of Georgia," is published each year. This report includes a listing of State organizations (appropriation units) which incurred expenditures in excess of amounts budgeted by object class.
The appropriated budget covers the maJonty of the governmental funds included within the State of Georgia reporting entity, but excludes the special revenue fund, debt service fund and capital projects funds, which are not subject to appropriation. The budget does include certain proprietary funds, the college and university funds, and the administrative costs of operating various public employee retirement systems. The accompanying Statement of Funds Available and Expenditures Compared to Budget - Budget Fund presents comparisons of the legally adopted budget with actual data prepared on the budgetary basis of accounting utilized by the State. Because the budgetary and GAAP presentations for actual data differ, a reconciliation of"Excess of Funds Available Over Expenditures - Budget Fund (Budgetary Method)" and "Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses/Net Income (Loss)/Net Increase in Plan Net Assets/Net Increase (Decrease) in Fund Balances - Current Funds - GAAP Fund Types" appears below.

45

State of Georgia - - - - - - - -
Notes to the Flnandal Statements June 30, 1997
Note 3. Budgetary Accounting (continued)
46

State of GeorfJia - - - - - - -
Notes to the Flnandal Statements
June 30. 1997

Financial Statement Fund Types

Primary Govemment

Discretely Presented Component Units

Excess of Funds Available Over Expenditures - Budget Fund Budgetary Method
Entity and Perspective Differences:
Reclassification ofBudgetary Funds to GAAP Financial Statement Fund Types
Non-Budgeted Funds
Budgeted Non-Current Funds
Basis Differences:
Net Accrued Revenues, Related Receivables and Deferred Revenues
Net Accrued ExpenditureslExpenses and Related Liabilities
Timing Differences:
Revenues
ExpenditureslExpenses
Excess ofRevenues and Other Financing Sources Over (Under) Expenditures and Other Financing UseslNet Income (Loss)/Net Increase in Plan Net AssetslNet Increase (Decrease) in Fund Balances - Current Funds GAAP Fund Types

Expendable Trust

Nonexpendable Trust

Pension Trust

College and University

Govemmental

$

$

$

$

$

164,540,915

5,629

200 1,794,259,301

33,318,450 8,119,586 (27,965,023)

(1,454,524) 367,631

(200)

5,374,894

(5,675,850)

(15,114) (4541 519)

(137,244) 27,648

164 540 915 $

5629

I 794 259,301

8615424

(1.196489)

Proprietary

Fiduciary

$

710,075 31,691,316

543,591 5,582,022,246

(766,748) 67,227

(2,000) 6,569

(541 59I)

31701870

5582028,815

47

- - - - - - - - State of GeorfJia--------
Notes to the Flfiandal Statements
June 30, 1997

Note 4. Deposits and Investments
Deposits - Funds belonging to the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more ofthe following securities as enumerated in OCGA 50-17-59:
1) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or ofthe State of Georgia.
2) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe 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 ofthe 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 OCGA 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia the option of exempting demand deposits from the collateral requirements.
Primary Government
At year end, the carrying amounts of the State's deposits were $479,403,589, and the bank balances were $960,522,782. The amounts of these bank balances are classified into three categories of credit risk: (1) cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the State or by its agent in the State's name, (2) cash collateralized with securities held by the pledging fmancial institution's trust department or agent in the State's name and (3) uncollateralized bank accounts. The State's deposits were classified as follows at June 30, 1997:

Risk Category
2 3

Bank Balance

$

297,399,206

231,690,300

431.433276

$ 960.522.782

48

- - - - - - - State of Georfjia-------
Notes to the FlI1andal Statements
June 30, 1997
Note 4. Deposits and Investments (continued)
Significant Discretely Presented Component Units
At year end, the significant discretely presented component units' deposits were classified as follows:

Investments - Investments are stated at cost or amortized cost, with the exception of deferred compensation plan assets which are stated at market value, and are summarized and classified as to risk in the following three categories: (1) insured or registered, or securities held by the State or

its agent in the State's name, (2) uninsured or unregistered, with securities held by the counterparty's trust department or agent in the State's name or (3) uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the State's name.

49

State of Georgia - - - - - - -
Notes to the FlI1andal Statements JlIle 30. 1997
Note 4. Deposits and Investments (continued)
Primary Government
The carrying amounts, risk categories and market value applicable to the State's investments are listed below:

Type of Investment Commercial Paper Corporate Bonds Municipal Bonds Repurchase Agreements Stocks U.S. Government
Securities and Corporate Obligations
Um:husifled Loans (Interfund) Mortgages Mutual Funds Unemployment
Compensation Funds Pooled with the U.S. Treasury Other Total Investments

Risk Categories

2

3

$

1,998.769 $

$

2,853,379

10,253,898

10,180,605

1,933,951,491

357,689,837

6,445,350,914

23,955,291

C.liIrrying Amount

$

1,998,769

13,107,277

10,180,605

2,291,641,328

6,469,306,205

Market Value

$

1,967,740

12,987,348

10,180,169

2,291,641,329

6,512,705,875

9368051408

121501751

17762386,566

$ 513400,777

$

227029 227029

9489780188 18,276,014,372

9516214222 $ 18,345,696,683

41,128 3,486,343 8,565,971

41,128 3,564,645 9,029,402

1,745,915,543 6297
$ 20 034 029 654

1,745,915,543 6297
$ 20 104,253 698

50

State of GeorfJia - - - - - - -
Notes to the FJnandal Statements June 30. 1997
Note 4. Deposits and Investments (continued)
Significant Discretely Presented Component Units
The carrying amounts, risk categories and market value of the investments of the State's significant discretely presented component units are listed below:
Proprietary Fund Types

Proprietary Fund Types
Georgia Housing and Finance Authority

Type of Investment
Commercial Paper Corporate Bonds U.S. Government
Securities and Corporate Obligations

UndDSSifrd Mortgages Mutual Funds

Geo. L. Smith 11 Georgia World Congress Center Authority

Repurchase Agreements
U.S. Government Securities and Corporate Obligations

Lottery Corporation

U.S. Government Securities and Corporate Obligations

All Other Component Units

Repurchase Agreements
U.S. Government Securities and Corporate Obligations

Risk Categories 3

Carrying Amount

Market Value

$

\,013,156

1,445,934

$

$

\,013,\56

1,013,\56

1,445,934

1,324,822

50205110 52664 200

50205110 52,664,200

49200,509 5\,538,487

45,935,998 9,683075
108283273

45,404,625 9683075
\06 626,\87

$

47,434,\58 $

47,434,158

47,434,158

23468794

$

70902952 $

23468794

$

70902952 $

23468,794 70902952

$

158375000

10,3\9,722

$

76042000

234417000 $

$

$

10,3\9,722 $

231461000 10,321,088

2\ 855442 32175 \64

312\ 192

$

3 \21192

24976634 35296356

25 \70,398 35491486

51

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the Flnandal Statements
June 30, 1997
Note 4. Deposits and Investments (continued)
Fiduciary Fund Types

Risk Categories

Type of Investment

2

3

FidJlcituy Fund Types

Teachers Retirement System of Georgia

Repurchase Agreements

16,850,878,000

Stocks

363,342,000

U.S. Government Securities and Corporate Obligations

10 504 465 000

$ 27718,685000 $

Utu:bzssifred

Real Estate

All Other Component Units Corporate Bonds

16,620,590 $

$

Investment Accounts

197,696

Notes

48,319,810

Repurchase Agreements

250~000

Stocks

201,660,760

U.S. Government Securities and Corporate Obligations

243375936

$

510424792

$

Utu:lassifU!d

Mutual Funds

Real Estate

Carning Amount

Market Value

16,850,878,000 $ 363,342,000

16,850,878,000 363,342,000

10 504 465 000 $ 27,718,685,000

10504 465 000 27,718,685,000

2581000

$ 27721,266 000

$

16,620,590

197,696

48,319,810

250,000

201,660,760

2581000 27721 266 000
16,447,298 197,696
48,291,398 250,000
326,087,472

243375936 510,424,792 $

246 903758 638,177,622

36,406,804 I 600542
548432138

1057559 639235,181

Investments Lending Program - The State is presently involved in a securities lending program with major brokerage fInns. The State lends equity and fIxed income securities for varying tenns and receives a fee based on the loaned securities' value. During a loan, the State continues to receive dividends and interest as the owner of the loaned securities, The brokerage fInns pledge collateral securities consisting of U. S. Government and agency securities, mortgage-backed securities issued by aU. S. Government agency, and U. S. Corporate bonds. The collateral value must be equal to at least 102% to 110% of the loaned securities value, depending on the type of collateral security.

Securities loaned totaled $11,407,654,000 at June 30, 1997, and the collateral value was equal to 102.8%. The loaned securities are classifIed as category 1 investments in the component units - fIduciary fund types based on the custodial arrangements for the collateral securities. Loaned securities are included in the accompanying Combined Balance Sheet since the State maintains ownership. The related collateral securities are not recorded as assets on the Combined Balance Sheet, and a corresponding liability is not recorded, since the State does not pledge or trade the collateral securities.

52

- - - - - - - - - State of GeorfJia---------
Notes to the Flnandal Statements June 30, 1997
Note 5. Receivables
Primary Government
Receivables by fund type as of June 30, 1997, consist of the following:

Governmental Fund Types General Special Revenue Capital Projects
Proprietary Fund Types Enterprise Internal Service
Fiduciary Fund Types Expendable Trust Pension Trust Agency
College and University Funds

Gross Receivables

Allowance For
Uncollectibles

Net Total Receivables

$ 2,574,431,832

$

1,865,404

12,446,440

$ 2,574,431,832 1,865,404 12,446,440

18,294,998 10,892,781

(1,969,493)

16,325,505 10,892,781

111,999,766 115,752,000 27,865,023 304.423,817

(15,825,923) (61.543,170)

96,173,843 115,752,000 27,865,023 242,880,647

$ 3,177,972,061

$ (79 338.586)

$ 3,098,633.475

53

- - - - - - - - - State of Geol'fJla - - - - - - - - -
Notes to the Flf1andal Statements June 30. 1997
Note 5. Receivables (continued)
Significant Discretely Presented Component Units
Receivables of the significant discretely presented component units as of June 30, 1997, consist of the following:

Governmental Fund Types
Georgia Public Telecommunications Commission
Proprietary Fund Types
Georgia Environmental Facilities Authority
Georgia Housing and Finance Authority
Georgia Student Finance Authority
All Other Component Units
Fiduciary Fund Types
Teachers Retirement System Of Georgia
All Other Component Units

Gross Receivables

Allowance For
Uncollectibles

Allowance For Service Repayments

Deferred Loan Fees

Net Total Receivables

$ 3,033,920 $

(72,275) $

$

$ 2,961,645

511,964,667
638,361,366 365,606,219 170,499,851

(265,063) (1,492,748) (3,665,616)

(25,520,877)

(172,685)

511,964,667
638,096,303 338,592,594 166,661,550

400,589,155 5,272.590

400,589,155 5,272.590

$ 2,095.327,768 $ (5.495,702) $ (25,520,877) $ 072,685) $ 2,064,138.504

54

- - - - - - - - - State of GeorfJia---------
Notes to the Flf\andal Statements June 30. 1997
Note 6. Fixed Assets
Primary Government
The following is a summary of changes in the general ftxed assets account group during the ftscal year:

Land and Buildings Improvements Other Than Buildings Machinery and Equipment

Balance July 1, 1996
$ 1,770,738,936

Retroactive Restatement
of Prior Year Balance

$

18,758

779,778,914

4.366,082

Additions $ 142,166,150
389,573 131.022,789

Retirements $ (56,820,232)
(64,420.523)

Balance June 30,1997 $ 1,856,103,612
389,573
850,747,262

Total General Fixed Assets

$ 2.550,517,850 $ 4,384,840 $ 273.578,512 $ (121.240,755) $ 2,707,240,447

The following is a summary of the proprietary fund types and college and university funds ftxed assets at June 30, 1997,

Land and Buildings Improvements Other Than Buildings Machinery and Equipment Less: Accumulated Depreciation Construction in Progress Net Fixed Assets

Proprietary Fund Types

Enterprise Funds

Internal Service Funds

$

$ 239,585,046

230,662

174,048,563 (11,045,355)

$

230662

$ 402,588254

College and University Funds $ 2,481,623,048
160,263,555 1,445,741,492
146,943,998 $ 4,234.572,093

55

State of Georfjia - - - - - - -
Notes to the Flnandal Statements
Jme30,1997
Note 6. Fixed Assets (continued)
Significant Discretely Presented Component Units
The following is a summary of the significant discretely presented component units' fixed assets at June 30, 1997:

Land and Buildings Improvements Other Than Buildings Machinery and Equipment Less: Acc:umulated Depreciation Construction in Progress Net Fixed Assets

Governmental Fund Types

Proprietary Fund Tyues

Georgia Pnblic Telecommunications
Commission

Georgia Poro
Authority

Stone Mountain Memorial Association

Geo. L. Smitb IT Georgia World Congress Center
Autbority

$

26,924,094

171,257,987 $

87,045,525

209,402,736

194,224,835

22,020,461

46,982,503

114,599,140

25,481,377

11,194,149

(177,964,489)

(34,996,035)

(36,138,594)

41 573,848

425286

61,098965

$

73906,597 $

343691321 $

99976614 $

245557256

A110tber Component
Units
85,074,906 2,710,490
27,584,741 (17,194,897)
23715,325 121890 565

Land and Buildings Machinery and Equipment
Net Fixed Assets

Fiduciary Fund Tynes

Firemen's Pension Fund

$

132,909

116344

Peace Officers' Annuity and Benefit Fund

All Other Component
Units

$

310,296 $

92,866

41.310

$

249253 $

403,162 $ 41.310

As noted in the Summary of Significant Accounting Policies (Note 1), the State does not maintain complete and accurate inventory records applicable to State-owned land and buildings, nor are there historical cost values for certain

parcels ofland and buildings; therefore, the tables above do not represent a comprehensive valuation ofthe assets owned by the State of Georgia.

56

- - - - - - - State of GeorfJia-------
Notes to the Frnandal Statements
June 30, 1997

Note 7. Risk Management
A. Public Entity Risk Pool
The State Personnel Board, Merit System of Personnel Administration internally 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 by the General Assembly of Georgia. The State Personnel Board, Merit System of Personnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.
A reconciliation of total claims liabilities for fiscal years ended June 30, 1997, and 1996, is shown below:

Unpaid Claims and Claim Adjustments July 1

Fiscal Year Ended June30. 1997

Fiscal Year Ended June 30, 1996

$159,373,817 $157,898,978

Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year

820,471,532

784,718,552

Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events of the Current Year and of Prior Years

(831.648.570)

(783,243 713)

Unpaid Claims and Claim Adjustments June 30

$148,196,779 $159.373,817

B. Board of Regents Employee Health Benefits Plan
The Board of Regents of the University System of Georgia maintains a program ofhealth and dental benefits for its employees and retirees, This plan is funded jointly through premiums paid by participants covered under the plan and employer contributions paid by the Board of Regents and its organizational units, All units of the University System of Georgia share the risk of loss for claims of the plan.
The Board of Regents has contracted with Blue Cross Blue Shield to process all claims in accordance with medical coverage guidelines as established by the Board of Regents,
A reconciliation of total claims liabilities for fiscal years ended June 30, 1997, and 1996, is shown below:

Fiscal Year Ended June 30, 1997

Fiscal Year Ended June 30, 1996

Unpaid Claims and Claim Adjustments July 1

$ 19,600,000 $ 25,480,000

Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year

138,407,492

115,501,490

Payments - Claims and Claim

Adjustment Expenses

Attributable to Insured Events of

the Current Year and of Prior

Years

(]37, I07.492)

(121.381.490)

Unpaid Claims and Claim Adjustments June 30

$ 20900,000 $ 19,600,000

c. Other Risk Management
The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets.

57

State of GeorfJia - - - - - - - -
Notes to the Fnandal Statements Jmc30,1997

Note 7. Risk Management (continued)
The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk ofloss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. Premiums for the risk management program are charged to the State agencies by DOAS to provide claims servicing and claims payment.
A reconciliation of total claims liabilities for fiscal year ended June 30, 1997, is shown below:

Unpaid Claims and Claim Adjustments July I

Fiscal Year Ended June 30. 1997
$ 239,893,133

Incurred Claims and Claims Adjustment Expenses - Provisions for Insured Events of the Current Year

123,841,662

Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events of the Current Year and ofPrior Years

(105,237.748)

Unpaid Claims and Claim Adjustments June 30

$ 258.497,047

Note 8. Construction and Other Significant Commitments
Primary Government
The Georgia State Financing and Investment Commission has entered into agreements with various State departments and agencies for the expenditure of bond sale proceeds and cash supplements (provided by the department or agency involved) to acquire and construct capital projects. At June 30, 1997, the undisbursed balance remaining on these agreements approximates $918,000,000.

Significant Discretely Presented Component Units
Proprietary Fund Types
At June 30, 1997, the Georgia Ports Authority had commitments for construction projects of approximately $26,000,000.
Note 9. Operating Leases
A. Lessee
The State leases land, office facilities, office and computer equipment, and other assets. These leases are considered for accounting purposes to be operating leases. Although lease terms vary, many leases are subject to appropriation from the General Assembly to continue the obligation. Other leases generally contain provisions that, at the expiration date of the original term of the lease, the State has the option ofrenewing the lease on a year-to-year basis. Certain organizations within the State's reporting entity do not maintain adequate systems for recording lease commitments in accordance with GAAP.
Future minimum commitments for operating leases as of June 30, 1997, are listed below. Amounts are included for renewable leases for which the option to renew for the subsequent fiscal year has been exercised.
Primary Government

Fiscal Year Ended June 30, 1998 1999 2000 2001 2002 2003 and Subsequent
Total Minimum Commitments

$ 53,084,121 12,446,601 12,797,557 10,889,087 10,642,189 87.383,225
$187.242,780

Expenditures for rental of real property and equipment for the year ended June 30, 1997, totaled $50,765,099.

58

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the Flnandal Statements Jme 30. 1997

Note 9. Operating Leases (continued)
Significant Discretely Presented Component Units
Proprietary Fund Types

Georgia Lottery Corporation

Fiscal Year Ended June 30,

1998

$ 1,989,000

1999

1,656,000

2000

1,656,000

2001

1,656,000

2002

1,656,000

2003 and Subsequent

1.656.000

$ 10,269,000

Less: Sublease Revenues

(2131.000)

Total

$ 8.138.000

B. Lessor
The State leases certain of its facilities for use by others for tenns varying from 1 to 65 years, with the majority of leases controlled by the State Properties Commission. These leases are accounted for as operating leases; revenues for services provided and for use of facilities are recorded when earned. Minimum future revenues and rentals to be received under operating leases as of June 30, 1997, are as follows:
Primary Government

Fiscal Year Ended June 30, 1998 1999 2000 2001 2002 2003 and Subsequent
Total

$ 7,052,905 6,969,364 7,085,285 7,198,118 7,322,064
159,809.440 $ 195.437,176

Expenditures for rental ofreal property and equipment for the year ended June 30, 1997, totaled $1,640,000.

Jekyll Island State Park Authority

Fiscal Year Ended June 30,

1998

$ 237,683

1999

237,683

2000

237,683

2001

237,683

2002

235,842

2003 and Subsequent

Total Minimum Commitments

$ 1.186,574

Expenditures for rental of real property and equipment for the year ended June 30, 1997, totaled $194,072.

Revenues from rental of facilities for the year ended June 30, 1997, totaled $17,620,959.
Significant Discretely Presented Component Units
Proprietary Fund Types

Lake Lanier Islands Development Authority

Fiscal Year Ended June 30,

1998

$ 3,100,000

1999

3,100,000

2000

3,100,000

2001

3,100,000

2002

3,200,000

2003 and Subsequent

144,266667

Total

$ 159,866,667

59

State of Georgia - - - - - - -
Notes to the Frnandal Statements Jrne 30. 1997

Note 9. Operating Leases (continued)
Revenues from rental of facilities for the year ended June 30, 1997, totaled $3,046,300.
Note 10. Capital Leases and Installment Purchases
The State acquires certain property and equipment through mUlti-year installment purchases or capital leases with varying terms and options. The majority of these agreements contain fiscal funding clauses in accordance with OCGA 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly are considered noncancellable for financial reporting purposes.
Capital leases for the proprietary funds and the college and university funds are reported as a long-term obligation in those funds along with the related assets. Capital leases for the governmental funds are reported in the general long-term debt account group and the related assets are reported in the general fixed assets account group.
As noted in the Summary of Significant Accounting Policies (Note 1), capital lease transactions have not been consistently recorded in conformity with GAAP. Fixed assets in prior years have not been recorded in the general fixed assets account group at the net present value of the minimum payments nor has the long-term liability applicable to capital leases been consistently recorded in the general long-term debt account group. Also, the State does not record expenditures and other financing sources in the governmental fund types when capitalized leases are entered into as required by GAAP. At June 30, 1997, future commitments under installment purchases and capital leases were as follows:

Primary Government

Fiscal Year Ended June 30. 1998 1999 2000 2001 2002 2003 and Subsequent
Total Capital Lease and Installment Purchase Payments Less: Interest Present Value of Capital Lease and Installment Purchase
Payments

$ 7,203,585 6,285,346 4,695,235 1,516,551 278,031
$ 19,978,748 (\ 655 8911
$ 18322,857

Installment Purchases Capital Leases

$ 4,935,637 13,387,220
$ 18322857

Significant Discretely Presented Component Units
Governmental Fund Types

Georgia Public Telecommunications Commission

Fiscal Year Ended June 30,

1998

$ 1,254,751

1999

1,243,931

2000

799,897

2001

799,897

2002

799,897

2003 and Subsequent

799 898

Total Installment Purchase Payments

$ 5,698,271

Less: Interest

(597.959)

Present Value of Installment Purchase Payments

5100 312

60

- - - - - - - State or GeorfJia--------
Notes to the Flnandal Statements June 30, 1997

Note 10. Capital Leases and Installment Purchases (continued)
Proprietary Fund Types

Agrirama Devdopment Authority Fiscal Year Ended June 30,
1998 1999 2000 2001 2002 2003 and Subsequent Total Capital Leases Less: Interest Present Value of Capital Leases

$ 35,000 $ 35,000

Geo. L. Smith n
Georgia World Congress Center Authority Fisal Yeu Ended June 30.
1998 1999 2000 2001 2002
2003 and Subsequent Total Capital Lease and Installment Purchase Payments Less: Interest Present Value of Capital Leases and
Installment Purchases

$ 60,542 5,339

Installment Purchases Capital Leases

$ 35,570

Note 11. Long-Term Debt
Primary Government
General Obligation Bonds. The State issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. General obligation bonds have been issued for both general State and proprietary activities, to provide loans to local governments for water and sewer systems, to construct educational facilities for local school systems, and to refund general obligation bonds.
General obligation bonds are direct obligations and pledge the full faith and credit of the State. General obligation bonds currently outstanding are as follows:

General Government
General Government Refunding

2.00%10.25%
2.40%6.75%

$ 3,876,780,000 759,150,000
$ 4.635.930 000

61

- - - - - - - State of Georgia-------
Notes to the Flnandal Statements
Jmc30,1997
Note 11. Long-Term Debt (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:

Fiscal Year Ended June 30 1998 1999 2000 2001 2002
Thereafter

Principal $ 294,445,000
296,935,000 296,110,000 238,140,000 246,560,000 3.263.740000 $ 4,635.930,000

Interest $ 271,838,752
253,540,624 235,256,159 218,606,699 203,616,344 1 131.256.879 $ 2314.115.457

Total $ 566,283,752
550,475,624 531,366,159 456,746,699 450,176,344 4.394.996,879 $ 6.950.045,457

General State Bonds. All General State Bonds of the State of Georgia are past due, but have not been presented for redemption. This obligation will be liquidated if and when the past due outstanding bonds and coupons are presented. Unredeemed General State Bonds at June 30, 1997, were $15,505 with accumulated interest of$11,475.

Revenue Bonds. Revenue bonds have been issued by the organizational units listed below. Income derived from acquired or constructed assets is pledged to fund the debt service requirements of these issues. The College and University fund is responsible for repayment of Georgia Military College bonds. Revenue bonds outstanding at June 30, 1997, are as follows:

Purpose
Georgia Military College - Library Building

Interest Rates 3.00"10

Amount

$

14000

62

- - - - - - - - - State of GeorfJia---------
Notes to the Flnandal Statements June 30, 1997
Note 11. Long-Term Debt (continued)
Revenue bond debt service requirements to maturity are as follows:

Fiscal Year Ended June 30 1998 1999 2000 2001 2002 Thereafter

Georgia Military College

Principal

Interest

$

7,000

$

420

7,000

210

$ 14000

$

630

Total $ 7,420
7,210 0 0 0 0
$ 14,630

At June 30, 1997, $399,575,000 of outstanding general obligation bonds (including prior years' refundings), $120,000 of outstanding Georgia Building Authority (Markets) revenue bonds and $3,688,000 of outstanding Georgia Education Authority (University) revenue bonds (including prior years' defeasances) are considered defeased,

Changes in Long-Term Liabilities, During the year ended June 30, 1997, the following changes occurred in liabilities reported in the general long-term debt account group:

Compensated Absences Claims and Judgements Capital Leases and Installment Purchases GeneI1ll Obligation Debt General State Bond Debt Long-Tenn Notes

Balance July 1

Additions

Reductions

S

198,202,493 S

S

86,572,979

(85,875,000)

2,649,492

4,483,256

(1,813,416)

4,655,560,000

372,535,000

(392,165,000)

15,505

2937841

(44 340)

S

4945938310

377,018256 S

(479897756)

Earned and Utilized (Netl
5,514,870
5514870

Balance June 30 203,717,363 697,979 5,319,332
4,635,930,000 15,505
2893501 4848573680

63

- - - - - - - State of GeorfJia--------
Notes to the Fl"\andal Statements June 30. 1997

Note 11. Long-Term Debt (continued)
Significant Discretely Presented Component Units
Governmental Fund Types
Defeased Debt. At June 30, 1997, $2,520,000 of outstanding Georgia Education Authority (Schools) revenue bonds (including prior year's defeasances) are considered defeased.
Proprietary Fund Types
Long-term Operating Debt. Long-tenn operating debt has been issued by the Georgia Student Finance Authority. This debt consists of financing agreements with the Student Loan Marketing Association and a multiple disbursement revolving note with Trust Company Bank with outstanding balances at June 30, 1997, of$16,980,423 and $18,594,839, respectively.

Purpose
Georgia Student Finance Authority

Interest Rates
Varies Based on
U.S. Treasury Bill Rates

Amount $ 35.575262

Long-tenn operating debt requirements to maturity are as follows:

Georgia Student Finance Authority

Fiscal Year Ended June 30

Principal Interest

Total

1998

$ 35.575.262 $ -

$ 35.575,262

Interest varies based on U.s. Treasury Bill rates and therefore is not available for this schedule.

Revenue Bonds. Revenue bonds have been issued by the significant discretely presented component units listed below. Income derived from acquired or constructed assets is pledged to fund the debt service requirements of these issues. Significant discretely presented component unit revenue bonds outstanding, net ofunamortized discounts, of $760,359,542 and $197,257,940 at the Georgia Housing and Finance Authority and the Geo. L. Smith II Georgia World Congress Center Authority, respectively, at June 30, 1997, are as follows:

64

- - - - - - - - - State of Georsia---------
Notes to the FlI1andal Statements JlJl1C 30. 1997
Note 11. Long-Term Debt (continued)

Purpose Georgia Housing and Finance Authority
- Financing the Purchase of Single Family Mortgage Loans for Eligible Persons and Families of Low and Moderate Income within the State of Georgia - Financing the Purchase of Hospital Equipment and Facilities by Eligible Hospitals Geo. L. Smith II Georgia World Congress Center Authority - Construction of the Georgia Dome Stadium
Revenue bond debt service requirements to maturity are as follows:

Interest Rates 2.95% - 9.50% 6.750% -7.875%

Amount

$ 754,801,542

$

5,558,000

$ 197,257,940

Georgia Housing and Finance Authority

Fiscal Year Ended June 30

Principal

Interest

Total

1998

$ 23,883,000

$ 46,438,000

$

70,321,000

1999

10,345,000

45,314,000

55,659,000

2000

11,055,000

44,650,000

55,705,000

2001

14,020,000

43,977,000

57,997,000

2002

17,015,000

43,123,000

60,138,000

Thereafter

766,416,000

565,547,000

1,331,963,000

Unamortized Discount

(1,063,443)

1,063,443

Future Accretion of Capital Appreciation Bonds

(86,869,015)

86,869,015

$ 754,801,542

$ 876981.458

$ 1.631.783.000

Various series of bonds issued under Resolution 1 and 3 include capital appreciation bonds which require no payments of principal or interest until maturity. Capital appreciation bonds accrete to their maturity values at effective yields ranging from 7.10"10 to 11.25%.

65

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the FlI1andal Statements Jrnc 30. 1997

Note 11. Long-Term Debt (continued)
In addition to the above listed revenue bonds, the Georgia Housing and Finance Authority maintains revenue bonds originally issued by the Hospital Financing Authority. The balance at June 30, 1997, was $5,558,000. The bonds bear interest at an adjustable daily rate with interest payable on

a monthly basis. The interest rate basis is subject to change, at the election of the Authority, to a weekly, monthly, semiannual, or fixed rate. The bond indenture limits the interest rate on the bonds to 20% per annum. The bonds are limited obligations of the Authority, repayable solely from revenues provided from loans and other specific property pledged under the bond debenture, and are not an obligation ofthe State of Georgia or any political subdivision thereof.

Geo. L. Smith II Georgia World Congress Center Authority

Fiscal Year Ended June 30
1998 1999 2000 2001 2002 Thereafter Unamortized Discount

Principal

Interest

Total

$

2,500,000

$

15,234,702

$

17,734,702

3,150,000

15,042,440

18,192,440

3,485,000

14,813,449

18,298,449

3,745,000

14,559,398

18,304,398

4,025,000

14,281,550

18,306,550

180,845,000

167,365,326

348,210,326

(492.060)

492,060

$

197.257,940

$

241.788925

$ 439,046,865

Defeased Debt. At June 30, 1997, $6,515,000 of outstanding Georgia Highway Authority revenue bonds (including prior years' defeasances) are considered defeased.

66

State oJ Georgia - - - - - - - -
Notes to the FJnandal Statements June 30. 1997
Note 12. Interfund Balances
Interfund assets and liabilities at June 30, 1997, consist of the following:
Due Fromffo Other Funds:

Receivable Fund General Fund
Internal Service Funds Internal Service Funds Internal Service Funds Internal Service Funds
Internal Service Funds
Internal Service Funds
Proprietary Fund Types - Discretely Presented Component Units Total

Payable Fund Proprietary Fund Types - Discretely
Presented Component Units General Fund College and University Funds Pension Trust Funds Governmental Fund Types - Discretely
Presented Component Units Proprietary Fund Types - Discretely
Presented Component Units Fiduciary Fund Types - Discretely
Presented Component Units
General Fund

Due From
$ 67,540 28,020,157 3,615,897 707,670
328,877
115,484
26,058
1.393,024 $ 34,274,707

Due To
$ 67,540 28,020,157 3,615,897 707,670
328,877
115,484
26,058
1.393,024 $ 34,274,707

Advances Fromffo Other Funds:

Receivable Fund General Fund General Fund
Total

Payable Fund
Agency Funds
Proprietary Fund Types - Discretely Presented Component Units

Advance To

$

6,925

Advance From $ 6,925

161.250 $ 168,175

161.250 $ 168.175

67

- - - - - - - State of Georgta.-------
Notes to the FD1andal Statements June 30, 1997
Note 13. Contributed Capital
During the year, contributed capital increased by the following amounts:
Primary Government

Source
General Obligation Bond Proceeds! Fixed Assets Contributed by Primary Government
General Obligation Bond Proceeds! Capital Outlay Returned to
Primary Government
Net Additions
Contributed Capital July 1, 1996
Contributed Capital June 30, 1997

Internal Service Funds

Department of Administrative
Services

Georgia Building Authority (Regular)

Georgia Correctional Industries Administration

Total

$

$ 2,885,570 $

$ 2,885,570

$

$ 2,885,570 $

53,384666

217,008,118

$ 53,384,666 $ 219,893,688 $

(82,000)

(82,000)

(82,000) 1,309,948 1.227,948

$ 2,803,570 271.702732
$ 274.506,302

Significant Discretely Presented Component Units
Proprietary Fund Types

Source
General Obligation Bond Proceeds/Capital Outlay Contributed by Primary Government Contributions from Federal Government Contributions from Other Sources General Obligation Bond ProceedsfCapital Outlay Returned to Primary Government Net Additions Contributed Capital July I, 1996 Contributed Capital June 30, 1997

Georgia Environmental
Facilities Authority

Georgia Ports
Authority

Stone Mountain Memorial Association

All Other Component
Units

S 24,808,057 S 15,926,446 S 28,615,928

(l0 527 059\

S

53,423,985 S

5,399,387

437,055623

227717407

S 490479608 S 233,lJ6794

2,225,401

13,832,331

15,126,652 (l 539057\ 15,812,996 44485,091 60298,087

6,000,000 (2056999\ S 17,775,332 143258973 S 161034305

68

- - - - - - - - - State of GeorfJia - - - - - - - - -
Notes to the FlI1andal Statements
June 30, 1997

Note 13. Contributed Capital (continued)
Contributed Capital/Residual Equity Transfers for the fiscal year ended June 30, 1997, are as follows:

General Fund General Fund

Receiving Fund

Internal Service Funds
Proprietary Fund Types - Discretely Presented Component Units
Proprietary Fund Types - Discretely Presented Component Units

Proprietary Fund Types - Discretely Presented Component Units

Contributing Fund Internal Service Fund Proprietary Fund Types - Discretely
Presented Component Units Capital Projects Funds
General Fund
Capital Projects Funds
Other Sources

Received

$

82,000

Contributed

$

82,000

14,123,115 2,885,570

14,123,115 2,885,570

7,514,977

7,514,977

49,277,258 $ . 73,882,920 $

49.277.258 73,882,920

49,742,580 $ 123,625,500 $

73,882,920

Note 14. Contingencies
Amounts received or receivable from grantor agencies are subject to audit and review by grantor agencies, principally the Federal government, This could result in a request for reimbursement by the grantor agency for any expenditures which are disallowed under grant terms, The State believes that such disallowances, if any, will be immaterial to its overall fmancial position,
The State is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine governmental operations. The ultimate disposition of these proceedings is not presently determinable. However, the ultimate disposition of these proceedings would not have a material adverse effect on the fmancial condition of the State, with the following exceptions:
Primary Government
Two suits for refund have been filed against the State of Georgia by out-of-state producers of alcoholic beverages. The first suit seeks $96,000,000 in refunds of alcohol import taxes, plus interest, imposed under OCGA Section 34-60. These claims constitute 99% of all such taxes paid during the three years preceding these claims, In addition,

the claimants have filed a second suit for refund of an additional $23,000,000, plus interest. The trial court has granted both State motions for summary judgment, but the time for appeal remains open.
A case arises in the context of a declaratory judgment action brought by the State and counterclaims filed by the defendants. A young professional woman was killed in an automobile accident when her car collided with a Stateowned vehicle driven by an employee of a for-profit corporation which had contracted with Fulton County to provide a transportation service. Fulton County had a contract with the Atlanta Regional Commission concerning the transportation service program, and the Atlanta Regional Commission, in turn, had a contract with the Georgia Department of Human Resources (DHR). In June, 1996, DHR and the Georgia Department of Administrative Services brought declaratory judgment actions against the decedent's estate and others to assert the absence of any duty to insure the second driver. In August, 1996, the estate and other parties filed counter-claims for wrongful death. The State's self-insurance program and the State's vehicle insurer have settled with the decedent's estate in a total amount of $675,000; the State's share was $175,000. The State is currently engaged in settlement negotiations as to all but one ofthe remaining claims, which are not expected to exceed the $175,000 amount already paid out. As to the

69

- - - - - - - - State of Georgia--------
Notes to the FJnandal Statements June 30. 1997

Note 14. Contingencies (continued)
other remaining claim of the for-profit corporation involved, the State believes that it has good and adequate defenses and intends to defend vigorously.
In two related cases, Cobb and DeKalb counties have sued the State of Georgia, the Department of Revenue, Zell Miller (in his official capacity as Governor), and T. Jerry Jackson (in his official capacity as Revenue Commissioner) (collectively, "the State") in connection with the State's collection and distribution of special local option sales taxes to the counties. In Cobb, the county seeks an accounting, a writ of mandamus, injunctive relief and. additional relief based upon theories of unjust enrichment and bailment. Cobb's claims relate to the State's administration of State and local option sales taxes from April 1, 1995, to the present. Cobb seeds as must as $12 million in relief. In DeKalb, the county asserts the same grounds for relief with the addition of a claim for declaratory relief. DeKalb's claims relate to the State's administration of State and local option sales taxes from July 1, 1997, to the present. DeKalb seeks unspecified monetary relief but estimates a shortfall in distributions from the State of $28 million. The State filed motions to dismiss in both cases and filed a counterclaim against Cobb County for $10.4 million. The trial court has granted both State motions to dismiss. The time for appeal remains open.
In a civil action filed in October, 1997, on behalf of all contributors to the Georgia Underground Storage Tank Trust Fund, the plaintiffs seek refund of alImonies collected under the Georgia Underground Storage Tank Act (OCGA 12-13-1), interest and attorney's fees. From the time of its inception in 1988 to the present, the Fund has collected approximately $82 million. The State believes that it has substantial defenses to assert and intends to defend the case vigorously. The State was granted a motion to dismiss the action, on the grounds that no justiciable controversy exists, and the plaintiffs have filed notice of intent to appeal.
Significant Discretely Presented Component Units
Proprietary Fund Types
The Federal Government, through the Guaranteed Student Loan Programs of the U.S. Department of Education, fully reinsured loans guaranteed through September 30, 1993, until the Corporation's rate of annual losses (defaults) exceeded five percent (5%). In the event of future adverse loss experience, the Corporation could be liable for up to (1)

twenty percent (20%) ofthe outstanding balance of loans in repayment status at the beginning of each year which were disbursed prior to October 1, 1993, and (2) twenty-two percent (22%) of the outstanding balance of loans in repayment status at the beginning of each year which were disbursed on or after October 1, 1993.
In a civil action case filed August 26, 1996, the plaintiffs seek a court order declaring that two games sponsored by the Georgia Lottery Corporation, "Quick Cash" and "Cash Three," are unconstitutional and enjoining the lottery from further offering ofthese games. Plaintiffs seek the return of all monies played on these games during a specified period, approximately $1,703,462,781. On an interlocutory appeal, the Georgia Court of Appeals ruled that the Lottery Corporation does not have sovereign immunity but ruled for the Corporation on the merits. The plaintiffs petitioned for a writ of certiorari to the Supreme Court of Georgia, and the Supreme Court denied the petition. The remittitur of the Court of Appeals has been returned to the trial court.
Note 15. Subsequent Events
Primary Government
General Obligation Bonds Issued
The State issued General Obligation Bonds in the amount of $256,875,000 on August 1, 1997 (Series 1997 B and 1997 C). Proceeds from these bonds will be used for the purpose of financing various capital outlay projects.
Year 2000 Project
Based on a preliminary study, the State of Georgia expects to spend approximately $250 million to $300 million from 1997 through 1999 to modify its computer information systems enabling proper processing of transactions relating to the Year 2000 and beyond. The State of Georgia continues to evaluate appropriate courses of corrective action, including replacement of systems. Accordingly, the State of Georgia does not expect the amounts required to be expended over the next three years to have a material effect on its fmandal position or results of operations.
Significant Discretely Presented Component Units
Proprietary Fund Types
On January 3, 1998, the Stone Mountain Memorial Association executed an agreement with Silver Dollar City

70

- - - - - - - - State of Georgia--------
Notes to the Flnandal Statements June 30, 1997

Note 15. Subsequent Events (continued)
Stone Mountain Park, Inc., (SDC) which leases to SDC almost all of the Association's assets and requires SDC to operate Stone Mountain Park.
This 30 year renewable lease includes an annual base rent payable monthly to the Association of $9.5 million and increases annually based on economic indices. SDC has also provided an $8.5 million letter of credit available to the Association as a security deposit. The leased property includes the park and recreation development known as Stone Mountain Park and allows SDC to conduct and operate the' park facilities within fee structures and operating hours as stipulated in the lease agreement between the Association and SDC.
Note 16. Deferred Compensation Plan
The State of Georgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State' of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. This plan is administered by a third party. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency.
All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor of the State of Georgia in an

amount equal to the fair market value of the deferred account of each participant. In the equity funds, the market value may be either greater or less than the participants' contributions. It is the opinion ofthe Attorney General that the State has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. It is unlikely that the State will use the assets of the plan to satisfy the claims of general creditors in the future.
Market values, which approximate cost, of investments at June 30, 1997, by plan type are as follows:

Guaranteed Investment Contracts Index Trust 500 Portfolio The Vanguard Group of Investment Companies Magellan Fund Fidelity Institutional Retirement Services Company Over-The-Counter Portfolio Fidelity Institutional Retirement Services Company Prime Portfolio
The Vanguard Group of Investment Companies United International Growth Fund
Waddell and Reed Asset Management Company Wellesley Income Fund
The Vanguard Group of Investment Companies Windsor II
The Vanguard Group ofInvestment Companies
Participants Accounts Reserve for Administration ofPlan

$ 128,745,892 42,068,974 55,502,156 21,876,362 3,139,739 6,364,531 23,998,853 32 510 300
$ 314 206 807 $ 308,827,113
5379694 $ 314 206 807

71

- - - - - - - - State of Georgia--------
Notes to the FD1ancial Statements Jmc 30, 1997

Note 17. Retirement Systems
Primary Government
Georgia Defined Contribution Plan
Plan Description
Organization and Purpose The Georgia Defmed Contribution Plan ("GDCP") is a single-employer defmed contribution plan established by the Georgia General Assembly in July 1993 for the purpose ofproviding retirement allowances for State employees who are not members of a public retirement or pension system. The GDCP is administered by the Employees' Retirement System (ERS) Board of Trustees.
Membership As of June 30, 1997, participation in GDCP is as follows:

Active Plan Members
Tenninated Employees Entitled to Benefits but not yet Receiving Benefits

52,900

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 hislher account, the Board has the option of requiring a lump sum distribution to the member. Upon the death of a member, a lump sum distribution equaling the amount credited to hislher account will be paid to the member's designated beneficiary.
Contributions Members are required to contribute seven and one-half percent (7.5%) oftheir gross salary. There are no employer contributions. Earnings will be credited to each member's account as adopted by the Board. Upon termination of employment, the amount of the member's account is refundable upon request by the member.

District Attorneys' Retirement Fund
Plan Description
Organization and Purpose The District Attorneys' Retirement Fund ("DARF") is a single-employer, defmed benefit pension plan established by the Georgia General Assembly in 1949 for the purpose of providing retirement benefits to the district attorneys of the State ofGeorgia. DARF is directed by its own Board of Trustees. The Boards of Trustees for ERS and DARF entered into a contract for ERS to administer the plan effective July 1, 1995.
Membership As of June 30, 1997, DARF had twelve (12) retirees and beneficiaries currently receiving benefits.
Benefits Persons appointed as district attorney emeritus shall receive an annual benefit of$15,000 or one-half of the State salary received by such person as a district attorney for the calendar year immediately prior to the person's retirement, whichever is greater.
Contributions and Vesting Member contributions were five percent (5.0%) of their salary plus an additional two and one-half percent (2.5%) for the spousal coverage benefit if elected. The State paid member contributions of five percent (5.0%) of the member's annual salary. Additional employer contributions are not actuarially determined but are provided on an asneeded basis to fund current benefits.
DistrictAttorneys' Retirement System
Plan Description
Organization and Purpose The District Attorneys' Retirement System (OARS) is a single-employer defined benefit pension plan established by the Georgia General Assembly in 1978 for the purpose of providing retirement benefits to the district attorneys of the State of Georgia. DARS is directed by its own Board of Trustees. The Boards of Trustees for ERS and DARS entered into a contract for ERS to administer the plan effective July 1, 1995.

72

- - - - - - - - - State of Georgia - - - - - - - - -
Notes to the Fll1mdal Statements
June 30, 1997

Note 17. Retirement Systems (continued)
Membership As ofJune 30, 1997, participation in OARS is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

9

Active Plan Members

54

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Employees' Retirement System of Georgia
Plan Description
Organization and Purpose Employees' Retirement System of Georgia ("ERS") is a single-employer, defmed benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation.
Membership As of June 30, 1997, participation in ERS is as follows:

Benefits The nonnal retirement for OARS is age sixty (60) with ten (10) years of creditable service with a benefit of four percent (4.0%) of the member's average annual compensation for each year of creditable service. If service exceeds sixteen (16) years, the benefit is four percent (4.0%) for each year of creditable service plus one percent (1.0%) for each year served after sixteen (16), notto exceed twenty four (24) years (72%). "Average annual compensation" is the highest average of two consecutive years of creditable service, except no increase during such period in excess offive percent (5.0%) may be used. Death, disability, and spousal benefits are also available. Early retirement benefits are not available.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of their salary plus an additional two and one-half percent (2.5%) for the spousal coverage benefit if elected. The State pays member contributions of four and threefourths percent (4.75%) of the member's annual salary. Employer contributions are actuarially detennined and approved and certified by the Board.
Members become vested after ten years of creditable service. Upon tennination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if a member later holds office as a district attorney, the member shall be reinstated as if never before a member and may reestablish prior service by repaying the amount withdrawn, plus interest.

Retirees and Beneficiaries Currently Receiving Benefits
Active Plan Members
Terminated Employees Entitled to Benefits but not yet Receiving Benefits

20,988 71,059

Benefits The benefit structure ofERS was significantly modified on July 1, 1982. Unless the employee elects 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 provision in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.
Under both the old and new plans, a member may retire and receive nonnal retirement benefits after completion of ten (10) years creditable service and attainment of age sixtyfive (65). Iften years of service is completed and age sixty (60) is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after thirty (30) years of service regardless of age.
Retirement benefits paid to members are based upon the monthly average ofthe member's highest eight consecutive calendar quarters mUltiplied by the number of years of creditable service. Post - retirement cost - of- living

73

State of Georgia - - - - - - -
Notes to the Flnandal Statements
June 30, 1997

Note 17. Retirement Systems (continued)
adjustments are also made to members' 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.
Contributions and Vesting Member contributions under the old plan are four percent (4%) of annual compensation up to $4,200 plus six percent (6%) of annual compensation in excess of $4,200. Under the old plan, the State pays member contributions in excess of one and one-quarter percent (1.25%) of annual compensation. Under the old plan, these State contributions are included in the members' accounts for refund purposes. Member contributions under the new plan are one and onequarter percent (1.25%) of annual compensation. The State is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation.
Members become vested after ten (10) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.
The employer contributions are projected to liquidate the unfunded actuarial accrued liability within eleven (11) years based upon the actuarial valuation at June 30, 1996.
Legislative Retirement System
Plan Description
Organization and Purpose Legislative Retirement System ("LRS") is a singleemployer defmed benefit plan established by the Georgia General Assembly in 1979 for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board of Trustees.
Membership As of June 30, 1997, participation in LRS is as follows:

Retirees and Beneficiaries

Currently Receiving Benefits

174

Active Plan Members

204

Terminated employees Entitled to Benefits but not yet Receiving Benefits

Benefits A member's normal retirement is after eight (8) years of creditable service and attainment of age sixty-five (65) or eight (8) years of membership service (4 legislative terms) and attainment of age sixty-two (62). A member may retire early and elect to receive a monthly retirement benefit after completion of eight (8) years of membership service and attainment of age sixty (60); however, the retirement benefit is reduced by five percent (5%) for each year the member is under age sixty-two (62).
Upon retirement, the member will receive a monthly service retirement allowance of $28 multiplied by the number of years of creditable service reduced by age reduction factors, ifapplicable. Death, disability, and spousal benefits are also available through the plan.
Contributions and Vesting Member contributions are eight and one-halfpercent (8.5%) of annual salary. The State pays member contributions in excess of four percent (4%) of annual compensation. Employer contributions are actuarially determined and approved and certified by the Board.
Members become vested after eight (8) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.
Based on the June 30, 1995, actuarial valuation of LRS (the latest actuarial valuation; present Board policy requires a biennial valuation), the employer contributions are projected to liquidate the unfunded actuarial accrued liability within twelve (12) years.

74

- - - - - - - - - State of Georgta---------
Notes to the Flf\andal Statements June 30. 1997

Note 17. Retirement Systems (continued)
Superior Court Judges Retirement Fund
Plan Description
Organization and Purpose The Superior Court Judges Retirement Fund ("SCJRF") is a single-employer, defmed benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges of the State of Georgia. SCJRF is directed by its own Board of Trustees. The Boards of Trustees for ERS and SCJRF entered into a contract for ERS to administer the Plan effective July 1, 1995.
Membership As of June 30, 1997, participation in SCJRF is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

36

Active Plan Members

3

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Benefits The normal retirement for SCJRF is age sixty-eight (68) with nineteen (19) years of creditable service with a benefit of two-thirds the salary paid to superior court judges. A member may also retire at age sixty-five (65) with a minimum of ten (10) years of creditable service with a benefit of one-half the salary paid to superior court judges. Death, disability, and spousal benefits are also available.
Contributions and Vesting Member contributions are five percent (5.0%) oftheir salary plus an additional two and one half percent (2.5%) for the spousal coverage benefit if elected. The State pays member contributions offive percent (5.0%) ofthe member's annual salary. Additional employer contributions are not actuarially determined but are provided on an as-needed basis to fund current benefits.

Superior Court Judges Retirement System
Plan Description
Organization and Purpose The Superior Court Judges Retirement System ("SCJRS") is a single-employer, defined benefit pension plan established by the Georgia General Assembly in 1976 for the purpose ofproviding retirement benefits to the superior court judges of the State of Georgia. SCJRS is directed by its own Board of Trustees. The Boards of Trustees for ERS and SCJRS entered into a contract for ERS to administer the plan effective July 1, 1995.
Membership As of June 30, 1997, participation in SCJRS is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

55

Active Plan Members

156

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Benefits The normal retirement for SCJRS is age sixty (60) with sixteen (16) years of creditable service with a benefit of two-thirds of the State salary paid to superior court judges at the time of the member's retirement, plus one percent (1.0%) for each year of creditable service over sixteen (16) up to a maximum of twenty-four (24) years. Additionally, a member may retire with reduced benefits at age sixty (60) with a minimum of ten (10) years of creditable service. A member must retire at age seventy-five (75), or at the end of the term in which the member becomes seventy-five (75), or forfeit all retirement and disability benefits. Death, disability, and spousal benefits are also available.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of their salary plus an additional two and one-half percent (2.5%) for the spousal coverage benefit or two and three-fourths percent (2.75%) for the spouse plus benefit if elected. The State pays member contributions offour and

75

- - - - - - - - State of Georsta--------
Notes to the Flf1andal Statements June 30, 1997

Note 17. Retirement Systems (continued)
three-fourths percent (4.75%) of the member's annual salary. Employer contributions are actuarially determined and approved and certified by the Board.
Members become vested after ten (10) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if a member later holds office as a superior court judge, the member shall be reinstated as if never before a member and may re-establish prior service by repaying the amount withdrawn, plus interest, within sixty (60) days of certification of such amount.
Trial Judges and Solicitors Retirement Fund
Plan Description
Organization and Purpose Trial Judges and Solicitors Retirement Fund ("TJSRF") is a multiple-employer cost-sharing defmed benefit plan established by the Georgia General Assembly in 1968 for the purpose of providing retirement allowances for trial judges and solicitors of certain courts of Georgia, and their survivors and other beneficiaries. TJSRF is administered by the ERS Board of Trustees and three other trustees not on the ERS Board.
Membership As of June 30, 1997, participation in TJSRF is as follows:

Retirees and Beneficiaries

Currently Receiving Benefits

36

Active Plan Members

163

Tenninated Employees Entitled to Benefits but not yet Receiving Benefits

Benefits The nonnal retirement for TJSRF is age sixty (60) with sixteen (16) years of creditable service; however, a member may retire at age sixty (60) with a minimum of ten (10) years of creditable service. Additionally, a member must

retire at age seventy (70) or forfeit all retirement and disability benefits. Members holding office on July 1, 1980, are exempt from this provision.
Retirement benefits paid to members are computed as four percent (4%) ofthe average annual compensation multiplied by the total years of creditable service not to exceed sixteen (16) years. The average annual compensation is the average salary of a member during the two consecutive years of creditable service producing the highest such average but excluding any salary increases exceeding five percent (5%) over the previous year during the two-year period. Death, disability and spousal benefits are also available.
Contributions and Vesting Members are required to contribute seven and one-half percent (7.5%) of their salary plus an additional two and one-half percent (2.5%) if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the Board.
Members become vested after ten (10) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.
Based on the June 30, 1995, actuarial valuation (the latest actuarial valuation; present Board policy requires a biennial valuation), TJSRF does not have an unfunded accrued liability.
Regents Retirement Plan
Plan Description
Organization and Purpose The Regents Retirement Plan, a single-employer defmed contribution plan, is an optional retirement plan established and administered by the Board of Regents ofthe University System of Georgia (College and University Funds), under which it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators.
Benefits Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts.

76

- - - - - - - - - State of Georgia---------
Notes to the Financial Statements June 30, 1997

Note 17. Retirement Systems (continued)
Contributions and Vesting Member contribution requirements are established by the Board of Trustees of the Teachers Retirement System. Employer contributions are established by statute and may be amended only by the General Assembly of the State of Georgia.
A) Members' Contributions: Members' contributions are calculated as five percent (5%) of the earnable compensation.
B) State o/Georgia Contributions: Prior to January I, 1997, the employer's contribution is calculated as four percent (4%) of the earnable compensation. On and after January 1, 1997, the employer's contribution is an amount equal to the normal cost contribution determined by the Teachers' Retirement System Board of Trustees. Since January 1, 1997, that rate is seven and forty-two onehundredths percent (7.42%).
Amounts attributable to all plan contributions are fully vested and non-forfeitable.

Required Supplementary Information
Schedule ofFunding Progress (Thousands of Dollars)

DARS ERS LRS SCJRS TJSRF

Actuarial Valuation
Date

Actuarial Value of Plan Assets
(a)

Actuarial Accrued Liability
("AAL") Entry Age
(b)

Unfunded AAU(Funding
Excess) (b - a)

6/30/96 6/30/96 6/30/95 6/30/96 6/30/95

$

19,277 $

12,669 $

(6,608)

$ 6,140,080 $ 7,243,105 $ 1,103,025

$

13,137 $

13,860 $

723

$

72,642 $

50,753 $ (21,889)

$

25,925 $

21,953 $

(3,972)

Funded Ratio
(alb)

Annual Covered Payroll
(C)

Unfunded AAU(Funding
Excess) as a Percentage of
Covered Payroll (b - aVc)

152.2% $ 84.8% $ 94.8% $ 143.1% $ 118.1% $

3,737 1,968,714
2,186 13,294 5,991

(176.8)% 56.0% 33.1%
(164.7)% (66.3)%

Information is shown only for the plans and years available in accordance with the parameters ofGASB 25. Additional information will be added as data become available.
77

------....,-- State of Georgia - - - - - - -
Notes to the Flf1andal Statements June 30, 1997

Note 17. Retirement Systems (continued)
Schedule ofEmployer Contributions (Thousands of Dollars)

DARS ERS LRS SCJRS TJSRF

Year Ended June 30 1996 1996 1996 1996 1996

State Annual Required Contribution

$

271,342

$

164

$

472

Percentage Contributed
100.0% 100.0% 100.0% 100.0% 100.0%

Information is shown only for the plans and years available in accordance with the parameters ofGASB 25. Additional information will be added as data become available.

Notes to Required Supplementary Schedules

OARS

ERS

LRS

Actuarial Valuation Date

June 30, 1996

Actuarial Cost Method

Entry Age Normal

Amortization Method

Level payment, closed

Remaining Amortization Period

27 years

Asset Valuation Method

5-year smoothed market

Actuarial Assumptions: Investment Rate ofRetum 7.5%(3)

Projected Salary Increases 5.5% (3)

Post-Retirement Cost-ofLiving Adjustment

None

June 30,1996 Entry Age
Level percentage of pay, open
11 years 5-year smoothed market
7.5% (I) 5.7 - 9.5% (1)
None

June 30, 1995 Unit Credit
Level dol1ar, open
12 years 5-year smoothed market
7.5%(2) n/a
3% annually

SCJRS

TJSRF

June30, 1996 Entry Age Normal

June 30,1995 Entry Age

Level payment, closed

Level percentage of pay, open

27 years
5-year smoothed market

15 years
5-year smoothed market

7.5%(3) 5.5%(3)

7.5%(2) 6.0%(2)

None

None

(1) Includes inflation rate of 4.00% (2) Includes inflation rate of3.75% (3) Includes inflation rate of3.00%
78

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the Flnandal Statements June 30, 1997

Note 17. Retirement Systems (continued)
Significant Discretely Presented Component Units
Georgia Ports Authority Retirement Plan

As of June 30, 1997, participation in TRS is as follows:

Retirees and Beneficiaries Currently Receiving Benefits
Active Plan Members
Terminated Employees Entitled to Benefits but not yet Receiving Benefits

39,278 173,599

Plan Description

Organization and Purpose The Georgia Ports Authority Retirement Plan ("Plan") is a single-employer defmed benefit plan covering all full-time employees of the Georgia Ports Authority.

Benefits The Plan provides pension benefits that are based on years of service and compensation earned during years of employment.

Contributions and Vesting

Members contribute one percent (1 %) oftheir earnings each

month for the first $9,000 earned during the plan year and

one and one-halfpercent (1.5%) after earnings reach $9,000.

The employer's contributions are two and one-quarter

percent (2.25%) of the employee's first $9,000 of annual

earnings for the plan year plus three and one-quarter percent

(3.25%) ofthe employee's annual earnings for the plan year

in excess of $9,000.

.

Members become vested after reaching age 55 or after completing five (5) or more years of service.

Teachers Retirement System of Georgia

Plan Description

Organization and Purpose The Teachers Retirement System of Georgia ("TRS") is a cost-sharing multiple-employer plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised ofactive and retired members and ex-officio State employees is ultimately responsible for the administration of TRS.

Membership All teachers in the State public schools, the University System of Georgia (except those professors and principal administrators electing to participate in an optional retirement plan), and certain other designated employees in educational-related work are eligible for membership.

Benefits A member is eligible for normal service retirement after thirty (30) years of creditable service, regardless of age, or after ten (l0) years of service and attainment of age sixty (60). A member is eligible for early retirement after twentyfive (25) years of creditable service.
Normal retirement (pension) benefits paid to members are equal to two percent (2%) of the average ofthe member's two (2) consecutive highest paid years ofservice multiplied by the number of years of creditable service up to forty (40) years. Early retirement benefits are reduced by the lesser of one-twelfth (1112) of seven percent (7%) for each month the member is below age sixty (60), or by seven percent (7%) for each year or fraction thereof by which the member has less than thirty (30) years of service. It is also assumed that certain cost-of-living adjustments, based on the CPI, will be made in future years. Retirement benefits are payable monthly for life. Death, disability and spousal benefits are also available.
Contributions and Vesting TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees.
Contributions required by the annual actuarial valuation are as follows:

Member
Employer: Normal Unfunded Accrued Liability Expenses

7.42% 4.24%

79

- - - - - - - - State of Geof'fJia--------
Notes to the Flf\andal Statcmmts June 30, 1997
Note 17. Retirement Systems (continued)
Members become fully vested after ten (10) years of service. If a member terminates with less than ten (10) years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest.
The employer contributions to the unfunded accrued liability will liquidate the unfunded accrued liability over approximately twenty-seven (27) years on the assumption that the aggregate amount of unfunded accrued liability contribution will increase by three and three-quarters percent (3.75%) each year.

Required Supplementary Information
Schedule ofFunding Progress (Thousands of Dollars)

Actuarial Valuation
Date

Actuarial Value of
Plan Assets (a)

Actuarial Accrued Liability ("AAL") Entry Age
(b)

Unfunded AAU(Funding
Excess) (b - a)

TRS

6/30/95

$ 16,335,944 $ 19,771,740 $ 3,435,796

6/30/96

$ 18,750,568 $ 22,163,755 $ 3,413,187

Funded Ratio (alb)

Annual Covered Payroll
(c)

Unfunded AAU(Funding
Excess) as a Percentage of
Covered Payroll l(b - a)/c!

82.6% $ 84.6% $

4,712,292 5,086,924

72.9% 67.1%

Information is shown only for the plans and years available in accordance with the parameters of GASB 25. Additional information will be added as data become available.

80

- - - - - - - State of GeorfJia-------
Notes to the Flflancial Statements
June 30, 1997

Note 17. Retirement Systems (continued)
Schedule ofEmployer Contributions (Thousands of Dollars)

Year Ended June 30

TRS

1991

1992

1993

1994

1995

1996

State Annual Required Contribution

$

452,522

$

454,138

$

485,121

$

512,429

$

556,522

$

600,766

Percentage Contributed
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Information is shown only for the plans and years available in accordance with the parameters of GASB 25. Additional information will be added as data become available.

Notes to Required Supplementary Schedules Teachers Retirement System Actuarial Valuation Date - June 30, 1996 Actuarial Cost Method - Entry Age Amortization Method - Level percentage of pay, open Remaining Amortization Period - 27 years Asset Valuation Method - 5-year smoothed market Actuarial Assumptions: Investment Rate of Return - 7.5% Projected Salary Increases - 3.75% - 6.50% Inflation Rate - 3.75% Post-Retirement Cost-of-Living Adjustment - 3% annually

81

- - - - - - - State of Georgia-------
Notes to the FDlandal Statements June 30, 1997

Note 18. Nonmonetary Transactions
Primary Government
The State of Georgia received donated goods for its use and for distribution to other qualifying organizations outside

the State reporting entity under the following programs:

Program Agriculture, U. S. Department of
Food Distribution Program Temporary Emergency Food Assistance Program
Health and Human Services, U.S. Department of Childhood Immunization Grant
mv Prevention Activities - Health Department Based
Preventive Health and Health Services Block Grant
Preventive Health Services - Sexually Transmitted Disease Control Grants
Project Grants and Cooperative Agreements for Tuberculosis Control Programs
Public Health and Social Services Emergency Fund

Value of Inventory Received

Value of Inventory Reported at June 30, 1997

$

25,809,324 $

$

3,206,024 $

40,094 1,412,500

$

19,264,470 $

$

13,500 $

$

195,540 $

$

571,070 $

$

147,679 $

$

18,750 $

The value of donated commodities received and distributed is not reported as revenues and expenses on the combined statement of revenues, expenditures and changes in fund balances. Information is not available to determine the items used within the State and the items distributed to (or held for) other qualifying organizations outside the State reporting entity.
In addition, the Georgia Department of Administrative Services operates the Donation of Federal Surplus Personal Property program for the purpose of distributing surplus properties made available by the General Services Administration to eligible institutions, organizations and agencies. The value of surplus property received and distributed is not reported as revenues and expenses on the combined statement of revenues, expenditures and changes in fund balances, and the inventory on hand at June 30, 1997, is not reported on the combined balance

sheet. The changes in Federal surplus personal property inventory during the fiscal year ended June 30, 1997, were as follows:

Balance July 1, 1996 Additions
Property Received
Deductions Property Donated and Other Distributions Balance June 30, 1997

$ 9,480,500 16,217,711
$ 25,698,211
15.775,009 $ 9,923,202

82

State of Georgia - - - - - - - -
Notes to the Fff\andal Statements
June 30, 1997

Note 18. Nonmonetary Transactions (continued)
The Federal government provides food stamps to low-income households. The amount of food stamps a household receives depends on the household's size and financial circumstances. The Georgia Department of Human Resources is responsible for detennining eligibility for participation in the food stamp program within the State. During the year under review, the total value of food stamps distributed as approved by the Department was $623,236,891.
Significant Discretely Presented Component Units
Governmental Fund Types
Donated support of volunteer services and other sources totaling $636,158 was provided to the Georgia Public Telecommunications Commission during the year ended June 30, 1997. The value of these services and other sources are not reported as revenue on the Combining Statement of Revenues, Expenditures and Changes in Fund Balances.
Note 19. Postemployment Benefits
In addition to the pension benefits described in Note 17, the State of Georgia provides postretirement health care benefits through the State Health Benefit Plan to retirees pursuant to Title 45, Chapter 18 of the OCGA. 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 Employees' Retirement System of Georgia or a county employees' retirement system. The State Health Benefit Plan is a public entity risk pool funded by employee and employer contributions. Employees and retirees subject to the Plan contribute amounts detennined by the State Personnel Board for various health insurance plans. The various agencies of the State contribute to the health insurance fund based upon amounts recommended by the State Personnel Board and set forth in the Appropriations Act. The State Health Benefit Plan is funded on a "pay-as-you-go" basis. Expenses of the Plan include provisions for incurred but not reported claims. As of June 30, 1997, there were 50,407 employees who had retired and

were receiving postretirement health care benefits through the State Health Benefit Plan. For the fiscal year ended June 30, 1997, the State recognized expenditures of $167,137,452, which was net of retiree contributions of $39,155,258.
Pursuant to the general powers conferred by OCGA Section 20-3-31, the Board of Regents of the University System of Georgia (college and university funds) has established group health and life insurance programs for regular employees of the University System. It is the policy of the Board of Regents to pennit employees of the University System eligible for retirement or that become pennanently and totally disabled to continue as members of the group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System and who have at least ten years of service with the University System are eligible for these postemployment health and life insurance benefits. The University System pays the employer portion for group insurance for affected individuals. For the fiscal year ended June 30, 1997, the University System recognized expenditures of$18,196,283, which was net of participant contributions of $4,650,902.
Note 20. Fund Deficits
The following organizations had deficit balances at June 30, 1997.
Internal Service Funds - Primary Government
Hazard and Insurance Reserve Fund - At June 30, 1997, the Fund had an unreserved retained earnings deficit of $10,932,274.
Unemployment Compensation Fund - At June 30, 1997, the Fund had an unreserved retained earnings deficit of $816,585.
Workers' Compensation Fund - At June 30, 1997, the Fund had an unreserved retained earnings deficit of $62,809,734.
Governmental Fund Types - Discretely Presented Component Units
Georgia Public Telecommunications Commission - At June 30, 1997, the Commission had an unreserved, undesignated fund balance deficit of $99,571.

83

- - - - - - - - State of GeortJ1a--------
Notes to the Flnandal Statements June 30, 1997

Note 20. Fund Deficits (continued)
Proprietary Fund Types - Discretely Presented Component Units
Lake Lanier Islands Development Authority - At June 30, 1997, the Authority had an unreserved retained earnings deficit of$14,276,175.
North Georgia Mountains Authority - At June 30, 1997, the Authority had an unreserved retained earnings deficit of $2,579,081.
Sapelo Island Heritage Authority - At June 30, 1997, the Authority had an unreserved retained earnings deficit of $379.

Note 21. Major Discretely Presented Component Unit Condensed Financial Statements
The condensed fmancial statements of the major discretely presented component units ofthe State of Georgia reporting entity are presented below. "Major" component units, for purposes of this presentation, have been determined by giving consideration to each component units' significance relative to the other component units and the nature and significance of its relationship to the primary government. Condensed fmancial statements for all nonmajor discretely presented component units are presented in the aggregate.

84

State of Georgia - - - - - - - -
Notes to the Finmdal Statements
June 30, 1997

Note 21. Major Discretely Presented Component Unit Condensed Financial Statements (continued)
ASSETS AND OTHER DEBITS Other Assets Property, Plant and Equipment (Net) Amount to be Provided for Retirement of General Long-Term Debt Total Assets and Other Debits
LIABILITIES Due to Primary Government Other Liabilities Bonds and Other Long-Term Liabilities Total Liabilities EQUITY AND OTHER CREDITS Investment in Fixed Assets Fund Balances Unreserved Total Equity and Other Credits Total Liabilities, Equity and Other Credits
REVENUES
EXPENDITURES
EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES Operating Transfers from Primary Government
EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES FUND BALANCES, JULY 1 Adjustments Inclusion of Foundation for Public Broadcasting in Georgia, Inc. FUND BALANCES, JUNE 30

Governmental Fund Types

Georgia

Education

Georgia Public

Authority

Telecommunica-

(Schools)

tions Commission

Total

$

568,842 $

5,219,408 $

5,788,250

73,906,597

. 73,906,597

6,069,631

6,069,631

$

568,842 $

85,195,636 $

85,764,478

$

$

328,877 $

328,877

4,990,102

4,990,102

6,069,631

6,069,631

$

0$

1l,388,610 $

1l,388,610

$

$

73,906,597 $

73,906,597

568,842

(99,571)

469,271

$

568,842 $

73,807,026 $

74,375,868

$

568,842 $

85,195,636 $

85,764,478

$

29,655 $

15,481,330 $

15,510,985

$

$

33,033,963 $

33,033,963

$

29,655 $

(17,552,633) $

(17,522,978)

16,326,489

16,326,489

$

29,655 $

(1,226,144) $

(1,196,489)

539,187

147,144

686,331

979,429

979,429

$

568,842 $

(99,571) $

469,271

85

State of Georgia - - - - - - - -
Notes to the Rrlarldal Statemrnts
June 30, 1997

Note 21. Major Discretely Presented Component Unit Condensed Financial Statements (continued)

Proprietary Fund Types

ASSETS Due from Primary Government Other Assets Restricted Assets Property, Plant and Equipment (Net)
Total Assets

Environmental Facilities Authority

Housing and Finance Authority

Lottery Corporation

$

1,393,024 $

$

$

716,120,785

120,835,304

56,725,219

776,904,831

234,704,000

270,903

5,988,643

3,284,000

$ 717,784,712 $

903,728,778 $

294,713,219 $

Ports Authority
40,297,734 4,072,536
343,691,321
388,061,591

LIABILITIES Due to Primary Government Other Liabilities Bonds and Other Long-Term Liabilities Total Liabilities

$

367 $

16,967 $

29,563 $

13,546,945

69,406,911

59,438,656

88,655,000

762,722,042

234,958,000

$

102,202,312 $

832,145,920 $ 294,426,219 $

52,590 7,027,914 33,076,440 40,156,944

EQUITY AND OTHER CREDITS Investment in Fixed Assets Contributed Capital Retained Earnings
Reserved Unreserved Fund Balances Reserved Unreserved Total Equity and Other Credits

$

270,903 $

490,479,608

2,510,812 104,224,366

10,542,581 7,554,130 $ 615,582,400 $

$
22,581,833 46,891,428
772,276 1,337,321 71,582,858 $

$ 287,000

233,116,794 114,787,853

287,000 $ 347,904,647

Total Liabilities, Equity and Other Credits

$ 717,784,712 $

903,728,778 $ 294,713,219 $ 388,061,591

OPERATING REVENUES Sales and Services Operating Grants Taxes Other Total Operating Revenues

$

$

4,939,935 $ 1,654,659,000 $

86,305,610

8,756,304

63,851,267

$

8,756,304 $

68,791,202 $ 1,654,659,000 $

86,305,610

OPERATING EXPENSES Depreciation Other Total Operating Expenses

$

$

574,299 $

1,077,000 $

15,306,746

6,318,240

63,918,081

1,091,164,274

57,963,490

$

6,318,240 $

64,492,380 $ 1,092,241,274 $

73,270,236

OPERATING INCOME (LOSS)

$

2,438,064 $

4,298,822 $ 562,417,726 $

13,035,374

Nonoperating RevenueslExpenses (Net) Operating Transfers to/from Primary Government NET INCOME (LOSS)

8,075,304

3,083,207

$

13,596,575 $

(1,439,585) 2,859,237 $

5,896,000 (581,638,726) (13,325,000) $

(5,374,597) 7,660,777

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES FROM GOVERNMENTAL OPERATIONS AND
EXPENDABLE TRUST FUNDS

(2,855,403)

(1,493,945)

FUND EQUITY, JULY 1 Adjustments (Net) Current Capital Contributions (Net) Increase (Decrease) in Inventories
FUND EQUITY, JUNE 30

551,146,340 53,423,985

70,217,566

13,612,000

334,844,483 5,399,387

$ 615,311,497 $

71,582,858 $

287,000 $ 347,904,647

86

Student Finance Authority

GeoL.Srnithll Georgia World Congress Center
Authority

All Other Discretely Presented
Proprietary Fund Types

Total

$

$

$

355,757,334

27,331,007

56,993,577

2,923,010

245,557,256

$

358,680,344 $

329,881,840 $

$ 242,823,896
19,454,465 209,400,623

1,393,024 1,559,891,279 1,092,129,409
811,115,756

471,678,984 $ 3,464,529,468

$

67,540 $

10,399 $

1,972,984

32,902,757

320,285,068

214,182,192

$ 322,325,592 $ 247,095,348 $

5,598 $ 25,547,075 147,199,251 172,751,924 $

183,024 209,843,242 1,801,077,993 2,01l,104,259

$

$

$

58,750,000

25,386,512 10,968,240

111,209 23,925,283

$

36,354,752 $

82,786,492 $

$ 358,680,344 $ 329,881,840 $

$ 162,582,392

270,903 944,928,794

22,984,634 113,360,034

73,862,000 414,157,204

298,927,060 $

1l,314,857 8,891,451 1,453,425,209

471,678,984 $ 3,464,529,468

$

2,470,439 $

18,700,546 $

69,252,087 $ 1,836,327,617

28,253,099

28,253,099

1,439,287

1,439,287

4,900,281

36,088,982

48,335,373

161,932,207

$

7,370,720 $

54,789,528 $

147,279,846 $ 2,027,952,210

$

252,186 $

51,032,320

$

51,284,506 $

$

(43,913,786) $

663,359

45,677,328

$

2,426,901 $

8,696,046 $ 42,891,691 51,587,737 $
3,201,791 $
2,466,406 (1,401,130) 4,267,067 $

7,186,274 $ 122,147,692 129,333,966 $

33,092,551 1,435,435,788 1,468,528,339

17,945,880 $ 559,423,871

(4,037,271) 4,571,026 18,479,635 $

6,249,616 (529,708,295)
35,965,192

86,026

(4,263,322)

35,659,459 (1,731,608)

72,533,501
6,000,000 (14,076)

286,960,419 (34,223,900) 27,588,328
36,552

1,364,973,768 (35,955,508) 92,411,700 22,476

$

36,354,752 $

82,786,492 $

298,927,060 $ 1,453,154,306

87

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- - - Combining Statements and Schedufes - - -

(This page intentlonallv letl blank)

- - - - - Wrimar! Government - - - - -
Capita[ Wrojects a:-unds

(This page iltentionallv left blank)

- - - - - - - - State of Georgia - - - - - - - -
PrimarY Government - Capital Projeds Funds For the Fiscal Year Ended June 30, 1997
Capital Projects Funds account for the acquisition or construction of major governmental general fixed assets. The State's capital projects funds are described below: Georgia Building Authority (Hospital) accounts for the acquisition, construction, repair, maintenance, improvement, operation and management of self-liquidating projects on property owned by the authority. These projects include hospitals, health care facilities, dormitories and housing accommodations for patients, officers and employees of institutions controlled by state agencies. Georgia Building Authority (Markets) accounts for the construction and renovation of farmers markets and related facilities. Georgia Building Authority (penal) accounts for the acqulSltlOn, construction, repair, maintenance, improvement, operation and management of buildings, facilities, equipment and services for the State penal system. Georgia Education Authority (University) accounts for the construction and improvement of buildings and facilities of institutions under the authority of the Board of Regents of the University System of Georgia. Georgia State Financing and Investment Commission accounts for the construction of projects for state agencies financed through the issuance of public debt, including educational facilities for county and independent school systems.
93

- - - - - - - State of Georgia--------
Primarv Government - Capital Projeds Fmds Combining Balance Shed June 30. 1997

Assets
Cash and Cash Equivalents Investments Receivables (Net ofAllowances for Uncollectibles)
Interest and Dividends Other
Total Assets
Liabilities and Fund Balances
Liabilities: Cash Overdraft Accounts Payable and Other Accruals Contracts Payable Other Liabilities
Total Liabilities
Fund Balances: Reserved for Other Specific Purposes Unreserved, Designated Designated for Future Capital Outlay Unreserved, Undesignated
Total Fund Balances
Total Liabilities and Fund Balances

Georgia Building Authority (Hospital)

Georgia Building Authority (Markets)

$

270,136 $

319,258

100,301

119,188

$

370,437 $ ====4=38,=446=

$

$

$

0$

0

$

-$

370,437

438,446

$

370,437 $

438,446

$

370,437 $ ====4=38,=446=

94

Georgia Builcling Authority (Penal)

Georgia Education Authority (University)

Georgia State Financing and
Investment Commission

Total

$

1,073,927 $

1,059,522 $

$

2,722,843

406,361

392,207

1,090,597,417

1,091,615,474

965,443

11,480,997

11,480,997 965,443

$

1,480,288 $

2,417,172 $ 1,102,078,414 $ 1,106,784,757

$

$

$

22,914,508 $

22,914,508

15,779,528

15,779,528

15,616,910

15,616,910

10,618,996

10,618,996

$

$

$

64,929,942 $

64,929,942

$

1,311,077 $

$

$

1,311,077

169,211

2,417,172

1,037,148,472

1,037,148,472 3,395,266

$

1,480,288 $

2,417,172 $ 1,037,148,472 $ 1,041,854,815

$

1,480,288 $

2,417,172 $ 1,102,078,414 $ 1,106,784,757

95

State of GeorfJia
PrimarY Government - Capital Projeds Funds Combining Statement of Revenues. Expenditures and
Changes in Fund Balances For the FISCal Year Ended June 30. 1997

Revenues: Interest and Other Investment Income Rents and Royalties Other
Total Revenues
Expenditures: General Government Capital Outlay Debt Service Principal Interest Other Debt Service Charges
Total Expenditures
Excess (Deficiency) ofRevenues Over (Under) Expenditures
Other Financing Sources (Uses): Operating Transfers from Component Units Operating Transfers Out General Obligation Bond Proceeds
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses
Fund Balances, July 1 Residual Equity Transfers Out Residual Equity Transfers to Component Units

Georgia Building Authority (Hospital)

Georgia Building Authority (Markets)

Georgia Building Authority (penal)

$

19,296 $

22,884 $

81,677

$

19,296 $

22,884 $

81,677

$

12,342 $

6,458 $

17,498 124,266

$

12,342 $

6,458 $

141,764

$

6,954 $

16,426 $

(60,087)

$

$

$

$

0$

0$

0

$

6,954 $

16,426 $

(60,087)

363,483

422,020

1,540,375

Fund Balances, June 30

$

370,437 $

438,446 $

1,480,288

96

Georgia Education Authority (University)

Georgia State Financing and
Investment Commission

Total

$

274,414 $

77,721,619 $

78,119,890

44,340

44,340

63,528

1,618,041

1,681,569

$

382,282 $

79,339,660 $

79,845,799

$

33,736 $

$

70,034

373,552,880

373,677,146

44,340 160,980

382,514

44,340 160,980 382,514

$

239,056 $

373,935,394 $

374,335,014

$

143,226 $ (294,595,734) $ (294,489,215)

$

$

1,401,130 $

1,401,130

(214,201,995)

(214,201,995)

373,248,075

373,248,075

$

0$

160,447,210 $

160,447,210

$

143,226 $ (134,148,524) $ (134,042,005)

2,273,946

1,223,459,824 (2,885,570)
(49,277,258)

1,228,059,648 (2,885,570)
(49,277,258)

$

2,417,172 $ 1,037,148,472 $ 1,041,854,815

97

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- - - - - Wrimar! Government - - - - -
qnterna[ Service ~unds

(This page intcnftonallv left blank)

- - - - - - - - - State of Georgia - - - - - - - - -
PrimarY Government -Internal Service Funds
For the FISCal Year Ended June 30, 1997
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. The State's internal service funds are described below:
The Department of Administrative Services delivers a variety of supportive services to all state agencies and, upon request, to local governments in Georgia. Among the services provided are purchasing, surplus property, printing, telecommunications, motor pool and building space management.
The Georgia Building Authority is primarily responsible for constructing and maintaining State office buildings, maintaining the grounds within the State Capitol complex, maintaining the Governor's Mansion and operating parking facilities.
The Correctional Industries Administration utilizes the inmate work force to manufacture products and provide services for the penal system, other units of state government and local governments.
The Merit System of Personnel Administration provides a career service to the classified employees in the executive branch based on the principles of merit, equal opportunity and freedom from political influence.
The Agency for Removal of Hazardous Materials administers a program for the abatement and removal of asbestos and other hazardous materials from the premises of the State, state authorities, counties, municipal corporations, local and independent school systems, and other units and authorities of government.
The Risk Management column is an accumulation of the funds used to account for self-insurance programs established by individual agreement, statute or administrative action:
The Authorities Liability Reserve Fund is used to account for the accumulation of funds for the purpose of providing liability insurance and self-insurance to state authorities.
The Georgia State Indemnification Commission is used to account for the accumulation of funds for the purpose of providing indemnification with respect to the death of any law enforcement officer, fireman or prison guard killed in the line of duty.
The Hazard and Insurance Reserve Fund is used to account for the assessment of premiums against various state agencies for the purpose of providing property, fire and extended coverage, automobile, aircraft and marina insurance.
The Liability Self-Insurance Reserve Fund is used to account for the accumulation of funds for the purpose of providing liability insurance coverage for employees of the State against personal liability for damages arising out of performance of their duties.
The State Employees' Assurance Department is used to account for the accumulation of funds for the purpose of providing survivors' benefits for eligible members ofthe Employees' Retirement System.
101

- - - - - - - State of GeorfJia--------
PrimarY Government -Internal Service Fmds For the Fiscal Year Ended June 30, 1997
The Tort Claims Fund is used to account for the accumulation of funds for the purpose of providing liability insurance for losses caused by the tort of any State officer or employee committed while acting within the scope of official duty or employment. The Unemployment Compensation Fund was created for the purpose of consolidating processing of unemployment compensation claims against state agencies and the payment of sums due to the Department of Labor. The Workers' Compensation Fund was established to authorize insurance coverage for employees of the State and for the receipt of premiums as prescribed by the Workers' Compensation statutes ofthe State.
102

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State or GeorfJia - - - - - - -
PrimarY Governmmt -Internal Service Funds Combining Balance Sheet June 30, 1997

Assets
Current Assets: Cash and Cash Equivalents Receivables (Net ofAllowances for Uncollectib1es)
Other Accounts Miscellaneous Due from Other Funds Due from Component Units Inventories Prepaid Items Long-Term Assets: Investments Fixed Assets: Land and Buildings MachineI)' and Equipment Accumulated Depreciation
Total Assets
Liabilities and Fund EqUity
Liabilities Current Liabilities: Cash Overdraft Accounts Payable and Other Accruals Compensated Absences Payable Claims and Judgments Payable Contracts Payable SalariesM'itbholdings Payable Due to Other Funds Deferred Revenue Long-Term Liabilities: Capital LeaseslInstalhnent Purchases Payable Deposits and Ovelpayments Long-Term Debt Payable (Net ofUnamortized Discounts) Notes and Loans Payable
Total Liabilities
Fund Equity Contributed Capital State ofGeorgia Other
Total Contributed Capital
Retained Earnings Reserved Unreserved
Total Retained Earnings
Total Fund Equity
Total Liabilities and Fund Equity

Administrative Services,
Department of

Building Authority,
Georgia

Correctional Industries
Administration

Merit System ofPersonnel Administration

$

-$

5,313,599 $

4,066,624 $

2,817,989
32,309,609 470,419
3,422,282 378,541
458,798
11,591,214 148,773,676

2,197,026
472,755 138,802 1,957,251 220,008,830 10,360,431

3,524,889 1,549
7,258,801 78,852
1,431,388
7,985,002 12,814,575 (11,045,355)

$

200,222,528 $

240,448,694 $

26,116,325 $

2,344,437 72,522 63,651 997,779
3,478,389

$

3,826,850 $

19,473,327

4,659,212

10,852,020 56,612

1,952,013

$

40,820,034 $

$ 1,904,032 1,716,229 1,169,720
12,658 22,181 61,157
581,399
5,467,376 $

$ 1,206,757
629,148
116 6,160 64,322
1,335,714 3,242,217 $

521,549 628,051 1,438,971 50,889 260,046
46,428
2,945,934

$

53,384,666 $

198,056,264 $

21,837,424

$

53,384,666 $

219,893,688 $

1,227,948 $ 1,227,948 $

$

5,598,804 $

100,419,024

$ 15,087,630

$

106,017,828 $

15,087,630 $

$

159,402,494 $

234,981,318 $

$ 21,646,160
21,646,160 $
22~874,108 $

$

200,222,528 $

240,448,694 $

26,116,325 $

104

0
549 531,906 532,455 532,455
3,478,389

Removal of Hazardous Materials, Agency for

Risk Management

Total Before Eliminations

Eliminations

Total

$

257,701 $

264,144,035 $

276,126,396 $

351,373 9,687 1,243
23,490
1,102,102

1,917,746 664,000
580,925,000

8,963,799 1,928,982 32,974,852
470,419 11,177,328
659,846
584,m,437
239,585,046 174,048,563 (11,045,355)

$

1,745,596 $

847,650,781 $ 1,319,662,313 $

-$

276,126,396

(631,128)

8,963,799 1,928,982 32,343,724
470,419 11,177,328
659,846
584,m,437
239,585,046 174,048,563 (11,045,355)

(631,128) $ 1,319,031,185

$

$

$

3,826,850 $

$

3,826,850

610,979

23,716,644

23,716,644

7,632,640

7,632,640

258,497,047

258,497,047

258,497,047

13,460,711

13,460,711

120,275

120,275

348,901

631,128

(631,128)

0

67,317

67,317

2,062,763 581,399

2,062,763 581,399

1,335,714

1,335,714

$

610,979 $

258,845,948 $

311,932,488 $

(631,128) $

311,301,360

$

$

$

252,668,878 $

21,837,424

$

0$

0$

274,506,302 $

$

23,490 $

581,589,000 $

587,211,843 $

1,111,127

7,215,833

146,011,680

$

1,134,617 $

588,804,833 $

733,223,523 $

$

1,134,617 $

588,804,833 $ 1,007,729,825 $

$

1,745,596 $

847,650,781 $ 1,319,662,313 $

$

252,668,878

21,837,424

0$

274,506,302

$

587,211,843

146,011,680

0$

733,223,523

0 $ 1,007,729,825

(631,128) $ 1,319,031,185

105

- - - - - - - - State of Georgia--------
PrimarY Government -Internal Service Funds Risk Management
Combining Balance Sheet June 30, 1997

Assets
Current Assets: Cash and Cash Equivalents Receivables (Net of Allowances for Uncollectibles) Other :Miscellaneous Due from Other Funds
Long-TeanAssets: Investments
Total Assets
Liabilities and Equity
Liabilities Current Liabilities: CIaim.s and Judgments Payable Due to Other Funds
Total Liabilities
Equity Retained Eamingl;
ResCIVCd UnresCIVCd
Total Equity
Total Liabilities and Equity

Authorities Liability
Resexve Fund

Georgia State Indemnification
Commission

Hazard and Insurance Reserve Fund

Liability Self-Insurance ResCIVC Fund

State Employees' Assurance Department

$

-$

1,027,365 $

8,395,421 $ 178,850,938 $

101,417

484,148

664,000 580,925,000

$

o$

1,027,365 $

8,496,838 $ 179,335,086 $ 581,589,000

$

$

22,500 $

19,408,643 $

98,446,452 $

20,469

119,073

$

0$

22,500 $

19,429,112 $

98,565,525 $

0

$

$

$

-$

$ 581,589,000

1,004,865

(10,932,274)

80,769,561

$

0$

1,004,865 $ (10,932,274) $

80,769,561 $ 581,589,000

$

o$

1,027,365 $

8,496,838 $ 179,335,086 $ 581,589,000

106

Tort Claims
Fund

Unemplo)ment
Compensation
Fund

Workers'
Compensation
Fund

Total

$

-$

1,753,248 $

74,117,063 $ 264,144,035

1,332,181

1,917,746 664,000
580,925,000

$

o$

1,753,248 $

75,449,244 $ 847,650,781

$

$

2,564,452 $ 138,055,000 $ 258,497,047

5,381

203,978

348,901

$

o$

2,569,833 $ 138,258,978 $ 258,845,948

$

$

-$

- $ 581,589,000

(816,585)

(62,809,734)

7,215,833

$

-'0_$ _ _-'-(8.;.;;1'-'"6,:....58_5""-.) $ (62,809,734) $ 588,804,833

$====0==$

1,753,248 $

75,449,244 $ 847,650,781

107

- - - - - - - - - State of Georgia - - - - - - - - -
PrimarY Government -Internal Service Fmds
Combining Statement of Revenues, Expenses and Changes in Fund Equilv
For the FISCal Year Ended June 30, 1997

Operating Revenues: Contributions Insurance Recoveries Interest and Other Inves1rnent Income Dividends and Interest Net Increase in Fair Value ofInves1rnents Rents and Royalties Sales and Services Other
Total Operating Revenues
Operating Expenses: General and Administrative Goods and Services Benefits Claims and Judgments Depreciation
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses): Interest and Other Inves1rnent Income Interest Expense Other
Total Nonoperating Revenues (Expenses)
Net Income (Loss) Before Operating Transfers
Operating Transfers: Transfers In Transfers Out
Net Operating Transfers
Net Income (Loss)
Fund Equity, July 1 Adjus1rnents Change in Accounting Principle Prior Period Incurred But Not Reported Liabilities Early Implementation of GASB Statement 31 Other Contributed Capital Transfer of Contributed Capital Decrease in Inventories
Fund Equity, June 30

Administrative Services,
Depar1ment of

Building Au1hority, Georgia

Correctional Industries
Administration

Merit System of Personnel Administration

$

$

$

$

212,027,392 1,549,918
$ 213,577,310 $

32,992,291 8,877,027
41,869,318 $

29,787,495 29,787,495 $

12,244,518 12,244,518

$

94,175,774 $

121,781,275

29,087,858 $ 14,315,623

9,706,357 $ 16,358,514

11,864,905

$ 215,957,049 $

$

(2,379,739) $

43,403,481 $ (1,534,163) $

1,387,958 27,452,829 $
2,334,666 $

11,864,905 379,613

$

-$

(12,142,670)

$ (12,142,670) $

$ (14,522,409) $

468,522 $ 358,119 826,641 $ (707,522) $

326,345 $ (69,439) 313,571
570,477 $
2,905,143 $

(53,937) (53,937) 325,676

$

39,697,821 $

$

(21,189,792)

$

18,508,029 $

0$

$

3,985,620 $

(707,522) $

172,334,508

231,354,649

$
0$ 2,905,143 $ 20,050,965

0 325,676 206,779

(16,544,667)

1,448,621 2,885,570

(372,967)

$ 159,402,494 $ 234,981,318 $

(82,000) 22,874,108 $

532,455

108

Removal of Hazardous Materials, Agency for

Risk Management

Total Before Eliminations

Eliminations

Total

$

$ 128,357,606 $ 128,357,606 $

(169,712) $ 128,187,894

7,861,703

7,861,703

7,861,703

2,085,043

39,541,728 89,101,600

39,541,728 89,101,600 32,992,291 265,021,475
1,549,918

39,541,728 89,101,600 32,992,291 265,021,475
1,549,918

$

2,085,043 $ 264,862,637 $ 564,426,321 $

(169,712) $ 564,256,609

$

521,982 $

3,499,958 $ 148,856,834 $

1,579,779

10,169,615

164,204,806

15,871,000

15,871,000

105,228,182

105,228,182

1,387,958

$

2,101,761 $ 134,768,755 $ 435,548,780 $

$

(16,718) $ 130,093,882 $ 128,877,541 $

(169,712) $
(169,712) $
o$

148,687,122 164,204,806
15,871,000 105,228,182
1,387,958
435,379,068
128,877,541

$

-$

(123,754)

$

794,867 $

(69,439)

(11,648,671)

$

(123,754) $

0 $ (10,923,243) $

$

(140,472) $ 130,093,882 $ 117,954,298 $

$

794,867

(69,439)

(11,648,671)

0 $ (10,923,243)

0 $ 117,954,298

$

$

$

39,697,821 $

(21,189,792)

$

0$

0$

18,508,029 $

$

(140,472) $ 130,093,882 $ 136,462,327 $

1,275,089

602,566,084

1,027,788,074

$

39,697,821

(21,189,792)

0$

18,508,029

0 $ 136,462,327

1,027,788,074

(239,893,133) 96,038,000

(239,893,133) 96,038,000 (15,096,046) 2,885,570 (82,000) (372,967)

$

1,134,617 $ 588,804,833 $ 1,007,729,825 $

(239,893,133) 96,038,000 (15,096,046) 2,885,570 (82,000) (372,967)
0 $ 1,007,729,825

109

- - - - - - - State of Georgia~------
PrimarY Government -Internal Service Funds
Risk Management Combining Statement of Revenues, Expenses and
Changes in Equilv For the FISCal Year Ended June 30, 1997

Operating Revenues: Contributions Insurance Recoveries Interest and Other Investment Income Dividends and Interest Net Increase in Fair Value ofInvestments
Total Operating Revenues
Operating Expenses: General and Administrative Goods and Services Benefits Claims and Judgments
Total Operating Expenses
Net Income (Loss)
Equity, July I Adjustments Change in Accounting Principle Prior Period Incurred But Not Reported Liabilities Early Implementation ofGASB Statement 31 Transfer ofEquity
Equity, June 30

Authorities Liability
Reserve Fund

Georgia State Indemnification
Commission

Hazard and Insurance Reserve Fund

Liability Self-Insurance Reserve Fund

$

$

550,000 $

11,502,968 $

41,725,830

7,861,703

80,374

449,413

12,142,537

$

0$

630,374 $

19,814,084 $

53,868,367

$

$

$

0$

$

0$

12,398,789

$
444,857 444,857 $ 185,517 $ 819,348

198,460 $ 1,504,698 29,858,907 31,562,065 $ (11,747,981) $ 4,225,519

1,136,112 5,121,427 37,403,720 43,661,259 10,207,108 72,909,405

(12,398,789)

(3,409,812)

(88,487,745) 86,140,793

$

0$

1,004,865 $ (10,932,274) $

80,769,561

110

State Employees' Assurance Department

Tort Claims
Fund

Unemployment
Compensation
Fund

Workers'
Compensation
Fund

Total

$ . 10,859,000 $
21,527,400 89,101,600 $ 121,488,000 $

$

2,939,320 $

60,780,488 $ 128,357,606

7,861,703

246,917

5,095,087

39,541,728 89,101,600

0$

3,186,237 $

65,875,575 $ 264,862,637

$

147,000 $

15,871,000

$

16,018,000 $

$ 105,470,000 $

380,081,000

$
0$ 0$ 73,742,004

65,389 $
(4,220,064) (4,154,675) $ 7,340,912 $ 2,860,079

1,952,997 $ 3,543,490 41,740,762 47,237,249 $ 18,638,326 $ 55,529,940

3,499,958 10,169,615 15,871,000 105,228,182
134,768,755
130,093,882
602,566,084

96,038,000

(73,742,004)

(11,017,576)

(136,978,000)

(239,893,133) 96,038,000 0

$ 581,589,000 $

o$

(816,585) $ (62,809,734) $ 588,804,833

111

---------,--- State of Georsta - - - - - - - -
PrimarY Government -Internal Service Fmds Combining Statement of Cash Flows
For the FISCal Year Ended June 30. 1997

Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Required Contributions Cash Received from Insurance Proceeds Cash Paid to Vendors Cash Paid to Employees Cash Paid for Benefits Cash Paid for Claims and Judgments
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Noncapital Financing Activities: Operating Transfers In Operating Transfers Out Return of Contributed Capital Other Noncapital Items (Net)
Net Cash Provided by Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities: Contributed Capital Acquisition and Construction of Capital Assets Principal Paid on Note Interest Paid on Note
Net Cash Used in Capital and Related Financing Activities
Cash Flows from Investing Activities: Purchase of Investments (Net) Interest on Investments Net Increase in Fair Value of Investments
Net Cash Provided by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1
Cash and Cash Equivalents, June 30

Administrative Services,
Department of

Building Authority,
Georgia

$ 205,344,609 $

42,128,064

(176,590,970) (45,336,718)

(21,665,383) (22,000,687)

$ (16,583,079) $

(1,538,006)

$

39,697,821 $

(21,189,792)

3,894,454

$

22,402,483 $

358,119 358,119

$

-$

(16,060,515)

2,885,570 (4,474,934)

$ (16,060,515) $

(1,589,364)

$

857,794 $

5,905,854

468,522

$

857,794 $

$

(9,383,317) $

9,383,317

6,374,376 3,605,125 1,708,474

$

0$

5,313,599

112

Correctional Industries
Administration

Merit System of Personnel Administration

Removal of Hazardous Materials, Agency for

Risk Management

Total

$

24,601,951 $

(18,661,286) (6,753,065)

$

(812,400) $

12,199,287 $ (5,242,004) (6,292,372)
664,911 $

1,884,448 $ (1,856,679)
(135,228)
(107,459) $

$ 126,647,464
7,861,703 (13,862,901)
(15,871,000) (86,676,768)

286,158,359 126,647,464
7,861,703 (237,879,223)
(80,518,070) (15,871,000) (86,676,768)

18,098,498 $

(277,535)

$

-$

$

$

$

39,697,821

(21,189,792)

(82,000)

(82,000)

325,394

96,038,000

100,615,967

$

243,394 $

0$

0$

96,038,000 $ 119,041,996

$

-$

-$

(509,111)

(244,573)

(242,857)

(69,439)

$

(821,407) $

(244,573) $

-$ (8,820)
(8,820) $

$

2,885,570

(21,297,953)

(242,857)

(69,439)

0$

(18,724,679)

$

3,781,529 $

$

326,345

$

4,107,874 $

0$

$

2,717,461 $

420,338 $

1,349,163

1,924,099

$

4,066,624 $

2,344,437 $

$
0$ (116,279) $ 373,980

161,958 $ 39,541,728 89,101,600
128,805,286 $
242,941,784 $
21,202,251

10,707,135 40,336,595 89,101,600
140,145,330
240,185,112
35,941,284

257,701 $

264,144,035 $

276,126,396 (continued)

113

---,--------- State of GeorfJia - - - - - - - -
PrimarY Government -Internal Service Fmds Combining Statement of Cash Flows (continued)
For the FISCal Year Ended Jme 30. 1997

Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used In) Operating Activities:
Depreciation Interest Other Changes in Assets and Liabilities: Decrease (Increase) in Other Receivables Decrease (Increase) in Due from Other Funds
Increase in Due from Component Units Decrease (Increase) in Inventories Decrease (Increase) in Prepaid Items Increase (Decrease) in Accounts Payable and Other Accruals Increase (Decrease) in Compensated Absences Payable Increase in Claims and Judgments Payable Increase (Decrease) in Contracts Payable Increase (Decrease) in SalarieslWithholdings Payable Increase (Decrease) in Due to Other Funds Decrease in Deferred Revenue Decrease in Deposits and Overpayments
Total Adjustments
Net Cash Provided by (Used in) Operating Activities
Noncash Investing, Capital, and Financing Activities: Disposal ofFixed Assets Donation of Fixed Assets Write off of Fixed Assets

Administrative Services,
Department of

Building Authority, Georgia

$

(2,379,739) $

(1,534,163)

$

$

(1,682,215) (6,232,256)
(318,230)
(5,680) (6,626,621)
89,208
529,240 43,214

$

(14,203,340) $

1,448,621
1,481,297
(107,517) 8,650
(330,998) 86,197
(1,256,612) (66,275) (44,655) (482,649)
. (739,902)
(3,843)

$

(16,583,079) $

(1,538,006)

$

(12,210,274) $

(16,544,667)

$

(28,754,941) $

0

114

Correctional Industries Administration

Merit System of Personnel Administration

Removal of Hazardous Materials, Agency for

Risk Management

$

2,334,666 $

379,613 $

(16,718) $ 130,093,882 $

Total 128,877,541

$

1,387,958 $

(1,902,426)

417,874 27,567
290,490 (87,715)

(760) (3,280,054)

$

(3,147,066) $

$

(812,400) $

$
(45,231)
(637) 247,595 (17,386)
1,190 50,531 49,236
285,298 $
664,911 $

$

-$

1,387,958

(39,541,728)

(39,541,728)

(89,101,600)

(87,652,979)

(200,595) (13)
34,563 97,813
(22,509)

(1,869,142) 159,000
18,551,414 (193,328)

(4,218,312) (6,073,269)
(318,230) 344,920
29,900 (6,321,721)
70,304 18,551,414
(748,691) 26,710
(188,747) (3,762,703)
(739,902)

(90,741) $ (111,995,384) $ (129,155,076)

(107,459) $

18,098,498 $

(277,535)

$

(29,722) $

(53,937) $

(123,754) $

17,899

$ ======(1=1=,8=23::::) $ ======(5=3=,93=7)= $ ===(=12=3,=75=4=) $

$

(12,417,687)

17,899

(16,544,667)

o$

(28,944,455)

115

- - - - - - - - - State of Georgta---------
PrimarY Government -Internal Service Funds Risk Management
Combining Statement of Cash Flows For the FISCal Year Ended June 30, 1997

Cash Flows from Operating Activities: Cash Received from Required Contributions Cash Received from Insurance Proceeds Cash Paid to Vendors Cash Paid for Benefits Cash Paid for Claims and Judgments
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Noncapital Financing Activities: 01her Noncapital Items (Net)
Cash Flows from Investing Activities: Purchase ofInvestments (Net) Interest on Investments Net Increase in Fair Value ofInvestments
Net Cash Provided by (Used in) Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1
Cash and Cash Equivalents, June 30
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities: Interest
O1her Changes in Assets and Liabilities: Decrease (Increase) in O1her Receivables
Decrease in Due from O1her Funds Increase (Decrease) in Claims and Judgments Payable Increase (Decrease) in Due to O1her Funds
Total Adjustments
Net Cash Provided by (Used in) Operating Activities

Au1horities Liability Reserve Fund

Georgia State Indemnification
Commission

Hazard and Insurance Reserve Fund

Liability Self-Insurance Reserve Fund

$

-$

550,000 $

11,436,109 $

41,243,211

7,861,703

(3,141)

(9,566)

(1,826,981)

(6,286,066)

(474,857)

(13,860,076)

(27,445,013)

$

(3,141) $

65,577 $

3,610,755 $

7,512,132

$ (12,398,789) $

-$

-$

86,140,793

$

11,221,690 $

807,316 $ 80,374

3,955,848 $ 449,413

66,098,984 12,142,537

$

11,221,690 $

$

(1,180,240) $

1,180,240

887,690 $ 953,267 $
74,098

4,405,261 $ 8,016,016 $
379,405

78,241,521 171,894,446
6,956,492

$

$

1,027,365 $

8,395,421 $ 178,850,938

$

$

185,517 $ (11,747,981) $

10,207,108

$

-$

(80,374) $

(449,413) $ (12,142,537)

(66,859)

(482,619)

(3,141)

(30,000) (9,566)

15,998,831 (123,823)

9,958,707 (28,527)

$

(3,141) $

(119,940) $

15,358,736 $

(2,694,976)

$

(3,141) $

65,577 $

3,610,755 $

7,512,132

116

State Employees' Assurance Department

Tort Claims Fund

Unemployment Compensation
Fund

Workers' Compensation
Fund

Total

$

11,018,000 $

(147,000) (15,871,000)

$

(5,000,000) $

11,046 $ 11,046 $

2,940,406 $ (65,152)
(4,233,060) (1,357,806) $

59,448,692 $ (5,524,995) (40,663,762) 13,259,935 $

126,647,464 7,861,703
(13,862,901) (15,871,000) (86,676,768)
18,098,498

$

96,038,000 $ (73,742,004) $

-$

-$

96,038,000

$ (201,667,000) $ 21,527,400 89,101,600

$ (91,038,000) $

$

0$

0

66,724,653 $
66,724,653 $ (7,006,305) $ 7,006,305

$

o$

o$

2,583,411 $ 246,917
2,830,328 $ 1,472,522 $
280,726

50,437,056 $ 5,095,087
55,532,143 $ 68,792,078 $
5,324,985

161,958 39,541,728 89,101,600
128,805,286
242,941,784
21,202,251

1,753,248 $

74,117,063 $ 264,144,035

$ 105,470,000 $

o$

7,340,912 $

18,638,326 $ 130,093,882

$ (21,527,400) $ (89,101,600)
159,000

$ (110,470,000) $

$

(5,000,000) $

-$ 11,046
11,046 $

(246,917) $
1,086 (8,453,124)
237 (8,698,718) $

(5,095,087) $

(39,541,728) (89,101,600)

(1,331,796)
1,077,000 (28,508)

(1,869,142) 159,000
18,551,414 (193,328)

(5,378,391) $ (111,995,384)

11,046 $

(1,357,806) $

13,259,935 $

18,098,498

117

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- - - - - Wf'imaf'~Government - - - - -
crrust and .ABenc~ g;unds

(This page intentionallv left blank)

- - - - - - - - State of GeorfJia - - - - - - - -
Primarv Government -Trust and Agencv Funds
Combining Balance Sheet June 30, 1997

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Intergovemmental- Federal
Interest and Dividends Notes and Loans Taxes Other Prepaid Items Other Assets Deferred Compensation Plan Assets
Total Assets
Liabilities and Fund Balances
Liabilities: Accounts Payable and Other Accruals Salaries!Withholdings Payable Due to Other Funds Deferred Revenue Funds Held for Others Advances.from Other Funds
Total Liabilities
Fund Balances: Reserved for Pension Benefits Reserved for Other Specific Pwposes Unreserved, Undesignated
Total Fund Balances
Total Liabilities and Fund Balances

Expendable Trust

Nonexpendable Trust

Pension Trust

Agency

Total

S 1,756,132,745 S 13,300,898
178,987 1,223
4,311,922 86,595,170
5,086,541 8,774
S 1,865,616,260 S

19,102 S

3,264,866 S 1,690,523,150 S 3,449,939,863

196,724

9,386,676,000

624,343,624

10,024,517,246

87,699,000
28,053,000 14,014

528,640
27,336,383 139,913
314,206,807

707,627 87,700,223 4,311,922 86,595,170 60,475,924
22,788 139,913 314,206,807

215,826 S 9,505,706,880 S 2,657,078,517 $ 14,028,617,483

S

10,422 S

23,735

S

34,157 $

$

$

1,837,700,973

27,881,130

$ 1,865,582,103 $

$ 1,865,616,260 S

S 0S

5,507,886 S

$

20,110

707,670

2,657,071,592 6,925

5,518,308 20,110
707,670 23,735
2,657,071,592 6,925

6,235,666 $ 2,657,078,517 S 2,663,348,340

$ 148,500 67,326

9,499,471,214 S

215,826 $ 9,499,471,214 S

S 9,499,471,214 1,837,849,473 27,948,456
0 $ 11,365,269,143

215,826 S 9,505,706,880 S 2,657,078,517 $ 14,028,617,483

121

(This page ntmtlonallv left blanR)

- - - - - - - - - State of Georgia---------
PrimarY Government - Expendable Trust Funds For the Fl5Cal Year Ended June 30. 1997
Expendable Trust Funds are used to account for assets held by the government in a trustee capacity in which both the principal and revenues earned on that principal may be expended for purposes designated by the trust agreement. The State's expendable trust funds are described below:
The Auctioneers Recovery Fund provides for actual or compensatory damages in instances where a person is aggrieved by an act, representation, transaction, or conduct of a person licensed under OCGA 43-6 (duly licensed auctioneer, apprentice auctioneer, or auction company) who is in violation of state law. Also, the fund is used to help underwrite the cost of developing courses, conducting seminars, conducting research projects on matters affecting auctioneers, publishing and distributing educational materials, or other education and research programs for the benefit of licensees and the public. The Housing Trust Fund for the Homeless provides financial assistance to sponsors of housing programs and activities which are designed to enhance home ownership opportunities of low income Georgia households. The Keds Corporation Settlement Fund is responsible for the direct delivery of services to women between fifteen and forty-four years of age with specific priority being given to job training in non-traditional employment fields. The Real Estate Recovery Fund provides for actual or compensatory damages in instances where a person is aggrieved by an act, representation, transaction, or conduct of a duly licensed broker, associate broker or salesperson who is in violation of state law. Also, the fund is used to help underwrite the cost of developing courses, conducting seminars, conducting research projects on matters affecting real estate brokerage, publishing and distributing educational materials, or other education and research programs for the benefit of licensees and the public. The Sports Hall of Fame Board is responsible for the establishment and maintenance of a hall of fame to honor those who have made outstanding contributions to sports and athletics in Georgia or elsewhere. The Subsequent Injury Trust Fund is a special workers' compensation fund designed to encourage employers to hire workers with pre-existing impairments by insuring against the aggravating impact such impairment could have if the worker were subsequently injured on the job. The Unemployment Compensation Contributions and Benefits Fund accounts for the collection of employers' unemployment insurance tax and the payment of unemployment insurance benefits.
123

- - - - - - - - State of Georgta--------
PrimarY Government - Expendable Trust Funds
Combining Balance Sheet June 30, ,1997

Assets
Cash and Cash Equivalents Investments Receivables (Net ofAllowances for Uncollectibles)
Intergovernmental- Federal Interest and Dividends Notes and Loans Taxes Other Prepaid Items
Total Assets
Liabilities and Fund Balances
Liabilities: Accounts Payable and Other Accruals Deferred Revenue
Total Liabilities
Fund Balances: Reserved for Other Specific Purposes Unreserved, Undesignated
Total Fund Balances
Total Liabilities and Fund Balances

Auctioneers Recovery Fund

Housing Trust Fund for the
Homeless

Keds Corporation Settlement Fund

$

231,394 $

1,237,553 $

10,022,722

66,545

4,311,922 36,723

$

231,394 $

15,608,920 $

66,545

$

$

$

$

0$

0$

$

$

$

231,394

15,608,920

$

231,394 $

15,608,920 $

$

231,394 $

15,608,920 $

0
66,545 66,545 66,545

124

Real Estate Recovery Fund

Sports Hall ofFame Board

Subsequent Injury
Trust Fund

Unemployment Compensation Contributions and Benefits
Fund

Total

$

1,060,328 $

394,753

$

1,455,081 $

53,066 $ 145,420
1,223
630

7,574,204 $ 2,738,003

1,745,909,655 $

1,756,132,745 13,300,898

8,144

178,987
86,595,170 5,049,818

178,987 1,223
4,311,922 86,595,170
5,086,541 8,774

200,339 $

10,320,351 $ 1,837,733,630 $ 1,865,616,260

$

$

$

1,500 $

8,922 $

10,422

23,735

23,735

$

o$

o$

1,500 $

3_2,'-6_57_ $

3_4,;..,1_57_

$

$

1,455,081

$ 200,339

$ 10,318,851

1,837,700,973 $

1,837,700,973 27,881,130

$

1,455,081 $ - - - - -2'00-,3-39- $

10,318,851 $ 1,837,700,973 $ 1,865,582,103

$

1,455,081 $===2=0=0,=33=9=$

10,320,351 $ 1,837,733,630 $ 1,865,616,260

125

- - - - - - - - State of Georgia--------
PrimarY Government - Expendable Trust Funds Combining Statement of Revenues, Expenditures and
Changes in Fund Balances For the FISCal Year Ended June 30, 1997

Revenues: Taxes Intergovernmental Federal Sales and Services Interest and Other Investment Income Contributions and Donations Other
Total Revenues
Expenditures: General Government Education Health and Welfare Economic Development and Assistance Culture and Recreation
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources: Operating Transfers In
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures
Fund Balances, July 1
Fund Balances, June 30

Auctioneers Recovery Fund

Housing Trust Fund for the Homeless

Keds Corporation Settlement Fund

$

$

$

29,100

692,902

$

29,100 $

692,902 $

0

$

10,000 $

$

1,949,102

43,555

$

10,000 $

1,949,102 $

43,555

$

19,100 $

(1,256,200) $

(43,555)

3,375,000

$

19,100 $

2,118,800 $

(43,555)

212,294

13,490,120

110,100

$

231,394 $

15,608,920 $

66,545

126

Real Estate Recovery Fund

Sports Hall ofFame Board

Subsequent Injury
Trust Fund

Unemployment Compensation Contributions and Benefits
Fund

Total

$

$

$

70,500,024 $

329,646,619 $

400,146,643

112,003 75,309

1,340 9,527 38,650 65,816

4,114 1,941,175

21,563,745 111,232,202
97,366

21,563,745 146,557
113,951,115 38,650 163,182

$

187,312 $

115,333 $

72,445,313 $

462,539,932 $

536,009,892

$

26,360 $

$

$

$

36,360

123,711

123,711

63,810,821

63,810,821

308,776,690

310,769,347

128,738

128,738

$

150,071 $

128,738 $

63,810,821 $

308,776,690 $

374,868,977

$

37,241 $

(13,405) $

8,634,492 $

153,763,242 $

161,140,915

25,000

3,400,000

$

37,241 $

1,417,840

11,595 $ 188,744

8,634,492 $

153,763,242 $

164,540,915

1,684,359

1,683,937,731

1,701,041,188

$

1,455,081 $

200,339 $

10,318,851 $ 1,837,700,973 $ 1,865,582,103

127

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- - - - - - - - State of Georgia--------
Primarv Government - NOl1expendable Trust Fmds
For the FISCal Year Ended June 30. 1997
Nonexpendable Trust Funds are used to account for assets held by the government in a trustee capacity in which the principal of the trust must be preserved intact. The State's nonexpendable trust funds are described below: The Pupils' Trust Fund - Georgia Academy for the Blind is used to account for principal trust amounts received and related interest income. The interest portion of the trust may be used for student activities at . Georgia Academy for the Blind. The Lenora M. Sarling Scholarship Fund is used to account for principal trust amounts received and related interest income. The interest portion of the trust may be used for scholarships at North Georgia Technical Institute. The Carl Patrick Chair is used to account for principal trust amounts received and related interest income. The interest portion of the trust may be used to supplement salaries of engineers on staff at Columbus Technical Institute.
129

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- - - - - - - - - State of GeorBia---------
PrimarY Government - Nonexpmdable Trust Fmds
Combining Balance Shed June 30, 1997

Assets Cash and Cash Equivalents Investments
Total Assets
Fund Balances Reserved for Other Specific Purposes UmesetVed, Undesignated
Total Fund Balances

Pupils' Trust Fund-
Georgia Academy for the Blind

LenoraM. Sarling
Scholarship Fund

Carl Patrick Chair

Total

$

13,500 $

1,025 $

4,577 $

19,102

35,000

161,724

196,724

$

13,500 $

36,025 $

166,301 $

215,826

$

13,500 $

35,000 $

100,000 $

148,500

1,025

66,301

67,326

$

13,500 $

36,025 $

166,301 $

215,826

131

- - - - - - - - State of Georgia--------
PrimarY Government -Nonexpendable Trust Funds
Combining Statement of Revenues, Expenses and Changes in Fund Balances
For the FISCal Year Ended June 30, 1997

Operating Revenues: Interest and Other Investment Income
Operating Expenses: General and Administrative Scholarships Other
Total Operating Expenses
Net Income
Fund Balances, July 1

Pupils' Trust Fund-
Georgia Academy for the Blind

LenoraM. Sarling
Scholarship Fund

Carl Patrick Chair

Total

$

903 $

1,888 $

8,888 $

11,679

$

$

$

3,847 $

3,847

1,300

1,300

903

903

$

903 $

1,300 $

3,847 $

6,050

$

0$

588 $

5,041 $

5,629

13,500

35,437

161,260

210,197

Fund Balances, June 30

$

13,500 $

36,025 $

166,301 $

215,826

132

- - - - - - - - - State of Georgia---------
PrimarY Government - Nonexpendable Trust Funds Combining Statement of Cash Flows
For the Rscal Year Ended June 30. 1997

Cash Flows from Operating Activities: Cash Paid to Vendors Cash Paid to Employees Cash Paid for Scholarships Net Cash Used in Operating Activities
Cash Flows from Investing Activities: Purchase ofInvestments (Net) Interest on Investments Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July I
Cash and Cash Equivalents, June 30
Operating Income Adjustments to Reconcile Operating Income to Net Cash Used in Operating Activities:
Interest
Net Cash Used in Operating Activities

Pupils' Trust Fund-
Georgia Academy for the Blind

LenoraM. Sarling
Scholarship Fund

Carl Patrick Chair

Total

$

(903) $

-$

-$

(903)

(3,847)

(3,847)

(1,300)

(1,300)

$

(903) $

(1,300) $

(3,847) $

(6,050)

$

-$

-$

(4,723) $

(4,723)

903

1,888

12,888

15,679

$

903 $

1,888 $

8,165 $

10,956

$

0$

13,500

588 $ 437

4,318 $ 259

4,906 14,196

$

13,500 $

1,025 $

4,577 $

19,102

$

0$

588 $

5,041 $

5,629

(903)

(1,888)

(8,888)

(11,679)

$

(903) $

(1,300) $

(3,847) $

(6,050)

133

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- - - - - - - State of GeorfJia-------
PrimarY Government - Pension Trust FUI1ds
For the FISCal Year Ended JUI1e 30, 1997
Pension Trust Funds account for activities of the public employee retirement systems. The State's pension trust funds are described below:
The Defined Contribution Plan is used to account for the accumulation of resources for the purpose of providing retirement allowances for State employees who are not members of a public retirement or pension .system. The District Attorneys Retirement Fund (old plan) is used to account for the accumulation of resources for the purpose of paying retirement benefits to the district attorneys of the State of Georgia. The District Attorneys Retirement System (new plan) is used to account for the accumulation of resources for the purpose of paying retirement benefits to the district attorneys of the State of Georgia. The Employees' Retirement System is used to account for the accumulation of resources for the purpose of providing retirement allowances for qualified employees of the State of Georgia and its political subdivisions. The Legislative Retirement System is used to account for the accumulation of resources for the purpose of providing retirement allowances for all members ofthe General Assembly. The Superior Court Judges Retirement Fund (old plan) is used to account for the accumulation of resources for the purpose of paying retirement benefits to the Superior Court Judges of the State of Georgia. The Superior Court Judges Retirement System (new plan) is used to account for the accumulation of resources for the purpose of paying retirement benefits to the Superior Court Judges of the State of Georgia. The Trial Judges and Solicitors Retirement Fund is used to account for the accumulation of resources for the purpose of providing retirement allowances for trial judges and solicitors of certain courts of Georgia, and their survivors and other beneficiaries.
13S

- - - - - - - State of Georgta--------
Primarv Government -Pension TrllSt Fmds
Combining Statement of Plan Net Assets June 30, 1997

Assets
Cash and Cash Equivalents Investments Receivables (Net ofAllowances
for Uncollectibles) Interest and Dividends Other
Miscellaneous Prepaid Items
Total Assets
Liabilities
Accounts Payable and Other Accruals SalarieslWithholdings Payable Due to Other Funds
Total Liabilities
Fund Balances Reserved for Pension Benefits

Defined Contribution
Plan

District Attorneys Retirement
Fund

District Attorneys Retirement
System

Employees' Retirement
System

Legislative Retirement
System

$

77,000 $

20,186,000

306,000 1,006,000

$ 21,575,000 $

3,000 $

25,000 $

2,939,866 $

25,257,000

9,179,587,000

20,000 22,729,000

46,000

87,393,000
26,511,000 14,014

32,000

3,000 $

25,328,000 $ 9,296,444,880 $

22,781,000

$

1,000 $

$

1,000 $

$ 21,574,000 $

3,000 $ 3,000 $

65,000 $ 65,000 $

5,344,886 $ 20,110
682,670
6,047,666 $

10,000 25,000 35,000

0$

25,263,000 $ 9,290,397,214 $

22,746,000

136

Superior Court Judges Retirement
Fund

Superior Court Judges Retirement
System

Trial Judges and Solicitors
Retirement Fund

Total

$

44,000 $

52,000 $

104,000 $

3,264,866

1,259,000

93,455,000

44,203,000

9,386,676,000

2,000

241,000

215,000

87,699,000
28,053,000 14,014

$

1,305,000 $

93,748,000 $

44,522,000 $ 9,505,706,880

$

37,000 $

41,000 $

$

37,000 $

41,000 $

6,000 $ 6,000 $

5,507,886 20,110
707,670
6,235,666

$

1,268,000 $

93,707,000 $

44,516,000 $ 9,499,471,214

137

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- - - - - - - - - State of GeorfJia - - - - - - - - -
PrimarY Government - Agencv Funds
For the Fiscal Year Ended June 30, 1997
Agency Funds report those assets for which the State acts solely in a custodial capacity. The State's major agency funds are described below:
Agriculture, Department of The Agricultural Commodity Commissions account for assessments levied on producers and handlers of various commodities. These funds are disbursed upon approval and request of the commodity commissions to promote the production, marketing, sale, utilization, processing, research and improvement of agricultural products in Georgia.
Corrections, Department of Detainees' Accounts are held for the detainees of statewide probation offices, correctional institutions, diversion centers, detention centers, transitional centers and boot camps for the purpose of paying court ordered fines, fees and restitutions and for operating recreational activities for detainees.
Human Resources, Department of The Child Support Recovery Program accounts for the collection of court ordered child support or child support amounts due as determined in conformity with the Social Security Act. Amounts collected are distributed and deposited in conformity with state law and the standards prescribed in the Social Security Act. Non-Centralized Agency Funds account for donations, vending machine proceeds, client funds and fund raising projects at hospitals, development centers, group homes and other Department of Human Resources sites around the State.
Insurance, Department of Receiverships are held to pay claims and expenses against out-of-state defunct insurance companies.
Medical Assistance, Department of The Medicaid Special Holding Account consists of refunds and recoveries made on specific claims for which disposition has not yet been determined.
Merit System ofPersonnel Administration, State Personnel Board The Deferred Compensation Program accounts for participant earnings deferred in accordance with Internal Revenue Code Section 457.
139

- - - - - - - - State of GeorfJia - - - - - - - -
PrimarY Government - Agencv Funds
For the FISCal Year Ended June 30, 1997
Merit System of Personnel Administration, State Personnel Board The Flexible Benefits Program accounts for participant payroll deductions for benefits and spending accounts; disbursements are made to insurance companies for premiums and to participants for spending account reimbursements.
Public Service Commission The Universal Access Fund was established to assure the provision of reasonably priced access to basic local exchange services throughout Georgia. All telecommunications companies providing telecommunications services within Georgia contribute to this fund. Distributions are made to providers of basic local exchange services upon application and demonstration that the reasonable costs to provide such service exceed the maximum fixed price permitted.
Revenue, Department of The Real Estate Transfer Tax fund is used to collect real estate transfer taxes on behalf of county governments and to remit the taxes back to the counties.
Treasury and Fiscal Services, Office of The Local Government Investment Pool was established to enable local governments to voluntarily invest any idle local moneys. The sources of this fund are local government investment deposits and their share of the investment earnings ofthe fund; deductions occur as withdrawals are requested by local governments. Local Option Sales Tax Collections accounts for the collection and disbursement of local option sales taxes on behalf of county and municipal governments. Special Purpose Tax Collections accounts for the collection and disbursement of special purpose sales taxes on behalf of county and municipal governments.
140

- - - - - - - - - State of Georgia - - - - - - - - -
PrimarY Government - Agencv Funds
Combining Statement of Changes in Assets and Uabifities For the FISCal Year Ended June 30, 1997

Agriculture, Department of
Agricultural Commodity Commissions Assets Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Corrections, Department of
Detainees' Accounts Assets
Cash and Cash Equivalents
Liabilities Funds Held for Others
Human Resources, Department of
Child Support Recovery Program Assets
Cash and Cash Equivalents
Liabilities Funds Held for Others
Non-Centralized Agency Funds Assets
Cash and Cash Equivalents Investments Receivables
Other Total Assets
Liabilities Funds Held for Others

Balance July 1, 1996

Additions

Deletions

Balance June30,1997

$

910,871 $

6,864,949 $

5,208,003 $

2,567,817

2,602,189

1,221,788

2,002,189

1,821,788

$

3,513,060 $

8,086,737 $

7,210,192 $

4,389,605

$

3,513,060 $

5,322,760 $

4,446,215 $

4,389,605

$

26,067,148 $

101,880,694 $

101,435,409 $

26,512,433

$

26,067,148 $

101,880,694 $

101,435,409 $

26,512,433

$

15,041,579 $

330,933,095 $

339,230,068 $

6,744,606

$

15,041,579 $

330,933,095. $

339,230,068 $

6,744,606

$

5,455,210 $

16,268,560 $

17,034,457 $

4,281,687

703,998

1,679,740

319,396

54,101

324,803

$

10,056,293 $

17,026,659 $

19,039,000 $

4,689,313 3,305,945
48,694 8,043,952 .

$

10,056,293 $

17,026,659 $

19,039,000 $

8,043,952 (continued)

141

- - - - - - - State of GeorfJia--------
PrimarY Government - Agencv Funds Combining Statement of Changes in Assets and Uabilities (continued)
For the FISCal Year Ended June 30, 1997

Balance July 1, 1996

Additions

Deletions

Balance June 30,1997

Insurance, Department of
Receiverships Assets
Cash and Cash Equivalents
Liabilities Funds Held for Others

$

1,640,224 $

$

1,640,224 $

33,713 $ 33,713 $

304,416 $ 304,416 $

1,369,521 1,369,521

Medical Assistance, Department of
Medicaid Special Holding Account Assets
Cash and Cash Equivalents Receivables
Other Total Assets
Liabilities Funds Held for Others

$

8,446,412 $

983,784,328 $

985,859,248 $

6,371,492

13,795,170

10,769,107

24,564,277

$

22,241,582 $ 994,553,435 $ 985,859,248 $

30,935,769

$

22,241,582 $

994,553,435 $

985,859,248 $

30,935,769

Merit System ofPersonnel Administration, State Personnel Board
Deferred Compensation Program Assets
Cash and Cash Equivalents Receivables
Other Deferred Compensation Plan Assets Total Assets
Liabilities Funds Held for Others
Flexible Benefits Program Assets
Cash and Cash Equivalents Receivables
Other Total Assets
Liabilities Funds Held for Others

$

1,627,919 $

110,125,184 $

109,872,621 $

1,880,482

88,608

287,136

274,269

101,475

251,402,084

226,247,160

163,442,437

314,206,807

$

253,118,611 $

336,659,480 $

273,589,327 $

316,188,764

$ 253,118,611 $

74,257,654 $

11,187,501 $ 316,188,764

$

6,750,529 $

53,283,689 $

51,132,244 $

8,901,974

29,175

259,525

179,997

108,703

$

6,779,704 $

53,543,214 $

51,312,241 $

9,010,677

$

6,779,704 $

2,230,973 $

-$

9,010,677

142

State of Georgia - - - - - - - -
PrimarY Government - Agency Funds Combining Statement of Changes in Assets and Uabmties
For the Rscal Year Ended June 30. 1997

Public Service Commission
Universal Access Fund Assets
Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Revenue, Department of
Real Estate Transfer Tax Assets
Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Treasury and Fiscal Services, Office of
Local Government Investment Pool Assets
Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Local Option Sales Tax Collections Assets
Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others

Balance July 1, 1996

Additions

Deletions

Balance June 30, 1997

$

0$

12,021,745 $

5,278,389 $

6,743,356

0

1,298,321

1,298,321

$

0$

13,320,066 $

5,278,389 $

8,041,677

$

0$

12,021,745 $

3,980,068 $

8,041,677

$

2,775,749 $

30,469,715 $

29,764,623 $

8,464,124

1,210,392

8,464,124

$

11,239,873 $

31,680,107 $

38,228,747 $

3,480,841 1,210,392 4,691,233

$

11,239,873 $

22,005,591 $

28,554,231 $

4,691,233

$ 362,331,054 $ 5,236,842,954 $ 4,069,090,012 $ 1,530,083,996

1,795,690,279

579,931,027

1,795,690,279

579,931,027

$ 2,158,021,333 $ 5,816,773,981 $ 5,864,780,291 $ 2,110,015,023

$ 2,158,021,333 $ 3,441,152,675 $ 3,489,158,985 $ 2,110,015,023

$

10,206,158 $

811,588,209 $

782,713,265 $

39,081,102

50,581,086

14,812,483

50,581,086

14,812,483

$

60,787,244 $

826,400,692 $

833,294,351 $

53,893,585

$

60,787,244 $

761,007,123 $

767,900,782 $

53,893,585

(continued)

143

- - - - - - - State of Georgia-------
Primarv Government - Agencv Fmds
Combining Statement of Changes in Assets and UabiliNes (continued) For the Hscal Year Ended Jme 30, 1997

Treasury and Fiscal Services, Office of
Special Purpose Tax Collections Assets
Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Various Agencies and Departments
Other Agency Funds Assets
Cash and Cash Equivalents Investments Receivables
Intergovernmental- Federal Other Other Assets Total Assets
Liabilities Funds Held for Others Advances from Other Funds Total Liabilities

Balance July 1, 1996

Additions

Deletions

Balance June30,1997

$

7,185,971 $

598,811,328 $

572,765,815 $

33,231,484

35,613,226

12,595,367

35,613,226

12,595,367

$

42,799,197 $

611,406,695 $

608,379,041 $

45,826,851

$

42,799,197 $

563,198,102 $

560,170,448 $

45,826,851

$

7,744,284 $

397,939,439 $

386,818,990 $

18,864,733

9,583,307

10,677,775

10,892,781

9,368,301

352,163

527,324

350,847

528,640

1,773,908

7,329,819

6,590,493

2,513,234

0

139,913

139,913

$

19,453,662 $

416,614,270 $

404,653,111 $

31,414,821

$

19,446,737 $

381,795,534 $

369,834,375 $

31,407,896

6,925

6,925

$

19,453,662 $

381,795,534 $

369,834,375 $

31,414,821

144

-----Wrimar! Government - - - - -
Co[[eBe and C(Iniversit! 07unds

(This page iltentionallv left blanR)

- - - - - - - - - State of GeorfJia - - - - - - - - -
PrimarY Government -College and University Funds For the FISCal Year Ended June 30, 1997
Current Funds account for resources that the Institutions may use for any purpose in carrying out their primary objectives.
Unrestricted Current Funds account for economic resources that are fully controlled by the Institutions and are used in the performance of their primary functions. Restricted Current Funds account for externally restricted funds which may be utilized only in accordance with the purposes established by their source. Loan Funds account for resources which have been made available for financial loans to students. Endowment and Similar Funds account for assets that are subject to restrictions of gift instruments. Plant Funds account for transactions involving physical properties of the Institutions. Unexpended Plant Funds account for financial resources utilized to acquire or to construct physical properties. Renewals and Replacements Funds account for resources set aside for the renewal and replacement of physical properties. Investment in Plant Funds disclose amounts representing the book value of all physical properties owned. Agency Funds account for resources held by Institutions as custodians or fiscal agents for individual students, faculty, staff members and organizations.
147

- - - - - - - State or GeorfJia--------
Primarv Government - College and University Fmds
Combining Balance Sheet
Jme 30. 1997

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles)
Intergovernmental- Federal Interest and Dividends Notes and Loans Other Due from Other Funds Inventories Prepaid Items Fixed Assets Land Buildings Improvements Other Than Buildings Equipment Construction in Progress
Total Assets
Liabilities and Fund Equity
Liabilities: Accounts Payable and Other Accruals Compensated Absences Payable SalarieslWithholdings Payable Benefits Payable Due to Other Funds Deferred Revenue Capital Leases Payable Funds Held for Others Other Liabilities Deposits and Overpayments Long-Term Debt Payable Revenue Bonds Payable
Total Liabilities
Fund Equity: U. S. Government Grants Refundable Institutional Loans - Restricted Institutional Loans - Unrestricted Endowment Term Endowment Quasi-Endowment - Unrestricted Quasi-Endowment - Restricted Net Investment in Plant Restricted Unrestricted
Total Fund Equity
Total Liabilities and Fund Equity

Current Funds

Unrestricted

Restricted

Loan Funds

Endowment and Similar
Funds

$ 240,145,607 $ 51,293,942
1,147,810
108,423,243 13,907,207 26,826,099 5,763,710

16,399,958 $ 1,203,563 42,645,788
35,501,488
456,273

10,411,631 $ 12,558
46,110 47,827,953
8,729 1,173,278

41,063,193 40,693,976
15,365 1,160

$ 447,507,618 $

96,207,070 $

59,480,259 $

81,773,694

$ 131,725,131 $ 85,559,352 5,023,207 20,900,000 7,040,882 71,566,348

721,975 $ 14,882,123
25,340,971

70,868 1,707,821

$ 28,117

34,419

$ 323,593,609 $

40,945,069 $

28,117 $

34,419

$

$

123,914,009 $ 123,914,009 $

$
55,262,001 55,262,001 $

47,284,688 $ 12,161,558
5,896
59,452,142 $

67,121,309 2,209,515 6,283,538 6,124,913
81,739,275

$ 447,507,618 $

96,207,070 $

59,480,259 $

81,773,694

148

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Agency Funds

Total Before Eliminations

Eliminations

Total (Memorandum
Only)

$

96,801,950 $

32,077,463 $

1,623,876

1,067,557

$

36,693,437 $ 473,593,239 $

5,902,965

10 1,798,437

$

473,593,239

101,798,437

5,113,257 4,626,920
2,958,842

73,008 5,416,706

846,046
1,231,850 5,832,374

44,639,644 46,110
47,843,318 150,351,575 30,957,645 26,826,099
9,178,825

(30,957,645)

44,639,644 46,110
47,843,318 150,351,575
0 26,826,099
9,178,825

89,981,364 2,391,641,684
160,263,555 1,445,741,492
146,943,998

89,981,364 2,391,641,684
160,263,555 1,445,741,492
146,943,998

89,981,364 2,391,641,684
160,263,555 1,445,741,492
146,943,998

$ 111,124,845 $

38,634,734 $ 4,234,572,093 $

50,506,672 $ 5,119,806,985 $ (30,957,645) $ 5,088,849,340

$

72,016,426 $

22,167

707

396,350

1,287

14,000

$

72,450,937 $

5,644,975 $ 5,644,975 $

$
10,940,762 41,128
10,981,890 $

29,812,196 $ 1,732,803
18,961,673
50,506,672 $

239,920,703 $ 100,463,642
5,023,914 20,900,000 34,573,542 71,566,348 10,940,762 18,961,673
113,283 1,707,821
14,000
504,185,688 $

$ (30,957,645)
(30,957,645) $

239,920,703 100,463,642
5,023,914 20,900,000
3,615,897 71,566,348 10,940,762 18,961,673
113,283 1,707,821
14,000
473,228,043

$

$

$

$

311,883 38,362,025

32,989,759

4,223,590,203

$

38,673,908 $

32,989,759 $ 4,223,590,203 $

$

47,284,688 $

12,161,558

5,896

67,121,309

2,209,515

6,283,538

6,124,913

4,223,590,203

55,573,884

195,265,793

0 $ 4,615,621,297 $

$

47,284,688

12,161,558

5,896

67,121,309

2,209,515

6,283,538

6,124,913

4,223,590,203

55,573,884

195,265,793

0 $ 4,615,621,297

$ 111,124,845 $

38,634,734 $ 4,234,572,093 $

50,506,672 $ 5,119,806,985 $ (30,957,645) $ 5,088,849,340

149

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- - - - - Wrimar! Government - - - - -
Genera[ 07ixed AssetsAccount Group

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- - - - - - - - State of GeorfJia - - - - - - - -
PrimarY Government - General FIXed Assets Account Group
For the FISCal Year Ended June 30, 1997
The General Fixed Assets Account Group is used to account for fixed assets acquired or constructed for use by the State for general governmental purposes. These include all Primary Government fixed assets, except those accounted for in the Proprietary, Nonexpendable Trust, Pension Trust, and College and University funds.
153

--------- State of Geot'sia---------
Schedule of General FIXed Assets BvFundion June 30, 1997

Function
General Government Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay

Land and Buildings

hnprovements Other Than Buildings

Equipment

Total

$

333,074,203 $

246,359,822

141,539,241

703,781,008 76,153,305 165,143,471 5,567,544 184,485,018

$ 389,573

47,807,967 $ 158,861,779 146,559,173 177,442,654 159,741,985 32,917,039 64,443,021 62,973,644

380,882,170 405,221,601 288,098,414 177,442,654 863,522,993 109,070,344 229,976,065
68,541,188 184,485,018

Total General Fixed Assets

$ 1,856,103,612 $

389,573 $

850,747,262 $ 2,707,240,447

154

State of Georgia - - - - - - -
Schedule of Changes in General Fixed Assets BvFundion
For the FISCal Year Ended June 30, 1997

Function
General Government Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay

General Fixed Assets July 1,1996

Additions

Deletions

Retroactive Restatement ofPrior Year
Balance

General Fixed Assets June 30, 1997

S

353,117,247 S

332,629,636

258,815,464

168,100,484

804,636,048

107,218,561

225,374,246

66,834,573

233,791,591

S

2,550,517,850 S

31,211,949 S 92,179,881 40,543,664 17,786,334 72,482,455 3,485,640
8,289,449 3,199,368 4,399,772
273,578,512 S

3,447,026 S 23,972,756 11,260,714
8,444,164 13,595,510
1,633,857 3,687,630 1,492,753 53,706,345
121,240,755 S

S 4,384,840

380,882, 170 405,221,601 288,098,414 177,442,654 863,522,993 109,070,344 229,976,065
68,541,188 184,485,018

4,384,840 S

2, 707,240,447

155

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- - - - - - Component CUnits - - - - - -
cr Governmen1a[ O:-umf !pes

(This page iltcnNonal1v left blank)

- - - - - - - - - - State of Georgia - - - - - - - - - -
Component Units - Governmental Fund Tvpes For the FIscal Year Ended June 30, 1997
Georgia Education Authority (Schools) is responsible for construction and financing of buildings and facilities for the State board and local boards of education. Georgia Public Telecommunications Commission is responsible for providing public telecommunications services statewide to meet the needs of the public in Georgia.
159

- - - - - - - - State of GeorfJia - - - - - - - -
Component Units - Governmental FLIf\d Tvpes Combining Balance Sheet Jmc30,1997

Assets and Other Debits
Assets: Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Notes and Loans Other Inventories Prepaid Items Fixed Assets Land and Buildings Equipment Other Debits: Amounts to be Provided for Retirement of General Long-Term Debt
Total Assets and Other Debits
Liabilities, FlUld Balances and Other Credits
Liabilities: Accounts Payable and Other Accruals Compensated Absences Payable
Salme~ithhcldi~sPay~re
Due to Primary Government Deferred Revenue Capital Leases/Installment Purchases Payable
Total Liabilities
Fund Balances and Other Credits: Other Credits: Investment in Fixed Assets
Fund Balances: Unreserved, Undesignated
Total Fund Balances and Other Credits
Total Liabilities, Fund Balances and Other Credits

Georgia Education Authority (Schools)

Georgia Public Telecommunications Commission

Total

$

412,514 $

1,741,225 $

2,153,739

156,328

118,463

274,791

102,219 2,859,426
164,256 233,819

102,219 2,859,426
164,256 233,819

26,924,094 46,982,503

26,924,094 46,982,503

6,069,631

6,069,631

$

568,842 $

85,195,636 $

85,764,478

$

$

4,318,785 $

4,318,785

969,319

969,319

36,317

36,317

328,877

328,877

635,000

635,000

5,100,312

5,100,312

$

0$

11,388,610 $

11,388,610

$

-$

73,906,597 $

73,906,597

$

568,842 $

(99,571) $

469,271

$

568,842 $

73,807,026 $

74,375,868

$

568,842 $

85,195,636 $

85,764,478

160

- - - - - - - - State of Georgia--------
Component Units - Governmental Fund Tvpes Combining Statement of Revenues. Expenditures and
Changes in Fund Balances For the Hscal Year Ended June 30. 1997

Revenues: Intergovernmental Federal Sales and Services Interest and Other Investment Income Rents and Royalties Contributions and Donations Other
Total Revenues
Expenditures: Culture and Recreation
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources: Operating Transfers from Primary Government
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures
Fund Balances, July 1 Adjustments Inclusion ofFoundation for Public Broadcasting in Georgia, Inc.

Georgia Education Authority (Schools)

Georgia Public Telecommunications Commission

Total

$

$

29,655

$

29,655 $ --....;...;:---"---

$

--.;;0_ $

33,033,963 $ _-:;3...:.;3,:..;.;03:..;;,3.;;;.,9.:.,:63:.-.

$

2_9,'-6_55_$

(17,552,633) $ _--->.(;;...17-'-,5_22-',;;...97_8.<..)

$

0_$

16,326,489 $

16-,-,3_2-,6,_48;;...9_

$

29,655 $

(1,226,144) $

(1,196,489)

539,187

147,144

686,331

979,429

979,429

Fund Balances, June 30

$

568,842 $ ===(=9=9,=57=1:.) $ ===4=6:::::9,=27=1=

161

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- - - - - Component CUnits - - - - - -
Wroprietar! ~umf 6>~pes

(This page i1tmtionallv left blanR)

- - - - - - - State of G e o r f J i a - - - - - - -
Component UI1its - ProprietarY Fmd Tvpes For the FISCal Year Ended June 30, 1997
Proprietary Funds are used to account for business-type activities. The State's major proprietary funds are described below:
The Development Authority assists agricultural and industrial interests in starting and expanding their operations by providing credit and servicing functions necessary to enable farmers and businessmen to obtain capital funds.
The Environmental Facilities Authority provides funding to eligible municipalities, counties and water and sewer authorities in the State for construction and expansion of public water and sewer facilities.
The Housing and Finance Authority assists in providing housing for low and moderate income families and persons unable to find adequate dwellings through the purchase or origination of mortgage loans. The authority also provides financing for the acquisition and construction of hospital facilities and equipment.
The Lake Lanier Islands Development Authority is responsible for the development, operation and maintenance of the islands in Lake Lanier for recreational purposes.
The Lottery Corporation is responsible for the provision of lotteries on behalf ofthe State.
The Ports Authority operates deepwater and inland barge terminals offering loading and off-loading facilities, storage warehouses and cargo transfer facilities. The authority also develops industrial sites on and adjacent to each port facility and makes these sites available to private industry.
The Stone Mountain Memorial Association operates Stone Mountain and the surrounding area as a Confederate memorial and a public recreation area.
The Student Finance Authority provides educational scholarships, grants and loan assistance to help Georgia residents obtain a higher education or other postsecondary training.
The Tollway Authority provides financing for the construction of toll highways and bridges in the State.
The World Congress Center Authority operates the World Congress Center, a comprehensive international trade and convention meeting facility providing exhibit space to handle large numbers of trade displays, and the Georgia Dome. The authority promotes trade shows, conventions, tourism and sporting events within the State.
The Other Entities column is an accumulation of the proprietary funds that are not individually material to the total assets presented on the proprietary fund type balance sheet. The State's other proprietary funds are described below:
The Agricultural Exposition Authority operates a facility at Perry, Georgia, where the agricultural community can exhibit and promote products and livestock, and where other public events may be held.
The Agrirama Development Authority operates and maintains an agricultural museum and restoration complex at Tifton, Georgia.
165

- - - - - - - - State of GeorfJia - - - - - - - -
Component Units -ProprietarY Fmd Tvpcs
For the FISCal Year Ended June 30, 1997

The Higher Education Assistance Corporation is responsible for the implementation of a guaranteed educational loan program within the State.

The Highway Authority administers a program for financing State roads and highways.

The Jekyll Island State Park Authority is responsible for developing and maintaining Jekyll Island and the adjacent marshes and marsh islands along the Atlantic coast in Glynn County, Georgia.

The Georgia International and Maritime Trade Center Authority was created to develop and promote the growth of the State's import and export markets through its ports and other transportation modes.

The Music Hall of Fame Authority was created to construct, operate and manage a facility to house the Georgia Music Hall of Fame.

The North Georgia Mountains Authority was created to acquire, build, equip, maintain, operate and promote recreation, accommodations and tourist facilities and services in the North Georgia Mountains area.

The Rail Passenger Authority was created for the purpose of construction, financing, operation and

development of rail passenger service and other public transportation projects within and without the State

of Georgia.

.

.

The Sapelo Island Heritage Authority was created to preserve the cultural and historic values of the Hog Hammock community on Greater Sapelo Island in McIntosh County, Georgia.

The Seed Development Commission receives and serves as an agent for breeders' seeds and other parent material. The commission also purchases, processes and resells breeders' and foundation seeds.

The Sports Hall of Fame Authority was created to construct and maintain a facility to house the Georgia Sports Hall of Fame to honor those, living or deceased, who by achievement or service have made outstanding and lasting contributions to sports and athletics in this State or elsewhere.

The Superior Court Clerks' Cooperative Authority was created to provide a cooperative for the development, acquisition and distribution of record management systems, information, services, supplies and materials for superior court clerks ofthe State.

166

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State of GeorfJia - - - - - - -
Component Units - ProprietarY Fund Tvpes Combining Balance Sheet June 30, 1997

Assets
Current Assets: Cash and Cash EquiVlllents Receivables (Net ofAllowances for Uncollectibles) Intergovernmental - Federal Interest and Dividends Other
Accounts Miscellaneous Due from PrimaI)' Government Inventories Prepaid Items Long-Term Assets: Investments Receivables Notes and Loans Restricted Assets Cash and Cash EquiVlllents Investments Receivables Interest and Dividends Loans Deferred Charges Fixed Assets: Land and Builcling$ Improvements Other Than Buildings Machinery and Equipment Accwnulated Depreciation Construction in Progress Other Assets
Total Assets
Liabilities and Fund Equity
Liabilities Current Liabilities: Cash Overdraft Accounts Payable and Other Accruals Compensated Absences Payable Contracts Payable SalarieslWithholdings Payable Due to PrimaI)' Government AcCIUed Interest Payable Deferred Revenue Long-Term Liabilities: Capital LeaseslInstallment Purchases Payable Mortgage Loans under Repurchase Agreements Funds Held for Others
Other Liabilities Deposits and Overpayments Advances from PrimaI)' Government Long-Term Debt Payable
(Net of Unamortized Discounts) Grand Prizes Payable Notes and Loans Payable Revenue Bonds Payable
Total Liabilities

Development Authority

Environmental Facilities Authority

Housing and Finance Authority

Lake Lanier Islands
Development Authority

Lottery Corporation

$

4,707,572 $ 150,656,445 $

8,166,598 $

2,698,575 $

2,368,978

90,538,480 3,759,980

497,931

942,320

15,464,993

44,893,000

1,393,024

8,101

29,534

2,372,000

160,319

53,270,676

43,025,720

5,216,219

76,346,518

416,723,887

50,179,369

124,097,677 65,388,151

287,000 234,417,000

140,752

6,295,000 581,124,003
12,871,088

6,411,880

1,962,000

270,903

1,083,806 (1,507,043)

9,391

10,744,000 (9,422,000)

80,144

6,094,598

5,079

4,244,000

$

83,583,387 $ 717,784,712 $ 903,728,778 $

18,207,572 $ 294,713,219

$

$

$

$

$

18,526,219

1,311,397

3,684,309

17,748,768

9,450,920

40,912,437

19,889

500,000

367 2,771,414 7,091,222

16,967 4,199,610 47,458,533

29,563

30,446,467

2,000,000

5,079

541,000

26,833,957

88,655,000

362,500 760,359,542

$

59,091,821 $ 102,202,312 $ 832,145,920 $

168

234,417,000 9,475,888 $ 294,426,219

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress
Center Authority

Other Entities

Total

$

5,206,070 $

12,595,835 398,731
2,457,812 633,748
1,328,058
2,953,212 1,119,324

5,612,415 $ 1,921,240

15,890,809 $
366,617 6,883,341
701,619

2,292,417 656,496

1,273,931 330,641,017

171,257,987 194,224,835 114,599,140 (1 n,964,489)
41,573,848 17,6n,480

173,244
87,045,525 22,020,461 25,481,3n (34,996,035)
425,286 356,908

4,067,835
944,861 (2,089,686)

9,124,263 $

15,744,750 $

8,892 91,541
2,011 9,184,373

538
4,808,218 3,000,000
248,240 219,835
39,510

2,580,981 16,873,484
4,904,480 2,710,490 4,153,222 (4,156,060)
460,191 62,731,528

4,184,543 52,245,293
563,741
3,269,916
209,402,736
11,194,149 (36,138,594) 61,098,965

35,834,961 $ 253,642,458

2,200,972 72,197

93,106,069 13,591,857

1,924,019 2,137
434,782 70,096

83,342,785 3,400,868 1,393,024 5,433,251 3,991,821

8,110,916

121,609,722

873,890,791

134,103,413 370,043,252

6,858,741 581,124,003
16,455,000

67,728,711
10,378,558 (20,108)
23,255,134 236,920

552,781,154 218,955,786 178,859,407 (266,294,015) 126,813,424
91,426,657

$

388,061,591 $

11 0,989,334 $ 358,680,344 $ 108,669,396 $

329,881,840 $

150,229,295 $ 3,464,529,468

$

$

$

$

$

$

$

18,526,219

3,933,223

3,444,407

435,202

1,080,668

4,205,228

2,480,073

88,686,632

1,016,591

1,071,587

586,612

2,694,679

1,909,296

258,897

304,068

2,472,261

401,930

79

136,782

538,791

52,590

67,540

10,399

5,598

183,024

997,551

2,937,358

7,659,539

1,310

18,566,782

783,465

1,537,782

1,788,376

21,037,911

855,268

81,052,557

27,397 2,518,143

281,615,443 3,094,363

110,460

63,713
14,765 683,287 15,090,900

35,000 48,814
161,250

126,110 30,446,467 281,684,101
8,836,793 15,201,360
161,250

8,714,309 20,800,000

$

40;156,944 $

35,575,262 4,441,958 $ 322,325,592 $

88,636,723 94,812,482 $

197,257,940 247,095,348 $

169

315,000

234,417,000 71,486,028
1,156,024,205

4,929,n5 $

2,011,104,259 (continued)

State of Geot'fJla - - - - - - -
Component Units - Proprietarv Fund Tvpes
Combining Balance Shed (continued) Jme 30, 1997

Fund Equity and Other Credits: Other Credits Investment in General Fixed Assets
Fund Equity Contributed Capital
State of Georgia Federal Government Other
Total Contributed Capital
Retained Earnings Reserved Unreserved
Total Retained Earnings
Fund Balan.ces Reserved for Other Specific Purposes Unreserved
Total Fund Balances
Total Fund Equity
Total Fund Equity and Other Credits
Total Liabilities, Fund Equity and Other Credits

Development Authority

Environmental Facilities Authority

Housing and Finance Authority

Lake Lanier Islands
Development Authority

Lottery COIporation

$

-$

270,903 $

-$

-$

$

$

207,463,633 $

$

23,007,859 $

283,015,975

$

0$

490,479,608 $

0$

23,007,859 $

$

4,632,575 $

2,510,812 $

22,581,833 $

-$

19,858,991

104,224,366

46,891,428

(14,276,175)

$

24,491,566 $

106,735,178 $

69,473,261 $

(14,276,175) $

0 287,000 287,000

$

$

10,542,581 $

772,276 $

7,554,130

1,337,321

$

0$

18,096,711 $

2,109,597 $

$

24,491,566 $

615,311,497 $

71,582,858 $

$

24,491,566 $

615,582,400 $

71,582,858 $

$
0$ 8,731,684 $ 8,731,684 $

0 287,000 287,000

$

83,583,387 $

717,784,712 $

903,728,778 $

18,207,572 $ 294,713,219

170

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress
Center Authority

Other Entities

Total

$

-$

-$

-$

-$

-$

-$

270,903

$ 223,147,849 $

45,171,435 $

$

$

$

78,238,037 $ 577,028,813

9,676,882

292,692,857

292,063

15,126,652

58,750,000

1,038,409

75,207,124

$ 233,116,794

60,298,087 $

0$

0$

58,750,000 $

79,276,446 $ 944,928,794

$ 114,787,853
$ 114,787,853 $

$ 46,249,289
46,249,289 $

25,386,512 $ 10,968,240
36,354,752 $

$ 13,856,914
13,856,914 $

111,209 $ 23,925,283
24,036,492 $

18,352,059 $ 47,671,015
66,023,074 $

73,862,000 414,157,204
488,019,204

$

$

$

$

0$

0$

$ 347,904,647 $ 106,547,376 $

$ 347,904,647 $ 106,547,376 $

$
0$ 36,354,752 $ 36,354,752 $

$
0$ 13,856,914 $ 13,856,914 $

$
0$ 82,786,492 $ 82,786,492 $

$

11,314,857

8,891,451

0$

20,206,308

145,299,520 $ 1,453,154,306

145,299,520 $ 1,453,425,209

$ 388,061,591 $ 110,989,334 $ 358,680,344 $ 108,669,396 $ 329,881,840 $ 150,229,295 $ 3,464,529,468

171

State of Georgia - - - - - - - -
Component lJr\its -Proprietarv Fund Tvpes
Combining Statement of Revenues. Expenses and Changes in Fund Equilv
For the FISCal Yea r Ended June 30. 1997
172

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress Center Authority

Other Entities

Total

$

$

$

86,305,610

18,781,335 23,1l9,869

730,827

$

86,305,610 $

42,632,031 $

$ 4,575,574
2,470,439 324,707
7,370,720 $

$ 16,847 19,976,661
19,993,508 $

$ 36,088,982 18,700,546
54,789,528 $

38,928 $
28,253,099 5,243,275
26,184,152 1,231,886
15,251,980

38,928 80,031,640 28,253,099 65,288,058 1,836,327,617
1,439,287 16,573,581

76,203,320 $ 2,027,952,210

$

19,407,283 $

38,556,207

15,306,746

$

73,270,236 $

$

13,035,374 $

30,648,189 $ 6,694,786

4,656,216 $ 33,170,879

5,600,620
42,943,595 $ (311,564) $

252,186 13,205,225
51,284,506 $
(43,913,786) $

2,673,697 $ 2,715,526
1,576,866 2,462,057 9,428,146 $ 10,565,362 $

19,1l3,272 $ 23,778,419
8,696,046
51,587,737 $ 3,201,791 $

31,347,505 $ 3,124,069
8,788 38,057,760

140,399,898 323,522,300
58,720,450 857,283,000
33,092,551 55,510,140

72,538,122 $ 1,468,528,339

3,665,198 $ 559,423,871

$

$

$

$

$

$

518,498 $

518,498

2,1l6,351

729,442

992,660

1,381,703

2,995,908

1,988,333

25,258,853

527,514

527,514

17,013,593

233,985

17,247,578

(8,391,376)

(1,391,679)

(1,293,543)

(5,922,451 )

(15,351,901 )

(1,332,084)

(35,232,947)

(1,557,152)

(514)

(3,003,122)

900,428

(173,000)

436,728

(36,874)

(634,042)

(355,867)

933,242

$

(5,374,597) $

(835,237) $

663,359 $

(4,577,622) $

2,466,406 $

1,052,351 $

6,249,616

$

7,660,777 $

(1,146,801) $ (43,250,427) $

5,987,740 $

5,668,197 $

4,717,549 $ 565,673,487

$

$

$

45,677,328 $

$

$

4,571,026 $

53,331,561

(1,401,130)

(583,039,856)

$

0$

0$

45,677,328 $

0$

(1,401,130) $

4,571,026 $ (529,708,295)

$

7,660,777 $

(1,146,801) $

2,426,901 $

5,987,740 $

4,267,067 $

9,288,575 $

35,965,192

334,844,483 15,926,446 (10,527,059)

91,881,181
2,225,401 15,126,652 (1,539,057) .

35,659,459 (1,731,608)

7,869,174

72,533,501
6,000,000 (14,076)

86,026 121,856,818
1,142,199 13,832,331
(942,981) 36,552

(4,263,322)
1,364,973,768
(1,731,608) (34,223,900) 56,792,235 28,615,928 21,126,652
(14,123,1l5) 22,476

$ 347,904,647 $ 106,547,376 $

36,354,752 $

13,856,914 $

82,786,492 $ H5,299,520 $ 1,453,154,306

173

- - - - - - - State of Georsta - - - - - - - -
Component Units - ProprietarY Fmd Tvpes Combining Statement of Cash Flows
For the Hscal Yea r Ended June 30, 1997

Cash Flows from Operating Activities: Cash Received from Customers Principal Payments Received on Program Loans Interest Received on Program Loans Cash Paid to Vendors Cash Paid to Employees Cash Paid for LotteI)' Prizes Origination ofProgram Loans Governmental and Fiduciary Fund Type Activity (Net) Other Operating Items (Net)
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Noncapital Financing Activities: Operating Transfers from PrimaIy Government Proceeds from Assignment ofProgram Loans Under Repurchase Agreements Issuance ofBondsILoans/Notes Contributed Capital HotellMotel Tax (Net) Operating Transfers to PrimaIy Government Repayment ofAdvances Principal Paid on BondslLoanslNotes Interest Paid on BondsILoanslNotes Return ofContributed Capital Other Debt Service Payments Other Noncapital Items (Net)
Net Cash Provided by (Used in) Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities: Issuance ofBondsILoanslNotes HotellMotel Tax Received Contributed Capital Sale of Capital Assets Acquisition and Construction of Capital Assets Principal Paid on BondsILoanslNotes Interest Paid on BondsILoanslNotes Other Debt Service Payments Other Capital and Related Items (Net)
Net Cash Provided by (Used in) Capital and Related Financing Activities
Cash Flows from Investing Activities: Purchase of Investments (Net) Interest on Investments Other Investing Items (Net)
Net Cash Provided by (Used in) Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1
Cash and Cash Equivalents, June 30

Development Authority

Environmental Facilities Authority

Housing and Finance Authority

Lake Lanier Islands
Development Authority

Lottery Corporation

$

$

$

4,382,776 $

18,155,744

29,687,942

57,650,949

4,201,736

16,086,529

45,563,588

(1,841,570)

(60,236)

(4,361,741)

(343,443)

(49,312)

(4,850,110)

(19,583,050)

(66,699,113) 8,719,827

(81,432,689) 379,945

2,343,702 $ 1,633,192,000

(4,972,555) (437,186)
(293,181)

(235,124,034) (13,842,000) (839,989,000)

$

589,417 $

(12,314,363) $

17,332,718 $

(3,359,220) $ 544,236,966

$

$

11,602,888 15,200,000

(23,249,661)

3,083,207 $

$

47,397,522

110,106,025

(495,131)

(87,196,798) (47,186,693)
(1,824,658)

$

(581,638,726)

(1,114,018) (1,942,238)

18,417,219

$

3,553,227 $

49,985,598 $

(26,102,124) $

(3,056,256) $ (563,221,507)

$

$

$

$

$

(3,670,000) (5,654,993)
(5,871)

(527,250)

(9,391) (1,549,913)

(847,000)

$

0$

(9,330,864) $

(527,250) $

(1,559,304) $

(847,000)

$

293,347 $

76,567,159 $

9,431,272 $

$

396,609

145,945

8,576,306

16,250,388

327,205

6,005,000

$

439,292 $

85,143,465 $

25,681,660 $

327,205 $

6,401,609

$

4,581,936 $

113,483,836 $

16,385,004 $

(7,647,575) $

(13,429,932)

125,636

37,172,609

115,879,271

10,346,150

13,716,932

$

4,707,572 $

150,656,445 $

132,264,275 $

2,698,575 $

287,000

174

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress
Center Authority

$

85,476,973 $

42,<175,077 $

2,589,414 $

20,215,128 $

69,819,585 $

(19,987,918) (36,828,085)

(21,565,000) (18,492,829)

4,396,762 (50,559,898)

(4,913,626) (1,522)

(40,803,471) (18,409,572)

(2,295,934) 511,328

2,350 234,000

$

28,660,970 $

2,917,248 $

(45,358,328) $

15,299,980 $

10,842,892 $

Other Entities

Total

76,511,608 $
(60,328,715) (10,844,626)
(41,286)

1,937,506,263 105,494,635 70,248,615 (444,518,764) (104,098,685) (839,989,000) (170,010,786) 9,278,983 234,000

5,296,981 $ 564,145,261

$

$

$

45,677,328 $

31,043,810

(10,527,059) 358,904

(1,539,057)

(25,739,360) (1,196,486)
436,728

$

$

4,571,026 $

53,331,561

3,147,496 (1,295,044)
(661,410)

186,541 (53,750)
(942,981) (1,407,916)

11,602,888 156,349,835 47,397,522
3,334,037 (582,933,770)
(53,750) (136,185,819) (48,383,179)
(14,123,115) (1,824,658) 14,706,156

$

(10,168,155) $

(1,539,057) $

50,222,020 $

0$

1,191,042 $

2,352,920 $ (496,782,292)

$

15,000,000 $

$

15,926,446 465,962
(39,318,295) (1,396,015) (8,587,035)

2,225,401 (17,469,207) (2,270,460)

156,250

$ (217,474)

$
(801,381) (3,505,000) (5,984,249)

$ 13,565,899 3,000,000
(7,364,563) (1,500,000) (15,369,039) (1,418,419)
(177,363)

$
3,474,758
(1,263,536) (60,000)
(1,332,403) (514)

15,000,000 13,565,899 24,626,605
465,962 (67,818,097) (10,131,015) (40,748,092)
(1,424,804) (21,113)

(17,752,687) $

(17,514,266) $

(217,474) $

(10,290,630) $

(9,263,485) $

818,305 $

(66,484,655)

969,043 $ 1,982,630
2,951,673 $ 3,691,801 $ 4,467,481

$ 729,442 (26,648)
702,794 $
(15,433,281) $
21,045,696

(417,521) $ 1,010,305
592,784 $ 5,239,002 $ 10,651,807

(2,571,203) $ 1,381,508

(11,209,714) $ 2,497,276

(1,189,695) $ 3,819,655 $ 7,885,589

(8,712,438) $ (5,941,989) $ 25,871,282

6,248,729 $ 1,987,000
8,235,729 $ 16,703,935 $ 19,131,026

79,707,721 40,893,005
(26,648)
120,574,078
121,452,392
266,293,479

8,159,282 $

5,612,415 $

15,890,809 $

11,705,244 $

19,929,293 $

175

35,834,961 $

387,745,871 (continued)

State of Georgia - - - - - - -
Component Units - ProprietarY Fund Tvpcs Combining Statement of Cash Flows (conNnued)
For the FISCal Yea r Ended June 30, 1997

Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities: Depreciation/Amortization Interest Other Changes in Assets and Liabilities:
Decrease (Increase) in Intergovenunental Receivables Decrease (Increase) in Interest and Dividends Receivable Increase in Notes and Loans Receivable Decrease (Increase) in Other Receivables Decrease (Increase) in Inventories Decrease (Increase) in Prepaid Items Decrease in Deferred ChaIges Decrease (Increase) in Other Assets Increase (Decrease) in Accounts Payable and Other Accruals Increase (Decrease) in Compensated Absences Payable Increase (Decreaes) in Contracts Payable Increase (Decrease) in SalarieslWithholdings Payable Increase (Decrease) in Due to PrimaIy Government Increase (Decrease) in Deferred Revenue Increase (Decrease) in Funds Held for Others Increase (Decrease) in Other Liabilities Increase (Decrease) in Deposits and Ovetpayments Increase in Grand. Prizes Payable
Total Adjustments
Net Cash Provided by (Used in) Operating Activities
Noncash Investing, Capital, and Financing Activities: Disposal ofFixed Assets Donation ofFixed Assets Interest Earned on Grand Prize Investments and
Grand Prizes Payable

Development Authority

Environmental Facilities Authority

Housing and Finance Authority

Lake Lanier Islands
Development Authority

Lottery COIporation

$

2,055,839 $

2,438,064 $

4,298,822 $

1,971,045 $ 562,417,726

$

$

$

(196,502) $

5,542,826

35,346,301

15,939,675

522,884

$

1,077,000

(16,343,000)

(1,162,214) (1,427,306)

(763,681) (37,002,768)

(23,781,740)

1,123,322

10,054 (18,457) 665,866

(1,660,222) 2,789,409

(3,927,591) 326,839 118,538
2,202 (699,407)
(43,653)

(21,467,000)
(509,000)
1,172,000 (37,864,123)

(224)

874,058

13,766

(5,831)
(805,979) (295,383)

(1,637) (90,000)

55,845,000

$

(1,466,422) $

(14,752,427) $

13,033,896 $

(5,330,265) $

(18,180,760)

$

589,417 $

(12,314,363) $

17,332,718 $

(3,359,220) $ 544,236,966

$

$

$

$

$

16,343,000

$

0$

0$

0$

0$

16,343,000

176

Ports Authority

Stone Mowrtain Memorial Association

Student Finance Authority

Tollway Authority

World Congress Center Authority

$

13,035,374 $

(311,564) $

(43,913,786) $

10,565,362 $

3,201,791 $

Other Entities
3,665,198 $

Total 559,423,871

$

15,306,795 $

(1,667,383) (74,307) 32,137
605,182 370,582
85,816 580,827 112,297 40,086 233,564

$

15,625,596 $

5,600,620 $
343,046 (233,505) 129,927 (2,609,878)
(1,398)
3,228,812 $

252,186 $ 511,328 (366,617) (178,812) (2,295,934) (461,306)
(443,007)
(187,577) 362,442 1,362,755
(1,444,542) $

4,038,923 $
(45,353) 2,006
648,354 (176,216)
(69) 224,518
42,455 4,734,618 $

8,696,046 $
(1,661,791) 8,051
62,153
276,733 127,904
(55) (452) 451,762 2,350 (321,600)
7,641,101 $

8,788 $
86,026
1,276,602 25
(1,169,173) (108,290) (3,126)
22,309 1,195,325
(29,826) 228,572
78,965 (5,627) 178,525 (127,312)
1,631,783 $

34,783,856 40,889,127
716,913
909,985 (2,104,682) (64,507,748) (30,056,551)
(81,212) (167,365)
10,054 123,014 (34,546,824) 140,241 633,183 185,307 (143,063) 1,518,890 (420,345) 1,272,755 (279,145) 55,845,000
4,721,390

$

28,660,970 $

2,917,248 $

(45,358,328) $

15,299,980 $

10,842,892 $

5,296,981 $

564,145,261

$

$

$

$

(44,004) $

$

(381,319) $

(425,323)

15,126,652

36,103

6,542,667

21,705,422

16,343,000

$

0$

15,126,652 $

0$

(44,004) $

36,103 $

6,161,348 $

37,623,099

177

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- - - - - Component <Units - - - - -
~iduciar!~und CT!pes

(This page iltentlonallv left blank)

- - - - - - - - State of Geof'gia - - - - - - - -
Component Units - Rduciarv Fund Tvpes
For the FISCal Yea r Ended June 30, 1997
The Firemen's Pension Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the firemen of the State of Georgia. The Judges of the Probate Courts Retirement Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the judges ofthe Probate Courts of the State of Georgia. The Peace Officers' Annuity and Benefit Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the peace officers of the State of Georgia. The Public School Employees Retirement System is used to account for the accumulation of resources for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System. The Sheriffs' Retirement Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the sheriffs of the State of Georgia. The Superior Court Clerks' Retirement Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the Superior Court Clerks of the State of Georgia. The Teachers Retirement System is used to account for the accumulation of resources for the purpose of providing retirement allowances and other benefits for teachers and administrative personnel employed in the public schools and the University System of Georgia.
181 .

- - - - - - - - State of GeorfJia - - - - - - - -
Component Units - Rduciarv Fmd Tvpc.s
Combining Statement of Plan Net Assets June 30. 1997

Firemen's Pension
Fund

Judges ofthe Probate Courts
Retirement Fund

Peace Officers' Annuity and Benefit Fund

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for
Uncollectibles) Interest and Dividends Other Miscellaneous
Prepaid Items Fixed Assets
Land and Buildings Equipment
Total Assets
Liabilities
Accounts Payable and Other Accruals Salaries/Withholdings Payable Due to Primary Government
Total Liabilities

$

48,167 $

261,644,190

20,702 $ 30,793,275

1,771,747 214,754,374

2,455,668

297,232

2,280,888

132,909 116,344

$

264,397,278 $

9,189 31,120,398 $

310,296 92,866
219,210,171

$

$

$

$

0$

0$



Fund Balances Reserved for Pension Benefits $

264,397,278 $

31,120,398 $==2=19=,2=1=0,=17=1=

182

Public School Employees Retirement System

Sheriffs' Retirement
Fund

Superior Court Clerks'
Retirement Fund

Teachers Retirement
System

Total

$

131,000 $

578,396,000

55,739 $ 32,157,003

12,531 $

10,585 $

2,050,471

32,294,575

27,721,266,000

28,871,305,417

$ 578,527,000 $

238,802
16,662 32,468,206 $

223,757,000

229,029,590

176,832,155 39,650

176,832,155 39,650

15,459

443,205 250,520

32,322,565 $ 28,121,905,390 $ 29,279,951,008

$

228,000 $

$

228,000 $

$ 578,299,000 $

$

$

$- - - - - - $

1,622,697 $ 58,985 26,058

1,850,697 58,985 26,058

1,707,740 $

1,935,740

---~....<---

32,468,206 $

32,322,565 $ 28,120,197,650 $ 29,278,015,268

183

(This page intentionalIv lett blanR)

- - - - - - Statistica[ Section -------'---

- - - - - - - - State of Georgia - - - - - - - -
Statistical Section
Index

Table 1 Table 2 Table 3 Table 4 Table 5 Table 6
Table 7 Table 8 Table 9

Page

General Governmental Expenditures by Function

188

General Governmental Revenues by Source

190

State Tax Revenues by Source - All Governmental Fund Types

" 192

Principal Nongovernmental Employers

194

Computation ofLegal Debt Margin

;

195

Ratio ofAnnual Debt Service Expenditures for General Obligation Debt

to Total General Governmental Expenditures

195

Demographic Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 196

Schedule of Bank Deposits

196

Miscellaneous Statistics

197

187

- - - - - - - State of GeorfJia-------
General Governmental Expenditures bv Fmctiol1 (I) For the Last Seven FISCal Years (2)
Table I

Expenditures by Function
General Government Education (4) Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay Debt Service Intergovernmental

1997

1996

1995

1994

$

637,247,287 $

471,240,748 $

539,762,518 $

409,630,033

5,700,389,994

4,998,994,142

4,625,591,699

4,168,677,500

6,796,847,561

6,558,077,298

5,693,088,331

5,257,989,665

1,113,788,591

1,287,172,005

1,401,010,780

975,771,056

1,124,542,047

1,104,443,315

1,030,957,652

891,8?4,168

263,090,507

294,112,317

190,029,084

175,i59,029

170,667,100

169,961,642

156,234,675

121,413,898

48,769,799

46,557,857

45,875,856

45,299,326

373,677,146

391,876,879

493,326,267

325,340,789

629,588,332

571,524,445

537,800,975

427,689,905

(3)

(3)

(3)

(3)

Total General Governmental Expenditures $ 16,858,608,364 $ 15,893,960,648 $ 14,713,677,837 $ 12,798,865,369

(1) General Governmental Functions include general, special revenue, capital projects and debt service funds.
(2) The state did not prepare financial statements in conformity with generally accepted accounting principles until the fiscal year ended June 30, 1991. Comparable data for earlier years is not available.
(3) The "Intergovernmental" expencli.tUre category was eliminated in 1993. Such expenditures are categorized by "Current" expenditure function.
(4) In fiscal year 1995, the state began recording a liability and related expenditures for teachers' summer salaries.

188

1993

1992

1991

$

380,920,519 $

297,671,885 $

307,358,275

3,738,241,752

3,356,647,585

3,429,066,240

4,684,027,431

4,159,170,527

3,589,402,101

1,088,108,187

898,101,022

1,056,209,827

798,451,763

702,543,743

706,878,373

184,179,867

186,742,307

173,618,821

116,370,238

103,007,704

97,930,563

42,923,710

40,267,999

43,968,291

347,403,119

249,777,992

242,582,555

451,136,869

409,267,811

417,490,455

(3)

325,890,492

330,633,230

$ 11,831,763,455 $ 10,729,089,067 $ 10,395,138,731

189

- - - - - - - - State of Georgia - - - - - - - -
Grneral Governmrntal Revrnucs bv Source (I)
For the Last Seven FISCal Years (2) Tcble2

Revenues by Source
Taxes (4) Licenses and Permits Intergovernmental Sales and Services Fines and Forfeits Interest and Other Investment Income Rents and Royalties Contributions and Donations Penalties and Interest on Taxes Unclaimed Property General Obligation Bond Proceeds Other Revenue (3)
Total General Governmental Revenues

1997

1996

1995

1994

$ 10,483,497,704 $ 351,181,927
5,549,805,877 513,909,314 50,426,165 239,306,741 9,992,943 190,841,985 6,699,639 20,118,021 373,248,075 32,522,511

9,891,126,837 $ 343,118,630
5,457,487,877 363,320,801 32,022,270 242,059,488 17,600,277 169,020,652 9,082,163 25,809,698 960,650,338 6,781,951

9,068,979,799 $ 335,061,015
4,837,628,972 339,380,452 34,043,976 184,686,971 17,733,647 170,464,588 8,282,630 19,815,272 727,775,339 24,833,072

8,337,801,3U 323,679,545
4,163,447,1ge
304,600,44~
32,570,07(
131,238,70~ 9,285,63~
149,621,15< 16,110,88:
19,935,47~
977,957,32l
121,670,49~

$ 17,821,550,902 $ 17,518,080,982 $ 15,768,685,733 $ 14,587,918,25j

(1) General Governmental Revenues include general, special revenue, capital projects and debt service funds and proceeds from the issuance of General Obligation bonds.
(2) The state did not prepare financial statements in conformity with generally accepted accounting principles until the fiscal year ended June 30, 1991. Comparable data for earlier years is not available.
(3) The increase in Other Revenue in Fiscal Year 1994 is primarily due to the recognition of revenue in the General Fund for Distance Learning and Telemedicine funds; these funds were reflected previously in Agency Funds as the Universal Service Fund.
(4) In fiscal year 1995, the state began accounting for certain tax revenues on the modified accrual basis.

190

1993

1992

1991

$ 7,761,536,952 $ 7,014,576,028 $ 6,913,824,337

273,530,522

156,555,971

142,682,174

4,024,383,231

3,481,785,992

3,059,490,557

273,321,290

284,191,405

254,698,693

27,968,839

26,684,051

23,819,450

122,575,976

113,224,780

138,668,503

22,275,341

25,757,175

18,912,013

103,743,601

95,966,335

39,881,852

18,888,188

17,936,355

19,715,782

34,611,896

11,798,133

10,972,108

356,333,042

667,655,288

612,441,613

6,437,851

9,936,790

19,964,620

13,025,606,729 $ 11,906,068,303 $ 11,255,071,702

191

- - - - - - - - State of Georgia--------
State Tax Revenues bv Source - All Governmental Fund Tvpes For the Last Ten Fl5Cal Years Table 3

Source:
Income General Sales Selective Sales
Motor Fuel Alcoholic Beverages Cigars/Cigarettes Insurance Premium Estate Property Corporation Net Worth Other
Total Tax Revenues - All Governmental Fund Types

1997

1996

1995

1994

$ 5,488,547,143 $ 4,964,393,724 $ 4,498,902,508 $ 4,102,592,850

4,062,494,318

3,954,442,920

3,651,583,790

3,361,513,613

387,418,653 124,667,603 76,391,777 204,744,512 60,295,856 35,630,751 24,185,794
19,121,297

391,550,566 121,702,379 91,248,012 196,508,650 66,538,071 33,091,530 21,511,434 50,139,551

379,119,386 114,681,538 86,176,720 187,190,136 73,607,282 31,106,689 25,338,172 21,273,578

365,243,573 110,633,761 83,186,371 162,867,502 87,808,192 29,969,838
18,830,421 15,155,197

(1) $ 10,483,497,704 $ 9,891,126,837 $ 9,068,979,799 $ 8,337,801,318

(1) In Fiscal Year 1995, the state began accounting for certain tax revenues on the modified accrual basis.
Sources: Fiscal Years 1988-1990 - Annual Audit Reports: Georgia Departments ofRevenue and Insurance Fiscal Years 1991-1997 - Georgia Comprehensive Annual Financial Report
Note: Governmental Fund Types are described in the Notes to the Financial Statements.

192

1993

1992

1991

1990

1989

1988

$ 3,850,571,615 $ 3,452,551,939 $ 3,355,808,517 $ 3,342,947,428 $ 3,250,782,776 $ 2,864,843,643

3,072,269,685

2,777,595,357

2,754,539,969

2,724,130,258

2,100,042,193

1,926,989,241

345,758,031 111,976,311 84,714,936 196,175,858 39,103,941 28,039,074
18,428,111 14,499,390

332,156,403 113,642,855 84,102,100 161,691,146 37,583,865 25,866,148
18,062,835 11,323,380

324,407,536 114,245,028 84,893,427 184,369,909 41,261,832 24,341,012
17,951,998 12,005,109

327,180,367 116,471,315 86,370,739 164,258,642 27,616,177 23,313,141
18,338,297 6,380,430

325,994,676 115,617,591 88,293,658 152,694,717 37,325,922 21,361,081
17,171,335 9,290,520

316,002,918 118,108,898 90,770,265 145,836,553 54,203,829
19,281,039 14,966,668 8,681,438

$ 7,761,536,952 $ 7,014,576,028 $ 6,913,824,337 $ 6,837,006,794 $ 6,118,574,469 $ 5,559,684,492

193

- - - - - - - - State of GeorfJia - - - - - - - -
Prindpal NOf1govemmmtal EmplovLrs June 30, 1997 Toole 4

Company
Wal-Mart Stores, Incorporated Delta Air Lines, Incorporated * Bell South Corporation * Promina Health System Shaw Industries, Incorporated * K-Mart Corporation First American Home Care of Georgia* AT&T Company The Southern Company/Georgia Power Company * Columbia Healthcare Corporation Emory System of Health Care* Winn Dixie Stores, Incorporated The Kroger Company Lockheed Martin Corporation NationsBank United Parcel Service * Georgia-Pacific Corporation * Publix Supermarkets, Incorporated Dayton HudsonITarget Stores SunTrust Banks, Incorporated Mohawk Industries * Cox Enterprises* Lucent Technologies Springs Industries General Motors Corporation Home Depot, Incorporated * National Service Industries, Incorporated * IBM Inc. Federated Department Stores Marriott Corporation RTM Restaurant Group Sears, Roebuck and Co Coca-Cola Co* Wachovia Corporation IC. Penney Company Bruno's, Incorporated
* Indicates Georgia Headquarters
Source: Georgia Department ofJndustry, Trade and Tourism, July, 1997
194

Number of Employees
37,500 22,860 16,500 16,500 16,000 15,300 15,000 14,472 12,400 12,000 10,800 11;565 10,500 10,100 10,000
9,500 9,300 9,000 8,600 7,745 7,600 7,000 6,600 6,310 6,174 6,091 6,000 5,900 5,744 5,700 5,250 5,200 5,150 5,100 5,100 5,000

- - - - - - - - - - State of GeorBia - - - - - - - - - -
Computalion of Legal Debt Margin June 30, 1997
TableS

Treasury Receipts - Fiscal Year Ended June 30, 1996 (1)

$ 11,166,835,592

Legal Debt Margin:
Highest Annual Commitments Permitted Under Constitutional Limitation (10% of above)

$ 1,116,683,559

Highest Total Annual Commitments in any Fiscal Year (Highest FY 1998) As a Percentage ofFY 1996 State Treasury Receipts As a Percentage of FY 1997 State Treasury Receipts

$ 585,184,681 5.24% 4.92%

(1) Includes Indigent Care Trust Fund Receipts and Lottery Proceeds

Source:

Georgia State Financing and Investment Commission

Ratio of AnnUal Debt SelVk::e Expmditurc.s For Gmerol Obflgation Debt to Total
Gmerol Oovemmmtal Expmditurc.s (I) For the Lost Sevm FIscal Years (2)
Twlc6

Fiscal Year

Principal

General Bonded Debt

Interest and Other

Total

Fiscal Charges

Debt Service

General Governmental Expenditures (1)

1997 1996 1995 1994 1993 1992 1991

$ 392,165,000 $ 352,300,000 350,385,000 246,840,000 258,548,346 243,921,646 274,980,000

236,835,498 $ 218,523,118 186,826,275 179,738,306 191,022,895 164,291,856 135,960,182

629,000,498 $ 570,823,118 537,211,275 426,578,306 449,571,241 408,213 ,502 410,940,182

16,858,608,364 15,893,960,648 14,713,677,837 12,798,865,369 11,831,763,455 10,729,089,067 10,395,138,731

(1) See Table 1, Total General Governmental Expenditures

(2) The state did not prepare fmancial statements in confonnity with generally accepted accounting principles until the fiscal year ended June 30, 1991. Comparable data for earlier years is not aVailable.

Source:

Georgia Comprehensive Annual Financial Report

195

Ratio ofDebt Service to General
Governmental Expenditures
3.73% 3.59% 3.65% 3.33% 3.80% 3.80% 3.95%

- - - - - - - - State of Georgia--------
Demographic Statlstics For the Last Ten Calendar Years
Table 7

Calendar Year
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988

Population
7,486,242 7,353,225 7,102,000 7,055,000 6,917,000 6,773,000 6,623,000 6,478,000 6,436,000 6,339,000

Per Capita Personal Income
24,061 22,709 21,278 20,251 19,278 18,549 17,364 17,045 16,223 15,305

Public School Enrollment
1,346,761 1,311,126 1,271,903 1,233,362 1,205,357 1,174,437 1,148,256 1,126,352 1,174,118 1,160,501

Unemployment Rate
4.50% 4.60% 4.90% 5.20% 5.80% 6.90% 5.00% 5.40% 5.50% 5.80%

Source:

Population - u. S. Department of Commerce, Bureau ofthe Census
Per Capita Income - U. S. Department of Commerce, Bureau ofEconomic Analysis Public School Enrollment - Georgia Department ofEducation
Note: Calculation Method for Public School Enrollment Changed in 1990 Unemployment Rate - Georgia Department ofLabor

Fiscal Year
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988

Schedule of Bank Deposits For the Last Ten Years (Dollars i\ Thousands) TroieB

Commercial Banks

$

42,235,312

91,933,990

66,895,898

62,065,439

60,063,284

55,066,858

52,295,306

49,912,986

46,175,163

42,497,706

Savings and Loan
Associations

$

4,798,940 $

4,640,878

5,107,013

5,285,489

5,180,763

10,659,544

13,140,105

13,406,430

14,402,867

14,079,461

Total Deposits
47,034,252 96,574,868 72,002,911 67,350,928 65,244,047 65,726,402 65,435,411 63,319,416 60,578,030 56,577,167

Source:

Federal Reserve Bank ofAtlanta

196

- - - - - - - - State of Georgia - - - - - - - -
Miscellaneous Statistics June 30, 1997 Table 9

Date Entered Union Form of Government Miles of State Highway Land Area

January 2, 1788 Legislative-Executive-Judicial
approximately 17,947 59,441 Square Miles

State Police Protection:

Number of Stations

48

Number of State Troopers

850

State Colleges and Universities: Number of Separate Institutions Number of Educators Number of Students

34 9,194 204,332

Recreation: Number of State Parks Number ofHistoric Sites Area of State Parks and Historic Sites

48 15 72,500 acres

Sources:

Facts About the States, 1989 - Kane, Anzovin, Podell Georgia Descriptions in Data, 1988 - Georgia Office of Planning and Budget State and Metropolitan Area Data Book, 1991 - U. S. Department of Commerce Georgia Department of Transportation Georgia Department of Public Safety Board of Regents ofthe University System. ofGeorgia Georgia Department ofNatural Resources

197

- - - - - - - - - State of Georgia---------
Notes to the Financial Statements June 30, 1997

Note 17. Retirement Systems (continued)
Contributions and Vesting Member contribution requirements are established by the Board of Trustees of the Teachers Retirement System. Employer contributions are established by statute and may be amended only by the General Assembly of the State of Georgia.
A) Members' Contributions: Members' contributions are calculated as five percent (5%) of the earnable compensation.
B) State ofGeorgia Contributions: Prior to January I, 1997, the employer's contribution is calculated as four percent (4%) of the earnable compensation. On and after January 1, 1997, the employer's contribution is an amount equal to the normal cost contribution determined by the Teachers' Retirement System Board of Trustees. Since January 1, 1997, that rate is seven and forty-two onehundredths percent (7.42%).
Amounts attributable to all plan contributions are fully vested and non-forfeitable.

Required Supplementary Information
Schedule ofFunding Progress (Thousands of Dollars)

DARS ERS LRS SCJRS TJSRF

Actuarial Valuation
Date

Actuarial Value of Plan Assets
(a)

Actuarial Accrued Liability
("AAL") Entry Age
(b)

Unfunded AAU(Funding
Excess) (b - a)

6/30/96 6/30/96 6/30/95 6/30/96 6/30/95

$

19,277 $

12,669 $

(6,608)

$ 6,140,080 $ 7,243,105 $ 1,103,025

$

13,137 $

13,860 $

723

$

72,642 $

50,753 $ (21,889)

$

25,925 $

21,953 $

(3,972)

Funded Ratio
(alb)

Annual Covered Payroll
(C)

Unfunded AAU(Funding
Excess) as a Percentage of
Covered Payroll (b - aVc)

152.2% $ 84.8% $ 94.8% $ 143.1% $ 118.1% $

3,737 1,968,714
2,186 13,294 5,991

(176.8)% 56.0% 33.1%
(164.7)% (66.3)%

Information is shown only for the plans and years available in accordance with the parameters ofGASB 25. Additional information will be added as data become available.
77

------....,-- State of Georgia - - - - - - -
Notes to the Flf1andal Statements June 30, 1997

Note 17. Retirement Systems (continued)
Schedule ofEmployer Contributions (Thousands of Dollars)

DARS ERS LRS SCJRS TJSRF

Year Ended June 30 1996 1996 1996 1996 1996

State Annual Required Contribution

$

271,342

$

164

$

472

Percentage Contributed
100.0% 100.0% 100.0% 100.0% 100.0%

Information is shown only for the plans and years available in accordance with the parameters ofGASB 25. Additional information will be added as data become available.

Notes to Required Supplementary Schedules

OARS

ERS

LRS

Actuarial Valuation Date

June 30, 1996

Actuarial Cost Method

Entry Age Normal

Amortization Method

Level payment, closed

Remaining Amortization Period

27 years

Asset Valuation Method

5-year smoothed market

Actuarial Assumptions: Investment Rate ofRetum 7.5%(3)

Projected Salary Increases 5.5% (3)

Post-Retirement Cost-ofLiving Adjustment

None

June 30,1996 Entry Age
Level percentage of pay, open
11 years 5-year smoothed market
7.5% (I) 5.7 - 9.5% (1)
None

June 30, 1995 Unit Credit
Level dol1ar, open
12 years 5-year smoothed market
7.5%(2) n/a
3% annually

SCJRS

TJSRF

June30, 1996 Entry Age Normal

June 30,1995 Entry Age

Level payment, closed

Level percentage of pay, open

27 years
5-year smoothed market

15 years
5-year smoothed market

7.5%(3) 5.5%(3)

7.5%(2) 6.0%(2)

None

None

(1) Includes inflation rate of 4.00% (2) Includes inflation rate of3.75% (3) Includes inflation rate of3.00%
78

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the Flnandal Statements June 30, 1997

Note 17. Retirement Systems (continued)
Significant Discretely Presented Component Units
Georgia Ports Authority Retirement Plan

As of June 30, 1997, participation in TRS is as follows:

Retirees and Beneficiaries Currently Receiving Benefits
Active Plan Members
Terminated Employees Entitled to Benefits but not yet Receiving Benefits

39,278 173,599

Plan Description

Organization and Purpose The Georgia Ports Authority Retirement Plan ("Plan") is a single-employer defmed benefit plan covering all full-time employees of the Georgia Ports Authority.

Benefits The Plan provides pension benefits that are based on years of service and compensation earned during years of employment.

Contributions and Vesting

Members contribute one percent (1 %) oftheir earnings each

month for the first $9,000 earned during the plan year and

one and one-halfpercent (1.5%) after earnings reach $9,000.

The employer's contributions are two and one-quarter

percent (2.25%) of the employee's first $9,000 of annual

earnings for the plan year plus three and one-quarter percent

(3.25%) ofthe employee's annual earnings for the plan year

in excess of $9,000.

.

Members become vested after reaching age 55 or after completing five (5) or more years of service.

Teachers Retirement System of Georgia

Plan Description

Organization and Purpose The Teachers Retirement System of Georgia ("TRS") is a cost-sharing multiple-employer plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised ofactive and retired members and ex-officio State employees is ultimately responsible for the administration of TRS.

Membership All teachers in the State public schools, the University System of Georgia (except those professors and principal administrators electing to participate in an optional retirement plan), and certain other designated employees in educational-related work are eligible for membership.

Benefits A member is eligible for normal service retirement after thirty (30) years of creditable service, regardless of age, or after ten (l0) years of service and attainment of age sixty (60). A member is eligible for early retirement after twentyfive (25) years of creditable service.
Normal retirement (pension) benefits paid to members are equal to two percent (2%) of the average ofthe member's two (2) consecutive highest paid years ofservice multiplied by the number of years of creditable service up to forty (40) years. Early retirement benefits are reduced by the lesser of one-twelfth (1112) of seven percent (7%) for each month the member is below age sixty (60), or by seven percent (7%) for each year or fraction thereof by which the member has less than thirty (30) years of service. It is also assumed that certain cost-of-living adjustments, based on the CPI, will be made in future years. Retirement benefits are payable monthly for life. Death, disability and spousal benefits are also available.
Contributions and Vesting TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees.
Contributions required by the annual actuarial valuation are as follows:

Member
Employer: Normal Unfunded Accrued Liability Expenses

7.42% 4.24%

79

- - - - - - - - State of Geof'fJia--------
Notes to the Flf\andal Statcmmts June 30, 1997
Note 17. Retirement Systems (continued)
Members become fully vested after ten (10) years of service. If a member terminates with less than ten (10) years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest.
The employer contributions to the unfunded accrued liability will liquidate the unfunded accrued liability over approximately twenty-seven (27) years on the assumption that the aggregate amount of unfunded accrued liability contribution will increase by three and three-quarters percent (3.75%) each year.

Required Supplementary Information
Schedule ofFunding Progress (Thousands of Dollars)

Actuarial Valuation
Date

Actuarial Value of
Plan Assets (a)

Actuarial Accrued Liability ("AAL") Entry Age
(b)

Unfunded AAU(Funding
Excess) (b - a)

TRS

6/30/95

$ 16,335,944 $ 19,771,740 $ 3,435,796

6/30/96

$ 18,750,568 $ 22,163,755 $ 3,413,187

Funded Ratio (alb)

Annual Covered Payroll
(c)

Unfunded AAU(Funding
Excess) as a Percentage of
Covered Payroll l(b - a)/c!

82.6% $ 84.6% $

4,712,292 5,086,924

72.9% 67.1%

Information is shown only for the plans and years available in accordance with the parameters of GASB 25. Additional information will be added as data become available.

80

- - - - - - - State of GeorfJia-------
Notes to the Flflancial Statements
June 30, 1997

Note 17. Retirement Systems (continued)
Schedule ofEmployer Contributions (Thousands of Dollars)

Year Ended June 30

TRS

1991

1992

1993

1994

1995

1996

State Annual Required Contribution

$

452,522

$

454,138

$

485,121

$

512,429

$

556,522

$

600,766

Percentage Contributed
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Information is shown only for the plans and years available in accordance with the parameters of GASB 25. Additional information will be added as data become available.

Notes to Required Supplementary Schedules Teachers Retirement System Actuarial Valuation Date - June 30, 1996 Actuarial Cost Method - Entry Age Amortization Method - Level percentage of pay, open Remaining Amortization Period - 27 years Asset Valuation Method - 5-year smoothed market Actuarial Assumptions: Investment Rate of Return - 7.5% Projected Salary Increases - 3.75% - 6.50% Inflation Rate - 3.75% Post-Retirement Cost-of-Living Adjustment - 3% annually

81

- - - - - - - State of Georgia-------
Notes to the FDlandal Statements June 30, 1997

Note 18. Nonmonetary Transactions
Primary Government
The State of Georgia received donated goods for its use and for distribution to other qualifying organizations outside

the State reporting entity under the following programs:

Program Agriculture, U. S. Department of
Food Distribution Program Temporary Emergency Food Assistance Program
Health and Human Services, U.S. Department of Childhood Immunization Grant
mv Prevention Activities - Health Department Based
Preventive Health and Health Services Block Grant
Preventive Health Services - Sexually Transmitted Disease Control Grants
Project Grants and Cooperative Agreements for Tuberculosis Control Programs
Public Health and Social Services Emergency Fund

Value of Inventory Received

Value of Inventory Reported at June 30, 1997

$

25,809,324 $

$

3,206,024 $

40,094 1,412,500

$

19,264,470 $

$

13,500 $

$

195,540 $

$

571,070 $

$

147,679 $

$

18,750 $

The value of donated commodities received and distributed is not reported as revenues and expenses on the combined statement of revenues, expenditures and changes in fund balances. Information is not available to determine the items used within the State and the items distributed to (or held for) other qualifying organizations outside the State reporting entity.
In addition, the Georgia Department of Administrative Services operates the Donation of Federal Surplus Personal Property program for the purpose of distributing surplus properties made available by the General Services Administration to eligible institutions, organizations and agencies. The value of surplus property received and distributed is not reported as revenues and expenses on the combined statement of revenues, expenditures and changes in fund balances, and the inventory on hand at June 30, 1997, is not reported on the combined balance

sheet. The changes in Federal surplus personal property inventory during the fiscal year ended June 30, 1997, were as follows:

Balance July 1, 1996 Additions
Property Received
Deductions Property Donated and Other Distributions Balance June 30, 1997

$ 9,480,500 16,217,711
$ 25,698,211
15.775,009 $ 9,923,202

82

State of Georgia - - - - - - - -
Notes to the Fff\andal Statements
June 30, 1997

Note 18. Nonmonetary Transactions (continued)
The Federal government provides food stamps to low-income households. The amount of food stamps a household receives depends on the household's size and financial circumstances. The Georgia Department of Human Resources is responsible for detennining eligibility for participation in the food stamp program within the State. During the year under review, the total value of food stamps distributed as approved by the Department was $623,236,891.
Significant Discretely Presented Component Units
Governmental Fund Types
Donated support of volunteer services and other sources totaling $636,158 was provided to the Georgia Public Telecommunications Commission during the year ended June 30, 1997. The value of these services and other sources are not reported as revenue on the Combining Statement of Revenues, Expenditures and Changes in Fund Balances.
Note 19. Postemployment Benefits
In addition to the pension benefits described in Note 17, the State of Georgia provides postretirement health care benefits through the State Health Benefit Plan to retirees pursuant to Title 45, Chapter 18 of the OCGA. 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 Employees' Retirement System of Georgia or a county employees' retirement system. The State Health Benefit Plan is a public entity risk pool funded by employee and employer contributions. Employees and retirees subject to the Plan contribute amounts detennined by the State Personnel Board for various health insurance plans. The various agencies of the State contribute to the health insurance fund based upon amounts recommended by the State Personnel Board and set forth in the Appropriations Act. The State Health Benefit Plan is funded on a "pay-as-you-go" basis. Expenses of the Plan include provisions for incurred but not reported claims. As of June 30, 1997, there were 50,407 employees who had retired and

were receiving postretirement health care benefits through the State Health Benefit Plan. For the fiscal year ended June 30, 1997, the State recognized expenditures of $167,137,452, which was net of retiree contributions of $39,155,258.
Pursuant to the general powers conferred by OCGA Section 20-3-31, the Board of Regents of the University System of Georgia (college and university funds) has established group health and life insurance programs for regular employees of the University System. It is the policy of the Board of Regents to pennit employees of the University System eligible for retirement or that become pennanently and totally disabled to continue as members of the group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System and who have at least ten years of service with the University System are eligible for these postemployment health and life insurance benefits. The University System pays the employer portion for group insurance for affected individuals. For the fiscal year ended June 30, 1997, the University System recognized expenditures of$18,196,283, which was net of participant contributions of $4,650,902.
Note 20. Fund Deficits
The following organizations had deficit balances at June 30, 1997.
Internal Service Funds - Primary Government
Hazard and Insurance Reserve Fund - At June 30, 1997, the Fund had an unreserved retained earnings deficit of $10,932,274.
Unemployment Compensation Fund - At June 30, 1997, the Fund had an unreserved retained earnings deficit of $816,585.
Workers' Compensation Fund - At June 30, 1997, the Fund had an unreserved retained earnings deficit of $62,809,734.
Governmental Fund Types - Discretely Presented Component Units
Georgia Public Telecommunications Commission - At June 30, 1997, the Commission had an unreserved, undesignated fund balance deficit of $99,571.

83

- - - - - - - - State of GeortJ1a--------
Notes to the Flnandal Statements June 30, 1997

Note 20. Fund Deficits (continued)
Proprietary Fund Types - Discretely Presented Component Units
Lake Lanier Islands Development Authority - At June 30, 1997, the Authority had an unreserved retained earnings deficit of$14,276,175.
North Georgia Mountains Authority - At June 30, 1997, the Authority had an unreserved retained earnings deficit of $2,579,081.
Sapelo Island Heritage Authority - At June 30, 1997, the Authority had an unreserved retained earnings deficit of $379.

Note 21. Major Discretely Presented Component Unit Condensed Financial Statements
The condensed fmancial statements of the major discretely presented component units ofthe State of Georgia reporting entity are presented below. "Major" component units, for purposes of this presentation, have been determined by giving consideration to each component units' significance relative to the other component units and the nature and significance of its relationship to the primary government. Condensed fmancial statements for all nonmajor discretely presented component units are presented in the aggregate.

84

State of Georgia - - - - - - - -
Notes to the Finmdal Statements
June 30, 1997

Note 21. Major Discretely Presented Component Unit Condensed Financial Statements (continued)
ASSETS AND OTHER DEBITS Other Assets Property, Plant and Equipment (Net) Amount to be Provided for Retirement of General Long-Term Debt Total Assets and Other Debits
LIABILITIES Due to Primary Government Other Liabilities Bonds and Other Long-Term Liabilities Total Liabilities EQUITY AND OTHER CREDITS Investment in Fixed Assets Fund Balances Unreserved Total Equity and Other Credits Total Liabilities, Equity and Other Credits
REVENUES
EXPENDITURES
EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES Operating Transfers from Primary Government
EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES FUND BALANCES, JULY 1 Adjustments Inclusion of Foundation for Public Broadcasting in Georgia, Inc. FUND BALANCES, JUNE 30

Governmental Fund Types

Georgia

Education

Georgia Public

Authority

Telecommunica-

(Schools)

tions Commission

Total

$

568,842 $

5,219,408 $

5,788,250

73,906,597

. 73,906,597

6,069,631

6,069,631

$

568,842 $

85,195,636 $

85,764,478

$

$

328,877 $

328,877

4,990,102

4,990,102

6,069,631

6,069,631

$

0$

1l,388,610 $

1l,388,610

$

$

73,906,597 $

73,906,597

568,842

(99,571)

469,271

$

568,842 $

73,807,026 $

74,375,868

$

568,842 $

85,195,636 $

85,764,478

$

29,655 $

15,481,330 $

15,510,985

$

$

33,033,963 $

33,033,963

$

29,655 $

(17,552,633) $

(17,522,978)

16,326,489

16,326,489

$

29,655 $

(1,226,144) $

(1,196,489)

539,187

147,144

686,331

979,429

979,429

$

568,842 $

(99,571) $

469,271

85

State of Georgia - - - - - - - -
Notes to the Rrlarldal Statemrnts
June 30, 1997

Note 21. Major Discretely Presented Component Unit Condensed Financial Statements (continued)

Proprietary Fund Types

ASSETS Due from Primary Government Other Assets Restricted Assets Property, Plant and Equipment (Net)
Total Assets

Environmental Facilities Authority

Housing and Finance Authority

Lottery Corporation

$

1,393,024 $

$

$

716,120,785

120,835,304

56,725,219

776,904,831

234,704,000

270,903

5,988,643

3,284,000

$ 717,784,712 $

903,728,778 $

294,713,219 $

Ports Authority
40,297,734 4,072,536
343,691,321
388,061,591

LIABILITIES Due to Primary Government Other Liabilities Bonds and Other Long-Term Liabilities Total Liabilities

$

367 $

16,967 $

29,563 $

13,546,945

69,406,911

59,438,656

88,655,000

762,722,042

234,958,000

$

102,202,312 $

832,145,920 $ 294,426,219 $

52,590 7,027,914 33,076,440 40,156,944

EQUITY AND OTHER CREDITS Investment in Fixed Assets Contributed Capital Retained Earnings
Reserved Unreserved Fund Balances Reserved Unreserved Total Equity and Other Credits

$

270,903 $

490,479,608

2,510,812 104,224,366

10,542,581 7,554,130 $ 615,582,400 $

$
22,581,833 46,891,428
772,276 1,337,321 71,582,858 $

$ 287,000

233,116,794 114,787,853

287,000 $ 347,904,647

Total Liabilities, Equity and Other Credits

$ 717,784,712 $

903,728,778 $ 294,713,219 $ 388,061,591

OPERATING REVENUES Sales and Services Operating Grants Taxes Other Total Operating Revenues

$

$

4,939,935 $ 1,654,659,000 $

86,305,610

8,756,304

63,851,267

$

8,756,304 $

68,791,202 $ 1,654,659,000 $

86,305,610

OPERATING EXPENSES Depreciation Other Total Operating Expenses

$

$

574,299 $

1,077,000 $

15,306,746

6,318,240

63,918,081

1,091,164,274

57,963,490

$

6,318,240 $

64,492,380 $ 1,092,241,274 $

73,270,236

OPERATING INCOME (LOSS)

$

2,438,064 $

4,298,822 $ 562,417,726 $

13,035,374

Nonoperating RevenueslExpenses (Net) Operating Transfers to/from Primary Government NET INCOME (LOSS)

8,075,304

3,083,207

$

13,596,575 $

(1,439,585) 2,859,237 $

5,896,000 (581,638,726) (13,325,000) $

(5,374,597) 7,660,777

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES FROM GOVERNMENTAL OPERATIONS AND
EXPENDABLE TRUST FUNDS

(2,855,403)

(1,493,945)

FUND EQUITY, JULY 1 Adjustments (Net) Current Capital Contributions (Net) Increase (Decrease) in Inventories
FUND EQUITY, JUNE 30

551,146,340 53,423,985

70,217,566

13,612,000

334,844,483 5,399,387

$ 615,311,497 $

71,582,858 $

287,000 $ 347,904,647

86

Student Finance Authority

GeoL.Srnithll Georgia World Congress Center
Authority

All Other Discretely Presented
Proprietary Fund Types

Total

$

$

$

355,757,334

27,331,007

56,993,577

2,923,010

245,557,256

$

358,680,344 $

329,881,840 $

$ 242,823,896
19,454,465 209,400,623

1,393,024 1,559,891,279 1,092,129,409
811,115,756

471,678,984 $ 3,464,529,468

$

67,540 $

10,399 $

1,972,984

32,902,757

320,285,068

214,182,192

$ 322,325,592 $ 247,095,348 $

5,598 $ 25,547,075 147,199,251 172,751,924 $

183,024 209,843,242 1,801,077,993 2,01l,104,259

$

$

$

58,750,000

25,386,512 10,968,240

111,209 23,925,283

$

36,354,752 $

82,786,492 $

$ 358,680,344 $ 329,881,840 $

$ 162,582,392

270,903 944,928,794

22,984,634 113,360,034

73,862,000 414,157,204

298,927,060 $

1l,314,857 8,891,451 1,453,425,209

471,678,984 $ 3,464,529,468

$

2,470,439 $

18,700,546 $

69,252,087 $ 1,836,327,617

28,253,099

28,253,099

1,439,287

1,439,287

4,900,281

36,088,982

48,335,373

161,932,207

$

7,370,720 $

54,789,528 $

147,279,846 $ 2,027,952,210

$

252,186 $

51,032,320

$

51,284,506 $

$

(43,913,786) $

663,359

45,677,328

$

2,426,901 $

8,696,046 $ 42,891,691 51,587,737 $
3,201,791 $
2,466,406 (1,401,130) 4,267,067 $

7,186,274 $ 122,147,692 129,333,966 $

33,092,551 1,435,435,788 1,468,528,339

17,945,880 $ 559,423,871

(4,037,271) 4,571,026 18,479,635 $

6,249,616 (529,708,295)
35,965,192

86,026

(4,263,322)

35,659,459 (1,731,608)

72,533,501
6,000,000 (14,076)

286,960,419 (34,223,900) 27,588,328
36,552

1,364,973,768 (35,955,508) 92,411,700 22,476

$

36,354,752 $

82,786,492 $

298,927,060 $ 1,453,154,306

87

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- - - Combining Statements and Schedufes - - -

(This page intentlonallv letl blank)

- - - - - Wrimar! Government - - - - -
Capita[ Wrojects a:-unds

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- - - - - - - - State of Georgia - - - - - - - -
PrimarY Government - Capital Projeds Funds For the Fiscal Year Ended June 30, 1997
Capital Projects Funds account for the acquisition or construction of major governmental general fixed assets. The State's capital projects funds are described below: Georgia Building Authority (Hospital) accounts for the acquisition, construction, repair, maintenance, improvement, operation and management of self-liquidating projects on property owned by the authority. These projects include hospitals, health care facilities, dormitories and housing accommodations for patients, officers and employees of institutions controlled by state agencies. Georgia Building Authority (Markets) accounts for the construction and renovation of farmers markets and related facilities. Georgia Building Authority (penal) accounts for the acqulSltlOn, construction, repair, maintenance, improvement, operation and management of buildings, facilities, equipment and services for the State penal system. Georgia Education Authority (University) accounts for the construction and improvement of buildings and facilities of institutions under the authority of the Board of Regents of the University System of Georgia. Georgia State Financing and Investment Commission accounts for the construction of projects for state agencies financed through the issuance of public debt, including educational facilities for county and independent school systems.
93

- - - - - - - State of Georgia--------
Primarv Government - Capital Projeds Fmds Combining Balance Shed June 30. 1997

Assets
Cash and Cash Equivalents Investments Receivables (Net ofAllowances for Uncollectibles)
Interest and Dividends Other
Total Assets
Liabilities and Fund Balances
Liabilities: Cash Overdraft Accounts Payable and Other Accruals Contracts Payable Other Liabilities
Total Liabilities
Fund Balances: Reserved for Other Specific Purposes Unreserved, Designated Designated for Future Capital Outlay Unreserved, Undesignated
Total Fund Balances
Total Liabilities and Fund Balances

Georgia Building Authority (Hospital)

Georgia Building Authority (Markets)

$

270,136 $

319,258

100,301

119,188

$

370,437 $ ====4=38,=446=

$

$

$

0$

0

$

-$

370,437

438,446

$

370,437 $

438,446

$

370,437 $ ====4=38,=446=

94

Georgia Builcling Authority (Penal)

Georgia Education Authority (University)

Georgia State Financing and
Investment Commission

Total

$

1,073,927 $

1,059,522 $

$

2,722,843

406,361

392,207

1,090,597,417

1,091,615,474

965,443

11,480,997

11,480,997 965,443

$

1,480,288 $

2,417,172 $ 1,102,078,414 $ 1,106,784,757

$

$

$

22,914,508 $

22,914,508

15,779,528

15,779,528

15,616,910

15,616,910

10,618,996

10,618,996

$

$

$

64,929,942 $

64,929,942

$

1,311,077 $

$

$

1,311,077

169,211

2,417,172

1,037,148,472

1,037,148,472 3,395,266

$

1,480,288 $

2,417,172 $ 1,037,148,472 $ 1,041,854,815

$

1,480,288 $

2,417,172 $ 1,102,078,414 $ 1,106,784,757

95

State of GeorfJia
PrimarY Government - Capital Projeds Funds Combining Statement of Revenues. Expenditures and
Changes in Fund Balances For the FISCal Year Ended June 30. 1997

Revenues: Interest and Other Investment Income Rents and Royalties Other
Total Revenues
Expenditures: General Government Capital Outlay Debt Service Principal Interest Other Debt Service Charges
Total Expenditures
Excess (Deficiency) ofRevenues Over (Under) Expenditures
Other Financing Sources (Uses): Operating Transfers from Component Units Operating Transfers Out General Obligation Bond Proceeds
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses
Fund Balances, July 1 Residual Equity Transfers Out Residual Equity Transfers to Component Units

Georgia Building Authority (Hospital)

Georgia Building Authority (Markets)

Georgia Building Authority (penal)

$

19,296 $

22,884 $

81,677

$

19,296 $

22,884 $

81,677

$

12,342 $

6,458 $

17,498 124,266

$

12,342 $

6,458 $

141,764

$

6,954 $

16,426 $

(60,087)

$

$

$

$

0$

0$

0

$

6,954 $

16,426 $

(60,087)

363,483

422,020

1,540,375

Fund Balances, June 30

$

370,437 $

438,446 $

1,480,288

96

Georgia Education Authority (University)

Georgia State Financing and
Investment Commission

Total

$

274,414 $

77,721,619 $

78,119,890

44,340

44,340

63,528

1,618,041

1,681,569

$

382,282 $

79,339,660 $

79,845,799

$

33,736 $

$

70,034

373,552,880

373,677,146

44,340 160,980

382,514

44,340 160,980 382,514

$

239,056 $

373,935,394 $

374,335,014

$

143,226 $ (294,595,734) $ (294,489,215)

$

$

1,401,130 $

1,401,130

(214,201,995)

(214,201,995)

373,248,075

373,248,075

$

0$

160,447,210 $

160,447,210

$

143,226 $ (134,148,524) $ (134,042,005)

2,273,946

1,223,459,824 (2,885,570)
(49,277,258)

1,228,059,648 (2,885,570)
(49,277,258)

$

2,417,172 $ 1,037,148,472 $ 1,041,854,815

97

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- - - - - Wrimar! Government - - - - -
qnterna[ Service ~unds

(This page intcnftonallv left blank)

- - - - - - - - - State of Georgia - - - - - - - - -
PrimarY Government -Internal Service Funds
For the FISCal Year Ended June 30, 1997
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. The State's internal service funds are described below:
The Department of Administrative Services delivers a variety of supportive services to all state agencies and, upon request, to local governments in Georgia. Among the services provided are purchasing, surplus property, printing, telecommunications, motor pool and building space management.
The Georgia Building Authority is primarily responsible for constructing and maintaining State office buildings, maintaining the grounds within the State Capitol complex, maintaining the Governor's Mansion and operating parking facilities.
The Correctional Industries Administration utilizes the inmate work force to manufacture products and provide services for the penal system, other units of state government and local governments.
The Merit System of Personnel Administration provides a career service to the classified employees in the executive branch based on the principles of merit, equal opportunity and freedom from political influence.
The Agency for Removal of Hazardous Materials administers a program for the abatement and removal of asbestos and other hazardous materials from the premises of the State, state authorities, counties, municipal corporations, local and independent school systems, and other units and authorities of government.
The Risk Management column is an accumulation of the funds used to account for self-insurance programs established by individual agreement, statute or administrative action:
The Authorities Liability Reserve Fund is used to account for the accumulation of funds for the purpose of providing liability insurance and self-insurance to state authorities.
The Georgia State Indemnification Commission is used to account for the accumulation of funds for the purpose of providing indemnification with respect to the death of any law enforcement officer, fireman or prison guard killed in the line of duty.
The Hazard and Insurance Reserve Fund is used to account for the assessment of premiums against various state agencies for the purpose of providing property, fire and extended coverage, automobile, aircraft and marina insurance.
The Liability Self-Insurance Reserve Fund is used to account for the accumulation of funds for the purpose of providing liability insurance coverage for employees of the State against personal liability for damages arising out of performance of their duties.
The State Employees' Assurance Department is used to account for the accumulation of funds for the purpose of providing survivors' benefits for eligible members ofthe Employees' Retirement System.
101

- - - - - - - State of GeorfJia--------
PrimarY Government -Internal Service Fmds For the Fiscal Year Ended June 30, 1997
The Tort Claims Fund is used to account for the accumulation of funds for the purpose of providing liability insurance for losses caused by the tort of any State officer or employee committed while acting within the scope of official duty or employment. The Unemployment Compensation Fund was created for the purpose of consolidating processing of unemployment compensation claims against state agencies and the payment of sums due to the Department of Labor. The Workers' Compensation Fund was established to authorize insurance coverage for employees of the State and for the receipt of premiums as prescribed by the Workers' Compensation statutes ofthe State.
102

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State or GeorfJia - - - - - - -
PrimarY Governmmt -Internal Service Funds Combining Balance Sheet June 30, 1997

Assets
Current Assets: Cash and Cash Equivalents Receivables (Net ofAllowances for Uncollectib1es)
Other Accounts Miscellaneous Due from Other Funds Due from Component Units Inventories Prepaid Items Long-Term Assets: Investments Fixed Assets: Land and Buildings Machinery and Equipment Accumulated Depreciation
Total Assets
Liabilities and Fund EqUity
Liabilities Current Liabilities: Cash Overdraft Accounts Payable and Other Accruals Compensated Absences Payable Claims and Judgments Payable Contracts Payable SalariesM'itbholdings Payable Due to Other Funds Deferred Revenue Long-Term Liabilities: Capital LeaseslInstalhnent Purchases Payable Deposits and Ovelpayments Long-Term Debt Payable (Net ofUnamortized Discounts) Notes and Loans Payable
Total Liabilities
Fund Equity Contributed Capital State ofGeorgia Other
Total Contributed Capital
Retained Earnings Reserved Unreserved
Total Retained Earnings
Total Fund Equity
Total Liabilities and Fund Equity

Administrative Services,
Department of

Building Authority,
Georgia

Correctional Industries
Administration

Merit System ofPersonnel Administration

$

-$

5,313,599 $

4,066,624 $

2,817,989
32,309,609 470,419
3,422,282 378,541
458,798
11,591,214 148,773,676

2,197,026
472,755 138,802 1,957,251 220,008,830 10,360,431

3,524,889 1,549
7,258,801 78,852
1,431,388
7,985,002 12,814,575 (11,045,355)

$

200,222,528 $

240,448,694 $

26,116,325 $

2,344,437 72,522 63,651 997,779
3,478,389

$

3,826,850 $

19,473,327

4,659,212

10,852,020 56,612

1,952,013

$

40,820,034 $

$ 1,904,032 1,716,229 1,169,720
12,658 22,181 61,157
581,399
5,467,376 $

$ 1,206,757
629,148
116 6,160 64,322
1,335,714 3,242,217 $

521,549 628,051 1,438,971 50,889 260,046
46,428
2,945,934

$

53,384,666 $

198,056,264 $

21,837,424

$

53,384,666 $

219,893,688 $

1,227,948 $ 1,227,948 $

$

5,598,804 $

100,419,024

$ 15,087,630

$

106,017,828 $

15,087,630 $

$

159,402,494 $

234,981,318 $

$ 21,646,160
21,646,160 $
22~874,108 $

$

200,222,528 $

240,448,694 $

26,116,325 $

104

0
549 531,906 532,455 532,455
3,478,389

Removal of Hazardous Materials, Agency for

Risk Management

Total Before Eliminations

Eliminations

Total

$

257,701 $

264,144,035 $

276,126,396 $

351,373 9,687 1,243
23,490
1,102,102

1,917,746 664,000
580,925,000

8,963,799 1,928,982 32,974,852
470,419 11,177,328
659,846
584,m,437
239,585,046 174,048,563 (11,045,355)

$

1,745,596 $

847,650,781 $ 1,319,662,313 $

-$

276,126,396

(631,128)

8,963,799 1,928,982 32,343,724
470,419 11,177,328
659,846
584,m,437
239,585,046 174,048,563 (11,045,355)

(631,128) $ 1,319,031,185

$

$

$

3,826,850 $

$

3,826,850

610,979

23,716,644

23,716,644

7,632,640

7,632,640

258,497,047

258,497,047

258,497,047

13,460,711

13,460,711

120,275

120,275

348,901

631,128

(631,128)

0

67,317

67,317

2,062,763 581,399

2,062,763 581,399

1,335,714

1,335,714

$

610,979 $

258,845,948 $

311,932,488 $

(631,128) $

311,301,360

$

$

$

252,668,878 $

21,837,424

$

0$

0$

274,506,302 $

$

23,490 $

581,589,000 $

587,211,843 $

1,111,127

7,215,833

146,011,680

$

1,134,617 $

588,804,833 $

733,223,523 $

$

1,134,617 $

588,804,833 $ 1,007,729,825 $

$

1,745,596 $

847,650,781 $ 1,319,662,313 $

$

252,668,878

21,837,424

0$

274,506,302

$

587,211,843

146,011,680

0$

733,223,523

0 $ 1,007,729,825

(631,128) $ 1,319,031,185

105

- - - - - - - - State of Georgia--------
PrimarY Government -Internal Service Funds Risk Management
Combining Balance Sheet June 30, 1997

Assets
Current Assets: Cash and Cash Equivalents Receivables (Net of Allowances for Uncollectibles) Other :Miscellaneous Due from Other Funds
Long-TeanAssets: Investments
Total Assets
Liabilities and Equity
Liabilities Current Liabilities: CIaim.s and Judgments Payable Due to Other Funds
Total Liabilities
Equity Retained Eamingl;
ResCIVCd UnresCIVCd
Total Equity
Total Liabilities and Equity

Authorities Liability
Resexve Fund

Georgia State Indemnification
Commission

Hazard and Insurance Reserve Fund

Liability Self-Insurance ResCIVC Fund

State Employees' Assurance Department

$

-$

1,027,365 $

8,395,421 $ 178,850,938 $

101,417

484,148

664,000 580,925,000

$

o$

1,027,365 $

8,496,838 $ 179,335,086 $ 581,589,000

$

$

22,500 $

19,408,643 $

98,446,452 $

20,469

119,073

$

0$

22,500 $

19,429,112 $

98,565,525 $

0

$

$

$

-$

$ 581,589,000

1,004,865

(10,932,274)

80,769,561

$

0$

1,004,865 $ (10,932,274) $

80,769,561 $ 581,589,000

$

o$

1,027,365 $

8,496,838 $ 179,335,086 $ 581,589,000

106

Tort Claims
Fund

Unemplo)ment
Compensation
Fund

Workers'
Compensation
Fund

Total

$

-$

1,753,248 $

74,117,063 $ 264,144,035

1,332,181

1,917,746 664,000
580,925,000

$

o$

1,753,248 $

75,449,244 $ 847,650,781

$

$

2,564,452 $ 138,055,000 $ 258,497,047

5,381

203,978

348,901

$

o$

2,569,833 $ 138,258,978 $ 258,845,948

$

$

-$

- $ 581,589,000

(816,585)

(62,809,734)

7,215,833

$

-'0_$ _ _-'-(8.;.;;1'-'"6,:....58_5""-.) $ (62,809,734) $ 588,804,833

$====0==$

1,753,248 $

75,449,244 $ 847,650,781

107

- - - - - - - - - State of Georgia - - - - - - - - -
PrimarY Government -Internal Service Fmds
Combining Statement of Revenues, Expenses and Changes in Fund Equilv
For the FISCal Year Ended June 30, 1997

Operating Revenues: Contributions Insurance Recoveries Interest and Other Inves1rnent Income Dividends and Interest Net Increase in Fair Value ofInves1rnents Rents and Royalties Sales and Services Other
Total Operating Revenues
Operating Expenses: General and Administrative Goods and Services Benefits Claims and Judgments Depreciation
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses): Interest and Other Inves1rnent Income Interest Expense Other
Total Nonoperating Revenues (Expenses)
Net Income (Loss) Before Operating Transfers
Operating Transfers: Transfers In Transfers Out
Net Operating Transfers
Net Income (Loss)
Fund Equity, July 1 Adjus1rnents Change in Accounting Principle Prior Period Incurred But Not Reported Liabilities Early Implementation of GASB Statement 31 Other Contributed Capital Transfer of Contributed Capital Decrease in Inventories
Fund Equity, June 30

Administrative Services,
Depar1ment of

Building AU1hority, Georgia

Correctional Industries
Administration

Merit System of Personnel Administration

$

$

$

$

212,027,392 1,549,918
$ 213,577,310 $

32,992,291 8,877,027
41,869,318 $

29,787,495 29,787,495 $

12,244,518 12,244,518

$

94,175,774 $

121,781,275

29,087,858 $ 14,315,623

9,706,357 $ 16,358,514

11,864,905

$ 215,957,049 $

$

(2,379,739) $

43,403,481 $ (1,534,163) $

1,387,958 27,452,829 $
2,334,666 $

11,864,905 379,613

$

-$

(12,142,670)

$ (12,142,670) $

$ (14,522,409) $

468,522 $ 358,119 826,641 $ (707,522) $

326,345 $ (69,439) 313,571
570,477 $
2,905,143 $

(53,937) (53,937) 325,676

$

39,697,821 $

$

(21,189,792)

$

18,508,029 $

0$

$

3,985,620 $

(707,522) $

172,334,508

231,354,649

$
0$ 2,905,143 $ 20,050,965

0 325,676 206,779

(16,544,667)

1,448,621 2,885,570

(372,967)

$ 159,402,494 $ 234,981,318 $

(82,000) 22,874,108 $

532,455

108

Removal of Hazardous Materials, Agency for

Risk Management

Total Before Eliminations

Eliminations

Total

$

$ 128,357,606 $ 128,357,606 $

(169,712) $ 128,187,894

7,861,703

7,861,703

7,861,703

2,085,043

39,541,728 89,101,600

39,541,728 89,101,600 32,992,291 265,021,475
1,549,918

39,541,728 89,101,600 32,992,291 265,021,475
1,549,918

$

2,085,043 $ 264,862,637 $ 564,426,321 $

(169,712) $ 564,256,609

$

521,982 $

3,499,958 $ 148,856,834 $

1,579,779

10,169,615

164,204,806

15,871,000

15,871,000

105,228,182

105,228,182

1,387,958

$

2,101,761 $ 134,768,755 $ 435,548,780 $

$

(16,718) $ 130,093,882 $ 128,877,541 $

(169,712) $
(169,712) $
o$

148,687,122 164,204,806
15,871,000 105,228,182
1,387,958
435,379,068
128,877,541

$

-$

(123,754)

$

794,867 $

(69,439)

(11,648,671)

$

(123,754) $

0 $ (10,923,243) $

$

(140,472) $ 130,093,882 $ 117,954,298 $

$

794,867

(69,439)

(11,648,671)

0 $ (10,923,243)

0 $ 117,954,298

$

$

$

39,697,821 $

(21,189,792)

$

0$

0$

18,508,029 $

$

(140,472) $ 130,093,882 $ 136,462,327 $

1,275,089

602,566,084

1,027,788,074

$

39,697,821

(21,189,792)

0$

18,508,029

0 $ 136,462,327

1,027,788,074

(239,893,133) 96,038,000

(239,893,133) 96,038,000 (15,096,046) 2,885,570 (82,000) (372,967)

$

1,134,617 $ 588,804,833 $ 1,007,729,825 $

(239,893,133) 96,038,000 (15,096,046) 2,885,570 (82,000) (372,967)
0 $ 1,007,729,825

109

- - - - - - - State of Georgia~------
PrimarY Government -Internal Service Funds
Risk Management Combining Statement of Revenues, Expenses and
Changes in Equilv For the FISCal Year Ended June 30, 1997

Operating Revenues: Contributions Insurance Recoveries Interest and Other Investment Income Dividends and Interest Net Increase in Fair Value ofInvestments
Total Operating Revenues
Operating Expenses: General and Administrative Goods and Services Benefits Claims and Judgments
Total Operating Expenses
Net Income (Loss)
Equity, July I Adjustments Change in Accounting Principle Prior Period Incurred But Not Reported Liabilities Early Implementation ofGASB Statement 31 Transfer ofEquity
Equity, June 30

Authorities Liability
Reserve Fund

Georgia State Indemnification
Commission

Hazard and Insurance Reserve Fund

Liability Self-Insurance Reserve Fund

$

$

550,000 $

11,502,968 $

41,725,830

7,861,703

80,374

449,413

12,142,537

$

0$

630,374 $

19,814,084 $

53,868,367

$

$

$

0$

$

0$

12,398,789

$
444,857 444,857 $ 185,517 $ 819,348

198,460 $ 1,504,698 29,858,907 31,562,065 $ (11,747,981) $ 4,225,519

1,136,112 5,121,427 37,403,720 43,661,259 10,207,108 72,909,405

(12,398,789)

(3,409,812)

(88,487,745) 86,140,793

$

0$

1,004,865 $ (10,932,274) $

80,769,561

110

State Employees' Assurance Department

Tort Claims
Fund

Unemployment
Compensation
Fund

Workers'
Compensation
Fund

Total

$ . 10,859,000 $
21,527,400 89,101,600 $ 121,488,000 $

$

2,939,320 $

60,780,488 $ 128,357,606

7,861,703

246,917

5,095,087

39,541,728 89,101,600

0$

3,186,237 $

65,875,575 $ 264,862,637

$

147,000 $

15,871,000

$

16,018,000 $

$ 105,470,000 $

380,081,000

$
0$ 0$ 73,742,004

65,389 $
(4,220,064) (4,154,675) $ 7,340,912 $ 2,860,079

1,952,997 $ 3,543,490 41,740,762 47,237,249 $ 18,638,326 $ 55,529,940

3,499,958 10,169,615 15,871,000 105,228,182
134,768,755
130,093,882
602,566,084

96,038,000

(73,742,004)

(11,017,576)

(136,978,000)

(239,893,133) 96,038,000 0

$ 581,589,000 $

o$

(816,585) $ (62,809,734) $ 588,804,833

111

---------,--- State of Georsta - - - - - - - -
PrimarY Government -Internal Service Fmds Combining Statement of Cash Flows
For the FISCal Year Ended June 30. 1997

Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Required Contributions Cash Received from Insurance Proceeds Cash Paid to Vendors Cash Paid to Employees Cash Paid for Benefits Cash Paid for Claims and Judgments
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Noncapital Financing Activities: Operating Transfers In Operating Transfers Out Return of Contributed Capital Other Noncapital Items (Net)
Net Cash Provided by Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities: Contributed Capital Acquisition and Construction of Capital Assets Principal Paid on Note Interest Paid on Note
Net Cash Used in Capital and Related Financing Activities
Cash Flows from Investing Activities: Purchase of Investments (Net) Interest on Investments Net Increase in Fair Value of Investments
Net Cash Provided by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1
Cash and Cash Equivalents, June 30

Administrative Services,
Department of

Building Authority,
Georgia

$ 205,344,609 $

42,128,064

(176,590,970) (45,336,718)

(21,665,383) (22,000,687)

$ (16,583,079) $

(1,538,006)

$

39,697,821 $

(21,189,792)

3,894,454

$

22,402,483 $

358,119 358,119

$

-$

(16,060,515)

2,885,570 (4,474,934)

$ (16,060,515) $

(1,589,364)

$

857,794 $

5,905,854

468,522

$

857,794 $

$

(9,383,317) $

9,383,317

6,374,376 3,605,125 1,708,474

$

0$

5,313,599

112

Correctional Industries
Administration

Merit System of Personnel Administration

Removal of Hazardous Materials, Agency for

Risk Management

Total

$

24,601,951 $

(18,661,286) (6,753,065)

$

(812,400) $

12,199,287 $ (5,242,004) (6,292,372)
664,911 $

1,884,448 $ (1,856,679)
(135,228)
(107,459) $

$ 126,647,464
7,861,703 (13,862,901)
(15,871,000) (86,676,768)

286,158,359 126,647,464
7,861,703 (237,879,223)
(80,518,070) (15,871,000) (86,676,768)

18,098,498 $

(277,535)

$

-$

$

$

$

39,697,821

(21,189,792)

(82,000)

(82,000)

325,394

96,038,000

100,615,967

$

243,394 $

0$

0$

96,038,000 $ 119,041,996

$

-$

-$

(509,111)

(244,573)

(242,857)

(69,439)

$

(821,407) $

(244,573) $

-$ (8,820)
(8,820) $

$

2,885,570

(21,297,953)

(242,857)

(69,439)

0$

(18,724,679)

$

3,781,529 $

$

326,345

$

4,107,874 $

0$

$

2,717,461 $

420,338 $

1,349,163

1,924,099

$

4,066,624 $

2,344,437 $

$
0$ (116,279) $ 373,980

161,958 $ 39,541,728 89,101,600
128,805,286 $
242,941,784 $
21,202,251

10,707,135 40,336,595 89,101,600
140,145,330
240,185,112
35,941,284

257,701 $

264,144,035 $

276,126,396 (continued)

113

---,--------- State of GeorfJia - - - - - - - -
PrimarY Government -Internal Service Fmds Combining Statement of Cash Flows (continued)
For the FISCal Year Ended Jme 30. 1997

Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used In) Operating Activities:
Depreciation Interest Other Changes in Assets and Liabilities: Decrease (Increase) in Other Receivables Decrease (Increase) in Due from Other Funds
Increase in Due from Component Units Decrease (Increase) in Inventories Decrease (Increase) in Prepaid Items Increase (Decrease) in Accounts Payable and Other Accruals Increase (Decrease) in Compensated Absences Payable Increase in Claims and Judgments Payable Increase (Decrease) in Contracts Payable Increase (Decrease) in SalarieslWithholdings Payable Increase (Decrease) in Due to Other Funds Decrease in Deferred Revenue Decrease in Deposits and Overpayments
Total Adjustments
Net Cash Provided by (Used in) Operating Activities
Noncash Investing, Capital, and Financing Activities: Disposal ofFixed Assets Donation of Fixed Assets Write off of Fixed Assets

Administrative Services,
Department of

Building Authority, Georgia

$

(2,379,739) $

(1,534,163)

$

$

(1,682,215) (6,232,256)
(318,230)
(5,680) (6,626,621)
89,208
529,240 43,214

$

(14,203,340) $

1,448,621
1,481,297
(107,517) 8,650
(330,998) 86,197
(1,256,612) (66,275) (44,655) (482,649)
. (739,902)
(3,843)

$

(16,583,079) $

(1,538,006)

$

(12,210,274) $

(16,544,667)

$

(28,754,941) $

0

114

Correctional Industries Administration

Merit System of Personnel Administration

Removal of Hazardous Materials, Agency for

Risk Management

$

2,334,666 $

379,613 $

(16,718) $ 130,093,882 $

Total 128,877,541

$

1,387,958 $

(1,902,426)

417,874 27,567
290,490 (87,715)

(760) (3,280,054)

$

(3,147,066) $

$

(812,400) $

$
(45,231)
(637) 247,595 (17,386)
1,190 50,531 49,236
285,298 $
664,911 $

$

-$

1,387,958

(39,541,728)

(39,541,728)

(89,101,600)

(87,652,979)

(200,595) (13)
34,563 97,813
(22,509)

(1,869,142) 159,000
18,551,414 (193,328)

(4,218,312) (6,073,269)
(318,230) 344,920
29,900 (6,321,721)
70,304 18,551,414
(748,691) 26,710
(188,747) (3,762,703)
(739,902)

(90,741) $ (111,995,384) $ (129,155,076)

(107,459) $

18,098,498 $

(277,535)

$

(29,722) $

(53,937) $

(123,754) $

17,899

$ ======(1=1=,8=23::::) $ ======(5=3=,93=7)= $ ===(=12=3,=75=4=) $

$

(12,417,687)

17,899

(16,544,667)

o$

(28,944,455)

115

- - - - - - - - - State of Georgta---------
PrimarY Government -Internal Service Funds Risk Management
Combining Statement of Cash Flows For the FISCal Year Ended June 30, 1997

Cash Flows from Operating Activities: Cash Received from Required Contributions Cash Received from Insurance Proceeds Cash Paid to Vendors Cash Paid for Benefits Cash Paid for Claims and Judgments
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Noncapital Financing Activities: 01her Noncapital Items (Net)
Cash Flows from Investing Activities: Purchase ofInvestments (Net) Interest on Investments Net Increase in Fair Value ofInvestments
Net Cash Provided by (Used in) Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1
Cash and Cash Equivalents, June 30
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities: Interest
O1her Changes in Assets and Liabilities: Decrease (Increase) in O1her Receivables
Decrease in Due from O1her Funds Increase (Decrease) in Claims and Judgments Payable Increase (Decrease) in Due to O1her Funds
Total Adjustments
Net Cash Provided by (Used in) Operating Activities

Au1horities Liability Reserve Fund

Georgia State Indemnification
Commission

Hazard and Insurance Reserve Fund

Liability Self-Insurance Reserve Fund

$

-$

550,000 $

11,436,109 $

41,243,211

7,861,703

(3,141)

(9,566)

(1,826,981)

(6,286,066)

(474,857)

(13,860,076)

(27,445,013)

$

(3,141) $

65,577 $

3,610,755 $

7,512,132

$ (12,398,789) $

-$

-$

86,140,793

$

11,221,690 $

807,316 $ 80,374

3,955,848 $ 449,413

66,098,984 12,142,537

$

11,221,690 $

$

(1,180,240) $

1,180,240

887,690 $ 953,267 $
74,098

4,405,261 $ 8,016,016 $
379,405

78,241,521 171,894,446
6,956,492

$

$

1,027,365 $

8,395,421 $ 178,850,938

$

$

185,517 $ (11,747,981) $

10,207,108

$

-$

(80,374) $

(449,413) $ (12,142,537)

(66,859)

(482,619)

(3,141)

(30,000) (9,566)

15,998,831 (123,823)

9,958,707 (28,527)

$

(3,141) $

(119,940) $

15,358,736 $

(2,694,976)

$

(3,141) $

65,577 $

3,610,755 $

7,512,132

116

State Employees' Assurance Department

Tort Claims Fund

Unemployment Compensation
Fund

Workers' Compensation
Fund

Total

$

11,018,000 $

(147,000) (15,871,000)

$

(5,000,000) $

11,046 $ 11,046 $

2,940,406 $ (65,152)
(4,233,060) (1,357,806) $

59,448,692 $ (5,524,995) (40,663,762) 13,259,935 $

126,647,464 7,861,703
(13,862,901) (15,871,000) (86,676,768)
18,098,498

$

96,038,000 $ (73,742,004) $

-$

-$

96,038,000

$ (201,667,000) $ 21,527,400 89,101,600

$ (91,038,000) $

$

0$

0

66,724,653 $
66,724,653 $ (7,006,305) $ 7,006,305

$

o$

o$

2,583,411 $ 246,917
2,830,328 $ 1,472,522 $
280,726

50,437,056 $ 5,095,087
55,532,143 $ 68,792,078 $
5,324,985

161,958 39,541,728 89,101,600
128,805,286
242,941,784
21,202,251

1,753,248 $

74,117,063 $ 264,144,035

$ 105,470,000 $

o$

7,340,912 $

18,638,326 $ 130,093,882

$ (21,527,400) $ (89,101,600)
159,000

$ (110,470,000) $

$

(5,000,000) $

-$ 11,046
11,046 $

(246,917) $
1,086 (8,453,124)
237 (8,698,718) $

(5,095,087) $

(39,541,728) (89,101,600)

(1,331,796)
1,077,000 (28,508)

(1,869,142) 159,000
18,551,414 (193,328)

(5,378,391) $ (111,995,384)

11,046 $

(1,357,806) $

13,259,935 $

18,098,498

117

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- - - - - Wf'imaf'~Government - - - - -
crrust and .ABenc~ g;unds

(This page intentionallv left blank)

- - - - - - - - State of GeorfJia - - - - - - - -
Primarv Government -Trust and Agencv Funds
Combining Balance Sheet June 30, 1997

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Intergovemmental- Federal
Interest and Dividends Notes and Loans Taxes Other Prepaid Items Other Assets Deferred Compensation Plan Assets
Total Assets
Liabilities and Fund Balances
Liabilities: Accounts Payable and Other Accruals Salaries!Withholdings Payable Due to Other Funds Deferred Revenue Funds Held for Others Advances.from Other Funds
Total Liabilities
Fund Balances: Reserved for Pension Benefits Reserved for Other Specific Pwposes Unreserved, Undesignated
Total Fund Balances
Total Liabilities and Fund Balances

Expendable Trust

Nonexpendable Trust

Pension Trust

Agency

Total

S 1,756,132,745 S 13,300,898
178,987 1,223
4,311,922 86,595,170
5,086,541 8,774
S 1,865,616,260 S

19,102 S

3,264,866 S 1,690,523,150 S 3,449,939,863

196,724

9,386,676,000

624,343,624

10,024,517,246

87,699,000
28,053,000 14,014

528,640
27,336,383 139,913
314,206,807

707,627 87,700,223 4,311,922 86,595,170 60,475,924
22,788 139,913 314,206,807

215,826 S 9,505,706,880 S 2,657,078,517 $ 14,028,617,483

S

10,422 S

23,735

S

34,157 $

$

$

1,837,700,973

27,881,130

$ 1,865,582,103 $

$ 1,865,616,260 S

S 0S

5,507,886 S

$

20,110

707,670

2,657,071,592 6,925

5,518,308 20,110
707,670 23,735
2,657,071,592 6,925

6,235,666 $ 2,657,078,517 S 2,663,348,340

$ 148,500 67,326

9,499,471,214 S

215,826 $ 9,499,471,214 S

S 9,499,471,214 1,837,849,473 27,948,456
0 $ 11,365,269,143

215,826 S 9,505,706,880 S 2,657,078,517 $ 14,028,617,483

121

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- - - - - - - - - State of Georgia---------
PrimarY Government - Expendable Trust Funds For the Fl5Cal Year Ended June 30. 1997
Expendable Trust Funds are used to account for assets held by the government in a trustee capacity in which both the principal and revenues earned on that principal may be expended for purposes designated by the trust agreement. The State's expendable trust funds are described below:
The Auctioneers Recovery Fund provides for actual or compensatory damages in instances where a person is aggrieved by an act, representation, transaction, or conduct of a person licensed under OCGA 43-6 (duly licensed auctioneer, apprentice auctioneer, or auction company) who is in violation of state law. Also, the fund is used to help underwrite the cost of developing courses, conducting seminars, conducting research projects on matters affecting auctioneers, publishing and distributing educational materials, or other education and research programs for the benefit of licensees and the public. The Housing Trust Fund for the Homeless provides financial assistance to sponsors of housing programs and activities which are designed to enhance home ownership opportunities of low income Georgia households. The Keds Corporation Settlement Fund is responsible for the direct delivery of services to women between fifteen and forty-four years of age with specific priority being given to job training in non-traditional employment fields. The Real Estate Recovery Fund provides for actual or compensatory damages in instances where a person is aggrieved by an act, representation, transaction, or conduct of a duly licensed broker, associate broker or salesperson who is in violation of state law. Also, the fund is used to help underwrite the cost of developing courses, conducting seminars, conducting research projects on matters affecting real estate brokerage, publishing and distributing educational materials, or other education and research programs for the benefit of licensees and the public. The Sports Hall of Fame Board is responsible for the establishment and maintenance of a hall of fame to honor those who have made outstanding contributions to sports and athletics in Georgia or elsewhere. The Subsequent Injury Trust Fund is a special workers' compensation fund designed to encourage employers to hire workers with pre-existing impairments by insuring against the aggravating impact such impairment could have if the worker were subsequently injured on the job. The Unemployment Compensation Contributions and Benefits Fund accounts for the collection of employers' unemployment insurance tax and the payment of unemployment insurance benefits.
123

- - - - - - - - State of Georgta--------
PrimarY Government - Expendable Trust Funds
Combining Balance Sheet June 30, ,1997

Assets
Cash and Cash Equivalents Investments Receivables (Net ofAllowances for Uncollectibles)
Intergovernmental- Federal Interest and Dividends Notes and Loans Taxes Other Prepaid Items
Total Assets
Liabilities and Fund Balances
Liabilities: Accounts Payable and Other Accruals Deferred Revenue
Total Liabilities
Fund Balances: Reserved for Other Specific Purposes Unreserved, Undesignated
Total Fund Balances
Total Liabilities and Fund Balances

Auctioneers Recovery Fund

Housing Trust Fund for the
Homeless

Keds Corporation Settlement Fund

$

231,394 $

1,237,553 $

10,022,722

66,545

4,311,922 36,723

$

231,394 $

15,608,920 $

66,545

$

$

$

$

0$

0$

$

$

$

231,394

15,608,920

$

231,394 $

15,608,920 $

$

231,394 $

15,608,920 $

0
66,545 66,545 66,545

124

Real Estate Recovery Fund

Sports Hall ofFame Board

Subsequent Injury
Trust Fund

Unemployment Compensation Contributions and Benefits
Fund

Total

$

1,060,328 $

394,753

$

1,455,081 $

53,066 $ 145,420
1,223
630

7,574,204 $ 2,738,003

1,745,909,655 $

1,756,132,745 13,300,898

8,144

178,987
86,595,170 5,049,818

178,987 1,223
4,311,922 86,595,170
5,086,541 8,774

200,339 $

10,320,351 $ 1,837,733,630 $ 1,865,616,260

$

$

$

1,500 $

8,922 $

10,422

23,735

23,735

$

o$

o$

1,500 $

3_2,'-6_57_ $

3_4,;..,1_57_

$

$

1,455,081

$ 200,339

$ 10,318,851

1,837,700,973 $

1,837,700,973 27,881,130

$

1,455,081 $ - - - - -2'00-,3-39- $

10,318,851 $ 1,837,700,973 $ 1,865,582,103

$

1,455,081 $===2=0=0,=33=9=$

10,320,351 $ 1,837,733,630 $ 1,865,616,260

125

- - - - - - - - State of Georgia--------
PrimarY Government - Expendable Trust Funds Combining Statement of Revenues, Expenditures and
Changes in Fund Balances For the FISCal Year Ended June 30, 1997

Revenues: Taxes Intergovernmental Federal Sales and Services Interest and Other Investment Income Contributions and Donations Other
Total Revenues
Expenditures: General Government Education Health and Welfare Economic Development and Assistance Culture and Recreation
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources: Operating Transfers In
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures
Fund Balances, July 1
Fund Balances, June 30

Auctioneers Recovery Fund

Housing Trust Fund for the Homeless

Keds Corporation Settlement Fund

$

$

$

29,100

692,902

$

29,100 $

692,902 $

0

$

10,000 $

$

1,949,102

43,555

$

10,000 $

1,949,102 $

43,555

$

19,100 $

(1,256,200) $

(43,555)

3,375,000

$

19,100 $

2,118,800 $

(43,555)

212,294

13,490,120

110,100

$

231,394 $

15,608,920 $

66,545

126

Real Estate Recovery Fund

Sports Hall ofFame Board

Subsequent Injury
Trust Fund

Unemployment Compensation Contributions and Benefits
Fund

Total

$

$

$

70,500,024 $

329,646,619 $

400,146,643

112,003 75,309

1,340 9,527 38,650 65,816

4,114 1,941,175

21,563,745 111,232,202
97,366

21,563,745 146,557
113,951,115 38,650 163,182

$

187,312 $

115,333 $

72,445,313 $

462,539,932 $

536,009,892

$

26,360 $

$

$

$

36,360

123,711

123,711

63,810,821

63,810,821

308,776,690

310,769,347

128,738

128,738

$

150,071 $

128,738 $

63,810,821 $

308,776,690 $

374,868,977

$

37,241 $

(13,405) $

8,634,492 $

153,763,242 $

161,140,915

25,000

3,400,000

$

37,241 $

1,417,840

11,595 $ 188,744

8,634,492 $

153,763,242 $

164,540,915

1,684,359

1,683,937,731

1,701,041,188

$

1,455,081 $

200,339 $

10,318,851 $ 1,837,700,973 $ 1,865,582,103

127

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- - - - - - - - State of Georgta--------
Primarv Government - NOl1expendable Trust Fmds
For the FISCal Year Ended June 30. 1997
Nonexpendable Trust Funds are used to account for assets held by the government in a trustee capacity in which the principal of the trust must be preserved intact. The State's nonexpendable trust funds are described below: The Pupils' Trust Fund - Georgia Academy for the Blind is used to account for principal trust amounts received and related interest income. The interest portion of the trust may be used for student activities at . Georgia Academy for the Blind. The Lenora M. Sarling Scholarship Fund is used to account for principal trust amounts received and related interest income. The interest portion of the trust may be used for scholarships at North Georgia Technical Institute. The Carl Patrick Chair is used to account for principal trust amounts received and related interest income. The interest portion of the trust may be used to supplement salaries of engineers on staff at Columbus Technical Institute.
129

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- - - - - - - - - State of GeorBia---------
PrimarY Government - Nonexpmdable Trust Fmds
Combining Balance Shed June 30, 1997

Assets Cash and Cash Equivalents Investments
Total Assets
Fund Balances Reserved for Other Specific Purposes UmesetVed, Undesignated
Total Fund Balances

Pupils' Trust Fund-
Georgia Academy for the Blind

LenoraM. Sarling
Scholarship Fund

Carl Patrick Chair

Total

$

13,500 $

1,025 $

4,577 $

19,102

35,000

161,724

196,724

$

13,500 $

36,025 $

166,301 $

215,826

$

13,500 $

35,000 $

100,000 $

148,500

1,025

66,301

67,326

$

13,500 $

36,025 $

166,301 $

215,826

131

- - - - - - - - State of Georgia--------
PrimarY Government -Nonexpendable Trust Funds
Combining Statement of Revenues, Expenses and Changes in Fund Balances
For the FISCal Year Ended June 30, 1997

Operating Revenues: Interest and Other Investment Income
Operating Expenses: General and Administrative Scholarships Other
Total Operating Expenses
Net Income
Fund Balances, July 1

Pupils' Trust Fund-
Georgia Academy for the Blind

LenoraM. Sarling
Scholarship Fund

Carl Patrick Chair

Total

$

903 $

1,888 $

8,888 $

11,679

$

$

$

3,847 $

3,847

1,300

1,300

903

903

$

903 $

1,300 $

3,847 $

6,050

$

0$

588 $

5,041 $

5,629

13,500

35,437

161,260

210,197

Fund Balances, June 30

$

13,500 $

36,025 $

166,301 $

215,826

132

- - - - - - - - - State of Georgia---------
PrimarY Government - Nonexpendable Trust Funds Combining Statement of Cash Flows
For the Rscal Year Ended June 30. 1997

Cash Flows from Operating Activities: Cash Paid to Vendors Cash Paid to Employees Cash Paid for Scholarships Net Cash Used in Operating Activities
Cash Flows from Investing Activities: Purchase ofInvestments (Net) Interest on Investments Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July I
Cash and Cash Equivalents, June 30
Operating Income Adjustments to Reconcile Operating Income to Net Cash Used in Operating Activities:
Interest
Net Cash Used in Operating Activities

Pupils' Trust Fund-
Georgia Academy for the Blind

LenoraM. Sarling
Scholarship Fund

Carl Patrick Chair

Total

$

(903) $

-$

-$

(903)

(3,847)

(3,847)

(1,300)

(1,300)

$

(903) $

(1,300) $

(3,847) $

(6,050)

$

-$

-$

(4,723) $

(4,723)

903

1,888

12,888

15,679

$

903 $

1,888 $

8,165 $

10,956

$

0$

13,500

588 $ 437

4,318 $ 259

4,906 14,196

$

13,500 $

1,025 $

4,577 $

19,102

$

0$

588 $

5,041 $

5,629

(903)

(1,888)

(8,888)

(11,679)

$

(903) $

(1,300) $

(3,847) $

(6,050)

133

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- - - - - - - State of Georgia-------
PrimarY Government - Pension Trust FUI1ds
For the FISCal Year Ended JUI1e 30, 1997
Pension Trust Funds account for activities of the public employee retirement systems. The State's pension trust funds are described below:
The Defined Contribution Plan is used to account for the accumulation of resources for the purpose of providing retirement allowances for State employees who are not members of a public retirement or pension .system. The District Attorneys Retirement Fund (old plan) is used to account for the accumulation of resources for the purpose of paying retirement benefits to the district attorneys of the State of Georgia. The District Attorneys Retirement System (new plan) is used to account for the accumulation of resources for the purpose of paying retirement benefits to the district attorneys of the State of Georgia. The Employees' Retirement System is used to account for the accumulation of resources for the purpose of providing retirement allowances for qualified employees of the State of Georgia and its political subdivisions. The Legislative Retirement System is used to account for the accumulation of resources for the purpose of providing retirement allowances for all members ofthe General Assembly. The Superior Court Judges Retirement Fund (old plan) is used to account for the accumulation of resources for the purpose of paying retirement benefits to the Superior Court Judges of the State of Georgia. The Superior Court Judges Retirement System (new plan) is used to account for the accumulation of resources for the purpose of paying retirement benefits to the Superior Court Judges of the State of Georgia. The Trial Judges and Solicitors Retirement Fund is used to account for the accumulation of resources for the purpose of providing retirement allowances for trial judges and solicitors of certain courts of Georgia, and their survivors and other beneficiaries.
13S

- - - - - - - State of Georgia--------
Primarv Government -Pension TrllSt Fmds
Combining Statement of Plan Net Assets June 30, 1997

Assets
Cash and Cash Equivalents Investments Receivables (Net ofAllowances
for Uncollectibles) Interest and Dividends Other
Miscellaneous Prepaid Items
Total Assets
Liabilities
Accounts Payable and Other Accruals SalarieslWithholdings Payable Due to Other Funds
Total Liabilities
Fund Balances Reserved for Pension Benefits

Defined Contribution
Plan

District Attorneys Retirement
Fund

District Attorneys Retirement
System

Employees' Retirement
System

Legislative Retirement
System

$

77,000 $

20,186,000

306,000 1,006,000

$ 21,575,000 $

3,000 $

25,000 $

2,939,866 $

25,257,000

9,179,587,000

20,000 22,729,000

46,000

87,393,000
26,511,000 14,014

32,000

3,000 $

25,328,000 $ 9,296,444,880 $

22,781,000

$

1,000 $

$

1,000 $

$ 21,574,000 $

3,000 $ 3,000 $

65,000 $ 65,000 $

5,344,886 $ 20,110
682,670
6,047,666 $

10,000 25,000 35,000

0$

25,263,000 $ 9,290,397,214 $

22,746,000

136

Superior Court Judges Retirement
Fund

Superior Court Judges Retirement
System

Trial Judges and Solicitors
Retirement Fund

Total

$

44,000 $

52,000 $

104,000 $

3,264,866

1,259,000

93,455,000

44,203,000

9,386,676,000

2,000

241,000

215,000

87,699,000
28,053,000 14,014

$

1,305,000 $

93,748,000 $

44,522,000 $ 9,505,706,880

$

37,000 $

41,000 $

$

37,000 $

41,000 $

6,000 $ 6,000 $

5,507,886 20,110
707,670
6,235,666

$

1,268,000 $

93,707,000 $

44,516,000 $ 9,499,471,214

137

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- - - - - - - - - State of GeorfJia - - - - - - - - -
PrimarY Government - Agencv Funds
For the Fiscal Year Ended June 30, 1997
Agency Funds report those assets for which the State acts solely in a custodial capacity. The State's major agency funds are described below:
Agriculture, Department of The Agricultural Commodity Commissions account for assessments levied on producers and handlers of various commodities. These funds are disbursed upon approval and request of the commodity commissions to promote the production, marketing, sale, utilization, processing, research and improvement of agricultural products in Georgia.
Corrections, Department of Detainees' Accounts are held for the detainees of statewide probation offices, correctional institutions, diversion centers, detention centers, transitional centers and boot camps for the purpose of paying court ordered fines, fees and restitutions and for operating recreational activities for detainees.
Human Resources, Department of The Child Support Recovery Program accounts for the collection of court ordered child support or child support amounts due as determined in conformity with the Social Security Act. Amounts collected are distributed and deposited in conformity with state law and the standards prescribed in the Social Security Act. Non-Centralized Agency Funds account for donations, vending machine proceeds, client funds and fund raising projects at hospitals, development centers, group homes and other Department of Human Resources sites around the State.
Insurance, Department of Receiverships are held to pay claims and expenses against out-of-state defunct insurance companies.
Medical Assistance, Department of The Medicaid Special Holding Account consists of refunds and recoveries made on specific claims for which disposition has not yet been determined.
Merit System ofPersonnel Administration, State Personnel Board The Deferred Compensation Program accounts for participant earnings deferred in accordance with Internal Revenue Code Section 457.
139

- - - - - - - - State of GeorfJia - - - - - - - -
PrimarY Government - Agencv Funds
For the FISCal Year Ended June 30, 1997
Merit System of Personnel Administration, State Personnel Board The Flexible Benefits Program accounts for participant payroll deductions for benefits and spending accounts; disbursements are made to insurance companies for premiums and to participants for spending account reimbursements.
Public Service Commission The Universal Access Fund was established to assure the provision of reasonably priced access to basic local exchange services throughout Georgia. All telecommunications companies providing telecommunications services within Georgia contribute to this fund. Distributions are made to providers of basic local exchange services upon application and demonstration that the reasonable costs to provide such service exceed the maximum fixed price permitted.
Revenue, Department of The Real Estate Transfer Tax fund is used to collect real estate transfer taxes on behalf of county governments and to remit the taxes back to the counties.
Treasury and Fiscal Services, Office of The Local Government Investment Pool was established to enable local governments to voluntarily invest any idle local moneys. The sources of this fund are local government investment deposits and their share of the investment earnings ofthe fund; deductions occur as withdrawals are requested by local governments. Local Option Sales Tax Collections accounts for the collection and disbursement of local option sales taxes on behalf of county and municipal governments. Special Purpose Tax Collections accounts for the collection and disbursement of special purpose sales taxes on behalf of county and municipal governments.
140

- - - - - - - - - State of Georgia - - - - - - - - -
PrimarY Government - Agencv Funds
Combining Statement of Changes in Assets and Uabifities For the FISCal Year Ended June 30, 1997

Agriculture, Department of
Agricultural Commodity Commissions Assets Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Corrections, Department of
Detainees' Accounts Assets
Cash and Cash Equivalents
Liabilities Funds Held for Others
Human Resources, Department of
Child Support Recovery Program Assets
Cash and Cash Equivalents
Liabilities Funds Held for Others
Non-Centralized Agency Funds Assets
Cash and Cash Equivalents Investments Receivables
Other Total Assets
Liabilities Funds Held for Others

Balance July 1, 1996

Additions

Deletions

Balance June30,1997

$

910,871 $

6,864,949 $

5,208,003 $

2,567,817

2,602,189

1,221,788

2,002,189

1,821,788

$

3,513,060 $

8,086,737 $

7,210,192 $

4,389,605

$

3,513,060 $

5,322,760 $

4,446,215 $

4,389,605

$

26,067,148 $

101,880,694 $

101,435,409 $

26,512,433

$

26,067,148 $

101,880,694 $

101,435,409 $

26,512,433

$

15,041,579 $

330,933,095 $

339,230,068 $

6,744,606

$

15,041,579 $

330,933,095. $

339,230,068 $

6,744,606

$

5,455,210 $

16,268,560 $

17,034,457 $

4,281,687

703,998

1,679,740

319,396

54,101

324,803

$

10,056,293 $

17,026,659 $

19,039,000 $

4,689,313 3,305,945
48,694 8,043,952 .

$

10,056,293 $

17,026,659 $

19,039,000 $

8,043,952 (continued)

141

- - - - - - - State of GeorfJia--------
PrimarY Government - Agencv Funds Combining Statement of Changes in Assets and Uabilities (continued)
For the FISCal Year Ended June 30, 1997

Balance July 1, 1996

Additions

Deletions

Balance June 30,1997

Insurance, Department of
Receiverships Assets
Cash and Cash Equivalents
Liabilities Funds Held for Others

$

1,640,224 $

$

1,640,224 $

33,713 $ 33,713 $

304,416 $ 304,416 $

1,369,521 1,369,521

Medical Assistance, Department of
Medicaid Special Holding Account Assets
Cash and Cash Equivalents Receivables
Other Total Assets
Liabilities Funds Held for Others

$

8,446,412 $

983,784,328 $

985,859,248 $

6,371,492

13,795,170

10,769,107

24,564,277

$

22,241,582 $ 994,553,435 $ 985,859,248 $

30,935,769

$

22,241,582 $

994,553,435 $

985,859,248 $

30,935,769

Merit System ofPersonnel Administration, State Personnel Board
Deferred Compensation Program Assets
Cash and Cash Equivalents Receivables
Other Deferred Compensation Plan Assets Total Assets
Liabilities Funds Held for Others
Flexible Benefits Program Assets
Cash and Cash Equivalents Receivables
Other Total Assets
Liabilities Funds Held for Others

$

1,627,919 $

110,125,184 $

109,872,621 $

1,880,482

88,608

287,136

274,269

101,475

251,402,084

226,247,160

163,442,437

314,206,807

$

253,118,611 $

336,659,480 $

273,589,327 $

316,188,764

$ 253,118,611 $

74,257,654 $

11,187,501 $ 316,188,764

$

6,750,529 $

53,283,689 $

51,132,244 $

8,901,974

29,175

259,525

179,997

108,703

$

6,779,704 $

53,543,214 $

51,312,241 $

9,010,677

$

6,779,704 $

2,230,973 $

-$

9,010,677

142

State of Georgia - - - - - - - -
PrimarY Government - Agency Funds Combining Statement of Changes in Assets and Uabmties
For the Rscal Year Ended June 30. 1997

Public Service Commission
Universal Access Fund Assets
Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Revenue, Department of
Real Estate Transfer Tax Assets
Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Treasury and Fiscal Services, Office of
Local Government Investment Pool Assets
Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Local Option Sales Tax Collections Assets
Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others

Balance July 1, 1996

Additions

Deletions

Balance June 30, 1997

$

0$

12,021,745 $

5,278,389 $

6,743,356

0

1,298,321

1,298,321

$

0$

13,320,066 $

5,278,389 $

8,041,677

$

0$

12,021,745 $

3,980,068 $

8,041,677

$

2,775,749 $

30,469,715 $

29,764,623 $

8,464,124

1,210,392

8,464,124

$

11,239,873 $

31,680,107 $

38,228,747 $

3,480,841 1,210,392 4,691,233

$

11,239,873 $

22,005,591 $

28,554,231 $

4,691,233

$ 362,331,054 $ 5,236,842,954 $ 4,069,090,012 $ 1,530,083,996

1,795,690,279

579,931,027

1,795,690,279

579,931,027

$ 2,158,021,333 $ 5,816,773,981 $ 5,864,780,291 $ 2,110,015,023

$ 2,158,021,333 $ 3,441,152,675 $ 3,489,158,985 $ 2,110,015,023

$

10,206,158 $

811,588,209 $

782,713,265 $

39,081,102

50,581,086

14,812,483

50,581,086

14,812,483

$

60,787,244 $

826,400,692 $

833,294,351 $

53,893,585

$

60,787,244 $

761,007,123 $

767,900,782 $

53,893,585

(continued)

143

- - - - - - - State or Georgia-------
Primarv Government - Agencv Fmds
Combining Statement of Changes in Assets and UabiliNes (continued) For the Hscal Year Ended Jme 30, 1997

Treasury and Fiscal Services, Office of
Special Purpose Tax Collections Assets
Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Various Agencies and Departments
Other Agency Funds Assets
Cash and Cash Equivalents Investments Receivables
Intergovernmental- Federal Other Other Assets Total Assets
Liabilities Funds Held for Others Advances from Other Funds Total Liabilities

Balance July 1, 1996

Additions

Deletions

Balance June30,1997

$

7,185,971 $

598,811,328 $

572,765,815 $

33,231,484

35,613,226

12,595,367

35,613,226

12,595,367

$

42,799,197 $

611,406,695 $

608,379,041 $

45,826,851

$

42,799,197 $

563,198,102 $

560,170,448 $

45,826,851

$

7,744,284 $

397,939,439 $

386,818,990 $

18,864,733

9,583,307

10,677,775

10,892,781

9,368,301

352,163

527,324

350,847

528,640

1,773,908

7,329,819

6,590,493

2,513,234

0

139,913

139,913

$

19,453,662 $

416,614,270 $

404,653,111 $

31,414,821

$

19,446,737 $

381,795,534 $

369,834,375 $

31,407,896

6,925

6,925

$

19,453,662 $

381,795,534 $

369,834,375 $

31,414,821

144

-----Wrimar! Government - - - - -
Co[[eBe and C(Iniversit! 07unds

(This page iltentionallv left blanR)

- - - - - - - - - State of GeorfJia - - - - - - - - -
PrimarY Government -College and University Funds For the FISCal Year Ended June 30, 1997
Current Funds account for resources that the Institutions may use for any purpose in carrying out their primary objectives.
Unrestricted Current Funds account for economic resources that are fully controlled by the Institutions and are used in the performance of their primary functions. Restricted Current Funds account for externally restricted funds which may be utilized only in accordance with the purposes established by their source. Loan Funds account for resources which have been made available for financial loans to students. Endowment and Similar Funds account for assets that are subject to restrictions of gift instruments. Plant Funds account for transactions involving physical properties of the Institutions. Unexpended Plant Funds account for financial resources utilized to acquire or to construct physical properties. Renewals and Replacements Funds account for resources set aside for the renewal and replacement of physical properties. Investment in Plant Funds disclose amounts representing the book value of all physical properties owned. Agency Funds account for resources held by Institutions as custodians or fiscal agents for individual students, faculty, staff members and organizations.
147

- - - - - - - State or GeorfJia--------
Primarv Government - College and University Fmds
Combining Balance Sheet
Jme 30. 1997

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles)
Intergovernmental- Federal Interest and Dividends Notes and Loans Other Due from Other Funds Inventories Prepaid Items Fixed Assets Land Buildings Improvements Other Than Buildings Equipment Construction in Progress
Total Assets
Liabilities and Fund Equity
Liabilities: Accounts Payable and Other Accruals Compensated Absences Payable SalarieslWithholdings Payable Benefits Payable Due to Other Funds Deferred Revenue Capital Leases Payable Funds Held for Others Other Liabilities Deposits and Overpayments Long-Term Debt Payable Revenue Bonds Payable
Total Liabilities
Fund Equity: U. S. Government Grants Refundable Institutional Loans - Restricted Institutional Loans - Unrestricted Endowment Term Endowment Quasi-Endowment - Unrestricted Quasi-Endowment - Restricted Net Investment in Plant Restricted Unrestricted
Total Fund Equity
Total Liabilities and Fund Equity

Current Funds

Unrestricted

Restricted

Loan Funds

Endowment and Similar
Funds

$ 240,145,607 $ 51,293,942
1,147,810
108,423,243 13,907,207 26,826,099 5,763,710

16,399,958 $ 1,203,563 42,645,788
35,501,488
456,273

10,411,631 $ 12,558
46,110 47,827,953
8,729 1,173,278

41,063,193 40,693,976
15,365 1,160

$ 447,507,618 $

96,207,070 $

59,480,259 $

81,773,694

$ 131,725,131 $ 85,559,352 5,023,207 20,900,000 7,040,882 71,566,348

721,975 $ 14,882,123
25,340,971

70,868 1,707,821

$ 28,117

34,419

$ 323,593,609 $

40,945,069 $

28,117 $

34,419

$

$

123,914,009 $ 123,914,009 $

$
55,262,001 55,262,001 $

47,284,688 $ 12,161,558
5,896
59,452,142 $

67,121,309 2,209,515 6,283,538 6,124,913
81,739,275

$ 447,507,618 $

96,207,070 $

59,480,259 $

81,773,694

148

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Agency Funds

Total Before Eliminations

Eliminations

Total (Memorandum
Only)

$

96,801,950 $

32,077,463 $

1,623,876

1,067,557

$

36,693,437 $ 473,593,239 $

5,902,965

10 1,798,437

$

473,593,239

101,798,437

5,113,257 4,626,920
2,958,842

73,008 5,416,706

846,046
1,231,850 5,832,374

44,639,644 46,110
47,843,318 150,351,575 30,957,645 26,826,099
9,178,825

(30,957,645)

44,639,644 46,110
47,843,318 150,351,575
0 26,826,099
9,178,825

89,981,364 2,391,641,684
160,263,555 1,445,741,492
146,943,998

89,981,364 2,391,641,684
160,263,555 1,445,741,492
146,943,998

89,981,364 2,391,641,684
160,263,555 1,445,741,492
146,943,998

$ 111,124,845 $

38,634,734 $ 4,234,572,093 $

50,506,672 $ 5,119,806,985 $ (30,957,645) $ 5,088,849,340

$

72,016,426 $

22,167

707

396,350

1,287

14,000

$

72,450,937 $

5,644,975 $ 5,644,975 $

$
10,940,762 41,128
10,981,890 $

29,812,196 $ 1,732,803
18,961,673
50,506,672 $

239,920,703 $ 100,463,642
5,023,914 20,900,000 34,573,542 71,566,348 10,940,762 18,961,673
113,283 1,707,821
14,000
504,185,688 $

$ (30,957,645)
(30,957,645) $

239,920,703 100,463,642
5,023,914 20,900,000
3,615,897 71,566,348 10,940,762 18,961,673
113,283 1,707,821
14,000
473,228,043

$

$

$

$

311,883 38,362,025

32,989,759

4,223,590,203

$

38,673,908 $

32,989,759 $ 4,223,590,203 $

$

47,284,688 $

12,161,558

5,896

67,121,309

2,209,515

6,283,538

6,124,913

4,223,590,203

55,573,884

195,265,793

0 $ 4,615,621,297 $

$

47,284,688

12,161,558

5,896

67,121,309

2,209,515

6,283,538

6,124,913

4,223,590,203

55,573,884

195,265,793

0 $ 4,615,621,297

$ 111,124,845 $

38,634,734 $ 4,234,572,093 $

50,506,672 $ 5,119,806,985 $ (30,957,645) $ 5,088,849,340

149

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- - - - - Wrimar! Government - - - - -
Genera[ 07ixed AssetsAccount Group

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- - - - - - - - State of GeorfJia - - - - - - - -
PrimarY Government - General FIXed Assets Account Group
For the FISCal Year Ended June 30, 1997
The General Fixed Assets Account Group is used to account for fixed assets acquired or constructed for use by the State for general governmental purposes. These include all Primary Government fixed assets, except those accounted for in the Proprietary, Nonexpendable Trust, Pension Trust, and College and University funds.
153

--------- State of Geot'sia---------
Schedule of General FIXed Assets BvFundion June 30, 1997

Function
General Government Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay

Land and Buildings

hnprovements Other Than Buildings

Equipment

Total

$

333,074,203 $

246,359,822

141,539,241

703,781,008 76,153,305 165,143,471 5,567,544 184,485,018

$ 389,573

47,807,967 $ 158,861,779 146,559,173 177,442,654 159,741,985 32,917,039 64,443,021 62,973,644

380,882,170 405,221,601 288,098,414 177,442,654 863,522,993 109,070,344 229,976,065
68,541,188 184,485,018

Total General Fixed Assets

$ 1,856,103,612 $

389,573 $

850,747,262 $ 2,707,240,447

154

State of Georgia - - - - - - -
Schedule of Changes in General Fixed Assets BvFundion
For the FISCal Year Ended June 30, 1997

Function
General Government Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay

General Fixed Assets July 1,1996

Additions

Deletions

Retroactive Restatement ofPrior Year
Balance

General Fixed Assets June 30, 1997

S

353,117,247 S

332,629,636

258,815,464

168,100,484

804,636,048

107,218,561

225,374,246

66,834,573

233,791,591

S

2,550,517,850 S

31,211,949 S 92,179,881 40,543,664 17,786,334 72,482,455 3,485,640
8,289,449 3,199,368 4,399,772
273,578,512 S

3,447,026 S 23,972,756 11,260,714
8,444,164 13,595,510
1,633,857 3,687,630 1,492,753 53,706,345
121,240,755 S

S 4,384,840

380,882, 170 405,221,601 288,098,414 177,442,654 863,522,993 109,070,344 229,976,065
68,541,188 184,485,018

4,384,840 S

2, 707,240,447

155

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- - - - - - Component CUnits - - - - - -
cr Governmen1a[ O:-umf !pes

(This page iltcnNonal1v left blank)

- - - - - - - - - - State of Georgia - - - - - - - - - -
Component Units - Governmental Fund Tvpes For the FIscal Year Ended June 30, 1997
Georgia Education Authority (Schools) is responsible for construction and financing of buildings and facilities for the State board and local boards of education. Georgia Public Telecommunications Commission is responsible for providing public telecommunications services statewide to meet the needs of the public in Georgia.
159

- - - - - - - - State of GeorfJia - - - - - - - -
Component Units - Governmental FLIf\d Tvpes Combining Balance Sheet Jmc30,1997

Assets and Other Debits
Assets: Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Notes and Loans Other Inventories Prepaid Items Fixed Assets Land and Buildings Equipment Other Debits: Amounts to be Provided for Retirement of General Long-Term Debt
Total Assets and Other Debits
Liabilities, FlUld Balances and Other Credits
Liabilities: Accounts Payable and Other Accruals Compensated Absences Payable
Salme~ithhcldi~sPay~re
Due to Primary Government Deferred Revenue Capital LeaseslInstallment Purchases Payable
Total Liabilities
Fund Balances and Other Credits: Other Credits: Investment in Fixed Assets
Fund Balances: Unreserved, Undesignated
Total Fund Balances and Other Credits
Total Liabilities, Fund Balances and Other Credits

Georgia Education Authority (Schools)

Georgia Public Telecommunications Commission

Total

$

412,514 $

1,741,225 $

2,153,739

156,328

118,463

274,791

102,219 2,859,426
164,256 233,819

102,219 2,859,426
164,256 233,819

26,924,094 46,982,503

26,924,094 46,982,503

6,069,631

6,069,631

$

568,842 $

85,195,636 $

85,764,478

$

$

4,318,785 $

4,318,785

969,319

969,319

36,317

36,317

328,877

328,877

635,000

635,000

5,100,312

5,100,312

$

0$

11,388,610 $

11,388,610

$

-$

73,906,597 $

73,906,597

$

568,842 $

(99,571) $

469,271

$

568,842 $

73,807,026 $

74,375,868

$

568,842 $

85,195,636 $

85,764,478

160

- - - - - - - - State of Georgia--------
Component Units - Governmental Fund Tvpes Combining Statement of Revenues. Expenditures and
Changes in Fund Balances For the Hscal Year Ended June 30. 1997

Revenues: Intergovernmental Federal Sales and Services Interest and Other Investment Income Rents and Royalties Contributions and Donations Other
Total Revenues
Expenditures: Culture and Recreation
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources: Operating Transfers from Primary Government
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures
Fund Balances, July 1 Adjustments Inclusion ofFoundation for Public Broadcasting in Georgia, Inc.

Georgia Education Authority (Schools)

Georgia Public Telecommunications Commission

Total

$

$

29,655

$

29,655 $ --....;...;:---"---

$

--.;;0_ $

33,033,963 $ _-:;3...:.;3,:..;.;03:..;;,3.;;;.,9.:.,:63:.-.

$

2_9,'-6_55_$

(17,552,633) $ _--->.(;;...17-'-,5_22-',;;...97_8.<..)

$

0_$

16,326,489 $

16-,-,3_2-,6,_48;;...9_

$

29,655 $

(1,226,144) $

(1,196,489)

539,187

147,144

686,331

979,429

979,429

Fund Balances, June 30

$

568,842 $ ===(=9=9,=57=1:.) $ ===4=6:::::9,=27=1=

161

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- - - - - Component CUnits - - - - - -
Wroprietar! ~umf 6>~pes

(This page i1tmtionallv left blanR)

- - - - - - - State of G e o r f J i a - - - - - - -
Component UI1its - ProprietarY Fmd Tvpes For the FISCal Year Ended June 30, 1997
Proprietary Funds are used to account for business-type activities. The State's major proprietary funds are described below:
The Development Authority assists agricultural and industrial interests in starting and expanding their operations by providing credit and servicing functions necessary to enable farmers and businessmen to obtain capital funds.
The Environmental Facilities Authority provides funding to eligible municipalities, counties and water and sewer authorities in the State for construction and expansion of public water and sewer facilities.
The Housing and Finance Authority assists in providing housing for low and moderate income families and persons unable to find adequate dwellings through the purchase or origination of mortgage loans. The authority also provides financing for the acquisition and construction of hospital facilities and equipment.
The Lake Lanier Islands Development Authority is responsible for the development, operation and maintenance of the islands in Lake Lanier for recreational purposes.
The Lottery Corporation is responsible for the provision of lotteries on behalf ofthe State.
The Ports Authority operates deepwater and inland barge terminals offering loading and off-loading facilities, storage warehouses and cargo transfer facilities. The authority also develops industrial sites on and adjacent to each port facility and makes these sites available to private industry.
The Stone Mountain Memorial Association operates Stone Mountain and the surrounding area as a Confederate memorial and a public recreation area.
The Student Finance Authority provides educational scholarships, grants and loan assistance to help Georgia residents obtain a higher education or other postsecondary training.
The Tollway Authority provides financing for the construction of toll highways and bridges in the State.
The World Congress Center Authority operates the World Congress Center, a comprehensive international trade and convention meeting facility providing exhibit space to handle large numbers of trade displays, and the Georgia Dome. The authority promotes trade shows, conventions, tourism and sporting events within the State.
The Other Entities column is an accumulation of the proprietary funds that are not individually material to the total assets presented on the proprietary fund type balance sheet. The State's other proprietary funds are described below:
The Agricultural Exposition Authority operates a facility at Perry, Georgia, where the agricultural community can exhibit and promote products and livestock, and where other public events may be held.
The Agrirama Development Authority operates and maintains an agricultural museum and restoration complex at Tifton, Georgia.
165

- - - - - - - - State of GeorfJia - - - - - - - -
Component Units -ProprietarY Fmd Tvpcs
For the FISCal Year Ended June 30, 1997

The Higher Education Assistance Corporation is responsible for the implementation of a guaranteed educational loan program within the State.

The Highway Authority administers a program for financing State roads and highways.

The Jekyll Island State Park Authority is responsible for developing and maintaining Jekyll Island and the adjacent marshes and marsh islands along the Atlantic coast in Glynn County, Georgia.

The Georgia International and Maritime Trade Center Authority was created to develop and promote the growth of the State's import and export markets through its ports and other transportation modes.

The Music Hall of Fame Authority was created to construct, operate and manage a facility to house the Georgia Music Hall of Fame.

The North Georgia Mountains Authority was created to acquire, build, equip, maintain, operate and promote recreation, accommodations and tourist facilities and services in the North Georgia Mountains area.

The Rail Passenger Authority was created for the purpose of construction, financing, operation and

development of rail passenger service and other public transportation projects within and without the State

of Georgia.

.

.

The Sapelo Island Heritage Authority was created to preserve the cultural and historic values of the Hog Hammock community on Greater Sapelo Island in McIntosh County, Georgia.

The Seed Development Commission receives and serves as an agent for breeders' seeds and other parent material. The commission also purchases, processes and resells breeders' and foundation seeds.

The Sports Hall of Fame Authority was created to construct and maintain a facility to house the Georgia Sports Hall of Fame to honor those, living or deceased, who by achievement or service have made outstanding and lasting contributions to sports and athletics in this State or elsewhere.

The Superior Court Clerks' Cooperative Authority was created to provide a cooperative for the development, acquisition and distribution of record management systems, information, services, supplies and materials for superior court clerks ofthe State.

166

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State of GeorfJia - - - - - - -
Component Units - ProprietarY Fund Tvpes Combining Balance Sheet June 30, 1997

Assets
Current Assets: Cash and Cash EquiVlllents Receivables (Net ofAllowances for Uncollectibles) Intergovernmental - Federal Interest and Dividends Other
Accounts Miscellaneous Due from PrimaI)' Government Inventories Prepaid Items Long-Term Assets: Investments Receivables Notes and Loans Restricted Assets Cash and Cash EquiVlllents Investments Receivables Interest and Dividends Loans Deferred Charges Fixed Assets: Land and Builcling$ Improvements Other Than Buildings Machinery and Equipment Accwnulated Depreciation Construction in Progress Other Assets
Total Assets
Liabilities and Fund Equity
Liabilities Current Liabilities: Cash Overdraft Accounts Payable and Other Accruals Compensated Absences Payable Contracts Payable SalarieslWithholdings Payable Due to PrimaI)' Government AcCIUed Interest Payable Deferred Revenue Long-Term Liabilities: Capital LeaseslInstallment Purchases Payable Mortgage Loans under Repurchase Agreements Funds Held for Others
Other Liabilities Deposits and Overpayments Advances from PrimaI)' Government Long-Term Debt Payable
(Net of Unamortized Discounts) Grand Prizes Payable Notes and Loans Payable Revenue Bonds Payable
Total Liabilities

Development Authority

Environmental Facilities Authority

Housing and Finance Authority

Lake Lanier Islands
Development Authority

Lottery Corporation

$

4,707,572 $ 150,656,445 $

8,166,598 $

2,698,575 $

2,368,978

90,538,480 3,759,980

497,931

942,320

15,464,993

44,893,000

1,393,024

8,101

29,534

2,372,000

160,319

53,270,676

43,025,720

5,216,219

76,346,518

416,723,887

50,179,369

124,097,677 65,388,151

287,000 234,417,000

140,752

6,295,000 581,124,003
12,871,088

6,411,880

1,962,000

270,903

1,083,806 (1,507,043)

9,391

10,744,000 (9,422,000)

80,144

6,094,598

5,079

4,244,000

$

83,583,387 $ 717,784,712 $ 903,728,778 $

18,207,572 $ 294,713,219

$

$

$

$

$

18,526,219

1,311,397

3,684,309

17,748,768

9,450,920

40,912,437

19,889

500,000

367 2,771,414 7,091,222

16,967 4,199,610 47,458,533

29,563

30,446,467

2,000,000

5,079

541,000

26,833,957

88,655,000

362,500 760,359,542

$

59,091,821 $ 102,202,312 $ 832,145,920 $

168

234,417,000 9,475,888 $ 294,426,219

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress
Center Authority

Other Entities

Total

$

5,206,070 $

12,595,835 398,731
2,457,812 633,748
1,328,058
2,953,212 1,119,324

5,612,415 $ 1,921,240

15,890,809 $
366,617 6,883,341
701,619

2,292,417 656,496

1,273,931 330,641,017

171,257,987 194,224,835 114,599,140 (1 n,964,489)
41,573,848 17,6n,480

173,244
87,045,525 22,020,461 25,481,3n (34,996,035)
425,286 356,908

4,067,835
944,861 (2,089,686)

9,124,263 $

15,744,750 $

8,892 91,541
2,011 9,184,373

538
4,808,218 3,000,000
248,240 219,835
39,510

2,580,981 16,873,484
4,904,480 2,710,490 4,153,222 (4,156,060)
460,191 62,731,528

4,184,543 52,245,293
563,741
3,269,916
209,402,736
11,194,149 (36,138,594) 61,098,965

35,834,961 $ 253,642,458

2,200,972 72,197

93,106,069 13,591,857

1,924,019 2,137
434,782 70,096

83,342,785 3,400,868 1,393,024 5,433,251 3,991,821

8,110,916

121,609,722

873,890,791

134,103,413 370,043,252

6,858,741 581,124,003
16,455,000

67,728,711
10,378,558 (20,108)
23,255,134 236,920

552,781,154 218,955,786 178,859,407 (266,294,015) 126,813,424
91,426,657

$

388,061,591 $

11 0,989,334 $ 358,680,344 $ 108,669,396 $

329,881,840 $

150,229,295 $ 3,464,529,468

$

$

$

$

$

$

$

18,526,219

3,933,223

3,444,407

435,202

1,080,668

4,205,228

2,480,073

88,686,632

1,016,591

1,071,587

586,612

2,694,679

1,909,296

258,897

304,068

2,472,261

401,930

79

136,782

538,791

52,590

67,540

10,399

5,598

183,024

997,551

2,937,358

7,659,539

1,310

18,566,782

783,465

1,537,782

1,788,376

21,037,911

855,268

81,052,557

27,397 2,518,143

281,615,443 3,094,363

110,460

63,713
14,765 683,287 15,090,900

35,000 48,814
161,250

126,110 30,446,467 281,684,101
8,836,793 15,201,360
161,250

8,714,309 20,800,000

$

40;156,944 $

35,575,262 4,441,958 $ 322,325,592 $

88,636,723 94,812,482 $

197,257,940 247,095,348 $

169

315,000

234,417,000 71,486,028
1,156,024,205

4,929,n5 $

2,011,104,259 (continued)

State of GeorfJla - - - - - - -
Component Units - Proprietarv Fund Tvpes
Combining Balance Shed (continued) Jme 30, 1997

Fund Equity and Other Credits: Other Credits Investment in General Fixed Assets
Fund Equity Contributed Capital
State of Georgia Federal Government Other
Total Contributed Capital
Retained Earnings Reserved Unreserved
Total Retained Earnings
Fund Balan.ces Reserved for Other Specific Purposes Unreserved
Total Fund Balances
Total Fund Equity
Total Fund Equity and Other Credits
Total Liabilities, Fund Equity and Other Credits

Development Authority

Environmental Facilities Authority

Housing and Finance Authority

Lake Lanier Islands
Development Authority

Lottery COIporation

$

-$

270,903 $

-$

-$

$

$

207,463,633 $

$

23,007,859 $

283,015,975

$

0$

490,479,608 $

0$

23,007,859 $

$

4,632,575 $

2,510,812 $

22,581,833 $

-$

19,858,991

104,224,366

46,891,428

(14,276,175)

$

24,491,566 $

106,735,178 $

69,473,261 $

(14,276,175) $

0 287,000 287,000

$

$

10,542,581 $

772,276 $

7,554,130

1,337,321

$

0$

18,096,711 $

2,109,597 $

$

24,491,566 $

615,311,497 $

71,582,858 $

$

24,491,566 $

615,582,400 $

71,582,858 $

$
0$ 8,731,684 $ 8,731,684 $

0 287,000 287,000

$

83,583,387 $

717,784,712 $

903,728,778 $

18,207,572 $ 294,713,219

170

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress
Center Authority

Other Entities

Total

$

-$

-$

-$

-$

-$

-$

270,903

$ 223,147,849 $

45,171,435 $

$

$

$

78,238,037 $ 577,028,813

9,676,882

292,692,857

292,063

15,126,652

58,750,000

1,038,409

75,207,124

$ 233,116,794

60,298,087 $

0$

0$

58,750,000 $

79,276,446 $ 944,928,794

$ 114,787,853
$ 114,787,853 $

$ 46,249,289
46,249,289 $

25,386,512 $ 10,968,240
36,354,752 $

$ 13,856,914
13,856,914 $

111,209 $ 23,925,283
24,036,492 $

18,352,059 $ 47,671,015
66,023,074 $

73,862,000 414,157,204
488,019,204

$

$

$

$

0$

0$

$ 347,904,647 $ 106,547,376 $

$ 347,904,647 $ 106,547,376 $

$
0$ 36,354,752 $ 36,354,752 $

$
0$ 13,856,914 $ 13,856,914 $

$
0$ 82,786,492 $ 82,786,492 $

$

11,314,857

8,891,451

0$

20,206,308

145,299,520 $ 1,453,154,306

145,299,520 $ 1,453,425,209

$ 388,061,591 $ 110,989,334 $ 358,680,344 $ 108,669,396 $ 329,881,840 $ 150,229,295 $ 3,464,529,468

171

State of Georgia - - - - - - - -
Component lJr\its -Proprietarv Fund Tvpes
Combining Statement of Revenues. Expenses and Changes in Fund Equilv
For the FISCal Yea r Ended June 30. 1997
172

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress Center Authority

Other Entities

Total

$

$

$

86,305,610

18,781,335 23,1l9,869

730,827

$

86,305,610 $

42,632,031 $

$ 4,575,574
2,470,439 324,707
7,370,720 $

$ 16,847 19,976,661
19,993,508 $

$ 36,088,982 18,700,546
54,789,528 $

38,928 $
28,253,099 5,243,275
26,184,152 1,231,886
15,251,980

38,928 80,031,640 28,253,099 65,288,058 1,836,327,617
1,439,287 16,573,581

76,203,320 $ 2,027,952,210

$

19,407,283 $

38,556,207

15,306,746

$

73,270,236 $

$

13,035,374 $

30,648,189 $ 6,694,786

4,656,216 $ 33,170,879

5,600,620
42,943,595 $ (311,564) $

252,186 13,205,225
51,284,506 $
(43,913,786) $

2,673,697 $ 2,715,526
1,576,866 2,462,057 9,428,146 $ 10,565,362 $

19,1l3,272 $ 23,778,419
8,696,046
51,587,737 $ 3,201,791 $

31,347,505 $ 3,124,069
8,788 38,057,760

140,399,898 323,522,300
58,720,450 857,283,000
33,092,551 55,510,140

72,538,122 $ 1,468,528,339

3,665,198 $ 559,423,871

$

$

$

$

$

$

518,498 $

518,498

2,1l6,351

729,442

992,660

1,381,703

2,995,908

1,988,333

25,258,853

527,514

527,514

17,013,593

233,985

17,247,578

(8,391,376)

(1,391,679)

(1,293,543)

(5,922,451 )

(15,351,901 )

(1,332,084)

(35,232,947)

(1,557,152)

(514)

(3,003,122)

900,428

(173,000)

436,728

(36,874)

(634,042)

(355,867)

933,242

$

(5,374,597) $

(835,237) $

663,359 $

(4,577,622) $

2,466,406 $

1,052,351 $

6,249,616

$

7,660,777 $

(1,146,801) $ (43,250,427) $

5,987,740 $

5,668,197 $

4,717,549 $ 565,673,487

$

$

$

45,677,328 $

$

$

4,571,026 $

53,331,561

(1,401,130)

(583,039,856)

$

0$

0$

45,677,328 $

0$

(1,401,130) $

4,571,026 $ (529,708,295)

$

7,660,777 $

(1,146,801) $

2,426,901 $

5,987,740 $

4,267,067 $

9,288,575 $

35,965,192

334,844,483 15,926,446 (10,527,059)

91,881,181
2,225,401 15,126,652 (1,539,057) .

35,659,459 (1,731,608)

7,869,174

72,533,501
6,000,000 (14,076)

86,026 121,856,818
1,142,199 13,832,331
(942,981) 36,552

(4,263,322)
1,364,973,768
(1,731,608) (34,223,900) 56,792,235 28,615,928 21,126,652
(14,123,1l5) 22,476

$ 347,904,647 $ 106,547,376 $

36,354,752 $

13,856,914 $

82,786,492 $ H5,299,520 $ 1,453,154,306

173

- - - - - - - State of Georsta - - - - - - - -
Component Units - ProprietarY Fmd Tvpes Combining Statement of Cash Flows
For the Hscal Yea r Ended June 30, 1997

Cash Flows from Operating Activities: Cash Received from Customers Principal Payments Received on Program Loans Interest Received on Program Loans Cash Paid to Vendors Cash Paid to Employees Cash Paid for LotteI)' Prizes Origination ofProgram Loans Governmental and Fiduciary Fund Type Activity (Net) Other Operating Items (Net)
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Noncapital Financing Activities: Operating Transfers from PrimaIy Government Proceeds from Assignment ofProgram Loans Under Repurchase Agreements Issuance ofBondsILoans/Notes Contributed Capital HotellMotel Tax (Net) Operating Transfers to PrimaIy Government Repayment ofAdvances Principal Paid on BondslLoanslNotes Interest Paid on BondsILoanslNotes Return ofContributed Capital Other Debt Service Payments Other Noncapital Items (Net)
Net Cash Provided by (Used in) Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities: Issuance ofBondsILoanslNotes HotellMotel Tax Received Contributed Capital Sale of Capital Assets Acquisition and Construction of Capital Assets Principal Paid on BondsILoanslNotes Interest Paid on BondsILoanslNotes Other Debt Service Payments Other Capital and Related Items (Net)
Net Cash Provided by (Used in) Capital and Related Financing Activities
Cash Flows from Investing Activities: Purchase of Investments (Net) Interest on Investments Other Investing Items (Net)
Net Cash Provided by (Used in) Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1
Cash and Cash Equivalents, June 30

Development Authority

Environmental Facilities Authority

Housing and Finance Authority

Lake Lanier Islands
Development Authority

Lottery Corporation

$

$

$

4,382,776 $

18,155,744

29,687,942

57,650,949

4,201,736

16,086,529

45,563,588

(1,841,570)

(60,236)

(4,361,741)

(343,443)

(49,312)

(4,850,110)

(19,583,050)

(66,699,113) 8,719,827

(81,432,689) 379,945

2,343,702 $ 1,633,192,000

(4,972,555) (437,186)
(293,181)

(235,124,034) (13,842,000) (839,989,000)

$

589,417 $

(12,314,363) $

17,332,718 $

(3,359,220) $ 544,236,966

$

$

11,602,888 15,200,000

(23,249,661)

3,083,207 $

$

47,397,522

110,106,025

(495,131)

(87,196,798) (47,186,693)
(1,824,658)

$

(581,638,726)

(1,114,018) (1,942,238)

18,417,219

$

3,553,227 $

49,985,598 $

(26,102,124) $

(3,056,256) $ (563,221,507)

$

$

$

$

$

(3,670,000) (5,654,993)
(5,871)

(527,250)

(9,391) (1,549,913)

(847,000)

$

0$

(9,330,864) $

(527,250) $

(1,559,304) $

(847,000)

$

293,347 $

76,567,159 $

9,431,272 $

$

396,609

145,945

8,576,306

16,250,388

327,205

6,005,000

$

439,292 $

85,143,465 $

25,681,660 $

327,205 $

6,401,609

$

4,581,936 $

113,483,836 $

16,385,004 $

(7,647,575) $

(13,429,932)

125,636

37,172,609

115,879,271

10,346,150

13,716,932

$

4,707,572 $

150,656,445 $

132,264,275 $

2,698,575 $

287,000

174

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress
Center Authority

$

85,476,973 $

42,<175,077 $

2,589,414 $

20,215,128 $

69,819,585 $

(19,987,918) (36,828,085)

(21,565,000) (18,492,829)

4,396,762 (50,559,898)

(4,913,626) (1,522)

(40,803,471) (18,409,572)

(2,295,934) 511,328

2,350 234,000

$

28,660,970 $

2,917,248 $

(45,358,328) $

15,299,980 $

10,842,892 $

Other Entities

Total

76,511,608 $
(60,328,715) (10,844,626)
(41,286)

1,937,506,263 105,494,635 70,248,615 (444,518,764) (104,098,685) (839,989,000) (170,010,786) 9,278,983 234,000

5,296,981 $ 564,145,261

$

$

$

45,677,328 $

31,043,810

(10,527,059) 358,904

(1,539,057)

(25,739,360) (1,196,486)
436,728

$

$

4,571,026 $

53,331,561

3,147,496 (1,295,044)
(661,410)

186,541 (53,750)
(942,981) (1,407,916)

11,602,888 156,349,835 47,397,522
3,334,037 (582,933,770)
(53,750) (136,185,819) (48,383,179)
(14,123,115) (1,824,658) 14,706,156

$

(10,168,155) $

(1,539,057) $

50,222,020 $

0$

1,191,042 $

2,352,920 $ (496,782,292)

$

15,000,000 $

$

15,926,446 465,962
(39,318,295) (1,396,015) (8,587,035)

2,225,401 (17,469,207) (2,270,460)

156,250

$ (217,474)

$
(801,381) (3,505,000) (5,984,249)

$ 13,565,899 3,000,000
(7,364,563) (1,500,000) (15,369,039) (1,418,419)
(177,363)

$
3,474,758
(1,263,536) (60,000)
(1,332,403) (514)

15,000,000 13,565,899 24,626,605
465,962 (67,818,097) (10,131,015) (40,748,092)
(1,424,804) (21,113)

(17,752,687) $

(17,514,266) $

(217,474) $

(10,290,630) $

(9,263,485) $

818,305 $

(66,484,655)

969,043 $ 1,982,630
2,951,673 $ 3,691,801 $ 4,467,481

$ 729,442 (26,648)
702,794 $
(15,433,281) $
21,045,696

(417,521) $ 1,010,305
592,784 $ 5,239,002 $ 10,651,807

(2,571,203) $ 1,381,508

(11,209,714) $ 2,497,276

(1,189,695) $ 3,819,655 $ 7,885,589

(8,712,438) $ (5,941,989) $ 25,871,282

6,248,729 $ 1,987,000
8,235,729 $ 16,703,935 $ 19,131,026

79,707,721 40,893,005
(26,648)
120,574,078
121,452,392
266,293,479

8,159,282 $

5,612,415 $

15,890,809 $

11,705,244 $

19,929,293 $

175

35,834,961 $

387,745,871 (continued)

State of Georgia - - - - - - -
Component Units - ProprietarY Fund Tvpcs Combining Statement of Cash Flows (conNnued)
For the FISCal Yea r Ended June 30, 1997

Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities: Depreciation/Amortization Interest Other Changes in Assets and Liabilities:
Decrease (Increase) in Intergovenunental Receivables Decrease (Increase) in Interest and Dividends Receivable Increase in Notes and Loans Receivable Decrease (Increase) in Other Receivables Decrease (Increase) in Inventories Decrease (Increase) in Prepaid Items Decrease in Deferred ChaIges Decrease (Increase) in Other Assets Increase (Decrease) in Accounts Payable and Other Accruals Increase (Decrease) in Compensated Absences Payable Increase (Decreaes) in Contracts Payable Increase (Decrease) in SalarieslWithholdings Payable Increase (Decrease) in Due to PrimaIy Government Increase (Decrease) in Deferred Revenue Increase (Decrease) in Funds Held for Others Increase (Decrease) in Other Liabilities Increase (Decrease) in Deposits and Ovetpayments Increase in Grand. Prizes Payable
Total Adjustments
Net Cash Provided by (Used in) Operating Activities
Noncash Investing, Capital, and Financing Activities: Disposal ofFixed Assets Donation ofFixed Assets Interest Earned on Grand Prize Investments and
Grand Prizes Payable

Development Authority

Environmental Facilities Authority

Housing and Finance Authority

Lake Lanier Islands
Development Authority

Lottery COIporation

$

2,055,839 $

2,438,064 $

4,298,822 $

1,971,045 $ 562,417,726

$

$

$

(196,502) $

5,542,826

35,346,301

15,939,675

522,884

$

1,077,000

(16,343,000)

(1,162,214) (1,427,306)

(763,681) (37,002,768)

(23,781,740)

1,123,322

10,054 (18,457) 665,866

(1,660,222) 2,789,409

(3,927,591) 326,839 118,538
2,202 (699,407)
(43,653)

(21,467,000)
(509,000)
1,172,000 (37,864,123)

(224)

874,058

13,766

(5,831)
(805,979) (295,383)

(1,637) (90,000)

55,845,000

$

(1,466,422) $

(14,752,427) $

13,033,896 $

(5,330,265) $

(18,180,760)

$

589,417 $

(12,314,363) $

17,332,718 $

(3,359,220) $ 544,236,966

$

$

$

$

$

16,343,000

$

0$

0$

0$

0$

16,343,000

176

Ports Authority

Stone Mowrtain Memorial Association

Student Finance Authority

Tollway Authority

World Congress Center Authority

$

13,035,374 $

(311,564) $

(43,913,786) $

10,565,362 $

3,201,791 $

Other Entities
3,665,198 $

Total 559,423,871

$

15,306,795 $

(1,667,383) (74,307) 32,137
605,182 370,582
85,816 580,827 112,297 40,086 233,564

$

15,625,596 $

5,600,620 $
343,046 (233,505) 129,927 (2,609,878)
(1,398)
3,228,812 $

252,186 $ 511,328 (366,617) (178,812) (2,295,934) (461,306)
(443,007)
(187,577) 362,442 1,362,755
(1,444,542) $

4,038,923 $
(45,353) 2,006
648,354 (176,216)
(69) 224,518
42,455 4,734,618 $

8,696,046 $
(1,661,791) 8,051
62,153
276,733 127,904
(55) (452) 451,762 2,350 (321,600)
7,641,101 $

8,788 $
86,026
1,276,602 25
(1,169,173) (108,290) (3,126)
22,309 1,195,325
(29,826) 228,572
78,965 (5,627) 178,525 (127,312)
1,631,783 $

34,783,856 40,889,127
716,913
909,985 (2,104,682) (64,507,748) (30,056,551)
(81,212) (167,365)
10,054 123,014 (34,546,824) 140,241 633,183 185,307 (143,063) 1,518,890 (420,345) 1,272,755 (279,145) 55,845,000
4,721,390

$

28,660,970 $

2,917,248 $

(45,358,328) $

15,299,980 $

10,842,892 $

5,296,981 $

564,145,261

$

$

$

$

(44,004) $

$

(381,319) $

(425,323)

15,126,652

36,103

6,542,667

21,705,422

16,343,000

$

0$

15,126,652 $

0$

(44,004) $

36,103 $

6,161,348 $

37,623,099

177

(This page ilten"onallv left blanR)

- - - - - Component <Units - - - - -
~iduciar!~und CT!pes

(This page iltentlonallv left blank)

- - - - - - - - State of Geof'gia - - - - - - - -
Component Units - Rduciarv Fund Tvpes
For the FISCal Yea r Ended June 30, 1997
The Firemen's Pension Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the firemen of the State of Georgia. The Judges of the Probate Courts Retirement Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the judges ofthe Probate Courts of the State of Georgia. The Peace Officers' Annuity and Benefit Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the peace officers of the State of Georgia. The Public School Employees Retirement System is used to account for the accumulation of resources for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System. The Sheriffs' Retirement Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the sheriffs of the State of Georgia. The Superior Court Clerks' Retirement Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the Superior Court Clerks of the State of Georgia. The Teachers Retirement System is used to account for the accumulation of resources for the purpose of providing retirement allowances and other benefits for teachers and administrative personnel employed in the public schools and the University System of Georgia.
181 .

- - - - - - - - State of GeorfJia - - - - - - - -
Component Units - Rduciarv Fmd Tvpc.s
Combining Statement of Plan Net Assets June 30. 1997

Firemen's Pension
Fund

Judges ofthe Probate Courts
Retirement Fund

Peace Officers' Annuity and Benefit Fund

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for
Uncollectibles) Interest and Dividends Other Miscellaneous
Prepaid Items Fixed Assets
Land and Buildings Equipment
Total Assets
Liabilities
Accounts Payable and Other Accruals Salaries/Withholdings Payable Due to Primary Government
Total Liabilities

$

48,167 $

261,644,190

20,702 $ 30,793,275

1,771,747 214,754,374

2,455,668

297,232

2,280,888

132,909 116,344

$

264,397,278 $

9,189 31,120,398 $

310,296 92,866
219,210,171

$

$

$

$

0$

0$



Fund Balances Reserved for Pension Benefits $

264,397,278 $

31,120,398 $==2=19=,2=1=0,=17=1=

182

Public School Employees Retirement System

Sheriffs' Retirement
Fund

Superior Court Clerks'
Retirement Fund

Teachers Retirement
System

Total

$

131,000 $

578,396,000

55,739 $ 32,157,003

12,531 $

10,585 $

2,050,471

32,294,575

27,721,266,000

28,871,305,417

$ 578,527,000 $

238,802
16,662 32,468,206 $

223,757,000

229,029,590

176,832,155 39,650

176,832,155 39,650

15,459

443,205 250,520

32,322,565 $ 28,121,905,390 $ 29,279,951,008

$

228,000 $

$

228,000 $

$ 578,299,000 $

$

$

$- - - - - - $

1,622,697 $ 58,985 26,058

1,850,697 58,985 26,058

1,707,740 $

1,935,740

---~....<---

32,468,206 $

32,322,565 $ 28,120,197,650 $ 29,278,015,268

183

(This page intentionalIv lett blanR)

- - - - - - Statisticar Section -------'---

- - - - - - - - State of Georgia - - - - - - - -
Statistical Section
Index

Table 1 Table 2 Table 3 Table 4 Table 5 Table 6
Table 7 Table 8 Table 9

Page

General Governmental Expenditures by Function

188

General Governmental Revenues by Source

190

State Tax Revenues by Source - All Governmental Fund Types

" 192

Principal Nongovernmental Employers

194

Computation ofLegal Debt Margin

;

195

Ratio ofAnnual Debt Service Expenditures for General Obligation Debt

to Total General Governmental Expenditures

195

Demographic Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 196

Schedule of Bank Deposits

196

Miscellaneous Statistics

197

187

- - - - - - - State of Georata-------
General Governmental Expenditures bv Fmctiol1 (I) For the Last Seven FISCal Years (2)
Table I

Expenditures by Function
General Government Education (4) Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay Debt Service Intergovernmental

1997

1996

1995

1994

$

637,247,287 $

471,240,748 $

539,762,518 $

409,630,033

5,700,389,994

4,998,994,142

4,625,591,699

4,168,677,500

6,796,847,561

6,558,077,298

5,693,088,331

5,257,989,665

1,113,788,591

1,287,172,005

1,401,010,780

975,771,056

1,124,542,047

1,104,443,315

1,030,957,652

891,8?4,168

263,090,507

294,112,317

190,029,084

175,i59,029

170,667,100

169,961,642

156,234,675

121,413,898

48,769,799

46,557,857

45,875,856

45,299,326

373,677,146

391,876,879

493,326,267

325,340,789

629,588,332

571,524,445

537,800,975

427,689,905

(3)

(3)

(3)

(3)

Total General Governmental Expenditures $ 16,858,608,364 $ 15,893,960,648 $ 14,713,677,837 $ 12,798,865,369

(1) General Governmental Functions include general, special revenue, capital projects and debt service funds.
(2) The state did not prepare financial statements in conformity with generally accepted accounting principles until the fiscal year ended June 30, 1991. Comparable data for earlier years is not available.
(3) The "Intergovernmental" expencli.tUre category was eliminated in 1993. Such expenditures are categorized by "Current" expenditure function.
(4) In fiscal year 1995, the state began recording a liability and related expenditures for teachers' summer salaries.

188

1993

1992

1991

$

380,920,519 $

297,671,885 $

307,358,275

3,738,241,752

3,356,647,585

3,429,066,240

4,684,027,431

4,159,170,527

3,589,402,101

1,088,108,187

898,101,022

1,056,209,827

798,451,763

702,543,743

706,878,373

184,179,867

186,742,307

173,618,821

116,370,238

103,007,704

97,930,563

42,923,710

40,267,999

43,968,291

347,403,119

249,777,992

242,582,555

451,136,869

409,267,811

417,490,455

(3)

325,890,492

330,633,230

$ 11,831,763,455 $ 10,729,089,067 $ 10,395,138,731

189

- - - - - - - - State of Georgia - - - - - - - -
Grneral Governmrntal Revrnucs bv Source (I)
For the Last Seven FISCal Years (2) Tcble2

Revenues by Source
Taxes (4) Licenses and Permits Intergovernmental Sales and Services Fines and Forfeits Interest and Other Investment Income Rents and Royalties Contributions and Donations Penalties and Interest on Taxes Unclaimed Property General Obligation Bond Proceeds Other Revenue (3)
Total General Governmental Revenues

1997

1996

1995

1994

$ 10,483,497,704 $ 351,181,927
5,549,805,877 513,909,314 50,426,165 239,306,741 9,992,943 190,841,985 6,699,639 20,118,021 373,248,075 32,522,511

9,891,126,837 $ 343,118,630
5,457,487,877 363,320,801 32,022,270 242,059,488 17,600,277 169,020,652 9,082,163 25,809,698 960,650,338 6,781,951

9,068,979,799 $ 335,061,015
4,837,628,972 339,380,452 34,043,976 184,686,971 17,733,647 170,464,588 8,282,630 19,815,272 727,775,339 24,833,072

8,337,801,3U 323,679,545
4,163,447,1ge
304,600,44~
32,570,07(
131,238,70~ 9,285,63~
149,621,15< 16,110,88:
19,935,47~
977,957,32l
121,670,49~

$ 17,821,550,902 $ 17,518,080,982 $ 15,768,685,733 $ 14,587,918,25j

(1) General Governmental Revenues include general, special revenue, capital projects and debt service funds and proceeds from the issuance of General Obligation bonds.
(2) The state did not prepare financial statements in conformity with generally accepted accounting principles until the fiscal year ended June 30, 1991. Comparable data for earlier years is not available.
(3) The increase in Other Revenue in Fiscal Year 1994 is primarily due to the recognition of revenue in the General Fund for Distance Learning and Telemedicine funds; these funds were reflected previously in Agency Funds as the Universal Service Fund.
(4) In fiscal year 1995, the state began accounting for certain tax revenues on the modified accrual basis.

190

1993

1992

1991

$ 7,761,536,952 $ 7,014,576,028 $ 6,913,824,337

273,530,522

156,555,971

142,682,174

4,024,383,231

3,481,785,992

3,059,490,557

273,321,290

284,191,405

254,698,693

27,968,839

26,684,051

23,819,450

122,575,976

113,224,780

138,668,503

22,275,341

25,757,175

18,912,013

103,743,601

95,966,335

39,881,852

18,888,188

17,936,355

19,715,782

34,611,896

11,798,133

10,972,108

356,333,042

667,655,288

612,441,613

6,437,851

9,936,790

19,964,620

13,025,606,729 $ 11,906,068,303 $ 11,255,071,702

191

- - - - - - - - State of Georgia--------
State Tax Revenues bv Source - All Governmental Fund Tvpes For the Last Ten Fl5Cal Years Table 3

Source:
Income General Sales Selective Sales
Motor Fuel Alcoholic Beverages Cigars/Cigarettes Insurance Premium Estate Property Corporation Net Worth Other
Total Tax Revenues - All Governmental Fund Types

1997

1996

1995

1994

$ 5,488,547,143 $ 4,964,393,724 $ 4,498,902,508 $ 4,102,592,850

4,062,494,318

3,954,442,920

3,651,583,790

3,361,513,613

387,418,653 124,667,603 76,391,777 204,744,512 60,295,856 35,630,751 24,185,794
19,121,297

391,550,566 121,702,379 91,248,012 196,508,650 66,538,071 33,091,530 21,511,434 50,139,551

379,119,386 114,681,538 86,176,720 187,190,136 73,607,282 31,106,689 25,338,172 21,273,578

365,243,573 110,633,761 83,186,371 162,867,502 87,808,192 29,969,838
18,830,421 15,155,197

(1) $ 10,483,497,704 $ 9,891,126,837 $ 9,068,979,799 $ 8,337,801,318

(1) In Fiscal Year 1995, the state began accounting for certain tax revenues on the modified accrual basis.
Sources: Fiscal Years 1988-1990 - Annual Audit Reports: Georgia Departments ofRevenue and Insurance Fiscal Years 1991-1997 - Georgia Comprehensive Annual Financial Report
Note: Governmental Fund Types are described in the Notes to the Financial Statements.

192

1993

1992

1991

1990

1989

1988

$ 3,850,571,615 $ 3,452,551,939 $ 3,355,808,517 $ 3,342,947,428 $ 3,250,782,776 $ 2,864,843,643

3,072,269,685

2,777,595,357

2,754,539,969

2,724,130,258

2,100,042,193

1,926,989,241

345,758,031 111,976,311 84,714,936 196,175,858 39,103,941 28,039,074
18,428,111 14,499,390

332,156,403 113,642,855 84,102,100 161,691,146 37,583,865 25,866,148
18,062,835 11,323,380

324,407,536 114,245,028 84,893,427 184,369,909 41,261,832 24,341,012
17,951,998 12,005,109

327,180,367 116,471,315 86,370,739 164,258,642 27,616,177 23,313,141
18,338,297 6,380,430

325,994,676 115,617,591 88,293,658 152,694,717 37,325,922 21,361,081
17,171,335 9,290,520

316,002,918 118,108,898 90,770,265 145,836,553 54,203,829
19,281,039 14,966,668 8,681,438

$ 7,761,536,952 $ 7,014,576,028 $ 6,913,824,337 $ 6,837,006,794 $ 6,118,574,469 $ 5,559,684,492

193

- - - - - - - - State of GeorfJia - - - - - - - -
Prindpal NOf1govemmmtal EmplovLrs June 30, 1997 Toole 4

Company
Wal-Mart Stores, Incorporated Delta Air Lines, Incorporated * Bell South Corporation * Promina Health System Shaw Industries, Incorporated * K-Mart Corporation First American Home Care of Georgia* AT&T Company The Southern Company/Georgia Power Company * Columbia Healthcare Corporation Emory System of Health Care* Winn Dixie Stores, Incorporated The Kroger Company Lockheed Martin Corporation NationsBank United Parcel Service * Georgia-Pacific Corporation * Publix Supermarkets, Incorporated Dayton HudsonITarget Stores SunTrust Banks, Incorporated Mohawk Industries * Cox Enterprises* Lucent Technologies Springs Industries General Motors Corporation Home Depot, Incorporated * National Service Industries, Incorporated * IBM Inc. Federated Department Stores Marriott Corporation RTM Restaurant Group Sears, Roebuck and Co Coca-Cola Co* Wachovia Corporation IC. Penney Company Bruno's, Incorporated
* Indicates Georgia Headquarters
Source: Georgia Department ofJndustry, Trade and Tourism, July, 1997
194

Number of Employees
37,500 22,860 16,500 16,500 16,000 15,300 15,000 14,472 12,400 12,000 10,800 11;565 10,500 10,100 10,000
9,500 9,300 9,000 8,600 7,745 7,600 7,000 6,600 6,310 6,174 6,091 6,000 5,900 5,744 5,700 5,250 5,200 5,150 5,100 5,100 5,000

- - - - - - - - - - State of GeorBia - - - - - - - - - -
Computalion of Legal Debt Margin June 30, 1997
TableS

Treasury Receipts - Fiscal Year Ended June 30, 1996 (1)

$ 11,166,835,592

Legal Debt Margin:
Highest Annual Commitments Permitted Under Constitutional Limitation (10% of above)

$ 1,116,683,559

Highest Total Annual Commitments in any Fiscal Year (Highest FY 1998) As a Percentage ofFY 1996 State Treasury Receipts As a Percentage of FY 1997 State Treasury Receipts

$ 585,184,681 5.24% 4.92%

(1) Includes Indigent Care Trust Fund Receipts and Lottery Proceeds

Source:

Georgia State Financing and Investment Commission

Ratio of AnnUal Debt SelVk::e Expmditurc.s For Gmerol Obflgation Debt to Total
Gmerol Oovemmmtal Expmditurc.s (I) For the Lost Sevm FIscal Years (2)
Twlc6

Fiscal Year

Principal

General Bonded Debt

Interest and Other

Total

Fiscal Charges

Debt Service

General Governmental Expenditures (1)

1997 1996 1995 1994 1993 1992 1991

$ 392,165,000 $ 352,300,000 350,385,000 246,840,000 258,548,346 243,921,646 274,980,000

236,835,498 $ 218,523,118 186,826,275 179,738,306 191,022,895 164,291,856 135,960,182

629,000,498 $ 570,823,118 537,211,275 426,578,306 449,571,241 408,213 ,502 410,940,182

16,858,608,364 15,893,960,648 14,713,677,837 12,798,865,369 11,831,763,455 10,729,089,067 10,395,138,731

(1) See Table 1, Total General Governmental Expenditures

(2) The state did not prepare fmancial statements in confonnity with generally accepted accounting principles until the fiscal year ended June 30, 1991. Comparable data for earlier years is not available.

Source:

Georgia Comprehensive Annual Financial Report

195

Ratio ofDebt Service to General
Governmental Expenditures
3.73% 3.59% 3.65% 3.33% 3.80% 3.80% 3.95%

- - - - - - - - State of Georgia--------
Demographic Statlstics For the Last Ten Calendar Years
Table 7

Calendar Year
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988

Population
7,486,242 7,353,225 7,102,000 7,055,000 6,917,000 6,773,000 6,623,000 6,478,000 6,436,000 6,339,000

Per Capita Personal Income
24,061 22,709 21,278 20,251 19,278 18,549 17,364 17,045 16,223 15,305

Public School Enrollment
1,346,761 1,311,126 1,271,903 1,233,362 1,205,357 1,174,437 1,148,256 1,126,352 1,174,118 1,160,501

Unemployment Rate
4.50% 4.60% 4.90% 5.20% 5.80% 6.90% 5.00% 5.40% 5.50% 5.80%

Source:

Population - u. S. Department of Commerce, Bureau ofthe Census
Per Capita Income - U. S. Department of Commerce, Bureau ofEconomic Analysis Public School Enrollment - Georgia Department ofEducation
Note: Calculation Method for Public School Enrollment Changed in 1990 Unemployment Rate - Georgia Department ofLabor

Fiscal Year
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988

Schedule of Bank Deposits For the Last Ten Years (Dollars i\ Thousands) TroieB

Commercial Banks

$

42,235,312

91,933,990

66,895,898

62,065,439

60,063,284

55,066,858

52,295,306

49,912,986

46,175,163

42,497,706

Savings and Loan
Associations

$

4,798,940 $

4,640,878

5,107,013

5,285,489

5,180,763

10,659,544

13,140,105

13,406,430

14,402,867

14,079,461

Total Deposits
47,034,252 96,574,868 72,002,911 67,350,928 65,244,047 65,726,402 65,435,411 63,319,416 60,578,030 56,577,167

Source:

Federal Reserve Bank ofAtlanta

196

- - - - - - - - State of Georgia - - - - - - - -
Miscellaneous Statistics June 30, 1997 Table 9

Date Entered Union Form of Government Miles of State Highway Land Area

January 2, 1788 Legislative-Executive-Judicial
approximately 17,947 59,441 Square Miles

State Police Protection:

Number of Stations

48

Number of State Troopers

850

State Colleges and Universities: Number of Separate Institutions Number of Educators Number of Students

34 9,194 204,332

Recreation: Number of State Parks Number ofHistoric Sites Area of State Parks and Historic Sites

48 15 72,500 acres

Sources:

Facts About the States, 1989 - Kane, Anzovin, Podell Georgia Descriptions in Data, 1988 - Georgia Office of Planning and Budget State and Metropolitan Area Data Book, 1991 - U. S. Department of Commerce Georgia Department of Transportation Georgia Department of Public Safety Board of Regents ofthe University System. ofGeorgia Georgia Department ofNatural Resources

197

- - - - - S t a t e of GeorfJia--------
&e(( ~[[er, Go-vernor
Compreftensi've Annua[ Cfinancia[
~port gune 30~ 1997
Prepared by GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
Oauae ~C{)ickers, State7\uaitor

cr - - - - - - - - - - - - - -

Georgia's Sta
Cover q]rllwino6l

te
Scott

o:ursese

- -__- - - - - - - - - - -

qn 1937. the Ci'\le oak was adopted as the officia[ tree at the rell.uest of the c.Edmund c:Burli:e (Jtapter of the q)allfftters of the American ~o[ution.
qt f[ourisftes a[ollfJ the coasta[ pains and on the is[ands where the first settlers made their homes. S\\.an! famous GeorfJians. as ear[! as Genera[ EJames c.Edward Ofjdhorpe. were a&Ce to enjo! it s lieaut!.

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- - - - - - - - - State of GeorfJia - - - - - - - - -
Table of Contents
June 30, 1997

INTRODUCTORY SECTION

Letter of Transmittal

i

Organizational Chart

xiii

Principal State Officials

xv

FINANCIAL SECTION

Independent Auditor's Report on General Purpose Financial Statements

1

General Purpose Financial Statements

Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Units

6

Combined Statement of Revenues, Expenditures and Changes in Fund Balances -

All Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units

10

Statement of Funds Available and Expenditures Compared to Budget - Budget Fund

14

Combined Statement of Revenues, Expenses and Changes in Fund Equity/Fund Balances-

All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units

16

Combined Statement of Cash Flows -

All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units

20

Statements of Plan Net Assets - Pension Trust Funds and Discretely Presented Component Units

22

Statements of Changes in Plan Net Assets - Pension Trust Funds and Discretely Presented Component Units

24

Combined Statement of Changes in Fund Balances - College and University Funds

26

Combined Statement of Current Funds Revenues, Expenditures and Other Changes -

College and University Funds

30

Notes to the Financial Statements

31

Combining Statements and Schedules

Primary Government

Capital Projects Funds

Capital Projects Funds Descriptions

93

Combining Balance Sheet

94

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

96

Internal Service Funds

Internal Service Funds Descriptions

101

Combining Balance Sheet

104

Combining Balance Sheet - Risk Management..

106

Combining Statement of Revenues, Expenses and Changes in Fund Equity

108

Combining Statement of Revenues, Expenses and Changes in Equity - Risk Management

ll0

Combining Statement of Cash Flows

112

Combining Statement of Cash Flows - Risk Management

116

Trust and Agency Funds

Combining Balance Sheet

121

- - - - - - - - - State of Georsia - - - - - - - - -
Table of Contents June 30, 1997

Expendable Trust Funds

Expendable Trust Funds Descriptions

123

Combining Balance Sheet.

124

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

126

Nonexpendable Trust Funds

Nonexpendable Trust Funds Descriptions

129

Combining Balance Sheet

131

Combining Statement of Revenues, Expenses and Changes in Fund Balances

132

Combining Statement of Cash Flows

133

Pension Trust Funds

Pension Trust Funds Descriptions

135

Combining Statement of Plan Net Assets

136

Agency Funds

Major Agency Funds Descriptions

;

139

Combining Statement of Changes in Assets and Liabilities

141

College and University Funds

College and University Funds Descriptions

147

Combining Balance Sheet

148

General Fixed Assets Account Group

General Fixed Assets Account Group Description

153

Schedule of General Fixed Assets by Function

154

Schedule of Changes in General Fixed Assets by Function

155

Component Units

Governmental Fund Types

Governmental Fund Types Descriptions

159

Combining Balance Sheet

160

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

161

Proprietary Fund Types

Proprietary Fund Types Descriptions

165

Combining Balance Sheet

168

Combining Statement of Revenues, Expenses and Changes in Fund Equity

172

Combining Statement of Cash Flows

174

Fiduciary Fund Types

Fiduciary Fund Types Descriptions

181

Combining Statement of Plan Net Assets

182

STATISTICAL SECTION

Index to Statistical Tables

187

- - - - - qntt'oductot'! Section

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400

May 19, 1998

The Honorable Zell Miller Governor of Georgia
and Members of the General Assembly Citizens of the State of Georgia
The Comprehensive Annual Financial Report of the State of Georgia for the year ended June 30, 1997, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the State. All disclosures necessary to enable the reader to gain an understanding of the State's financial activities have been included.
This report is presented in three sections: Introductory, Financial and Statistical. The Introductory Section, which is unaudited, includes this transmittal letter, an organization chart and a listing of principal officials. The Financial Section includes the general purpose financial statements and the combining financial statements, and the auditor's report on the financial statements. The Statistical Section, which is unaudited, includes selected financial and demographic information, generally presented for multiple years.
Federallaws and regulations require that the State undergo an annual audit in conformity with the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Information related to the single audit, which includes a schedule of expenditures of federal awards, a report on internal control and compliance applicable to each major program, and a schedule of findings and questioned costs, is included in a separately issued State of Georgia Single Audit Report. Also included is a report on internal control over financial reporting and compliance with certain laws, regulations, contracts and grants in accordance with Government Auditing Standards.
This Comprehensive Annual Financial Report presents information on the financial position and operations of state government as one reporting entity. The various agencies, departments, boards, commissions and funds of Georgia state government which constitute the State financial reporting entity are included in the Comprehensive Annual Financial Report in accordance with criteria established by

the Governmental Accounting Standards Board. These criteria define the financial reporting entity as the primary government, organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
The reporting entity is based primarily on the concept of financial accountability. A primary government is financially accountable for the organizations which make up its legal entity and for legally separate organizations if its officials appoint a voting majority of the organization's governing board and either the primary government is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific burdens on the primary government. The primary government may also be financially accountable for governmental organizations that are fiscally dependent upon it.
The State of Georgia provides a variety of governmental services as set forth in its Constitution and statutes. These services include education, health and welfare, transportation, public safety, economic development, recreation and conservation.
ECONOMIC CONDITION AND OUTLOOK
As late as 1995, popular expectation in Georgia held that the economy in 1996 would be caught in an updraft from the Olympic Games. Georgia's economy would be pushed towards greater productivity and, especially near the game sites, would be carried to record levels of activity. Once the outputstimulating whirlwind had passed, the anticipation continued, growth in Georgia would subside temporarily as a post-Games economic landscape emerged.
But, things have not gone quite as expected. A narrow bubble did in fact develop on Georgia's growth line during the events. Also, the Games did contribute to Metro-Atlanta's growth advantage in 19961997. However, the asymmetry of growth before and after the Games has not been so exaggerated as had been supposed. Aside from a continuing boost from the world-wide publicity, the economic condition and outlook for Georgia in mid-1997 then depends on traditional factors. The Olympics enter as a factor of account in recent growth rather than as a force which has ratcheted Georgia's economy on to a new plane.
Turning first to the stock of resources, Georgia's labor force climbed by 4.9 percent from mid-1996 to mid-1997. This was its largest percentage increase of the nineties. Certainly the7-year growth of jobs at roughly 1.5 times the rate of population had tightened labor markets enough to induce people to enter the labor force. Besides, an acceleration in the rise of employee pay offered an incentive for work. After adjustment for inflation, average hourly compensation climbed by 1.2 percent from mid-1996 through mid-1997. In the prior two years, the gains had been only 0.2 and 0.5 percent. Finally, worker skills and job requirements may have been more closely aligned in mid-1997 than earlier because of the evolving emphasis by business and governments in the nineties on training, retraining, and general education. However these influences interacted, the proportion of Georgia's population in the labor force climbed to 52.3 percent in mid-1997 from 50.9 percent in mid~1996 and 50.7 percent at the economic peak in mid1990.
11

As the labor force has grown, new spending has emerged to absorb it. Besides the additional outlays that an inflow of employed (or retired) people introduced, business spending on equipment, especially information-processing equipment, continued a surge that had begun in 1993. Taking national data as guide, spending on producers' durable equipment advanced at an annual rate of roughly 10 to 12 percent. In addition, the U.S. economy, Georgia's principal "export market", was enlivened. Output grew by 3.4 percent from mid-1996 to mid-1997 compared to rates of 3.2 and 1.6 percent in the two prior years. At the same time, employment growth in the U.S. rose from 2.0 percent in 1995-1996 to 2.3 percent in 1996-1997. Pushed by the new spending and the expanded market opportunities, Georgia businesses offered jobs to newly-available workers. Georgia's unemployment rate remained low (and steady) at about 4.7 percent in 1996-1997. This was slightly above the 4.5 percent rate achieved during the Olympic Games but well below the pre-Games levels which, though dropping, were still at 5.0 percent in 1995.
Georgia's employment at 1997's mid-year was only 1.7 percent above the level at the start of the Games. Compared to two years previous, however, employment was up by 5.6 percent. Had the Games not "intervened", the advance in 1996-1997 might then have been about 2.8 percent. Only 13 states registered a higher two-year gain. Of mid-1997's total employment, service industries accounted for roughly 26 percent, wholesale and retail trade for 25 percent, and each of manufacturing and government for about 16 percent. These proportions incorporated growth from the pre-Games levels (mid-1995) by 11.7 percent for services and 6.1 percent for wholesale and retail trade. The two-year gains for manufacturing and government were virtually zero. Significantly, the employment gain in MetroAtlanta, which had accounted for about 75 percent of the state's growth during the Games, was still responsible for about 70 percent of the increase from mid-1996 to mid-1997.
The utilization of Georgia's expanded and redirected labor stock generated increases in income. From mid-1996 to mid-1997, total personal income climbed by 6.8 percent and reached a level 59 percent above that at the cyclical peak ofmid-1990. These rates of increase in income placed Georgia fifth and sixth respectively among all the states. The corresponding U.S. gains were 5.7 and 43 percent. At the same time, income per job in Georgia rose by roughly 2.6 percent (after allowing for inflation), almost a percentage point more than the average annual gain in the years 1990-1996. Of the statewide increase in income, roughly 30 percent came from service industries, 15 percent from wholesale and retail trade, and 8 percent from manufacturing. On a per capita basis, personal income (after adjustment for inflation) rose by 3.2 percent in 1996-1997, more than in either 1994-1995 or 1995-1996. Nevertheless, relative to the U.S. level, Georgia's per capita income slipped from 0.942 to 0.940. This was the first decline in this income ratio since 1990.
For the state government (the State), Fiscal Year 1997 (mid-1996 to mid-1997) showed strong but not exceptional growth. Overall, revenues for the fiscal year climbed by 6.6 percent, below the increments of 8.5 percent in 1996 and 8.1 percent in 1995. Partly of account was a 50 percent reduction in the sales tax rate on food starting in October of 1996. Sales tax revenues rose by only 2.4 percent compared to 8.7 percent and 7.7 percent in the two preceding years. In contrast, the yield of individual income taxes, buoyed by the noted increases in employment and wages, climbed by 12.3 percent in Fiscal Year 1997. In 1996 and 1995, the gains had been 10.3 and 7.1 percent respectively. Corporate income taxes, historically the least stable among the major tax yields, rose by only 1.4 percent in Fiscal Year 1997. Since they had risen by 8.9 and 30.1 percent in Fiscal Years 1996 and 1995 respectively, the leveling of collections in Fiscal Year 1997 was (and remains) of concern because of this tax's frequent role as a lead-indicator.
iii

A third to a half of the income-tax increments in Fiscal Years 1996 and 1997 were realized in the quarter preceding (1996) or the quarter coinciding (1997) with the Games. For sales taxes, revenues scarcely increased in the second, third, and fourth quarters of Fiscal Year 1997. Considering all revenue sources, roughly 40 percent of the annual gain in each fiscal year was linked to the Olympics-induced growth bubble. In Fiscal Year 1997, revenues advanced by 13.3 percent in the quarter of the Games and then by only 3 t05 percent in the remaining quarters of the year.
In total, the State's outreach into the private economy with taxes and fees claimed 6.2 percent of Georgia's personal income in Fiscal Year 1997. This proportion was essentially the same as in each year since 1990. Cuts in income taxes in 1994 and 1995 and, as mentioned, in the sales tax in 1996, of course tended to lower the claim ratio. However, a slow easing of progressivity in the State's tax-and-fee structure has been ongoing since the early seventies. The percentage-claim of the State on income reached a high of about 6.4 percent in 1974 and, except for years of economic downturn, has declined each year since.
The prospect for growth in the State's collections in Fiscal Year 1998 depends fundamentally on the expansion of tax bases in the private sector. Private-sector growth, in turn, will depend upon the increase in resources, the expansion in calls placed upon them, and the improvements in the technology which connects the two. Since Georgia's gains in employment and income recently showed signs of losing rank among the states, the inflow of population can be expected to slip slightly from the 2 percent rate that has characterized the expansion of the nineties. In particular, economic opportunity in states like California, New York, and New Jersey, states which have been slow to regain their 1990 peaks in employment, has started to improve and will weaken Georgia's advantage in attracting households and businesses. At the same time, rates of participation of the population in employment in Georgia are likely to increase only slightly after their surge (relative to the nineties pace) in 1997. Consequently, the potential increase in employment in Georgia in Fiscal Year 1998 will probably not be more than 2.5 to 3.0 percent.
A continued growth in U.S. Gross Domestic Product in 1997-1998 at an annual rate of around 3 percent will help to absorb the additional workers as Georgia businesses exploit national opportunities. This market absorption would be aided if worker productivity in Georgia were to rise and unit labor costs were to falL Unfortunately, both in Georgia and the Nation, productivity increaSes have proven surprisingly resistant to sustained growth in business purchases of information-processing equipment and to the competitively-driven downsizing, core-aligning, and cost-cutting of all kinds of businesses. Accordingly, increases in per-hour outputs in Georgia in 1998 and 1999 are unlikely to average more than 1.5 percent per year. If inflation holds to a 2 to 3 percent rate, compensation, in turn, will then not likely rise by more than 3.5 to 4.5 percent annually. As a result, personal income in Georgia in Fiscal Years 1998 and 1999 will probably climb by no more than 6 to 7 percent per year. In turn, the State's reach-in with taxes and fees, restrained by a complete elimination of the sales tax on food, will likely increase by no more than 5.5 to 6.5 percent in each year. With growth in corporate profits easing, the revenue advance will flow from the ever more productive individual income tax.
Budgetary expenditures accommodate changes in both population and economic activity. Should gains in productivity fall behind the rise in needs which a growing population and a rising level of activity . impose, there is a possibility that the State's expenditure function will overtake its revenue function in
IV

the budgets of Fiscal Year 1998 or (more likely) Fiscal Year 1999. Barring recession induced by some external shock (like a collapse of a stock market somewhere), however, accommodative fiscal comfort of the style of Fiscal Year 1997 rather than fiscal distress of the style of the expansion-ending late eighties will probably characterize these budgets.
MAJOR INITIATIVES
Economic Development State funds will assist in launching a new marketing program by the Georgia Legacy Division to target recruitment and development of growth industries important to Georgia's future, and to create a new Strategic Planning and Research Division to formulate and coordinate state economic development strategy. The state funds will be matched by private donors.
Existing marketing funds will be redirected to the development of a multi-year marketing strategy to promote Georgia's research and technology development efforts and to establish an Incoming BuyersNisitor Program to increase the state's presence with foreign buyers of Georgia products.
Environment Funds were allocated for the Environmental Protection Division to establish total maximum daily pollution for Georgia's rivers and streams in compliance with a federal court ruling that such action be taken within five years. In addition, the state increased funding to finance the clean-up of hazardous waste sites not covered under federal laws.
Human Resources On January 1, 1997, Georgia abolished the existing welfare entitlement program and implemented a new program known as Temporary Assistance for Needy Families (TANF). The new welfare program, which emphasizes the goal of employment for those who are willing to help themselves, focuses on education and training as the way to end the cycle of poverty. TANF benefits are not an entitlement, but are limited to four years.
In support of the welfare reform, Indigent Care Trust Funds were set aside to implement teen pregnancy prevention. In the past, the need for welfare assistance has been triggered by a high rate of teenage pregnancies. TANF block grant funds were set aside to annualize teen pregnancy prevention sites.
Medicaid The number of Medicaid recipients in Georgia has almost tripled since 1980. A projected increase in Medicaid utilization, including a reduction in the federal financial participation rate, prompted the state to direct funds to the Medicaid program.
Revenue A five year strategy to modernize the Department of Revenue was launched to create a new department that will be capable of administering the state's tax, tag and title laws in the most accurate, fair and costeffective manner.
v

Redirection Redirection, in its third year, will provide most of the growth needs of state agencies, with enhancement funds mostly going to fund the Governor's priorities in education. In keeping with the Governor's promise to place his budget emphasis on improving education, eighty nine percent of enhancement funds went to education. The remaining eleven percent of enhancement funds were divided between prisons, children and youth detention facilities and indebtedness on new bonds approved for sale.
FINANCIAL INFORMATION
Internal Controls Management of the State is responsible for establishing and maintaining internal accounting controls designed to ensure that assets are safeguarded and that financial transactions are properly recorded and adequately documented. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and that the valuation of costs and benefits requires estimates and judgments by management.
Budgetary Controls The objective of budgetary control is to ensure compliance with legal provisions embodied in the General Appropriations Act enacted by the General Assembly. Annual appropriated budgets are adopted at the departmental level and are applicable to the general, debt service and capital projects funds. All unencumbered annual appropriations lapse at fiscal year end unless otherwise specified by the Constitution or statute. The Constitution further authorizes the passage of additional Supplementary Appropriation Acts for specific purposes, provided sufficient unappropriated funds are available or additional revenue measures have been enacted. Federal funds received by the State are continually appropriated in the exact amounts and for the purposes authorized and directed by the awarding federal agency.
The budgetary basis of accounting required by state law differs materially from the basis used to report revenues and expenditures in accordance with generally accepted accounting principles (GAAP). In addition, the fund structure utilized to implement the annual budget differs extensively from the fund structure presented in these fmancial statements.
The State of Georgia Report of the State Auditor is issued annually by the undersigned prior to the issuance of this report. The sole purpose of the Report of the State Auditor is to provide the General Assembly with information concerning fmancial compliance with the Amended Appropriations Act for the fiscal year. In contrast to issuing financial statements in accordance with generally accepted accounting principles, the financial statements presented in the Report of the State Auditor are reported in conformity with statutory requirements.
General Governmental Functions The following schedules present summaries of general fund, special revenue fund, capital projects fund and debt service fund revenues and expenditures. These revenues and expenditures are reported on the modified accrual basis of accounting. Revenues from governmental fund type sources for fiscal years 1997 and 1996 are compared in the following table:
vi

Revenues and Other Sources
Taxes Licenses and Permits Intergovernmental Sales and Services Fines and Forfeits Interest and Other Investment Income Rents and Royalties Contributions and Donations Penalties and Interest on Taxes Unclaimed Property General Obligation Bond Proceeds Other Revenue

FY 1997

FY 1996

Amount

Percent of Total

Amount

Percent of Total

$ 10,483,497,704 351,181,927
5,549,805,877 513,909,314 50,426,165 239,306,741 9,992,943 190,841,985 6,699,639 20,118,021 373,248,075 32,522,511
$17,821,550,902

58.8% 2.0% 31.l% 2.9% 0.3% 1.3% 0.06% 1.l% 0.04% 0.1% 2.1% 0.2% 100.0%

$ 9,891,126,837 343,118,630
5,457,487,877 363,320,801 32,022,270 242,059,488 17,600,277 169,020,652 9,082,163 25,809,698 960,650,338 6,781,951
$17,518,080,982

56.46% 1.9%
31.2% 2.1% 0.2% 1.3% 0.1% 1.0% 0.1% 0.1% 5.5% 0.04% 100.0%

Increase (Decrease)
From FY 1996
$ 592,370,867 8,063,297
92,318,000 150,588,513
18,403,895 (2,752,747) (7,607,334) 21,821,333 (2,382,524) (5,691,677) (587,402,263) 25,740,560 $303,469,920

Percent of
Increase (Decrease)
6.0% 2.4% 1.7% 41.4% 57.5% (1.l)% (43.2)% 12.9% (26.2)% (22.1)% (61.l)% 379.5 % 1.7 %

1997 Revenues and Other Sources

-Unclaimed Property
I_penalties & Interest
~ I-Contributions & Donations _Rents & Royalties Interest & Other Investment Income -Fines and Forfeits Sales and Services
vii

Expenditures by governmental fund type function for fiscal years 1997 and 1996 are compared in the following table:

FY 1997

FY 1996

Expenditures by Function

Amount

Percent of Total

Amount

Percent of Total

General Government Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay Debt Service

$ 637,247,287 5,700,389,994 6,796,847,561 1,113,788,591 1,124,542,047 263,090,507 170,667,100 48,769,799 373,677,146 629,588,332
$16,858,608,364

3.8% 33.8% 40.3%
6.6% 6.7% 1.6% 1.0% 0.3% 2.2% 3.7% 100.0%

$ 471,240,748 4,998,994,142 6,558,077,298 1,287,172,005 1,104,443,315 294,112,317 169,961,642 46,557,857 391,876,879 571,524,445
$15,893,960,648

3.0% 31.4% 412%
8.1% 6.9% 1.9% 1.1% 0.3% 2.5% 3.6% 100.0%

Increase (Decrease)
From FY 1996

Percent of
Increase (Decrease)

$ 166,006,539 701,395,852 238,770,263
(173,383,414) 20,098,732
(31,021,810) 705,458
2,211,942 (18,199,733)
58,063,887 $964,647,716

352% 14.0% 3.6% (13.5)%
1.8% (10.5)%
0.4% 4.8% (4.6)% 10.2% 6.1 %

The increase in General Government expenditures during the fiscal year is primarily due to disaster grants disbursed to assist flooded regions of the State.

1997 Expenditures by Function

I I Education
viii

,,:,../ , , - - - General Government Debt Service

Capita! Outlay

Ll

Conservation Culture and Recreation Economic Development

Public Safety

Proprietary Operations The State maintains various proprietary funds which account for ongoing activities and organizations that are similar to those found in the private sector. Proprietary funds include such primary government activities as the Georgia Building Authority and the service centers of the Department of Administrative Services. Discretely presented component unit proprietary funds include, among others, the Georgia Ports Authority and the George L. Smith II Georgia World Congress Center Authority. Financial activities of the proprietary funds are presented in the combined and combining financial statements of the enterprise and internal service funds.

Pension Trust Funds The State maintains sixteen pension plans, nine of which are included within the primary government. The major pension plans are the Employees' Retirement System of Georgia, which is included within the primary government, and the Teachers Retirement System of Georgia, which is included within these fmancial statements as a discretely presented component unit. Financial activities of the pension trust funds are presented in the combining financial statements of pension trust funds for the primary government (except for the Regents Retirement Plan, which is included in the college and university funds), and the combining financial statements of fiduciary fund types for the component units.

Debt Administration At June 30, 1997, outstanding general obligation debt issues of the State of Georgia totaled $4,635,930,000. Outstanding revenue bonds of certain blended and discretely presented component units totaled $1,245,146,505, of which $ 177,975,505 are guaranteed by the State of Georgia.

During fiscal year 1997, general obligation bonds in the amount of$ 392,165,000 were retired. General obligation debt issued during fiscal year 1997 totaled $372,535,000.

At June 30, 1997, the State of Georgia maintained the following investment service bond ratings:

Moody's Investors Service Standard & Poor's Corporation Fitch's Investor's Service, Incorporated

Aaa AA+ AAA

In July, 1997, Standard & Poor's Corporation rated the State's general obligation bonds as AAA.

Under the Constitution of the State of Georgia, the highest aggregate annual debt service for all outstanding general obligation and guaranteed revenue debt may not exceed 10 percent of the previous fiscal year's revenue collections.

Further detailed information on outstanding bonds is reflected in the Financial Section, Notes to the Financial Statements and Statistical Section of this report.

Cash Management The State's investment policy is to maximize the protection of State funds on deposit while accruing an advantageous yield of interest by investing the funds in excess of those required for current operating expenses. Cash is managed in pooled funds to maximize interest earnings. Types of investments are dictated by legislation and are reviewed quarterly.

ix

Risk Management The State assumes substantially all risks associated with the following:
Claims of covered employees for medical insurance and group life insurance benefits;
Claims with respect to death or permanent disability of any law enforcement officer, fireman, or prison guard in the line of duty (limited to a five year disbursement totaling $75,000 or an immediate lump sum settlement of $65,221 per occurrence);
Claims of covered employees for workers' compensation benefits;
Claims of State employees for unemployment compensation benefits;
Liability claims against employees of the University System of Georgia; and
Liability claims in connection with abatement and removal of asbestos and other hazardous materials.
The State also purchases commercial insurance coverage and self-insures to cover risks associated with the following:
State owned real and personal property;
Liability claims actionable under the law which parties may file against the State, its agencies, officials, employees or appointees;
Liability claims against State authorities arising from their operations; and
Honesty and faithful performance bonds on employees.
Various risk control techniques are utilized to minimize accident-related losses. These techniques include safety inspections, assistance in establishing safety programs, training and certification of employees as American Automobile Association instructors, and maintenance of an extensive safety library.
OTHER INFORMATION
Independent Audit The financial statements of all organizations comprising the State reporting entity have been separately examined and reported on by either the State Auditor or independent certified public accountants. The
x

accompanying financial statements for the State of Georgia have been prepared from the results of those examinations. The State Auditor's opinion thereon appears at the beginning of the Financial Section of this report. Compilation of Transmittal Letter This transmittal letter has been compiled utilizing information contributed by various State management sources.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
xi

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GEORGIA ELECfORATE :}:::
;:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:1~1:;:1:1:1:1:;:;: ;:; ~:;:;:;:;:;:;:;:;:~:~:;:;:;:;:~:;:;:t;:;:;:;:;:;:;:;:t ;:;:;i~~~

1997 GEORGIA GOVERNMENT ORGANIZATION CHART

o
CJ

ELECIEIl APl'OINlED

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- - - - - - - State of Georgia--------
Prindpal State Offidals June 30. 1997
Executive:
Zell Miller Governor Lewis A. Massey Secretary ofState Thurbert E. Baker Attorney General David B. Poythress Commissioner ofLabor Linda C. Schrenko State Superintendent ofSchools John W. Oxendine Commissioner ofInsurance Thomas T. Irvin Commissioner ofAgriculture Stan Wise, Chairman Dave Baker Bobby Baker Mac Barber Bob Durden Public Service Commission
Legislative:
Pierre Howard Lieutenant Governor/President ofthe Senate -Thomas B. Murphy Speaker ofthe House ofRepresentatives
Judicial:
Robert Benham ChiefJustice ofthe Supreme Court
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- - - - - - ~inancia[Section- - - - - -

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400

INDEPENDENT AUDITOR'S REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS

The Honorable Zell Miller Governor of Georgia
and Members ofthe General Assembly of the State of Georgia
We have audited the accompanying general purpose financial statements of the State of Georgia, as listed in the Table of Contents, as of and for the year ended June 30, 1997. These general purpose financial statements are the responsibility ofthe State's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We did not audit the financial statements of certain organizations which, combined, represent less than 1% ofthe assets and revenues ofthe general fund, 100% of the assets and revenues of the capital projects funds, 62% of the assets and 29% of the revenues of the internal service funds, 68% ofthe assets ofthe fiduciary funds and less than 1% ofthe expendable trust funds revenues and 100% ofthe pension trust funds revenues, and 7% ofthe assets and less than 1% of the liabilities of the general :fixed assets and general long-term debt account groups, respectively. In addition, we did not audit certain discretely presented component units which represent less than 1% of the assets and revenues of the component unit governmental fund types, 83% ofthe assets and 95% ofthe revenues of the component unit proprietary fund types and 98% of the assets and 99% of the revenues of the component unit fiduciary fund types. The financial statements of these organizations and component units were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for those financial statements, is based solely upon the reports of the other auditors.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. The financial statements of the Employees' Retirement System of Georgia, Georgia Lottery Corporation, Georgia Ports Authority, Georgia State Financing and Investment Commission, and Teachers' Retirement System of Georgia were not audited in accordance with Government Auditing Standards. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinion.

The State ofGeorgia's accounting system is decentralized in nature. The management of each organizational unit is responsible for maintaining accounting records pertinent to its operations and each retains complete responsibility and control over their operations, including revenue collections and disbursements. The State's principal accounting system, the Fiscal Accounting and Control System (FACS), is utilized by 66 state organizations. This accounting system allows for the accumulation of financial data, by state organization, on a basis of accounting prescribed or permitted by the budgetary statutes and regulations of the State of Georgia. Constitutional and statutory provisions of the State of Georgia do not provide for a position or organizational unit responsible for the preparation ofstatewide financial statements. It was necessary for staff of the Department of Audits and Accounts to consolidate financial information presented in individual organization financial statements and to prepare adjusting journal entries necessary for the production ofthe general purpose financial statements. We are therefore not independent with regard to the preparation of accounting entries required to convert the consolidated budgetary financial statements to general purpose financial statements prepared in accordance with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, the State of Georgia did not maintain adequate systems to account for or to depreciate (when required) fixed assets in conformity with generally accepted accounting principles. We were unable to determine the effect of these limitations on the general purpose financial statements.
As discussed in Note 1 to the general purpose financial statements, the accounting systems of the State of Georgia did not facilitate recording encumbrances in conformity with generally accepted accounting principles. Contractual obligations for services performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. The recognition of encumbrances as expenditures and liabilities is not consistent with generally accepted accounting principles. We were unable to determine the effect of these limitations on the general purpose financial statements.
As discussed in Note 1 to the general purpose financial statements, revenues for certain expenditure-driven programs were accrued based on the unexecuted portion of contracts for goods and services. These accruals primarily affected the Intergovernmental and Sales and Services revenue categories. We were unable to determine the effect of this departure from generally accepted accounting principles on the general purpose financial statements.
As discussed in Notes 9 and 10 to the general purpose financial statements, the State of Georgia did not maintain adequate systems to identify, classify, and report leases as operating or capital leases in conformity with generally accepted accounting principles. We were unable to determine the effect of these limitations on the general purpose financial statements.
As discussed in Note 1 to the general purpose financial statements, the State of Georgia maintained certain pension trust funds on essentially the cash basis of accounting. This basis of accounting is not in conformity with generally accepted accounting principles. We were unable to determine the effect of this departure from generally accepted accounting principles on the general purpose financial statements.
As discussed in Note 1 to the general purpose financial statements, the State's accounting system has limitations in identifying transactions between organizations whose financial activity is included within an individual fund. State accounting policies and procedures allow the recording of revenues, receivables, expenses and payables for such transactions. All such intrafund transactions have not been eliminated as required by generally accepted accounting principles. We were unable to determine the effect of these overstatements on the general purpose financial statements.
2

The State of Georgia did not maintain adequate systems to determine the accuracy of the amounts of salesbased taxes collected by the Department of Revenue on behalf of local governments and the disbursements of those taxes to local governments. State statutes require that all sales-based taxes be collected by the Department ofRevenue and remitted to the Office of Treasury and Fiscal Services. Amounts of sales-based taxes collected on behalf of local governments are subsequently returned to local government jurisdictions based on information compiled by the Department of Revenue from sales tax returns. The Department of Revenue did not maintain adequate information systems to properly identify amounts of sales-based taxes collected on behalf of local governments. We were unable to determine the accuracy of the sales-based taxes retained by the State of Georgia or the accuracy of the amounts collected and subsequently disbursed to local governments for sales-based taxes.
In our opinion, based on our audit and the reports of other auditors, except for the effects of the matters discussed in the preceding paragraphs, the general purpose financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of the State of Georgia as of June 30, 1997, and the results of its operations, the cash flows of its proprietary fund types and its nonexpendable trust funds, and the changes in fund balances of the State's colleges and universities, for the year then ended in conformity with generally accepted accounting principles.
As discussed in Note 2 to the general purpose financial statements, the State of Georgia adopted Statement No. 25 of the Governmental Accounting Standards Board (GASB), Financial Reportingfor Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans in fiscal year 1997. In addition, as discussed in Note 4 to the general purpose financial statements, the State implemented GASB Statement No. 28, Accounting and Financial Reportingfor Securities Lending Transactions.
In accordance with Government Auditing Standards, we have also issued a report dated May 19, 1998 on our consideration of the State of Georgia's internal control over financial reporting and on our tests of its compliance with certain laws, regulations, contracts and grants. Those reports are included in the State of Georgia Single Audit Report.
Our audit was made for the purpose offorming an opinion on the general purpose financial statements taken as a whole. The combining financial statements identified in the Table ofContents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the State of Georgia. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, except for the effects of the matters noted above, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole.
The Introductory and Statistical Sections, identified in the Table of Contents, were not audited by us and, accordingly, we express no opinion on such information.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
May 19, 1998
3

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- - Genera[ Wurpose ~inancia[ Statements---

State of GeorfJia - - - - - - - -
Combined Balance Shed All Fund Tvpes, Account Groups and Discretelv Presented Component Units
June 30, 1997

Assets and Other Debits
Assets: Cash and cash Equivalents Cash and Cash Equivalents in Nonexpendable Trust Funds Investments Receivables (Net ofAllowances for Unconectibles) Intergovernmental- Federal Interest and Dividends Notes and Loans Taxes Other Due from Other Funds Due from PrimaIy Government Due from Component Units Inventories Prepaid Items Restricted Assets Cash and Cash Equivalents Investments Receivables Interest and Dividends Loans Advances to Other Funds Advances to Component Units Deferred Compensation Plan Assets Fixed Assets (Net, Where Applicable, of Accwnulated Depreciation) Deferred ChaIges Other Assets Other Debits: Amount Available in Debt Service Fund Amount to be Provided for Retirement of General Long-Term Debt
Total Assets and Other Debits
Liabilities, Equity and Other Credits
Liabilities: Cash Overdraft Accounts Payable and Other Accmals Compensated Absences Payable Claims and Judgmenls Payable Contracts Payable SalarieslWithholdings Payable Benefits Payable Due to Other Funds Due to PrimaIy Government Due to Component Units Accrued Interest Payable Deferred Revenue Capital LeaseslInstallment Purchases Payable Mortgage Loans under Repurchase Agreements Funds Held for Others Other Liabilities Deposits and Overpayments Advances from Other Funds Advances from PrimaIy Government Long-Term Debt Payable (Net ofUnamortized Discounts)
Total Liabilities

General

Govenunental Fund Types

Special Revenue

Debt Service

Capital Projects

PrimaIy Government

Proprietny Fund Types

Enterprise

Internal Semce

S 2,628,862,273 S
600,398,816
1,728,213,699 17,675,652
664,360,025 164,182,456
67,540 41,878,493 72,415,975

1,762,517 S 668,399

208,653,344 S

S

1,091,615,474

76,983,949 S 174,978,124

272,299,546 584,772,437

11,480,997

2,802,452

1,865,404

965,443

13,523,053

10,892,781 32,343,724
470,419 11,177,328
659,846

6,925 161,250
88,523,030

230,662

402,588,254

S 6,006,746,134 S

4,296,320 $ 208,653,344 S 1,104,061,914 S 268,518,240 S 1,315,204,335

$

$

610,639,917

1,540,985,327 568,945,094 453,540,192 28,020,157
1,393,024
158,003,752

40,894,516 349,835

$ 2,106
1,800

$ 3,402,771,814 S

3,906 S

$

20,191,665 S

S

15,779,528

2,349,599

23,716,644

151,931

7,632,640

258,497,047

15,616,910

440,462

13,460,711

120,275

148,196,779

13,117,287 10,618,996

67,317 2,062,763
581,399

1,335,714

S

62,207,099 S 164,256,058 $ 307,474,510

The notes to the financial statements are an integral part ofthis statement. 6

Fiduciary Fund Type
Trust and Agency

College and University

Account Groups

General

General

Fixed

Long-Tenn

Assets

Debt

Totals (Memorandum
Only)
PrimaIy Government

Governmental Fund Types

Component Units
Proprietary Fund Types

Fuluciary Fund Types

Totals (Memorandum
Only)
Reporting Entity

3,449,920,761 19,102
10,024,517,246 707,627
87,700,223 4,311,922 86,595,170 60,475,924
22,788
314,206,807
139,913

473,593,239 S

S

S 7,112,075,629 S

19,102

101,798,437

12,578,748,933

44,639,644 46,1l0
47,843,318 150,351,575
26,826,099 9,178,825

1,773,560,970 119,705,434 52,155,240 750,955,195 402,256,636 32,343,724 0 537,959 79,881,920 82,277,434

0 0

0 0 6,925 161,250 314,206,807

4,234,572,093

2,707,240,447

7,344,631,456 0
88,662,943

208,653,344

208,653,344

4,639,920,336

4,639,920,336

2,153,739 S 274,791 102,219
2,859,426 164,256 233,819
73,906,597
6,069,631

235,1l6,239 S

2,050,471 S 7,351,396,078

19,102

121,609,722

28,871,305,417

41,571,938,863

93,106,069 13,591,857 873,890,791
86,743,653
1,393,024
5,433,251 3,991,821

229,029,590 176,832,155
39,650

1,866,667,039 362,326,881 926,148,250 750,955,195 668,691,870 32,343,724 1,393,024 537,959 85,479,427 86,542,724

134,103,413 370,043,252

134,103,413 370,043,252

6,858,741 581,124,003

6,858,741 581,124,003
6,925 161,250 314,206,807

811,1l5,756 16,455,000 91,426,657

693,725

8,230,347,534 16,455,000 180,089,600

208,653,344

4,645,989,967

S 14,028,617,483 S 5,088,849,340 S 2,707,240,447 S 4,848,573,680 S 35,580,761,237 S

85,764,478 S 3,446,003,249 S 29,279,951,008 S 68,392,479,972

S

S

S

5,518,308

239,920,703

100,463,642

20,110 707,670

5,023,914 20,900,000 3,615,897

23,735 2,657,071,592
6,925

71,566,348 10,940,762
18,961,673 113,283
1,707,821

S 2,663,348,340 S

14,000 473,228,043 S

S

S

20,191,665 S

897,926,805

203,717,363

311,965,576

697,979

259,195,026

1,570,503,410

574,109,393

622,636,971

32,343,724

0

1,393,024

0

242,780,239

5,319,332

18,322,857

0

2,716,927,781

1l,082,114

2,289,220

6,925

0

4,638,839,006

4,640,188,720

0 S 4,848,573,680 S 11,921,863,450 S

S 4,318,785
969,319
36,317

S 88,686,632
2,694,679
2,472,261 538,791

328,877

183,024

635,000 5,100,312

18,566,782 81,052,557
126,110 30,446,467 281,684,101
8,836,793 15,201,360

161,250

1,461,927,233

1l,388,610 S 1,992,578,040 S

S 1,850,697
58,985 26,058

20,191,665 992,782,919 315,629,574 259,195,026 1,572,975,671 574,743,486 622,636,971
32,343,724 537,959
1,393,024 18,566,782 324,467,796 23,549,279 30,446,467 2,998,611,882 19,918,907 17,490,580
6,925 161,250

6,102,1l5,953

1,935,740 S 13,927,765,840

(continued)

7

State of GeorSla - - - - - - - -
Combined Balance Sheet All Fund Tvpcs, Account Groups and Discretelv Prcsented Component Units (continued)
June 30, 1997

PrimaIy Government

Governmen!<ll Fund Types

Proprietary Fund Types

General

Special Revenue

Debt Senice

Capi!<ll Projects

EnteIprise

Internal Service

Equity and Other Credits: Other Credits: Investment in General Fixed Assets

$

-$

-$

-$

-$

-$

Equity: Net Investment in Plant Colleges and Universities Contributed Capi!<ll Retained Earnings
Reserved Unreserved Fund Balances Reserved for Encumbrances Reserved for Advances Reserved for Inventories Reserved for Debt SeNee Reserved for Disaster Assistance Reserved for Distance Learning and Telemedicine Reserved for Pension Benefits Reserved for Guaranteed Revenue Debt Common Reserve Fund Reserved for Hazardous Waste Trust Fund Reserved for LotleIy for Education Reserved for Midyear Adjustment Reserved for Motor Fuel Tax Funds Reserved for Revenue Shortf.ll1 Reserved for Underground Storage Trust Fund Reserved for Other Specific Purposes Unreserved, Designated
Designated for Liability Trust Fund Designated for Future Capital Outlay Designated for Other Specific Purposes Unreserved, Undesignated To!<llEquity

$

$

4,820,880 168,175
43,899,457
13,496,656 19,825,508
19,029,945 24,132,040 226,140,670 111,313,936 912,617,015 333,941,806 32,524,619 73,243,786
9,704,819
3,085,000 776,030,008 $ 2,603,974,320 $

$

$

208,653,344

$

$

274,506,302

104,262,182

587,211,843 146,011,680

1,311,077

4,292,414 4,292,414 $

1,037,148,472
3,395,266 208,653,344 $ 1,041,854,815 $

104,262,182 $ 1,007,729,825

To!<ll Equity and Other Credits

$ 2,603,974,320 $

4,292,414 $ 208,653,344 $ 1,041,854,815 $ 104,262,182 $ 1,007,729,825

To!<ll Liabilities, Equity and Other Credits

$ 6,006,746,134 $

4,296,320 $ 208,653,344 $ 1,104,061,914 $ 268,518,240 $ 1,315,204,335

The notes to the financial statements are an integral part ofthis statement. 8

Fiduciary Fund Type
Trust and Agency

Conege and University

Account Groups

General

General

Flxed Assets

Long-Tenn Debt

Totals (Memorandwn
Only)
Primaty Govenunent

Govenunental Fund Types

Component Units
Proprietaty Fund Types

Fiduciary Fund Types

Totals (Memorandwn
Only)
Reporting Entity

$

-$

- $ 2,707,240,447 $

- $ 2,707,240,447 $

73,906,597 $

270,903 $

- $ 2,781,417,947

$

$ 4,223,590,203 $

$

392,031,094

9,499,471,214

1,837,849,473

27,948,456

$ 11,365,269,143 $ 4,615,621,297 $

0$

$ 11,365,269,143 $ 4,615,621,297 $ 2,707,240,447 $

$ 4,223,590,203 $ 392,031,094 274,506,302
691,474,025 146,011,680
4,820,880 168,175
43,899,457 208,653,344
13,496,656 19,825,508 9,499,471,214 19,029,945 24,132,040 226,140,670 111,313,936 912,617,015 333,941,806 32,524,619 1,912,404,336
9,704,819 1,037,148,472
3,085,000 811,666,144 0 $ 20,951,657,340 $
$ 23,658,897,787 $

$

$

944,928,794

$ 4,223,590,203 392,031,094
1,219,435,096

73,862,000 414,157,204

765,336,025 560,168,884

11,314,857

29,278,015,268

4,820,880 168,175
43,899,457 208,653,344
13,496,656 19,825,508 38,777,486,482 19,029,945 24,132,040 226,140,670 111,313,936 912,617,015 333,941,806 32,524,619 1,923,719,193

469,271 469,271 $

8,891,451 1,453,154,306 $

29,278,015,268 $

9,704,819 1,037,148,472
3,085,000 821,026,866 51,683,296,185

74,375,868 $ 1,453,425,209 $ 29,278,015,268 $ 54,464,714,132

$ 14,028,617,483 $ 5,088,849,340 $ 2,707,240,447 $ 4,848,573,680 $ 35,580,761,237 $

85,764,478 $ 3,446,003,249 $ 29,279,951,008 $ 68,392,479,972

9

State of Georgia
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
All Governmental Fund Tvpes, Expendable Trust Funds and Discretelv Presented Component Units For the Year Ended June 30, 1997

Primary Government

General

Governmental Fund Types

Special

Debt

Revenue

Service

Revenues: Taxes Licenses and Penmts Intergovernmental Federal Other Sales and Services Fines and Forfeits Interest and Other Investment Income Rents and Royalties Contributions and Donations Penalties and Interest on Taxes Unclaimed Property Other

$ 10,483,497,704 $ 351,181,927
5,515,982,683 33,823,194
495,535,328 50,426,165 160,825,540 9,948,603 190,841,985 6,699,639 20,118,021 30,840,942

$
18,373,986 361,311

Total Revenues

$ 17,349,721,731 $

18,735,297 $

0

Expenditures: Current: General Government Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay Debt Service: Principal Interest Other Debt Service Charges

$

633,990,021 $

5,700,389,994

6,796,847,561

1,113,788,591

1,124,542,047

263,090,507

170,667,100

48,769,799

3,187,232 $
392,165,000 236,835,498

Total Expenditures

$ 15,852,085,620 $

3,187,232 $

629,000,498

Excess (Deficiency) of Revenues Over (Under) Expenditures

$ 1,497,636,111 $

15,548,065 $ (629,000,498)

The notes to the financial statements are an integral part ofthis statement. 10

Capital Projects

Fiduciary Fund Type Expendable
Trust

Totals (Memorandum
Only) Primary Government

Component Units Governmental Fund Type

Totals (Memorandum
Only) Reporting
Entity

$

$

400,146,643 $ 10,883,644,347 $

$ 10,883,644,347

351,181,927

351,181,927

78,119,890 44,340
1,681,569

21,563,745 146,557
113,951,115 38,650
163,182

5,537,546,428 33,823,194
514,055,871 50,426,165
353,257,856 9,992,943
190,880,635 6,699,639
20,118,021 32,685,693

27,000 2,879,976
375,470 32,388
11,550,110
646,041

5,537,573,428 33,823,194
516,935,847 50,426,165
353,633,326 10,025,331
202,430,745 6,699,639
20,118,021 33,331,734

$

79,845,799 $

536,009,892 $ 17,984,312,719 $

15,510,985 $ 17,999,823,704

$

70,034 $

36,360 $ 637,283,647 $

123,711

5,700,513,705

63,810,821

6,860,658,382

1,113,788,591

1,124,542,047

310,769,347

573,859,854

128,738

170,795,838

48,769,799

373,677,146

373,677,146

44,340 160,980 382,514

392,209,340 236,996,478
382,514

$

374,335,014 $

374,868,977 $ 17,233,477,341 $

$ 33,033,963

637,283,647 5,700,513,705 6,860,658,382 1,113,788,591 1,124,542,047
573,859,854 203,829,801
48,769,799 373,677,146

392,209,340 236,996,478
382,514

33,033,963 $ 17,266,511,304

$ (294,489,215) $

161,140,915 $ 750,835,378 $

(17,522,978) $

733,312,400 (continued)

11

- - - - - - - State of Georgia-------
Combined Statement of Revenues. Expenditures and Changes in Fund Balances
All Governmental Fund Tvpes, Expendable Trust Funds and DiscreteIv Presented Component Units (continued) For the Year Ended June 30, 1997

Primary Government

General

Governmental Fund Types

Special

Debt

Revenue

Service

Other Financing Sources (Uses): Operating Transfers In Operating Transfers from Primary Government Operating Transfers from Component Units Operating Transfers Out Operating Transfers to Component Units Proceeds of General Fixed Asset Dispositions Capital Leases General Obligation Bond Proceeds

$

171,652,886 $

582,180,317 (2,081,658,683)
(57,431,561) 2,673,289 48,410

$

703,381,512

(14,500,000)

Total Other Financing Sources (Uses)

$ (1,382,535,342) $

(14,500,000) $

703,381,512

Excess (Deficiency) ofRevenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses

$

115,100,769 $

1,048,065 $

74,381,014

Fund Balances, July 1 Adjustments (Net) Residual Equity Transfers In Residual Equity Transfers from Component Units Residual Equity Transfers Out Residual Equity Transfers to Component Units Increase in Inventories

2,472,800,480 8,957,903 82,000 14,123,115
(7,514,977) 425,030

3,244,349

134,272,330

Fund Balances, June 30

$ 2,603,974,320 $

4,292,414 $ =:::::::::2=08=,6=:5::3,=34=4=

The notes to the financial statements are an integral part ofthis statement. 12

Capital Projects

Fiduciary Food Type Expendable
Trust

Totals (Memorandum
Only) Primary Government

Component Units Governmental Food Type

Totals (Memorandum
Only) Reporting
Entity

$

$

1,401,130 (214,201,995)

373,248,075

$

160,447,210 $

3,400,000 $

878,434,398 $ 0
583,581,447 (2,310,360,678)
(57,431,561) 2,673,289 48,410
373,248,075

3,400,000 $ (529,806,620) $

$ 16,326,489

878,434,398 16,326,489
583,581,447 (2,310,360,678)
(57,431,561) 2,673,289 48,410
373,248,075

16,326,489 $ (513,480,131)

$ (134,042,005) $

164,540,915 $ 221,028,758 $

1,228,059,648
(2,885,570) (49,277,258)

1,701,041,188

5,539,417,995 8,957,903 82,000 14,123,115 (2,885,570)
(56,792,235) 425,030

(1,196,489) $

219,832,269

686,331 979,429

5,540,104,326 9,937,332 82,000 14,123,115 (2,885,570)
(56,792,235) 425,030

$ 1,041,854,815 $ 1,865,582,103 $ 5,724,356,996 $

469,271 $ 5,724,826,267

13

- - - - - - - - State of Georgia-------
Statement of Fmds Available and Expenditures Compared to Budget
Budget Fund For the FISCal Year Ended June 30. 1997

Funds Available
Revenues: State Appropriation Lottery Proceeds Federal Revenues Other Revenues Retained
Total Revenues
Carry-Over from Prior Year: Transfer from Fund Balance
Total Funds Available

Original Appropriation

Final Budget

Actual

Variance Favorable (Unfavorable)

$ 10,794,986,380 $ 11,145,256,617 $ 11,122,716,878 $

546,198,773

680,069,448

679,819,448

4,567,668,639

5,614,829,287

4,942,663,953

2,959,288,902

4,338,270,266

3,804,573,030

(22,539,739) (250,000)
(672,165,334) (533,697,236)

$ 18,868,142,694 $ 21,778,425,618 $ 20,549,773,309 $ (1,228,652,309)

1,672,666,173

1,446,324,703

(226,341,470)

$ 18,868,142,694 $ 23,451,091,791 $ 21,996,098,012 $ (1,454,993,779)

Expenditures
Administrative Services, Department of Agricultural Exposition Authority Agriculture, Department of Agrirama Development Authority Audits and Accounts, Department of Banking and Finance, Department of Building Authority Children and Youth Services, Department of Community Affairs, Department of Corrections, Department of Defense, Department of Education, Department of Employees' Retirement System -
Administrative Expense Fund Forestry Commission General Assembly General Obligation Debt Sinking Fund Governor, Office ofthe Guaranteed Revenue Debt Common Reserve Fund Human Resources, Department of Industry, Trade and Tourism, Department of Insurance, Department of Investigation, Georgia Bureau of Judicial Branch Labor, Department of Law, Department of Medical Assistance, Department of Natural Resources, Department of

$

185,912,104 $

290,312,166 $

266,433,598 $

4,921,827

5,705,964

5,692,679

49,751,824

52,446,553

51,606,982

1,375,300

1,118,677

1,072,672

19,706,494

20,967,654

20,484,013

9,318,265

9,318,265

9,189,889

37,538,499

45,025,906

44,450,931

142,719,890

163,305,260

159,014,407

76,410,979

184,488,458

172,834,213

695,760,881

724,281,283

701,007,059

15,780,248

27,229,349

26,619,111

4,818,221,159

5,124,275,856

5,084,841,287

4,389,972 40,350,065 26,278,571 414,482,451 50,704,653
0 2,382,300,078
21,097,481 16,512,068 46,619,323 87,045,066 155,808,877 13,427,658 3,739,739,927 139,063,103

4,677,051 42,939,243 28,742,632 621,465,791 267,356,246
0 2,602,566,978
39,171,995 17,460,449 56,509,738 89,330,946 170,935,947 15,447,956 4,242,144,852 213,374,361

4,318,083 42,254,221 22,175,657 621,465,791 212,872,574
0 2,496,971,621
20,828,880 16,828,620 55,329,318 90,113,856 147,902,627 14,700,696 3,766,742,466 206,687,460

23,878,568 13,285
839,571 46,005 483,641 128,376 574,975 4,290,853 11,654,245 23,274,224 610,238 39,434,569
358,968 685,022 6,566,975
0 54,483,672
0 105,595,357
18,343,115 631,829
1,180,420 (782,910) 23,033,320 747,260 475,402,386 6,686,901

The notes to the fmancial statements are an integral part of this statement 14

- - - - - - - - - State of GeorfJia - - - - - - - - -
Statement of Fmds Available and Expenditures Compared to Budget
Budget Fund For the FISCal Year Ended Jme 30, 1997

Original Appropriation

Final Budget

Actual

Variance Favorable (Unfavorable)

Pardons and Paroles, State Board of

$

Personnel Board, State - Merit System of

Personnel Administration

Public Safety, Department of

Public School Employees' Retirement System-Expense Fund

Public Service Commission

Public Telecommunications Commission

Regents ofthe University System of Georgia, Board of

Revenue, Department of

Secretary of State

Soil and Water Conservation Commission

Student Finance Commission

Teachers' Retirement System - Expense Fund

Technical and Adult Education, Department of

Transportation, Department of

Veterans Service, Department of

Workers' Compensation, State Board of

43,239,164 $
1,099,766,134 121,187,740 14,212,500 10,536,019 23,713,135
2,525,081,073 97,058,269 31,791,948 2,657,810
202,538,239 10,805,196
285,807,286 1,164,343,369
29,275,348 10,892,701

44,395,511 $
1,119,892,356 134,118,633 14,212,500 11,117,558 31,811,927
3,377,794,580 113,514,059 33,996,415 2,371,698 193,887,469 11,802,389 395,063,083
2,866,807,448 28,544,888 11,161,701

44,059,461 $
1,033,717,757 130,176,826 14,212,500 10,809,510 32,919,818
3,087,392,181 99,728,495 32,323,452 2,240,538
200,847,282 10,655,007
375,080,760 1,146,946,888
28,247,731 10,943,437

336,050
86,174,599 3,941,807
0 308,048 (1,107,891) 290,402,399 13,785,564 1,672,963 131,160 (6,959,813) 1,147,382 19,982,323 1,719,860,560 297,157 218,264

Total Expenditures

$ 18,868,142,694 $ 23,451,091,791 $ 20,522,740,354 $ 2,928,351,437

Excess of Funds Available over Expenditures

$ 1,473,357,658 $ 1,473,357,658

The notes to the ftnancial statements are an integral part of this statement 15

State of Georgia

Combined Statement of Revenues, Expenses and
Changes in Fund Equitv/Fund Balances All Proprietalv Fund Tvpes,Nonexpendable Trust Funds and
Discretelv Presented Component Units For the FISCal Year Ended June 30. 1997

Primary Government

Proprietary Fund Types

Enterprise

Internal Service

Fiduciary Fund Type
Nonexpendab1e Trust

Operating Revenues: Contributions Insurance Recoveries Interest and Other Investment Income Intergovernmental Rents and Royalties Sales and Services Taxes Other
Total Operating Revenues

$ 974,191,768 $ 128,187,894 $

7,861,703

14,983,383

128,643,328

31,587

32,992,291 265,021,475

1,549,918

$ 989,206,738 $ 564,256,609 $

11,679 11,679

Operating Expenses: General and Administrative Goods and Services Interest Benefits Claims and Judgments Prizes Scholarships Depreciation Other

$ 190,381,605 $ 148,687,122 $ 164,204,806

820,471,531

15,871,000 105,228,182

1,387,958

3,847
1,300 903

Total Operating Expenses

$ 1,010,853,136 $ 435,379,068 $

6,050

Operating Income (Loss)

$ (21,646,398) $ 128,877,541 $

5,629

Nonoperating Revenues (Expenses): Contributions and Intergovernmental Revenue Interest and Other Investment Income Gain on Sale of Loans HotelJMote1 Tax (Net) Interest Expense Other Debt Service Charges Other
Total Nonoperating Revenues (Expenses)
Net Income (Loss) Before Operating Transfers

$

$

$

794,867

(69,439)

(30,873)

(11,648,671)

$

(30,873) $ (10,923,243) $

$ (21,677,271) $ 117,954,298 $

0 5,629

The notes to the financial statements are an integral part ofthis statement. 16

Totals (Memorandum
Only) Primary Government

Component Units Proprietary Fund Types

Totals (Memorandum
Only)
Reporting
Entity

$ 1,102,379,662 $ 7,861,703
143,638,390 0
32,992,291 265,053,062
0 1,549,918
$ 1,553,475,026 $

38,928 $
80,031,640 28,253,099 65,288,058 1,836,327,617
1,439,287 16,573,581

1,102,418,590 7,861,703
223,670,030 28,253,099 98,280,349
2,101,380,679 1,439,287
18,123,499

2,027,952,210 $ 3,581,427,236

$ 339,072,574 $ 164,204,806 0 836,342,531 105,228,182 0 1,300 1,387,958 903
$ 1,446,238,254 $
$ 107,236,772 $

140,399,898 $ 323,522,300
58,720,450
857,283,000
33,092,551 55,510,140

479,472,472 487,727,106
58,720,450 836,342,531 105,228,182 857,283,000
1,300 34,480,509 55,511,043

1,468,528,339 $ 2,914,766,593

559,423,871 $

666,660,643

$

0$

794,867

0

0

(69,439)

0

(11,679,544)

$ (10,954,116) $

$

96,282,656 $

518,498 $ 25,258,853
527,514 17,247,578 (35,232,947) (3,003,122)
933,242
6,249,616 $
565,673,487 $

518,498 26,053,720
527,514 17,247,578 (35,302,386) (3,003,122) (10,746,302)
(4,704,500)
661,956,143
(continued)
17

- - - - - - - - - State of Georgia - - - - - - - - -

Combined Statement of Revenucs, Expenscs and
Changes in Fund EquilvIFund Balances All ProprietarY Fund Tvpes,Nonexpendrole Trust Funds and
DiscreteIv Presented Component Units (continued) For the FISCal Year Ended June 30, 1997

Primary Government

Proprietary Fund Types

Internal

Enterprise

Service

Fiduciary Fund Type
Nonexpendab1e Trust

Operating Transfers: Transfers In Transfers from Primary Government Transfers Out Transfers to Primary Government

$

$

39,697,821 $

(21,189,792)

Net Operating Transfers

$

0$

18,508,029 $

0

Net Income (Loss)

$ (21,677,271) $ 136,462,327 $

5,629

Deficiency ofRevenues under Expenditures from Governmental Operations and Expendable Trust Funds

Fund Equity/Fund Balances, July 1 Adjustments (Net) Contributed Capital Contributed Capital from Primary Government Contributed Capital from Federal Government Contributed Capital from Other Sources Transfer of Contributed Capital Transfer of Contributed Capital to Primary Government Increase (Decrease) in Inventories

125,939,453

1,027,788,074 (158,951,179)
2,885,570

(82,000) (372,967)

210,197

Fund Equity/Fund Balances, June 30

$ 104,262,182 $ 1,007,729,825 $

215,826

The notes to the financial statements are an integral part ofthis statement. 18

Totals (Memorandum
Only) Primary Government

Component Units Proprietary Food Types

Totals (Memorandum
Only) Reporting
Entity

$

39,697,821 $

0

(21,189,792)

0

$

18,508,029 $

$ 114,790,685 $

$ 53,331,561 (583,039,856) (529,708,295) $ 35,965,192 $

39,697,821 53,331,561 (21,189,792) (583,039,856)
(511,200,266)
150,755,877

0
1,153,937,724 (158,951,179)
2,885,570 0 0 0
(82,000) 0
(372,967)

(4,263,322)
1,364,973,768 (35,955,508)
56,792,235 28,615,928 21,126,652
(14,123,115) 22,476

(4,263,322)
2,518,911,492 (194,906,687)
2,885,570 56,792,235 28,615,928 21,126,652
(82,000) (14,123,115)
(350,491)

$ 1,112,207,833 $ 1,453,154,306 $ 2,565,362,139

19

State of Georgia
Combined Statement of Cash Flows All Proprietmv Fmd Tvpes, Nonexpcndtble Trust Fmds and
DiscreteI'! Presented Component Units For the FISCal Year Ended Jme 30, 1997

Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Required Contributions Cash Received from Insurance Proceeds Principal Payments Received on Program Loans Interest Received on Program Loans Cash Paid to Venders Cash Paid to Employees Cash Paid for Benefits Cash Paid for Claims and Judgments Cash Paid for Lottery Prizes Cash Paid for Scholarships Origination ofProgram Loans Governmental and Fiduciary Fund Type Activity (Net) Other Operating Items (Net)
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Noncapital Financing Activities: Operating Transfers In Operating Transfers from Primary Government Proceeds from Assignment ofProgram Loans Under Repurchase Agreements Issuance ofBondslLoanslNotes Contributed Capital HotellMotel Tax (Net) Operating Transfers Out Operating Transfers to Primary Government Repayment ofAdvances Principal Paid on BondslLoanslNotes Interest Paid on BondslLoanslNotes Return ofContributed Capital Other Debt Service Payments Other Noncapital Items (Net)
Net Cash Provided by (Used in) Noncapital Financing Activities
Cash Flows from Capital and Related FinancingActivities: Issuance ofBondslLoanslNotes HotellMotel Tax Received Contributed Capital Sale of Capital Assets Acquisition and Construction of Capital Assets Principal Paid on BondslLoanslNotes Interest Paid on BondsILoanslNotes Other Debt Service Payments Other Capital and Related Items (Net)
Net Cash Used in Capital and Related Financing Activities
Cash Flows from Investing Activities: Purchase ofInvestments (Net) Interest on Investments Net Increase in Fair Value ofInvestments Other Investing Items (Net)
Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1

Primary Government

Fiduciary

ProprielaIy Fund Types

Fund Type

Intemal

Nonexpendable

Entexprise

Service

Trost

Totals (Memorandum
Only)
Primary Government

Component Units ProprielaIy Fund Types

Totals (Memorandum
Only) Reporting
Entity

$

31,587 $ 286,158,359 $

976,344,710

126,647,464

7,861,703

(186,422,391) (2,182,191)
(831,648,569)

(237,879,223) (80,518,070) (15,871,000) (86,676,768)

-$
(903) (3,847) (1,300)

286,189,946 $ 1,102,992,174
7,861,703 0 0
(424,302,517) (82,704,108)
(847,519,569) (86,676,768) 0 (1,300) 0 0 0

1,937,506,263 $
105,494,635 70,248,615
(444,518,764) (104,098,685)
(839,989,000)
(170,010,786) 9,278,983 234,000

2,223,696,209 1,102,992,174
7,861,703 105,494,635
70,248,615 (868,821,281 ) (186,802,793) (847,519,569)
(86,676,768) (839,989,000)
(1,300) (170,010,786)
9,278,983 234,000

$ (43,876,854) $

(277,535) $

(6,050) $ (44,160,439) $ 564,145,261 $ 519,984,822

$

- $ 39,697,821 $

- $ 39,697,821 $

- $ 39,697,821

0

53,331,561

53,331,561

(21,189,792)
(82,000) 96,789,117

0 0 0 0 (21,189,792) 0 0 0 0 (82,000) 0 96,789,117

11,602,888 156,349,835
47,397,522 3,334,037
(582,933,770) (53,750)
(136,185,819) (48,383,179) (14,123,115) (1,824,658) (1,902,899)

11,602,888 156,349,835
47,397,522 3,334,037
(21,189,792) (582,933,770)
(53,750) (136,185,819)
(48,383,179) (14,205,115)
(1,824,658) 94,886,218

$

o $ 115,215,146 $

o $ 115,215,146 $ (513,391,347) $ (398,176,201 )

$

-$

-$

2,885,570

(98,377)

(21,297,953) (242,857) (69,439)

$

(98,377) $ (18,724,679) $

-$
o$

0$ 0 2,885,570 0 (21,396,330) (242,857) (69,439) 0 0
(18,823,056) $

15,000,000 $ 13,565,899 24,626,605
465,962 (67,818,097) (10,131,015) (40,748,092)
(1,424,804) (21,113)
(66,484,655) $

15,000,000 13,565,899 27,512,175
465,962 (89,214,427) (10,373,872) (40,817,531)
(1,424,804) (21,113)
(85,307,711 )

$ 57,040,591 $ 10,707,135 $

15,596,017

40,336,595

89,101,600

$ 72,636,608 $ 140,145,330 $

$ 28,661,377 $ 236,358,262 $

48,322,572

35,941,284

(4,723) $ 15,679

67,743,003 $ 55,948,291 89,101,600
0

79,707,721 $ 40,893,005
(26,648)

147,450,724 96,841,296 89,101,600 (26,648)

10,956 $ 212,792,894 $ 120,574,078 $ 333,366,972

4,906 $ 265,024,545 $ 104,843,337 $ 369,867,882

14,196

84,278,052

264,376,315

348,654,367

Cash and Cash Equivalents, June 30

$ 76,983,949 $ 272,299,546 $

19,102 $ 349,302,597 $ 369,219,652 $ 718,522,249

The notes to 1he financial statements are an integral part of1his statement. 20

State of Georgia
Combined Statement of Cash Flows All Propridarv Fund Tvpes, Nonexpendable Trust Funds and
Discretelv Presented Component Units For the Hscal Year Ended June 30, 1997

Operating Income (Loss)
Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities: Depreciation!Amortization
Interest Other Changes in Assets and Liabilities: Decrease in Intergovernmental Receivables Increase in Interest and Dividends Receivable Increase in Notes and Loans Receivable Decrease (Increase) in Other Receivables Increase in Due from Other Funds Increase in Due from Component Units Decrease (Increase) in Inventories Decrease (Increase) in Prepaid Items Decrease in Deferred Charges
Decrease in Other Assets Increase (Decrease) in Accounts Payable and Other Accruals Increase in Compensated Absences Payable Increase in Claims and Judgments Payable Increase (Decrease) in Contracts Payable Increase in SalariesIWithholdings Payable Decrease in Benefits Payable Decrease in Due to Other Funds Decrease in Due to Primary Government Increase (Decrease) in Deferred Revenue Decrease in Funds Held for Others Increase in Other Liabilities Decrease in Deposits and Overpayments Increase in Grand Prizes Payable
Total Adjustments

Primary Government

Fiduciary

Proprietary Fund Types

Fund Type

Internal

Nonexpendable

Enterprise

Serviee

Trost

Totals (Memorandum
Only)
Primary Government

Component Units Proprietary Fund Types

Totals (Memorandum
Only)
Reporting Entity

$ (21,646,398) $ 128,877,541 $

5,629 $ 107,236,772 $ 559,423,871 $ 666,660,643

$

-$

1,387,958 $

(14,983,383)

(39,541,728)

(87,652,979)

2,022,928

(4,218,312) (6,073,269)
(318,230) 344,920
29,900

1,617,617 11,773 147,633
(11,177,038)
130,014

(6,321,721) 70,304
18,551,414 (748,691) 26,710
(188,747)
(3,762,703)

(739,902)

$ (22,230,456) $ (129,155,076) $

-$ (11,679)

1,387,958 $ (54,536,790) (87,652,979)

0 0 0 (2,195,384) (6,073,269) (318,230) 344,920 29,900 0 0 (4,704,104) 82,077 18,551,414 (601,058) 26,710 (11,177,038) (188,747) 0 (3,632,689) 0 0 (739,902) 0

(11,679) $ (151,397,211) $

34,783,856 $ 40,889,127
716,913

36,171,814 (13,647,663) (86,936,066)

909,985 (2,104,682) (64,507,748) (30,056,551)
(81,212) (167,365)
10,054 123,014 (34,546,824) 140,241
633,183 185,307
(143,063) 1,518,890 (420,345) 1,272,755 (279,145) 55,845,000

909,985 (2,104,682) (64,507,748) (32,251,935) (6,073,269)
(318,230) 263,708 (137,465)
10,054 123,014 (39,250,928) 222,318 18,551,414
32,125 212,017 (11,177,038) (188,747) (143,063) (2,113,799) (420,345) 1,272,755 (1,019,047) 55,845,000

4,721,390 $ (146,675,821)

Net Cash Provided by (Used in) Operating Activities

$ (43,876,854) $

(277,535) $

(6,050) $ (44,160,439) $ 564,145,261 $ 519,984,822

Noncash Investing, Capital, and Financing Activities: Disposal ofFixed Assets Donation ofFixed Assets Interest Earned on Grand Prize Investments and Grand Prizes Payable Write offofFixed Assets

$

(30,873) $ (12,417,687) $

17,899

(16,544,667)

$

(30,873) $ (28,944,455) $

- $ (12,448,560) $ 17,899
0 (16,544,667)

(425,323) $ 21,705,422
16,343,000

(12,873,883) 21,723,321
16,343,000 (16,544,667)

o $ (28,975,328) $ 37,623,099 $

8,647,771

The notes to 1he financial statements are an integral part of1his statement. 21

State of Georgia - - - - - - -
Statements of Plan Net Assets
Pmsion Trust Funds and Discretelv Presented Component Units
Jme30,1997

Assets
Cash and Cash Equivalents Investments Receivables (Net ofAllo'W3Jlces for Uncollectibles)
Interest and Dividends
Other Prepaid Items FJxedAssets (Net, Where Applicable, of
Accumulated Depreciation)
Total Assets
Liabilities
Accounts Payable and Other Accruals Sa1aIiesIWi1hholdings Payable Due to Other F\mds Due to PrimalY Govenunent
Total Liabilities

Defined Contribution
Plan

$

77,000

20,186,000

306,000 1,006,000

District Attorneys Retirement
F\md

District Attorneys Retirement
System

Primary Government

Employees' Retirement
System

Legislative Retirement
System

3,000

25,000 25,257,000

2,939,866 S 9,179,587,000

20,000 22,729,000

46,000

87,393,000 26,511,000
14,014

32,000

S

21,575,000 S

3,000 S

25,328,000 S 9,296,444,880 S

22,781,000

S

1,000 S

S

1,000 S

3,000 3,000

65,000 S 65,000

5,344,886 20,110
682,670
6,047,666 S

10,000 25,000
35,000

Superior Court Judges Retirement
F\md

Superior Court Judges Retirement
System

Trial Judges and Solicitors
Retirement F\md

44,000 S 1,259,000

52,000 S 93,455,000

104,000 44,203,000

2,000

241,000

215,000

1,305,000

93,748,000

44,522,000

37,000

41,000 S

6,000

37,000 S

41,000 S

6,000

Fund Balances Reserved for Pension Benefits

S

21,574,000 S

(Schedules offundingprogress are presented on pages 77 and 80)

oS

25,263,000 S 9,290,397,214 S

22,746,000 S

1,268,000

93,707,000 S

44,516,000

The notes to the financial statements are an integral part ofthis statement. 22

Total Prima<y Government

ruemen's Pension
Fund

Judges ofthe Probate Courts
Retirement Fund

Component Units - Fiduciary Fund Types

Public School

Peace Officers'

Employees

Sheriffs'

Annuityand Benefit Fund

Retirement System

Retirement Fund

Superior Court Clerks' Retirement
Fund

Teachers Retirement
System

3,264,866 $ 9,386,676,000

48,167 $ 261,644,190

20,702 30,793,275

1,771,747 $ 214,754,374

131,000 578,396,000

55,739 32,157,003

12,531 32,294,575

10,585 27,721,266,000

87,699,000 28,053,000
14,014

$

9,505,706,880 $

2,455,668
249,253 264,397,278 $

297,232
9,189 31,120,398

2,280,888

403,162 219,210,171 $

578,527,000

238,802
16,662 32,468,206 $

223,757,000 176,832,155
39,650
15,459
32,322,565 $ 28,121,905,390

Total Component
Units

Totals (Memorandmn
Only)
Reporting Entity

2,050,471 28,871,305,417

5,315,337 38,257,981,417

229,029,590 176,832,155
39,650
693,725
29,279,951,008

316,728,590 204,885,155
53,664
693,725
38,785,657,888

5,507,886 $ 20,110
707,670 0
6,235,666 $

$

$

228,000

$

$

228,000

0

1,622,697 58,985

26,058

$

1,707,740

1,850,697 58,985 0 26,058
1,935,740

7,358,583 79,095 707,670 26,058
8,171,406

9,499,471,214 $

264,397,278 $

31,120,398 $

219,210,171 $

578,299,000 $

32,468,206 $

32,322,565 $ 28,120,197,650 $ 29,278,015,268 $

38,777,486,482

23

State of Georgia - - - - - - -
Statements of Changes in Plan Net Assets
Pension Trust Funds and DiscretelY Presented Component Units For the FISCal Year Ended June 30, 1997

Additions: Contributions Employer and Employee FIDes and Foneits FIDes and Bond Foneitores Interest and Other Investment Income Dividends and Interest Net Appreciation in Fair Value ofInvestments
Less: Investment Expense Net Gain on Disposal ofInve_ent Securities Sales and Services CivilC. .es Marriage License Fees Real Estate Recording Fees Taxes Insurance Companies Other Miscellaneous
Total Additions
Deducti~:
Genesal and Administrative Expenses Benefits Refunds
Total Deductions
Net Increase Before Operating Transfers
Operating Transfers: Txansfers from Primary Govenunent Txansfers to Primary Govenunent
Net OperatingTransfers
Net Increase

Defined Contribution
Plan

District Attorneys Retirement
Fund

District Attorneys Retirement
System

Primary Govenunent

Employees' Retirement
System

Legislative Retirement
System

Superior Court Judges Retirement
Fund

Superior Court Judges Retirement
System

Trial Judges and Solicitors Retirement
Fund

$

9,511,000 $

183,000 $

566,000 $ 339,751,000 $

351,000 $

1,844,000 $

2,338,000 $

1,426,000

1,025,000 178,000 (3,000)

876,330 3,635,646
(17,976)

341,292,760 1,414,915,112
(7,298,872)

951,210 3,946,302
(19,512)

65,715 272,633
(1,348)

3,440,775 14,274,805
(70,580)

1,519,830 6,305,346
(31,176)

$ 10,711,000 $

$

245,000 $

7,317,000

$

7,562,000 $

$

3,149,000 $

$

-$

$

-$

$

3,149,000 $

183,000 $

5,060,000 $ 2,088,660,000 $

5,229,000

-$ 183,000
183,000 $ $

-$ 284,000
59,000

3,188,699 $ 320,165,000
9,641,000

343,000

332,994,699 $

4,717,000 $ 1,755,665,301 $

-$ 915,000
47,000
962,000
4,267,000

-$

-$

-$

-$

$

$

$

0$

4,717,000

1,755,665,301 $

4,267,000

2,181,000

19,983,000 $

9,220,000

$ 1,970,000
1,970,000 $ 211,000
-$

$ 2,193,000
51,000 2,244,000 $ 17,739,000 $
-$

534,000 175,000
709,000
8,511,000

$ 211,000

-$ 17,739,000 $

8,511,000

Fund Balances Reserved for Pension Benefits, July 1 Adjustments Change in Accounting Principle

18,647,000 (222,000)

Fund Balances Reserved for Pension Benefits, JW1e 30 $ 21,574,000

17,453,000 3,093,000

6,122,246,913 1,412,485,000

o $ 25,263,000 $ 9,290,397,214

13,858,000 4,621,000
22,746,000 $

687,000 370,000

65,159,000 10,809,000

28,882,000 7,123,000

1,268,000 $

93,707,000 $ 44,516,000

The notes to the financial statements are an integral part ofthis statement. 24

Total Primary Govenunent

rtremen's Pension
FUnd

Judges of1he Probate Courts
Retirement FUnd

Component Unit> Fiduc:iaIy FUnd Types

Public School

Peace Officers'

Employees

Sherifft

AJ1l11lityand

Retirement

Retirement

BenefitF\md

System

FUnd

Superior Court Clerl<s' Retirement
FUnd

Teachers Retirement
System

Total Component
Unit>

Totals (Memorandum
Only)
Reporting Entity

355,970,000 $

1,407,265

349,171,620 1,443,527,844
(7,442,464) 0 0 0 0
2,141,227,000 $

12,613,173 16,912,573
11,075,091 89,952
42,098,054 $

190,845 $ 395,219 1,728,386
1,797,001

955,132 $ 11,503,511 11,259,353
9,563,707

15,358,000
21,602,295 89,621,829
(443,124)

139,643

6,192 4,257,286

188.628 33,470,331 $

126,139,000

101,931 $ 1,912,745 1,478,981
493,440
1,461 3,988,558 $

110,755 $ 572,489 1,878,753

930,841,591
1,008,618,000 4,245,539,000
(20,635,000)

278,403 1,125,031

3,965,431 $ 6,164,363,591

948,965,519 $ 1,304,935,519

14,383,964

14,383,964

1,059,178,941 4,335,160,829
(21,078,124) 28,766,721

1,408,350,561 5,778,688,673
(28,520,588) 28,766,721

278,403 139,643 1,125,031

278,403 139,643 1,125,031

11,075,091

11,075,Q91

286,233

286,233

6,378,282,251

8,519,509,251

3,433,699 326,244,000
17,290,000
346,967,699
1,794,259,301 $

1,282,733 $ 9,995,563
184,764
11,463,060
30,634,994 $

161,789 $ 940,805
1,102,594 $ 3,154,692 $

1,035,024 $ 9,203,209
123,246
10,361,479 $
23,108,852 $

575,000 $ 22,879,000
418,000
23,872,000
102,267,000

333,787 $ 2,004,367
17,628
2,355,782
1,632,776

85,355 $ 1,974,144
2,059,499 $ 1,905,932 $

6,150,431 $ 706,032,000 36,415,000
748,597,431
5,415,766,160 $

9,624,119 $ 753,029,088 37,158,638

13,057,818 1,079,273,088
54,448,638

799,811,845

1,146,779,544

5,578,470,406 $ 7,372,729,707

$ 1,794,259,301 $

$ 30,634,994

$

$ 3,154,692 $

23,108,852 $ 102,267,000 $

$ 1,632,776 $

$ 1,905,932 $

4,100,000 $ (541,591)
3,558,409
5,419,324,569 $

4,100,000 $ (541,591)

4,100,000 (541,591)

3,558,409 $

3,558,409

5,582,028,815

7,376,288,116

6,266,932,913 1,438,279,000

233,762,284

27,965,706

196,101,319

371,014,000 105,018,000

30,835,430

30,416,633

18,117,673,081 4,583,200,000

19,007,768,453 4,688,218,000

25,274,701,366 6,126,497,000

9,499,471,214

264,397,278 $

31,120,398 $ 219,210,171 $ 578,299,000

32,468,206 $

32,322,565 $ 28,120,197,650 $ 29,278,015,268 $ 38,777,486,482

25

- - - - - - - State of GeorfJia--------
Combined Statement of Changes in Fund Balances College and L1niversilv Funds
For the FIscal Year Ended June 30. 1997

Revenues and Other Additions: Unrestricted Revenues Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants and Contracts Investment Income
Endowment Other Sales and Services Net Gain/(Loss) on Investments Interest on Loans Receivable Expended for Plant Facilities Current Funds Plant Funds
Unexpended Renewals and Replacements Georgia State Financing and Investment Commission Other Additions (Net) Insurance Recoveries Other Recovery ofPnor Year's Cancelled Loans and Collection Costs
Total Revenues and Other Additions
Expenditures and Other Deductions: Education and General Expenditures AuxiliaryEnterprises Expenditures Hospital Expenditures Indirect Cost Recoveries Loans Assigned to Federal Govemment Loan Cancellations and Write-offs Administrative and Collection Costs Expended for Plant Facilities Capitalized N on-Capitalized Other Deductions (Net) DisposalsIDe1etions/Adjustments
Total Expenditures and Other Deductions

Current Funds

Unrestricted

Restricted

Loan Funds

$ 1,045,579,557 $

$ 590,261,367 157,642,364
5,262,242 139,923,391
8,017,938 76,483
4,831,684

(48,652) 2,627
165,870
646,283 19,498
1,187,755

2,897,494 $ 1,048,477,051 $ 906,015,469 $

186,913 2,160,294

$ 2,007,649,578 $ 166,711,996 187,349,712

835,303,413 $
7,597,627 54,077,811

89,497

118,806 549,412 140,910

44,321

375,478

$ 2,361,711 ,286 $ 897,112,669 $

1,184,606

The notes to the financial statements are an integral part ofthis statement. 26

Endowment
and Similar
Funds

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Total (Memorandum
Only)

$

$

$

69,096,513

2,151,147

891,232

7,041,749

2,932,299

12,798,132

7,829,640 317,192

$

3,823,531 $

99,234,373 $

$

$ 1,045,579,557

659,309,228

159,793,511

5,264,869

48,592,388

196,614,630

505,098 1,173

8,017,938 14,025,996 4,831,684 2,952,970
1,187,755

191,837,076

191,837,076

130,799,797 9,465,183 89,411,446

130,799,797 9,465,183
89,411,446

14,189

7,829,640 3,228,875

186,913

520,460 $ 470,105,890 $ 2,530,337,068

$

$

$

$

$ 2,842,952,991

166,711,996

194,947,339

54,077,811

118,806

549,412

40,614

271,021

130,799,797 21,458,474

9,465,183 1,937,776

55,999,492

140,264,980 23,396,250
419,799 55,999,492

$

0 $ 152,298,885 $

11,402,959 $

55,999,492 $ 3,479,709,897

(continued)

27

- - - - - - - State or GeorfJia-------
Combined Statement of Changes in Fund Balances College and Universifv Funds (conmued) For the FISCal Year Ended June 30, 1997

Transfers Between Funds, Net In (Out) Mandatory Nonmandatory
Total Transfers Between Funds
Operating Transfers: Transfers In Transfers Out Transfers to Component Units
.Total Operating Transfers
Net Increase (Decrease) in Fund Balances
Fund Balances, July 1
Fund Balances, June 30

Current Funds

Unrestricted

Restricted

Loan Funds

$

752,514 $

(25,570,982)

$ (24,818,468) $

(398,752) $ (2,690,177)
(3,088,929) $

(176,233) (4,924)
(181,157)

$ 1,363,372,659 $ (6,191,914) (16,326,489)

$ 1,340,854,256 $

$

2,801,553 $

121,112,456

-$
0$ 5,813,871 $ 49,448,130

0 794,531 58,657,611

$ 123,914,009 $

55,262,001 $

59,452,142

The notes to the financial statements are an integral part ofthis statement. 28

Endowment and Similar
Funds

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Total (Memorandum
Only)

$

(177,529) $

$

$

(716,413)

15,946,555

13,035,941

$

0

0

$

(893,942) $

15,946,555 $

13,035,941 $

0$

0

$

$

56,743,969 $

561,443 $

$ 1,420,678,071

(1,067,906)

(7,259,820)

(16,326,489)

$

0$

55,676,063 $

561,443 $

0 $ 1,397,091,762

$

2,929,589 $

18,558,106 $

2,714,885 $ 414,106,398 $ 447,718,933

78,809,686

20,115,802

30,274,874

3,809,483,805

4,167,902,364

$

81,739,275 $

38,673,908 $

32,989,759 $ 4,223,590,203 $ 4,615,621,297

29

- - - - - - - - - State of Georgia - - - - - - - - -
Combined Statement of Current Funds Revenues,
Expenditures and Other Changes College and Universifv Funds
For the FISCal Year Ended June 30, 1997

Revenues: Tuition and Fees Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants and Contracts Investment Income Sales and Services of Educational Departments Sales and Services ofAuxiliary Enterprises Sales and Services ofHospital Other Sources
Total Revenues
Expenditures and Mandatory Transfers: Education and General Instruction Research Public Service Academic Support Student Services Institutional Support Plant Operations and Maintenance Scholarships and Fellowships Auxiliary Enterprises Student Housing Faculty and StaffHousing Food Services Stores and Shops Intercollegiate Athletics Other Service Units Hospital Expenditures Medical College of Georgia Hospital Georgia War Veterans Nursing Home Mandatory Transfers, Net (In) Out
Total Expenditures and Mandatory Transfers
Other Transfers and Additions (Deductions): Excess ofRestricted Receipts over Transfers to Revenues Nonmandatory Transfers, Net In (Out) Other Additions (Deductions), Net Operating Transfers Transfers In Transfers Out Transfers to Component Units
Total Other TransferS and Additions (Deductions)

Current Funds

Unrestricted

Restricted

Total (Memorandum
Only)

$ 481,300,286 $ 54,470,445 4,511,487 267,533 7,577,426 108,049 44,552,352 161,383,527
203,041,315 88,367,137
$ 1,045,579,557 $

$ 543,796,656 154,346,772
4,754,301 131,554,665
3,027,711 4,606,070

481,300,286 598,267,101 158,858,259
5,021,834 139,132,091
3,135,760 49,158,422 161,383,527 203,041,315 88,367,137

842,086,175 $ 1,887,665,732

$ 803,538,977 $ 84,272,564 $ 887,811,541

218,635,385

226,341,644

444,977,029

132,873,946

57,548,622

190,422,568

196,419,002

7,330,571

203,749,573

105,447,948

4,074,366

109,522,314

286,510,035

22,186,665

308,696,700

197,316,064

251,642

197,567,706

66,908,221

433,297,339

500,205,560

52,093,574 1,731,980
32,219,491 19,233,204 25,780,992 35,652,755

52,093,574 1,731,980
32,219,491 19,233,204 25,780,992 35,652,755

187,349,712 (752,514)

7,597,627 398,752

187,349,712 7,597,627 (353,762)

$ 2,360,958,772 $ 843,299,792 $ 3,204,258,564

$

-$

(25,570,982)

2,897,494

1,363,372,659 (6,191,914)
(16,326,489)

$ 1,318,180,768 $

9,851,483 $ (2,690,177)
(133,818)

9,851,483 (28,261,159)
2,763,676

1,363,372,659 (6,191,914)
(16,326,489)

7,027,488 $ 1,325,208,256

Net Increase in Fund Balances The notes to the financial statements are an integral part ofthis statement.
30

$

2,801,553 $

5,813,871 $

8,615,424

- - - - - - - - State of Georgia--------
Notes to the Flf1andal Statements
Index

Note 1 Summary of Significant Accounting Policies

Note 2 Other Accounting Disclosures

Note 3 Budgetary Accounting

Note 4 Deposits and Investments

Note 5 Receivables

Note 6 Fixed Assets

Note 7 Risk Management

Note 8 Construction and Other Significant Commitments

Note 9 Operating Leases

Note 10 Capital Leases and Installment Purchases

Note 11 Long-Term Debt

Note 12 Interfund Balances

Note 13 Contributed Capital

'"

Note 14 Contingencies

:

Note 15 Subsequent Events

Note 16 Deferred Compensation Plan

Note 17 Retirement Systems

Note 18 Nonmonetary Transactions

Note 19 Postemployment Benefits

Note 20 Fund Deficits

;

Note 21 Major Discretely Presented Component Unit Condensed Financial Statements

Page
32 43 45 48 53 55 57 58 58 60 61 67 68 69 70 71 72 82 83 83 84

31

- - - - - - - - State of Georgia--------
Notes to the Flnandal Statements Jmc 30, 1997

Note 1. Summary of Significant Accounting Policies
With the exception of the departures from generally accepted accounting principles (GAAP) disclosed in the following paragraphs, the fmancial statements of the State ofGeorgia have been prepared in conformity with GAAP as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and fmancial reporting principles. The financial statements of the College and University Funds have been prepared in conformity with GAAP as promulgated by the provisions of the American Institute of Certified Public Accountants' "Industry Audit Guide - Audits of Colleges and Universities."
The more significant of the State's accounting policies are described below:
A. Reporting Entity
In evaluating how to define the government for fmancial reporting purposes, management has considered both the organizations which compose the primary government and potential component units. The primary government consists of all the organizations that compose the legal entity of the State of Georgia. All agencies, departments, authorities, commissions, courts, councils, boards, universities, colleges, retirement funds, associations and other funds that are not legally separate are, for fmancial reporting purposes, considered part of the primary government. In addition, included within the primary government are organizations which are legally separate but so intertwined with the primary government that they are, in substance, part of the primary government.
The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in Section 2100 ofthe GASB Codification ofGovernmental Accounting and Financial Reporting Standards. This Section defmes a component unit as a legally separate organization for which the primary government is fmancially accountable and other organizations for which the primary government is not accountable, but for which the nature and the significance of the relationship with the primary government are such that exclusion would cause the fmancial statements to be misleading or incomplete.

Financial accountability is the ability to appoint a voting majority of an organization's governing board and to impose will upon the organization or to have exist the potential for the organization to provide specific fmancial benefits or impose specific fmancial burdens on the primary government. In addition, organizations which are fiscally dependent upon the primary government were considered as potential component units.
As required by GAAP, these fmancial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations and therefore data from these units are combined with that ofthe primary government. The blended component units are as follows:
GeorgiaNet Authority (Special Revenue Fund) is an instrumentality of the State of Georgia and a public corporation. The authority is responsible for the centralized marketing of certain information maintained in electronic format to the public. Three of the five members of the Board are appointed by the Governor. Any funds in excess ofthose needed for the corporate purposes of the authority are required to be transferred to the General Fund.
Georgia Building Authority (Hospital) (Capital Projects Fund) is a body corporate and politic. The authority is responsible for the construction and management of hospitals, health care facilities, dormitories and housing accommodations for the use of patients, officers and employees under the control of any State agency. The Board consists of four State officials designated by statute and one member appointed by the Governor.
Georgia Building Authority (Markets) (Capital Projects Fund) is a body corporate and politic. The authority is responsible for the construction and management of farmers'markets. The Board consists offour State officials designated by statute and one member appointed by the Governor.
Georgia Building Authority (Penal) (Capital Projects Fund) is a body corporate and politic. The authority was created for the purpose ofconstructing and managing penal institutions, penitentiaries, prisons and prison institutes, detention and corrections institutions, rehabilitation facilities and county correctional institutions. The Board consists offour State officials designated by statute and one member appointed by the Governor.

32

- - - - - - - - State of GeorfJia- - - - - - - -
Notes to the Flf\andal Statements June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Georgia Education Authority (University) (Capital Projects Fund) is a body corporate and politic. The authority is charged with the overall responsibility of the construction and management of housing accommodations, classrooms, laboratories, libraries, dormitories and instructional, administrative and recreational facilities for students, faculty, officers and employees of any institution under control of the Board of Regents. The Board consists offive State officials designated by statute and one member appointed by the Governor.
Georgia Building Authority (Internal Service Fund) is a body corporate and politic. The purpose of this authority is to construct and manage buildings and facilities intended for use as office space, public parks and public parking facilities, the executive mansion and laboratories. The Board consists of four State officials designated by statute and one member appointed by the Governor.
Georgia Correctional Industries Administration (Internal Service Fund) is a public corporation which utilizes inmates in the manufacturing of products for sale to State agencies and others. The Governor appoints one Board member from each congressional district in the State, as well as appointing five additional members from the State at large.
Employees' Retirement System of Georgia (Pension Trust Fund) is a single-employer, public employee retirement system established to provide benefits for employees of the State. The system is governed by a seven member Board of Trustees, three of which are State officials designated by statute, and one of which is appointed by the Governor. The system administers seven blended defmed benefit pension plans: the Employees' Retirement System Fund, the District Attorneys' Retirement Fund, the District Attorneys' Retirement System, the Legislative Retirement System, the Superior Court Judges Retirement Fund, the Superior Court Judges Retirement System, and the Trial Judges and Solicitors Retirement Fund. The State provides a substantial amount of funding for these retirement systems in the form of employer contributions and administrative expenses.
Georgia Military College (College and University Funds) is a body corporate and politic. This institution is dedicated to providing a high-quality military education to the youth ofthe State. The Board consists of the mayor ofthe City of Milledgeville, and one trustee elected from each of the six municipal voting districts of the City of Milledgeville, as required by statute.

Discrete presentation entails reporting component unit fmancial data in columns separate from the fmancial data of the primary government. The discretely presented component units are as follows:
Georgia Education Authority (Schools) (Governmental Fund Type) is a body corporate and politic. The authority is responsible for the construction of buildings and facilities intended for use as school buildings, classrooms, laboratories, libraries and instructional, administrative and recreational facilities for students, faculty, officers and employees of any institution under control of a county or city board of education or governing body of any independent district or system. The Board consists of six State officials designated by statute and one member appointed by the Governor.
Georgia Public Telecommunications Commission (Governmental Fund Type) is a body corporate and politic. This commission is a public charitable organization created for the purpose of providing educational, instructional and public broadcasting services to citizens of Georgia. The budget of the commission must be approved by the State. The Board consists of three State officials designated by statute and six members appointed by the Governor.
Georgia Agricultural Exposition Authority (Proprietary Fund Type) is a body corporate and politic. This authority is responsible for provision of a facility for the agricultural community, for public events, exhibits and other activities and for promotion and staging of a statewide fair. The nine Board members are appointed by the Governor.
Georgia Agrirama Development Authority (Proprietary Fund Type) is a body corporate and politic. The purpose of this authority is to utilize all funds for the purpose of beautifying, improving, developing, maintaining, administering, managing and promoting an agricultural museum in or around Tifton, Georgia; this museum is designated as the State Museum of Agriculture. Of the fourteen members of the Board, four are State officials designated by statute and seven members are appointed by the Governor.
Georgia Development Authority (Proprietary Fund Type) is a body corporate and politic. The authority was created to assist agricultural and industrial interests by providing credit and servicing functions to better enable farmers and businessmen to obtain needed capital funds. The Board consists of three State officials designated by statute and four members appointed by the Governor.
Georgia Environmental Facilities Authority (Proprietary Fund Type) is a body corporate and politic. The authority

33

- - - - - - - State of GeorfJia--------
Notes to the Flnandal Statements Jmc 30. 1997

Note 1. Summary of Significant Accounting Policies (continued)
provides assistance to local governments in constructing, extending, rehabilitating, repairing, replacing and renewing environmental facilities by providing financial and technical assistance. The Board consists of three State officials designated by statute and eight members appointed by the Governor.
Georgia Higher Education Assistance Corporation (Proprietary Fund Type) is a public authority, body corporate and politic. The corporation was created to improve the higher educational opportunities of eligible students by guaranteeing educational loan credit to students and to parents of students. The corporation is governed by the Board ofCommissioners ofthe Georgia Student Finance Commission. The Board consists of five State officials designated by statute and eleven members appointed by the Governor.
Georgia Highway Authority (Proprietary Fund Type) is a body corporate and politic. This authority was created to build, rebuild, relocate, construct, reconstruct, surface, resurface, layout, grade, repair, improve, widen, straighten, operate, own, maintain, lease and manage roads, bridges and approaches. The Board consists of three State officials designated by statute.
Georgia Housing and Finance Authority (Proprietary Fund Type) is a body corporate and politic. The authority is responsible for facilitating housing and housing fmance, and fmancing for health facilities and health care services throughout the State. The Board consists of two State officials designated by statute and ten members appointed by the Governor.
Georgia International and Maritime Trade Center Authority (Proprietary Fund Type) is a body corporate and politic. The authority was created to develop and promote the growth ofthe State's import and export markets through its ports and other transportation modes. The Board consists of eleven members, eight of whom are appointed by State officials.
Georgia Lottery Corporation (Proprietary Fund Type) is a public body, corporate and politic. The corporation operates lottery games to provide continuing entertainment to the public and maximize revenues, the net proceeds of which are utilized to support improvements and enhancements for educational purposes. The corporation is governed by a board of directors composed of seven members, all of which are appointed by the Governor. The

State is legally entitled to residual resources of the corporation.
Georgia Music Hall ofFame Authority (Proprietary Fund Type) is a body corporate and politic whose purpose is to construct, operate and maintain the Music Hall of Fame, as well as promoting music events at the facility and throughout the State. All nine members of the Board are appointed by the Governor.
Georgia Ports Authority (Proprietary Fund Type) is a body corporate and politic. The purpose of the authority is to develop and improve the harbors or seaports ofthe State for the handling of waterborne commerce and to acquire, construct, equip, maintain, develop' and improve said harbors, seaports and their facilities. The Board consists of nine members, all of which are appointed by the Governor.
Georgia Rail Passenger Authority (Proprietary Fund Type) is a body corporate and politic. This authority is responsible for construction, fmancing, operation and development of rail passenger service and other public transportation projects. The Board includes one member appointed by the Governor from each congressional district, as well as two appointed members from the State at large.
Georgia Seed Development Commission (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State whose purpose is to purchase, process, and resell breeders' and foundation seeds. The commission consists of ten members who are accountable as trustees. Ofthe ten members serving on the Board, six members are State officials or are appointed by State officials.
Georgia Student Finance Authority (Governmental Fund Type) is a body corporate and politic. This authority was created for the purpose of improving higher educational opportunities by providing educational scholarship, grant and loan assistance. A substantial amount of funding is provided to the authority by the State. The Board consists of fifteen members, four ofwhom are State officials and the remaining eleven are appointed by the Governor.
Geo. L. Smith 11 Georgia World Congress Center Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The authority is responsible for acquiring, constructing, equipping, maintaining and operating the World Congress Center to promote trade shows, conventions and political, musical, educational, entertainment, recreational, athletic or other events. The eleven members of the Board are appointed by the Governor.

34

- - - - - - - - - State of Georgia---------
Notes to the Finandal Statements
June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Georgia Sports Hall ofFame Authority (Proprietary Fund Type) is a body corporate and politic. This authority was created to construct and maintain a facility to house the Georgia Sports Hall of Fame to honor those who have made outstanding and lasting contributions to sports and athletics, and to operate, advertise and promote the Sports Hall of Fame. The thirteen members ofthe Board are appointed by State officials. The issuance ofbonds must be approved by the Georgia State Financing and Investment Commission.
Jekyll Island State Park Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The authority was created to operate and manage resort recreational facilities on Jekyll Island. The Board consists of one State official designated by statute and eight members appointed by the Governor.
Lake Lanier Islands Development Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The purpose ofthe authority is to develop, manage, preserve and protect projects on Lake Lanier Islands. The Board consists of one State official designated by statute and eight members appointed by the Governor.
North Georgia Mountains Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality . and public corporation of the State responsible for the construction and management ofrecreation, accommodation and tourist facilities and services. The nine members of the Board are appointed by the Governor.
Sapelo Island Heritage Authority (Proprietary Fund Type) is a body corporate and politic. The purpose of the authority is the preservation of the cultural and historic values of Hog Hammock Community located on Greater Sapelo Island. The three members serving on the Board are State officials. The State has assumed the obligation to provide fmanciaI support for real property acquisition.
State Tollway Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The authority was created to construct, operate and manage a system of roads, bridges and tunnels and facilities related thereto. The three Board members are State officials; therefore, the State can impose its will on the authority.
Stone Mountain Memorial Association (Proprietary Fund Type) is a body corporate and politic and an instrumentality

and public corporation of the State. The authority is responsible for the proper development, management, preservation and protection of Stone Mountain as a Confederate memorial and public recreational area. The Board consists of one State official designated by statute and eight members appointed by the Governor.
Superior Court Clerks' Cooperative Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State created to provide a cooperative for the development, acquisition and distribution of record management systems, information, services, supplies and materials for superior court clerks of the State. Of the seven members of the Board, three are appointed by the Governor. The nature of this organization is such that it would be misleading to exclude it from the reporting entity.
Georgia Firemen's Pension Fund (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the firemen of the State of Georgia. The Board of Trustees consists of two State officials designated by statute and three members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Judges ofthe Probate Courts Retirement Fund ofGeorgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the judges of the Probate Courts of the State of Georgia. The Board consists of one State official designated by statute and six members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Peace Officers' Annuity and Benefit Fund of Georgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the peace officers ofthe State ofGeorgia. The Board of Commissioners ofthe Annuity and Benefit Fund consists of two State officials designated by statute and four members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Public School Employees Retirement System (Fiduciary Fund Type) is a single-employer, defmed benefit pension plan established for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. This retirement fund is administered by the Employees' Retirement System Board of Trustees and two other Governor's appointees not on the Employees' Retirement System Board.

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Notes to the FD1andal Statements Jme 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Sheriffs' Retirement Fund oj Georgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the sheriffs of the State of Georgia. The Board consists of one State official designated by statute and five members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Superior Court Clerks' Retirement Fund oj Georgia (Fiduciary Fund Type) is a multiple-employer, defined benefit pension plan established for the purpose of paying retirement, death and disability benefits to the Superior Court Clerks ofthe State of Georgia. The Board consists of one State official designated by statute and six members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Teachers Retirement System oj Georgia (Fiduciary Fund Type) is a cost-sharing multiple-employer plan created by an act of the Georgia General Assembly to provide retirement, service, disability and survivors' benefits for qualifying teachers. The Board of Trustees is comprised of ten members, eight of which are State officials or are appointed by State officials. The State provides a substantial amount of funding to this retirement system in the form of employer contributions.
B. Fund Accounting
The State of Georgia uses funds and account. groups to report on its fmancial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial management by segregating transactions related to certain government functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available fmancial resources.

Primary Government - The fmancial statements of the primary government are divided into four fund categories (further divided by fund type) and two account groups, all of which are described below. The four fund categories include governmental, proprietary, fiduciary and college and university funds. The two account groups presented are the general fixed assets account group and the general long-term debt account group.
Governmental Fund Types are used to account for all or most of a state's general activities. Governmental fund types include:
General Fund - 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 services traditionally provided by a State government.
Special Revenue Funds - Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for specified purposes.
The primary government special revenue fund is the GeorgiaNet Authority. The GeorgiaNet Authority is responsible for centralized marketing, sales, leasing and licensing of certain public information.
Debt Service Funds - Debt Service Funds are used to account for the payment ofprincipal and interest on general long-term debt.
The primary government debt service fund is the General Obligation Debt Sinking Fund, which is administered by the Office of Treasury and Fiscal Services. The Debt Sinking Fund is responsible for the accumulation of resources for the payment of principal and interest on general obligation bonds.
Capital Projects Funds - Capital Projects Funds are used to account for the acquisition or construction of capital facilities.
Proprietary Fund Types are used to account for activities similar to those found in the private sector, where cost recovery and the determination of net income is necessary or useful for sound fmancial administration.
Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis

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Notes to the Flnandal Statements
June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic detennination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.
The primary government enterprise fund is the State Employees' Health Benefit Plan, which is administered by the State Personnel Board, Merit System of Personnel Administration. The State Employees' Health Benefit Plan is a self-insured 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.
Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other State departments or agencies, or to other governmental entities, on a cost-reimbursement basis.
Fiduciary Fund Types are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the State. These fund types include:
Expendable Trust Funds - Expendable Trust Funds are used to account for the activities of trusts in which both principal and income may be used for the purposes of the trust.
Nonexpendable Trust Funds - Nonexpendable Trust Funds are used to account for the activities of trusts when the government is under an obligation to maintain the trust principal.
Pension Trust Funds - Pension Trust Funds are used to account for State-administered retirement systems.
Agency Funds - Agency Funds are used to account for assets that the State holds on behalf of others as their agent.
College and University Funds are used to account for the operations of State colleges and universities in accordance with existing authoritative accounting and reporting principles applicable to government-operated colleges and universities. Accordingly, college and university funds are an aggregation of the following funds.

Current Funds - Current Funds are used to account for current operating expenditures and related resources and include (1) unrestricted funds over which the college or university retains full control in achieving the institutions' purposes, and (2) restricted funds which may be utilized only in accordance with externally-restricted purposes.
Loan Funds - Loan Funds are used to account for transactions of related resources obtained and used for loans to students.
Endowment and Similar Funds - Endowment and Similar Funds are used to account for resources held by the institutions that must be administered in accordance with trust agreements.
Plant Funds - Plant Funds are used to account for institutional property acquisition, renewal and replacement, debt retirement and investment.
Agency Funds - Agency Funds are used to account for arnounts held in custody for students, university-related organizations and others.
The General Fixed Assets Account Group is used to account for all fixed assets acquired or constructed for use by the State, other than those accounted for in the proprietary, fiduciary, and college and university funds.
The General Long-Term Debt Account Group is used to account for general obligation bonds outstanding, accrued annual and compensatory leave, capital lease obligations and other long-tenn liabilities not otherwise recorded in proprietary, fiduciary, and college and university funds.
Discretely Presented Component Units - The fmancial statements of the component units, other than the component units which fmancial statements were blended with the financial statements ofthe primary government due to their relationship with the primary government, are presented in separate columns. The three columns presented reflect fmancial activity for the following fund types:
Governmental Fund Types are used to account for component unit general activities.
Proprietary Fund Types are used to account for activities similar to those found in the private sector, where the detennination ofnet income is necessary or useful for sound fmancial management.

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Notes to the FD1andal Statements June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Fiduciary Fund Types are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the State.
The fmancial data presented in these columns are discretely presented with the balances and transactions for each component unit being aggregated within the component unit's predominant fund type.
C. Basis of Accounting
The accounting and fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current fmancial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (Le., revenues and other fmancing sources) and decreases (Le., expenditures and other fmancing uses) in net current assets.
All proprietary funds, nonexpendable trust funds and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
The modified accrual basis of accounting is used by all governmental fund types, expendable trust funds and agency funds. Under 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. Principal revenue sources which are susceptible to accrual include income taxes, sales and use taxes, federal grants and shared revenues. Revenues applicable to expendituredriven programs, however, may be accrued based on the unexecuted portion of contracts for goods and services. Expenditures are recorded when the related fund liability is incurred, as required by GAAP, with the exception of year-end encumbrances which are recorded as expenditures

rather than as a reservation of fund balance. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the subsequent fiscal year.
The accrual basis of accounting, as required by GAAP, is utilized by proprietary fund types, nonexpendable trust funds and pension trust funds with the exception of the following individual pension trust funds which are reported essentially on the cash basis:
Discretely Presented Component Units Fiduciary Fund Types Firemen's Pension Fund Judges of the Probate Courts Retirement Fund Peace Officers' Annuity and Benefit Fund of Georgia
Sheriffs' Retirement Fund of Georgia Superior Court Clerks' Retirement Fund of Georgia
Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Depreciation of fixed assets has not been reported for all funds included within the proprietary fund types as required by GAAP.
The College and University Funds are reported using the modified accrual basis of accounting (which is materially the same as the accrual basis of accounting applicable to colleges and universities), with the exception that contractual obligations for services which have not been performed and for goods which have not been delivered at the end ofthe fiscal year are recognized as expenditures and liabilities in the accompanying fmancial statements.
As permitted by generally accepted accounting principles for colleges and universities, no depreciation is provided for the physical properties.
D. Budgets
The annual budget ofthe State of Georgia is prepared on the modified accrual basis utilizing encumbrance accounting with the following exceptions: federal and certain other revenues are accrued based on the unexecuted portion of long-term contracts; and intrafund transactions are disclosed as revenue and expenditures. The budget represents departmental appropriations recommended by the Governor and adopted by the General Assembly prior to the beginning ofthe fiscal year. Annual appropriated budgets are adopted at the departmental level. The appropriated budget covers most governmental funds included in the State reporting entity but excludes the special revenue fund, capital projects

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Notes to the Fl1andal Statements
June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
funds and certain debt service funds which are not subject to appropriation. The budget includes certain proprietary funds, the college and university funds, and the administrative costs of operating certain public employee retirement systems. All unencumbered annual appropriations lapse at fiscal year end unless otherwise specified by constitutional or statutory provisions. Supplementary and amended appropriations may be enacted during the next legislative session by the same process used for original appropriations. Encumbrances are used to indicate the intent to purchase goods or services. Liabilities and expenditures are recorded upon issuance of completed purchase orders. Goods or services need not have been received for liabilities and expenditures to be recorded.
Because the budgetary basis differs from GAAP, budget and actual amounts in the accompanying Statement of Funds Available and Expenditures Compared to Budget - Budget Fund are presented on the budgetary basis. A reconciliation of the excess of funds available over expenditures on the budgetary basis at June 30, 1997, to the excess of revenues over expenditures and other fmancing sources (uses)/net income (loss)/net increase in plan net assets/net increase (decrease) in fund balances - current funds presented in conformity with GAAP is set forth in Note 3.
E. Deposits and Investments
Cash and Cash Equivalents Cash and cash equivalents include currency on hand and demand deposits with banks and other financial institutions. Cash and cash equivalents also include short-term, highly liquid investments with maturity dates within three months of the date acquired, with the exception of the college and university funds, which report all time deposits as cash.
Investments Investments are defined as those fmancial instruments with terms in excess of three months from the date of purchase and certain other securities held for the production of revenue.
The investment policy of the State of Georgia is to maximize the protection of State funds on deposit while accruing an advantageous yield on those funds in excess of those required for current operating expenses (Official Code of Georgia Annotated [OCGA] 50-17-51). The State Depository Board may permit any department, board, bureau or other agency to invest funds collected directly by

such organization in short term time deposit agreements, provided that the interest income of those funds is remitted to the Director ofthe Office of Treasury and Fiscal Services as revenues of the State of Georgia. As a matter of general practice, however, demand funds of any department, board, bureau or other agency in excess of current operating expenses are required to be deposited with the Director of the Office of Treasury and Fiscal Services for the purpose of pooled investment (OCGA 50-17-63). Such cash is managed in a pooled investment fund to maximize interest earnings. Investments are stated at cost. Authorized pool investments are limited to the following (OCGA 36-83-4 and 36-83-8):
1) Obligations of the State of Georgia or of other states; 2) Obligations issued by the United States government; 3) Obligations fully insured or guaranteed by the United
States government or a United States government agency; 4) Obligations of any corporation of the United States government; 5) Prime banker's acceptances; 6) Repurchase agreements; and 7) Obligations of other political subdivisions ofthe State.
Other organizations ofthe State of Georgia reporting entity invest in a variety offinancial activities. These investments may include brokered certificates of deposit, commercial paper, convertible bonds, corporate bonds, notes and obligations, foreign bonds, investment agreements, mortgages, municipal bonds, mutual funds, real estate, real estate mortgages and notes, real estate investment trust limited partnerships, repurchase agreements, short-term investments, stocks, and U. S. Treasury bonds, notes, and bills. Investments are stated at cost or amortized cost at June 30, 1997, with the exception of deferred compensation plan assets which are stated at market value (See Note 16), as well as investments of Teachers Retirement System and all funds administered by Employees' Retirement System of Georgia, which are stated at fair value.
In accordance with State statutes and investment policy and guidelines adopted by the State Depository Board, the State of Georgia invests a portion of the assets of the various portfolios in certain structured notes and certain mortgagebacked securities, such as collateralized mortgage obligations and adjustable rate mortgages. These securities are reported as U. S. Government Securities in the disclosure of custodial credit risk (See Note 4).
As of June 30, 1997, the State had $34,976,371 in two portfolios invested in U. S. agency mortgage and assetbacked securities. Investments in these portfolios are transacted by external investment management firms under

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Notes to the Fnandal Statements Jme 30. 1997

Note 1. Summary of Significant Accounting Policies (continued)
direction of investment advisory agreements executed between the State and the investment management fIrms.
The Commissioner of the Department of Agriculture is directed by statute to require dealers in certain agricultural products and livestock to make and deliver to the Department a surety or cash bond to secure the faithful accounting for and payment to producers ofthe proceeds of agricultural products or livestock handled or sold by the dealer. Cash bonds are required to designate the Department as trustee ofthe funds and may take the form of certifIcates of deposit, letters of credit, money orders or cashiers' checks. At June 30, 1997, the Department held surety bonds in the amount of $24,621 ,366 and cash bonds in the amount of $11,232,037. These bonds are not recorded on the Combined Balance Sheet.
Securities are held pursuant to statutes which require licensed insurance companies to deposit securities with the Department of Insurance prior to issuance ofa certifIcate of authority to transact insurance by the Commissioner of Insurance. These securities remain in the name of the licensed insurance company as long as the company has a pending claim in the State of Georgia or until a proper order of a court of competent jurisdiction has been issued to the receiver, conservator, rehabilitator, or liquidator of the insurer or to any other properly designated official or officials who succeed to the management and control of the insurer's assets. The purchase and redemption of such securities is allowed as long as the required levels of deposits are maintained. At June 30, 1997, securities in the amount of $195,342,785 were held by the Department of Insurance. These securities are not recorded on the Combined Balance Sheet.
Construction contracts awarded by the Department of Transportation (Primary Government) and the State Tollway Authority (Discretely Presented Component Units) usually include provisions to withhold a percentage of the payments until the project reaches a specifIed state of completion. Georgia law requires that these funds be deposited in a state or national bank chartered within this State. The State controls only the release ofthese funds; the assets in the accounts are considered to be the property of the contractor. Therefore, no assets and liabilities for these escrow accounts have been included in these fInancial statements. At June 30, 1997, $43,363,105 in escrow deposits were administered by the Department of Transportation and $74,732 by the State Tollway Authority.

F. Receivables
Receivables in the State's governmental funds pertain primarily to Federal revenues and revenues applicable to charges for services. Receivables in all other funds have arisen in the ordinary course of business. Receivables are recorded when either the asset or revenue recognition criteria (See Note I-e) have been met. Estimates of allowances for uncollectible receivables have not been made for the majority ofreceivables included within the fmancial statements.
G. Due To/From Other Funds
Equally offsetting asset and liability accounts are used to account for amounts owed to a particular fund by another fund for short term obligations on goods sold or services rendered.
H. Advances to Other Funds
Noncurrent portions oflong-term interfund loans receivable are reported as advances and are offset equally by a fund balance reserve account which indicates that they do not constitute expendable available fmancial resources and therefore are not available for appropriation.
I. Inventories
Inventories of supplies and materials are determined by physical count and/or perpetual inventory records and are valued at cost, current purchase price, fair market value, lower of cost or market using the frrst-in/frrst-out (FIFO) method, moving average cost, standard cost, or weighted average cost, depending on the individual organization's preference. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased for larger agencies and agencies with material inventories. Other agencies may use either the purchase or consumption method.
Under the purchase method, a portion of the fund balance is reserved for inventories to indicate that it is not available for appropriation. Organizations under the consumption method normally reserve a portion offund balance equal to the average monthly inventories on hand for the fIscal year.
USDA Donated Food Inventories are shown at a value established by the U. S. Department of Agriculture.

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Notes to the F01andal Statements
June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Donated food inventories are equally offset by an amount to indicate that they do not constitute "available expendable resources" even though they are a component of net current assets. The fund balance reserve is based on values established by the U. S. Department of Agriculture.
J. Prepaid Items
Payments made to vendors and local government organizations for services that will benefit periods beyond June 30, 1997, are recorded as prepaid items.
K. Restricted Assets
Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants.
L. Fixed Assets
General fixed assets of governmental fund types are reflected as expenditures in the funds used to acquire or construct them and the related assets are reported in the general fixed assets account group. Proprietary and trust fund fixed assets are capitalized in their respective funds, except for trust fund fixed assets, which are reported in the general fixed assets account group. College and university funds report expenditures for fixed assets in the funds used to acquire or construct them and the related assets are reported within the plant funds.
Due to the lack of complete and accurate inventory records applicable to State-owned land and buildings and the lack of historical cost values for certain parcels of land and buildings, the general fixed assets account group does not represent a comprehensive valuation ofthe assets owned by the State of Georgia.
All purchased fixed assets are valued at cost or at estimated historical cost if historical cost is not practically determinable. Certain fixed assets acquired through capital leases in prior years have not been recorded on the fmancial statements at the net present value of the minimum lease payments as is required by GAAP. Donated fixed assets are

valued at their estimated fair market value on the date received.
Costs of normal maintenance and repairs that do not add to the value ofthe asset or materially extend asset lives are not capitalized. Material improvements adding to the value of assets are capitalized. Interest costs during construction are not capitalized for construction or acquisition of assets funded by governmental fund types and college and university funds. Interest costs during construction for proprietary fund types are not capitalized with the exception of construction projects funded through the Stone Mountain Memorial Association (discretely presented component unit).
With the exception of the college and university funds, public domain ("infrastructure") fixed assets consisting of such assets as roads, bridges, curbs, streets and sidewalks, drainage systems and lighting systems are not generally reported, as these assets are immovable and of value only to the State of Georgia.
Assets in the general fixed assets account group and the college and university funds are not depreciated. The majority of proprietary funds do not record depreciation on fixed assets as required by GAAP.
M. Compensated Absences
The State's liability for accumulated unpaid annual leave is reported in the accompanying general long-term debt account group for governmental fund types. These amounts are not shown as a liability in the funds but are recorded as expenditures when paid. In the proprietary fund types and the college and university funds this obligation is reported as a liability in the respective funds.
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 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 ofninety 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 sick leave

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Notes to the FJnandal Statements Jmc30,1997

Note 1. Summary of Significant Accounting Policies (continued)
are entitled to additional service credit in the Employees' Retirement System of Georgia. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits.
N. Deferred Revenue
The State reports deferred revenue on the combined balance sheet. Deferred revenues arise when a potential revenue does not meet the "available" criterion for recognition in the current period. Deferred revenues also arise when resources are received by the State before it has a legal claim to them, as when grant monies are received prior to qualifying expenditures being incurred. In subsequent periods, when the revenue recognition criterion is met, or when the State has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized.
O. Mortgage Loans Under Repurchase Agreements
At June 30,1997, mortgage loans totaling $30,446,467 have been transferred and assigned to lenders under repurchase agreements by the Georgia Development Authority (Discretely Presented Component Units). The agreements give the lenders the option to have the Authority repurchase the mortgage loans for an amount equal to the then outstanding balance of principal and interest due during a specified period of time.
In addition, the Authority guarantees the principal and interest payment by the borrower to the lender within thirty (30) days ofthe due date. Any payment not received within thirty (30) days is considered advanced to the borrower and paid to the lender by the Authority. The Authority then charges the borrower interest on these advances for the period outstanding at a penalty rate agreed upon at the loan origination date. Fund balance in the amount of fifteen percent (15%) of the principal balances outstanding of mortgage loans under repurchase agreements is reserved.
P. Long-Term Obligations
Long-term debt and other long-term obligations are recognized as a liability of a governmental fund when due,

or when resources have been accumulated in the debt service fund for payment early in the subsequent fiscal year. Other long-term obligations, with the exception of the long-term portion of some capital leases, are reported in the general long-term debt account group.
Long-term debt expected to be fmanced from proprietary fund operations are accounted for in those funds.
Q. Fund Equity
Contributed capital is recorded in proprietary funds that have received capital or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of fmancial resources.
R. Bond Discounts/Premiums/lssuance Costs
In governmental fund types, bond discounts, premiums and issuance costs are recognized in the current period. Bond discounts, premiums and issuance costs for proprietary fund types are deferred and amortized over the term of the bonds using a method which approximates the effective interest method or the straight-line method. Bond premiums (discounts) are presented as increases (reductions) in the face amount of bonds payable whereas issuance costs are recorded as deferred charges.
s. Interfund Transactions
The State has the following types of interfund transactions:
Quasi-external transactions for services rendered by one fund to another are accounted for as revenues by the recipient fund and expenditures or expenses by the disbursing fund.
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.

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Notes to the F01andal Statements
June 30, 1997

Note 1. Summary of Significant Accounting Policies (continued)
Operating transfers are recorded for all other interfund transactions.
T. Intrafund Transactions
State accounting policies and procedures allow for the recording of revenues, receivables, expenses and liabilities for transactions between State organizations whose fmancial activity is included within a single fund. State accounting systems do not facilitate the identification of all such transactions. Adjustments have been made for material transactions and balances which have been identified during the preparation of the State's general purpose fmancial statements; however, all such intrafund transactions and balances were not identifiable and, accordingly, revenues, receivables, expenses and liabilities are overstated, primarily in the general and college and university funds.
u. Memorandum Only - Total Columns
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present fmancial position, results of operations or cash flows in conformity with GAAP. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
v. Fiscal Reporting Periods
The fmancial statements include fmancial activity for the Stone Mountain Memorial Association whose fiscal reporting period differs from that of the State of Georgia (July 1, 1996 through June 30,1997). The applicable fiscal reporting period for the Stone Mountain Memorial Association is based on a fifty-two/fifty-three week period ending on the last Sunday of each calendar year. Financial activity is reported for the period January 1, 1995 through December 29, 1996.

Note 2. Other Accounting Disclosures
Change in Accounting Policy and Restatements
The State's Regional Educational Service Agencies and DeKalb Technical Institute have been added to the reporting entity as a part ofthe General Fund for the year ended June 30, 1997. The beginning fund balance for the general fund has been increased by $8,957,903 due to the inclusion of these organizations. These organizations also had beginning fixed assets balances of $4,384,840, and this amount is shown as "Retroactive Restatement of Prior Year Balance" in Note 6.
In fiscal year 1997, certain internal service (risk management) funds adopted the accrual basis of accounting in accordance with GAAP. The beginning fund equity of the internal service funds has been decreased by $239,893,133 for this change in accounting principle.
In fiscal year 1997, the State Employees' Assurance Department early implemented GASB Statement 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools." The statement requires investments to be reported at fair value rather than at cost. The beginning fund equity of the internal service funds has been increased by $96,038,000 for this change in accounting principle.
A reconciliation of the EDP equipment inventory records of the Department of Administrative Services revealed an unidentified difference between the computed balance based on current year purchases/deletions and the actual balance on the fmancial statements. The beginning fund equity of the internal service funds has been decreased by $16,544,667 for this correction.
In fiscal year 1997, the State implemented GASB Statement 25, "Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defmed Contribution Plans" for all primary government pension trust funds and for the Public School Employees' Retirement System and the Teachers' Retirement System (discretely presented component units - fiduciary fund types). The statement requires, among other things, that the investments of the pension trust funds be reported at fair value rather than at cost. This change is reflected as an adjustment in the applicable funds.

43

- - - - - - - - - State of GeorfJia---------
Notes to the FlI1andal Statements June 30, 1997

Note 2. Other Accounting Disclosures
The Foundation for Public Broadcasting in Georgia, Inc., a blended component unit of the Georgia Public Telecommunications Commission has been added to the reporting entity for the year ended June 30, 1997. The beginning fund balance of the discretely presented component units - governmental fund types has been increased by $979,429 due to the inclusion of the Foundation.
Effective May 16, 1996, the Lake Lanier Islands Development Authority entered into a management agreement with KSL Lake Lanier, Incorporated, to manage the properties previously operated by the Authority. Terms of the management agreement called for KSL to utilize certain accounts for maintaining the fmancial records of the project and stated that these accounts were to remain the property of the Authority during the term of the management agreement. As a result of this agreement, certain fmancial activity maintained by KSL was included in the fmancial statements of the Authority for the year ended June 30, 1996. The privatization agreement was entered into on August 1, 1997, and was retroactive to May 16, 1996. As a result, the beginning fund equity of the discretely presented component units - proprietary fund types has been decreased by $35,366,099 to reflect the retroactive clause of the privatization agreement.
In prior years, the Student Finance Authority did not record a reserve for the estimated portion of voided serviced loans that the Authority is required to purchase under the terms of the existing servicing agreements. The Authority also had overstated certain amounts due to the U. S. Department of Education. The correction of these errors resulted in a net decrease of $1,731,608 in the beginning fund equity of the discretely presented component units - proprietary fund types.
Fund balances/fund equity at July 1, 1996, have been adjusted as follows:

Primary Government

General Fund

Restatement of Beginning Fund Balance

for the Inclusion ofRESA's and

DeKaib Technical Institute

$

8.957.903

Internal Service Funds Conversion to Accrual Basis Investments Reported at Fair Value Fixed Assets Correction Other (Georgia Building Authority)

$ (239,893,133) 96,038,000 (16,544,667) 1.448.621
$ (158.951.179)

Pension Trust Funds Investments Reported at Fair Value

$1.438279.000

Discretely Presented Component Units

Governmental Fund Types

Restatement ofBeginning Fund Balance

for the Inclusion of Foundation for Public Broadcasting

$ 979429

Proprietary Fund Types Retroactive Privatization Agreement Correction ofErrors Other

$ (35,366,099) (1,731,608) 1.142199
$ (35.955.508)

Fiduciary Fund Types Investments Reported at Fair Value

$4.688.218.000

44

- - - - - - - State of GeorfJia-------
Notes to the FH1andal Statements Jme30,1997

Note 3. Budgetary Accounting
The Official Code of Georgia Annotated (OCGA), Title 45, Chapter 12, Article 4 sets forth the process for the development and monitoring of an appropriated budget for the State of Georgia. Not later than September 1 of each year, the head of each executive branch budget unit must submit estimates of the fmancial requirements for the subsequent fiscal year to the Office of Planning and Budget, which operates under the direction ofthe Governor. Budget estimates relative to the legislative and judicial branches of State government are provided to the Office ofPlanning and Budget for the purpose of estimating the total fmancial needs ofthe State, but are not subject to revision or review by the Office of Planning and Budget.
The Governor, through the Office of Planning and Budget, examines the estimates and may investigate and revise executive branch submissions as necessary. Upon the completion and revisions of the estimates, the Governor must prepare and submit a budget report to the General Assembly within five days o(the date on which the General Assembly convenes. The Governor possesses the responsibility and authority to establish the revenue estimate for the corresponding fiscal year.
The General Assembly, after adopting such modifications to the Governor's budget report as it deems necessary, enacts the General Appropriations Act for.the subsequent fiscal year. Each General Appropriations Act enacted, along with amendments as are adopted, continues in force and effect for the next fiscal year after adoption. In accordance with the Constitution of the State of Georgia, Article III, Section IX, Paragraph 4, the General Assembly is prohibited from appropriating funds for any given fiscal year which, in the aggregate, exceeds the amount of unappropriated surplus funds expected to have accrued at the beginning ofthe subsequent fiscal year together with the total estimated amount of receipts from existing revenue sources, less refunds, anticipated to be collected in the subsequent fiscal year. The Constitution further authorizes the passage ofadditional Supplementary Appropriation Acts for specific purposes, provided sufficient unappropriated funds are available or additional revenue measures have been enacted. Federal funds received by the State are continually appropriated in the exact amounts and for the purposes authorized and directed by the awarding federal

agency. Internal transfers within a budget unit and between objects of functional or activity budget units are subject to the condition that no State funds shall be transferred for the purpose of initiating a new program area not currently having a State funds appropriation.
The Governor, through the Office of Planning and Budget, requires each budget unit, other than those of the legislative and judicial branches, to submit an annual operating budget based on the activities and functions set forth in the Appropriations Act. Budget units submit quarterly allotment requests which must be approved in conjunction with quarterly work programs prior to release of appropriated funds. Further monitoring of budget unit activities is accomplished by review of expenditure reports which are submitted quarterly to the Office of Planning and Budget.
Budget units (Le., agencies, commissions) of the State are responsible for budgetary control oftheir respective portion of the total State appropriated budget. The legal level of budgetary control is at the departmental level. Due to the complex nature ofthe State appropriated budget, a separate budgetary report entitled, "Report of the State Auditor of Georgia," is published each year. This report includes a listing of State organizations (appropriation units) which incurred expenditures in excess of amounts budgeted by object class.
The appropriated budget covers the maJonty of the governmental funds included within the State of Georgia reporting entity, but excludes the special revenue fund, debt service fund and capital projects funds, which are not subject to appropriation. The budget does include certain proprietary funds, the college and university funds, and the administrative costs of operating various public employee retirement systems. The accompanying Statement of Funds Available and Expenditures Compared to Budget - Budget Fund presents comparisons of the legally adopted budget with actual data prepared on the budgetary basis of accounting utilized by the State. Because the budgetary and GAAP presentations for actual data differ, a reconciliation of"Excess of Funds Available Over Expenditures - Budget Fund (Budgetary Method)" and "Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses/Net Income (Loss)/Net Increase in Plan Net Assets/Net Increase (Decrease) in Fund Balances - Current Funds - GAAP Fund Types" appears below.

45

State of Georgia - - - - - - - -
Notes to the Flnandal Statements June 30, 1997
Note 3. Budgetary Accounting (continued)
46

State of GeorfJia - - - - - - -
Notes to the Flnandal Statements
June 30. 1997

Financial Statement Fund Types

Primary Govemment

Discretely Presented Component Units

Excess of Funds Available Over Expenditures - Budget Fund Budgetary Method
Entity and Perspective Differences:
Reclassification ofBudgetary Funds to GAAP Financial Statement Fund Types
Non-Budgeted Funds
Budgeted Non-Current Funds
Basis Differences:
Net Accrued Revenues, Related Receivables and Deferred Revenues
Net Accrued ExpenditureslExpenses and Related Liabilities
Timing Differences:
Revenues
ExpenditureslExpenses
Excess ofRevenues and Other Financing Sources Over (Under) Expenditures and Other Financing UseslNet Income (Loss)/Net Increase in Plan Net AssetslNet Increase (Decrease) in Fund Balances - Current Funds GAAP Fund Types

Expendable Trust

Nonexpendable Trust

Pension Trust

College and University

Govemmental

$

$

$

$

$

164,540,915

5,629

200 1,794,259,301

33,318,450 8,119,586 (27,965,023)

(1,454,524) 367,631

(200)

5,374,894

(5,675,850)

(15,114) (4541 519)

(137,244) 27,648

164 540 915 $

5629

I 794 259,301

8615424

(1.196489)

Proprietary

Fiduciary

$

710,075 31,691,316

543,591 5,582,022,246

(766,748) 67,227

(2,000) 6,569

(541 59I)

31701870

5582028,815

47

- - - - - - - - State of GeorfJia--------
Notes to the Flfiandal Statements
June 30, 1997

Note 4. Deposits and Investments
Deposits - Funds belonging to the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more ofthe following securities as enumerated in OCGA 50-17-59:
1) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or ofthe State of Georgia.
2) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe 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 ofthe 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 OCGA 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia the option of exempting demand deposits from the collateral requirements.
Primary Government
At year end, the carrying amounts of the State's deposits were $479,403,589, and the bank balances were $960,522,782. The amounts of these bank balances are classified into three categories of credit risk: (1) cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the State or by its agent in the State's name, (2) cash collateralized with securities held by the pledging fmancial institution's trust department or agent in the State's name and (3) uncollateralized bank accounts. The State's deposits were classified as follows at June 30, 1997:

Risk Category
2 3

Bank Balance

$

297,399,206

231,690,300

431.433276

$ 960.522.782

48

- - - - - - - State of Georfjia-------
Notes to the FlI1andal Statements
June 30, 1997
Note 4. Deposits and Investments (continued)
Significant Discretely Presented Component Units
At year end, the significant discretely presented component units' deposits were classified as follows:

Investments - Investments are stated at cost or amortized cost, with the exception of deferred compensation plan assets which are stated at market value, and are summarized and classified as to risk in the following three categories: (1) insured or registered, or securities held by the State or

its agent in the State's name, (2) uninsured or unregistered, with securities held by the counterparty's trust department or agent in the State's name or (3) uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the State's name.

49

State of Georgia - - - - - - -
Notes to the FlI1andal Statements JlIle 30. 1997
Note 4. Deposits and Investments (continued)
Primary Government
The carrying amounts, risk categories and market value applicable to the State's investments are listed below:

Type of Investment Commercial Paper Corporate Bonds Municipal Bonds Repurchase Agreements Stocks U.S. Government
Securities and Corporate Obligations
Um:husifled Loans (Interfund) Mortgages Mutual Funds Unemployment
Compensation Funds Pooled with the U.S. Treasury Other Total Investments

Risk Categories

2

3

$

1,998.769 $

$

2,853,379

10,253,898

10,180,605

1,933,951,491

357,689,837

6,445,350,914

23,955,291

C.liIrrying Amount

$

1,998,769

13,107,277

10,180,605

2,291,641,328

6,469,306,205

Market Value

$

1,967,740

12,987,348

10,180,169

2,291,641,329

6,512,705,875

9368051408

121501751

17762386,566

$ 513400,777

$

227029 227029

9489780188 18,276,014,372

9516214222 $ 18,345,696,683

41,128 3,486,343 8,565,971

41,128 3,564,645 9,029,402

1,745,915,543 6297
$ 20 034 029 654

1,745,915,543 6297
$ 20 104,253 698

50

State of GeorfJia - - - - - - -
Notes to the FJnandal Statements June 30. 1997
Note 4. Deposits and Investments (continued)
Significant Discretely Presented Component Units
The carrying amounts, risk categories and market value of the investments of the State's significant discretely presented component units are listed below:
Proprietary Fund Types

Proprietary Fund Types
Georgia Housing and Finance Authority

Type of Investment
Commercial Paper Corporate Bonds U.S. Government
Securities and Corporate Obligations

UndDSSifrd Mortgages Mutual Funds

Geo. L. Smith 11 Georgia World Congress Center Authority

Repurchase Agreements
U.S. Government Securities and Corporate Obligations

Lottery Corporation

U.S. Government Securities and Corporate Obligations

All Other Component Units

Repurchase Agreements
U.S. Government Securities and Corporate Obligations

Risk Categories 3

Carrying Amount

Market Value

$

\,013,156

1,445,934

$

$

\,013,\56

1,013,\56

1,445,934

1,324,822

50205110 52664 200

50205110 52,664,200

49200,509 5\,538,487

45,935,998 9,683075
108283273

45,404,625 9683075
\06 626,\87

$

47,434,\58 $

47,434,158

47,434,158

23468794

$

70902952 $

23468794

$

70902952 $

23468,794 70902952

$

158375000

10,3\9,722

$

76042000

234417000 $

$

$

10,3\9,722 $

231461000 10,321,088

2\ 855442 32175 \64

312\ 192

$

3 \21192

24976634 35296356

25 \70,398 35491486

51

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the Flnandal Statements
June 30, 1997
Note 4. Deposits and Investments (continued)
Fiduciary Fund Types

Risk Categories

Type of Investment

2

3

FidJlcituy Fund Types

Teachers Retirement System of Georgia

Repurchase Agreements

16,850,878,000

Stocks

363,342,000

U.S. Government Securities and Corporate Obligations

10 504 465 000

$ 27718,685000 $

Utu:bzssifred

Real Estate

All Other Component Units Corporate Bonds

16,620,590 $

$

Investment Accounts

197,696

Notes

48,319,810

Repurchase Agreements

250~000

Stocks

201,660,760

U.S. Government Securities and Corporate Obligations

243375936

$

510424792

$

Utu:lassifU!d

Mutual Funds

Real Estate

Carning Amount

Market Value

16,850,878,000 $ 363,342,000

16,850,878,000 363,342,000

10 504 465 000 $ 27,718,685,000

10504 465 000 27,718,685,000

2581000

$ 27721,266 000

$

16,620,590

197,696

48,319,810

250,000

201,660,760

2581000 27721 266 000
16,447,298 197,696
48,291,398 250,000
326,087,472

243375936 510,424,792 $

246 903758 638,177,622

36,406,804 I 600542
548432138

1057559 639235,181

Investments Lending Program - The State is presently involved in a securities lending program with major brokerage fInns. The State lends equity and fIxed income securities for varying tenns and receives a fee based on the loaned securities' value. During a loan, the State continues to receive dividends and interest as the owner of the loaned securities, The brokerage fInns pledge collateral securities consisting of U. S. Government and agency securities, mortgage-backed securities issued by aU. S. Government agency, and U. S. Corporate bonds. The collateral value must be equal to at least 102% to 110% of the loaned securities value, depending on the type of collateral security.

Securities loaned totaled $11,407,654,000 at June 30, 1997, and the collateral value was equal to 102.8%. The loaned securities are classifIed as category 1 investments in the component units - fIduciary fund types based on the custodial arrangements for the collateral securities. Loaned securities are included in the accompanying Combined Balance Sheet since the State maintains ownership. The related collateral securities are not recorded as assets on the Combined Balance Sheet, and a corresponding liability is not recorded, since the State does not pledge or trade the collateral securities.

52

- - - - - - - - - State of GeorfJia---------
Notes to the Flnandal Statements June 30, 1997
Note 5. Receivables
Primary Government
Receivables by fund type as of June 30, 1997, consist of the following:

Governmental Fund Types General Special Revenue Capital Projects
Proprietary Fund Types Enterprise Internal Service
Fiduciary Fund Types Expendable Trust Pension Trust Agency
College and University Funds

Gross Receivables

Allowance For
Uncollectibles

Net Total Receivables

$ 2,574,431,832

$

1,865,404

12,446,440

$ 2,574,431,832 1,865,404 12,446,440

18,294,998 10,892,781

(1,969,493)

16,325,505 10,892,781

111,999,766 115,752,000 27,865,023 304.423,817

(15,825,923) (61.543,170)

96,173,843 115,752,000 27,865,023 242,880,647

$ 3,177,972,061

$ (79 338.586)

$ 3,098,633.475

53

- - - - - - - - - State of GeorfJla - - - - - - - - -
Notes to the Flf1andal Statements June 30. 1997
Note 5. Receivables (continued)
Significant Discretely Presented Component Units
Receivables of the significant discretely presented component units as of June 30, 1997, consist of the following:

Governmental Fund Types
Georgia Public Telecommunications Commission
Proprietary Fund Types
Georgia Environmental Facilities Authority
Georgia Housing and Finance Authority
Georgia Student Finance Authority
All Other Component Units
Fiduciary Fund Types
Teachers Retirement System Of Georgia
All Other Component Units

Gross Receivables

Allowance For
Uncollectibles

Allowance For Service Repayments

Deferred Loan Fees

Net Total Receivables

$ 3,033,920 $

(72,275) $

$

$ 2,961,645

511,964,667
638,361,366 365,606,219 170,499,851

(265,063) (1,492,748) (3,665,616)

(25,520,877)

(172,685)

511,964,667
638,096,303 338,592,594 166,661,550

400,589,155 5,272.590

400,589,155 5,272.590

$ 2,095.327,768 $ (5.495,702) $ (25,520,877) $ 072,685) $ 2,064,138.504

54

- - - - - - - - - State of GeorfJia---------
Notes to the Flf\andal Statements June 30. 1997
Note 6. Fixed Assets
Primary Government
The following is a summary of changes in the general ftxed assets account group during the ftscal year:

Land and Buildings Improvements Other Than Buildings Machinery and Equipment

Balance July 1, 1996
$ 1,770,738,936

Retroactive Restatement
of Prior Year Balance

$

18,758

779,778,914

4.366,082

Additions $ 142,166,150
389,573 131.022,789

Retirements $ (56,820,232)
(64,420.523)

Balance June 30,1997 $ 1,856,103,612
389,573
850,747,262

Total General Fixed Assets

$ 2.550,517,850 $ 4,384,840 $ 273.578,512 $ (121.240,755) $ 2,707,240,447

The following is a summary of the proprietary fund types and college and university funds ftxed assets at June 30, 1997,

Land and Buildings Improvements Other Than Buildings Machinery and Equipment Less: Accumulated Depreciation Construction in Progress Net Fixed Assets

Proprietary Fund Types

Enterprise Funds

Internal Service Funds

$

$ 239,585,046

230,662

174,048,563 (11,045,355)

$

230662

$ 402,588254

College and University Funds $ 2,481,623,048
160,263,555 1,445,741,492
146,943,998 $ 4,234.572,093

55

State of GeorfJia - - - - - - -
Notes to the Flnandal Statements
Jme30,1997
Note 6. Fixed Assets (continued)
Significant Discretely Presented Component Units
The following is a summary of the significant discretely presented component units' fixed assets at June 30, 1997:

Land and Buildings Improvements Other Than Buildings Machinery and Equipment Less: Acc:umulated Depreciation Construction in Progress Net Fixed Assets

Governmental Fund Types

Proprietary Fund Tyues

Georgia Pnblic Telecommunications
Commission

Georgia Poro
Authority

Stone Mountain Memorial Association

Geo. L. Smitb IT Georgia World Congress Center
Autbority

$

26,924,094

171,257,987 $

87,045,525

209,402,736

194,224,835

22,020,461

46,982,503

114,599,140

25,481,377

11,194,149

(177,964,489)

(34,996,035)

(36,138,594)

41 573,848

425286

61,098965

$

73906,597 $

343691321 $

99976614 $

245557256

A110tber Component
Units
85,074,906 2,710,490
27,584,741 (17,194,897)
23715,325 121890 565

Land and Buildings Machinery and Equipment
Net Fixed Assets

Fiduciary Fund Tynes

Firemen's Pension Fund

$

132,909

116344

Peace Officers' Annuity and Benefit Fund

All Other Component
Units

$

310,296 $

92,866

41.310

$

249253 $

403,162 $ 41.310

As noted in the Summary of Significant Accounting Policies (Note 1), the State does not maintain complete and accurate inventory records applicable to State-owned land and buildings, nor are there historical cost values for certain

parcels ofland and buildings; therefore, the tables above do not represent a comprehensive valuation ofthe assets owned by the State of Georgia.

56

- - - - - - - State of GeorfJia-------
Notes to the Frnandal Statements
June 30, 1997

Note 7. Risk Management
A. Public Entity Risk Pool
The State Personnel Board, Merit System of Personnel Administration internally 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 by the General Assembly of Georgia. The State Personnel Board, Merit System of Personnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.
A reconciliation of total claims liabilities for fiscal years ended June 30, 1997, and 1996, is shown below:

Unpaid Claims and Claim Adjustments July 1

Fiscal Year Ended June30. 1997

Fiscal Year Ended June 30, 1996

$159,373,817 $157,898,978

Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year

820,471,532

784,718,552

Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events of the Current Year and of Prior Years

(831.648.570)

(783,243 713)

Unpaid Claims and Claim Adjustments June 30

$148,196,779 $159.373,817

B. Board of Regents Employee Health Benefits Plan
The Board of Regents of the University System of Georgia maintains a program ofhealth and dental benefits for its employees and retirees, This plan is funded jointly through premiums paid by participants covered under the plan and employer contributions paid by the Board of Regents and its organizational units, All units of the University System of Georgia share the risk of loss for claims of the plan.
The Board of Regents has contracted with Blue Cross Blue Shield to process all claims in accordance with medical coverage guidelines as established by the Board of Regents,
A reconciliation of total claims liabilities for fiscal years ended June 30, 1997, and 1996, is shown below:

Fiscal Year Ended June 30, 1997

Fiscal Year Ended June 30, 1996

Unpaid Claims and Claim Adjustments July 1

$ 19,600,000 $ 25,480,000

Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year

138,407,492

115,501,490

Payments - Claims and Claim

Adjustment Expenses

Attributable to Insured Events of

the Current Year and of Prior

Years

(]37, I07.492)

(121.381.490)

Unpaid Claims and Claim Adjustments June 30

$ 20900,000 $ 19,600,000

c. Other Risk Management
The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets.

57

State of GeorfJia - - - - - - - -
Notes to the Fnandal Statements Jmc30,1997

Note 7. Risk Management (continued)
The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk ofloss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. Premiums for the risk management program are charged to the State agencies by DOAS to provide claims servicing and claims payment.
A reconciliation of total claims liabilities for fiscal year ended June 30, 1997, is shown below:

Unpaid Claims and Claim Adjustments July I

Fiscal Year Ended June 30. 1997
$ 239,893,133

Incurred Claims and Claims Adjustment Expenses - Provisions for Insured Events of the Current Year

123,841,662

Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events of the Current Year and ofPrior Years

(105,237.748)

Unpaid Claims and Claim Adjustments June 30

$ 258.497,047

Note 8. Construction and Other Significant Commitments
Primary Government
The Georgia State Financing and Investment Commission has entered into agreements with various State departments and agencies for the expenditure of bond sale proceeds and cash supplements (provided by the department or agency involved) to acquire and construct capital projects. At June 30, 1997, the undisbursed balance remaining on these agreements approximates $918,000,000.

Significant Discretely Presented Component Units
Proprietary Fund Types
At June 30, 1997, the Georgia Ports Authority had commitments for construction projects of approximately $26,000,000.
Note 9. Operating Leases
A. Lessee
The State leases land, office facilities, office and computer equipment, and other assets. These leases are considered for accounting purposes to be operating leases. Although lease terms vary, many leases are subject to appropriation from the General Assembly to continue the obligation. Other leases generally contain provisions that, at the expiration date of the original term of the lease, the State has the option ofrenewing the lease on a year-to-year basis. Certain organizations within the State's reporting entity do not maintain adequate systems for recording lease commitments in accordance with GAAP.
Future minimum commitments for operating leases as of June 30, 1997, are listed below. Amounts are included for renewable leases for which the option to renew for the subsequent fiscal year has been exercised.
Primary Government

Fiscal Year Ended June 30, 1998 1999 2000 2001 2002 2003 and Subsequent
Total Minimum Commitments

$ 53,084,121 12,446,601 12,797,557 10,889,087 10,642,189 87.383,225
$187.242,780

Expenditures for rental of real property and equipment for the year ended June 30, 1997, totaled $50,765,099.

58

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the Flnandal Statements Jme 30. 1997

Note 9. Operating Leases (continued)
Significant Discretely Presented Component Units
Proprietary Fund Types

Georgia Lottery Corporation

Fiscal Year Ended June 30,

1998

$ 1,989,000

1999

1,656,000

2000

1,656,000

2001

1,656,000

2002

1,656,000

2003 and Subsequent

1.656.000

$ 10,269,000

Less: Sublease Revenues

(2131.000)

Total

$ 8.138.000

B. Lessor
The State leases certain of its facilities for use by others for tenns varying from 1 to 65 years, with the majority of leases controlled by the State Properties Commission. These leases are accounted for as operating leases; revenues for services provided and for use of facilities are recorded when earned. Minimum future revenues and rentals to be received under operating leases as of June 30, 1997, are as follows:
Primary Government

Fiscal Year Ended June 30, 1998 1999 2000 2001 2002 2003 and Subsequent
Total

$ 7,052,905 6,969,364 7,085,285 7,198,118 7,322,064
159,809.440 $ 195.437,176

Expenditures for rental ofreal property and equipment for the year ended June 30, 1997, totaled $1,640,000.

Jekyll Island State Park Authority

Fiscal Year Ended June 30,

1998

$ 237,683

1999

237,683

2000

237,683

2001

237,683

2002

235,842

2003 and Subsequent

Total Minimum Commitments

$ 1.186,574

Expenditures for rental of real property and equipment for the year ended June 30, 1997, totaled $194,072.

Revenues from rental of facilities for the year ended June 30, 1997, totaled $17,620,959.
Significant Discretely Presented Component Units
Proprietary Fund Types

Lake Lanier Islands Development Authority

Fiscal Year Ended June 30,

1998

$ 3,100,000

1999

3,100,000

2000

3,100,000

2001

3,100,000

2002

3,200,000

2003 and Subsequent

144,266667

Total

$ 159,866,667

59

State of Georgia - - - - - - -
Notes to the Frnandal Statements Jrne 30. 1997

Note 9. Operating Leases (continued)
Revenues from rental of facilities for the year ended June 30, 1997, totaled $3,046,300.
Note 10. Capital Leases and Installment Purchases
The State acquires certain property and equipment through mUlti-year installment purchases or capital leases with varying terms and options. The majority of these agreements contain fiscal funding clauses in accordance with OCGA 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly are considered noncancellable for financial reporting purposes.
Capital leases for the proprietary funds and the college and university funds are reported as a long-term obligation in those funds along with the related assets. Capital leases for the governmental funds are reported in the general long-term debt account group and the related assets are reported in the general fixed assets account group.
As noted in the Summary of Significant Accounting Policies (Note 1), capital lease transactions have not been consistently recorded in conformity with GAAP. Fixed assets in prior years have not been recorded in the general fixed assets account group at the net present value of the minimum payments nor has the long-term liability applicable to capital leases been consistently recorded in the general long-term debt account group. Also, the State does not record expenditures and other financing sources in the governmental fund types when capitalized leases are entered into as required by GAAP. At June 30, 1997, future commitments under installment purchases and capital leases were as follows:

Primary Government

Fiscal Year Ended June 30. 1998 1999 2000 2001 2002 2003 and Subsequent
Total Capital Lease and Installment Purchase Payments Less: Interest Present Value of Capital Lease and Installment Purchase
Payments

$ 7,203,585 6,285,346 4,695,235 1,516,551 278,031
$ 19,978,748 (\ 655 8911
$ 18322,857

Installment Purchases Capital Leases

$ 4,935,637 13,387,220
$ 18322857

Significant Discretely Presented Component Units
Governmental Fund Types

Georgia Public Telecommunications Commission

Fiscal Year Ended June 30,

1998

$ 1,254,751

1999

1,243,931

2000

799,897

2001

799,897

2002

799,897

2003 and Subsequent

799 898

Total Installment Purchase Payments

$ 5,698,271

Less: Interest

(597.959)

Present Value of Installment Purchase Payments

5100 312

60

- - - - - - - State or GeorfJia--------
Notes to the Flnandal Statements June 30, 1997

Note 10. Capital Leases and Installment Purchases (continued)
Proprietary Fund Types

Agrirama Devdopment Authority Fiscal Year Ended June 30,
1998 1999 2000 2001 2002 2003 and Subsequent Total Capital Leases Less: Interest Present Value of Capital Leases

$ 35,000 $ 35,000

Geo. L. Smith n
Georgia World Congress Center Authority Fisal Yeu Ended June 30.
1998 1999 2000 2001 2002
2003 and Subsequent Total Capital Lease and Installment Purchase Payments Less: Interest Present Value of Capital Leases and
Installment Purchases

$ 60,542 5,339

Installment Purchases Capital Leases

$ 35,570

Note 11. Long-Term Debt
Primary Government
General Obligation Bonds. The State issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. General obligation bonds have been issued for both general State and proprietary activities, to provide loans to local governments for water and sewer systems, to construct educational facilities for local school systems, and to refund general obligation bonds.
General obligation bonds are direct obligations and pledge the full faith and credit of the State. General obligation bonds currently outstanding are as follows:

General Government
General Government Refunding

2.00%10.25%
2.40%6.75%

$ 3,876,780,000 759,150,000
$ 4.635.930 000

61

- - - - - - - State of Georgia-------
Notes to the Flnandal Statements
Jmc30,1997
Note 11. Long-Term Debt (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:

Fiscal Year Ended June 30 1998 1999 2000 2001 2002
Thereafter

Principal $ 294,445,000
296,935,000 296,110,000 238,140,000 246,560,000 3,263,740000 $ 4,635,930,000

Interest $ 271,838,752
253,540,624 235,256,159 218,606,699 203,616,344 1 131.256,879 $ 2314,115.457

Total $ 566,283,752
550,475,624 531,366,159 456,746,699 450,176,344 4,394,996,879 $ 6,950,045,457

General State Bonds. All General State Bonds of the State of Georgia are past due, but have not been presented for redemption, This obligation will be liquidated if and when the past due outstanding bonds and coupons are presented, Unredeemed General State Bonds at June 30, 1997, were $15,505 with accumulated interest of$11,475,

Revenue Bonds. Revenue bonds have been issued by the organizational units listed below. Income derived from acquired or constructed assets is pledged to fund the debt service requirements of these issues, The College and University fund is responsible for repayment of Georgia Military College bonds, Revenue bonds outstanding at June 30, 1997, are as follows:

Purpose
Georgia Military College - Library Building

Interest Rates 3.00"10

Amount

$

14000

62

- - - - - - - - - State of GeorfJia---------
Notes to the Flnandal Statements June 30, 1997
Note 11. Long-Term Debt (continued)
Revenue bond debt service requirements to maturity are as follows:

Fiscal Year Ended June 30 1998 1999 2000 2001 2002 Thereafter

Georgia Military College

Principal

Interest

$

7,000

$

420

7,000

210

$ 14000

$

630

Total $ 7,420
7,210 0 0 0 0
$ 14,630

At June 30, 1997, $399,575,000 of outstanding general obligation bonds (including prior years' refundings), $120,000 of outstanding Georgia Building Authority (Markets) revenue bonds and $3,688,000 of outstanding Georgia Education Authority (University) revenue bonds (including prior years' defeasances) are considered defeased,

Changes in Long-Term Liabilities, During the year ended June 30, 1997, the following changes occurred in liabilities reported in the general long-term debt account group:

Compensated Absences Claims and Judgements Capital Leases and Installment Purchases GeneI1ll Obligation Debt General State Bond Debt Long-Tenn Notes

Balance July 1

Additions

Reductions

S

198,202,493 S

S

86,572,979

(85,875,000)

2,649,492

4,483,256

(1,813,416)

4,655,560,000

372,535,000

(392,165,000)

15,505

2937841

(44 340)

S

4945938310

377,018256 S

(479897756)

Earned and Utilized (Netl
5,514,870
5514870

Balance June 30 203,717,363 697,979 5,319,332
4,635,930,000 15,505
2893501 4848573680

63

- - - - - - - State of GeorfJia--------
Notes to the Fl"\andal Statements June 30. 1997

Note 11. Long-Term Debt (continued)
Significant Discretely Presented Component Units
Governmental Fund Types
Defeased Debt. At June 30, 1997, $2,520,000 of outstanding Georgia Education Authority (Schools) revenue bonds (including prior year's defeasances) are considered defeased.
Proprietary Fund Types
Long-term Operating Debt. Long-tenn operating debt has been issued by the Georgia Student Finance Authority. This debt consists of financing agreements with the Student Loan Marketing Association and a multiple disbursement revolving note with Trust Company Bank with outstanding balances at June 30, 1997, of$16,980,423 and $18,594,839, respectively.

Purpose
Georgia Student Finance Authority

Interest Rates
Varies Based on
U.S. Treasury Bill Rates

Amount $ 35.575262

Long-tenn operating debt requirements to maturity are as follows:

Georgia Student Finance Authority

Fiscal Year Ended June 30

Principal Interest

Total

1998

$ 35.575.262 $ -

$ 35.575,262

Interest varies based on U.s. Treasury Bill rates and therefore is not available for this schedule.

Revenue Bonds. Revenue bonds have been issued by the significant discretely presented component units listed below. Income derived from acquired or constructed assets is pledged to fund the debt service requirements of these issues. Significant discretely presented component unit revenue bonds outstanding, net ofunamortized discounts, of $760,359,542 and $197,257,940 at the Georgia Housing and Finance Authority and the Geo. L. Smith II Georgia World Congress Center Authority, respectively, at June 30, 1997, are as follows:

64

- - - - - - - - - State of Georsia---------
Notes to the FlI1andal Statements JlJl1C 30. 1997
Note 11. Long-Term Debt (continued)

Purpose Georgia Housing and Finance Authority
- Financing the Purchase of Single Family Mortgage Loans for Eligible Persons and Families of Low and Moderate Income within the State of Georgia - Financing the Purchase of Hospital Equipment and Facilities by Eligible Hospitals Geo. L. Smith II Georgia World Congress Center Authority - Construction of the Georgia Dome Stadium
Revenue bond debt service requirements to maturity are as follows:

Interest Rates 2.95% - 9.50% 6.750% -7.875%

Amount

$ 754,801,542

$

5,558,000

$ 197,257,940

Georgia Housing and Finance Authority

Fiscal Year Ended June 30

Principal

Interest

Total

1998

$ 23,883,000

$ 46,438,000

$

70,321,000

1999

10,345,000

45,314,000

55,659,000

2000

11,055,000

44,650,000

55,705,000

2001

14,020,000

43,977,000

57,997,000

2002

17,015,000

43,123,000

60,138,000

Thereafter

766,416,000

565,547,000

1,331,963,000

Unamortized Discount

(1,063,443)

1,063,443

Future Accretion of Capital Appreciation Bonds

(86,869,015)

86,869,015

$ 754,801,542

$ 876981.458

$ 1.631.783.000

Various series of bonds issued under Resolution 1 and 3 include capital appreciation bonds which require no payments of principal or interest until maturity. Capital appreciation bonds accrete to their maturity values at effective yields ranging from 7.10"10 to 11.25%.

65

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the FlI1andal Statements Jrnc 30. 1997

Note 11. Long-Term Debt (continued)
In addition to the above listed revenue bonds, the Georgia Housing and Finance Authority maintains revenue bonds originally issued by the Hospital Financing Authority. The balance at June 30, 1997, was $5,558,000. The bonds bear interest at an adjustable daily rate with interest payable on

a monthly basis. The interest rate basis is subject to change, at the election of the Authority, to a weekly, monthly, semiannual, or fixed rate. The bond indenture limits the interest rate on the bonds to 20% per annum. The bonds are limited obligations of the Authority, repayable solely from revenues provided from loans and other specific property pledged under the bond debenture, and are not an obligation ofthe State of Georgia or any political subdivision thereof.

Geo. L. Smith II Georgia World Congress Center Authority

Fiscal Year Ended June 30
1998 1999 2000 2001 2002 Thereafter Unamortized Discount

Principal

Interest

Total

$

2,500,000

$

15,234,702

$

17,734,702

3,150,000

15,042,440

18,192,440

3,485,000

14,813,449

18,298,449

3,745,000

14,559,398

18,304,398

4,025,000

14,281,550

18,306,550

180,845,000

167,365,326

348,210,326

(492.060)

492,060

$

197.257,940

$

241.788925

$ 439,046,865

Defeased Debt. At June 30, 1997, $6,515,000 of outstanding Georgia Highway Authority revenue bonds (including prior years' defeasances) are considered defeased.

66

State oJ Georgia - - - - - - - -
Notes to the FJnandal Statements June 30. 1997
Note 12. Interfund Balances
Interfund assets and liabilities at June 30, 1997, consist of the following:
Due Fromffo Other Funds:

Receivable Fund General Fund
Internal Service Funds Internal Service Funds Internal Service Funds Internal Service Funds
Internal Service Funds
Internal Service Funds
Proprietary Fund Types - Discretely Presented Component Units Total

Payable Fund Proprietary Fund Types - Discretely
Presented Component Units General Fund College and University Funds Pension Trust Funds Governmental Fund Types - Discretely
Presented Component Units Proprietary Fund Types - Discretely
Presented Component Units Fiduciary Fund Types - Discretely
Presented Component Units
General Fund

Due From
$ 67,540 28,020,157 3,615,897 707,670
328,877
115,484
26,058
1.393,024 $ 34,274,707

Due To
$ 67,540 28,020,157 3,615,897 707,670
328,877
115,484
26,058
1.393,024 $ 34,274,707

Advances Fromffo Other Funds:

Receivable Fund General Fund General Fund
Total

Payable Fund
Agency Funds
Proprietary Fund Types - Discretely Presented Component Units

Advance To

$

6,925

Advance From $ 6,925

161.250 $ 168,175

161.250 $ 168.175

67

- - - - - - - State of Georgta.-------
Notes to the FD1andal Statements June 30, 1997
Note 13. Contributed Capital
During the year, contributed capital increased by the following amounts:
Primary Government

Source
General Obligation Bond Proceeds! Fixed Assets Contributed by Primary Government
General Obligation Bond Proceeds! Capital Outlay Returned to
Primary Government
Net Additions
Contributed Capital July 1, 1996
Contributed Capital June 30, 1997

Internal Service Funds

Department of Administrative
Services

Georgia Building Authority (Regular)

Georgia Correctional Industries Administration

Total

$

$ 2,885,570 $

$ 2,885,570

$

$ 2,885,570 $

53,384666

217,008,118

$ 53,384,666 $ 219,893,688 $

(82,000)

(82,000)

(82,000) 1,309,948 1.227,948

$ 2,803,570 271.702732
$ 274.506,302

Significant Discretely Presented Component Units
Proprietary Fund Types

Source
General Obligation Bond Proceeds/Capital Outlay Contributed by Primary Government Contributions from Federal Government Contributions from Other Sources General Obligation Bond ProceedsfCapital Outlay Returned to Primary Government Net Additions Contributed Capital July I, 1996 Contributed Capital June 30, 1997

Georgia Environmental
Facilities Authority

Georgia Ports
Authority

Stone Mountain Memorial Association

All Other Component
Units

S 24,808,057 S 15,926,446 S 28,615,928

(l0 527 059\

S

53,423,985 S

5,399,387

437,055623

227717407

S 490479608 S 233,lJ6794

2,225,401

13,832,331

15,126,652 (l 539057\ 15,812,996 44485,091 60298,087

6,000,000 (2056999\ S 17,775,332 143258973 S 161034305

68

- - - - - - - - - State of GeorfJia - - - - - - - - -
Notes to the FlI1andal Statements
June 30, 1997

Note 13. Contributed Capital (continued)
Contributed Capital/Residual Equity Transfers for the fiscal year ended June 30, 1997, are as follows:

General Fund General Fund

Receiving Fund

Internal Service Funds
Proprietary Fund Types - Discretely Presented Component Units
Proprietary Fund Types - Discretely Presented Component Units

Proprietary Fund Types - Discretely Presented Component Units

Contributing Fund Internal Service Fund Proprietary Fund Types - Discretely
Presented Component Units Capital Projects Funds
General Fund
Capital Projects Funds
Other Sources

Received

$

82,000

Contributed

$

82,000

14,123,115 2,885,570

14,123,115 2,885,570

7,514,977

7,514,977

49,277,258 $ . 73,882,920 $

49.277.258 73,882,920

49,742,580 $ 123,625,500 $

73,882,920

Note 14. Contingencies
Amounts received or receivable from grantor agencies are subject to audit and review by grantor agencies, principally the Federal government, This could result in a request for reimbursement by the grantor agency for any expenditures which are disallowed under grant terms, The State believes that such disallowances, if any, will be immaterial to its overall fmancial position,
The State is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine governmental operations. The ultimate disposition of these proceedings is not presently determinable. However, the ultimate disposition of these proceedings would not have a material adverse effect on the fmancial condition of the State, with the following exceptions:
Primary Government
Two suits for refund have been filed against the State of Georgia by out-of-state producers of alcoholic beverages. The first suit seeks $96,000,000 in refunds of alcohol import taxes, plus interest, imposed under OCGA Section 34-60. These claims constitute 99% of all such taxes paid during the three years preceding these claims, In addition,

the claimants have filed a second suit for refund of an additional $23,000,000, plus interest. The trial court has granted both State motions for summary judgment, but the time for appeal remains open.
A case arises in the context of a declaratory judgment action brought by the State and counterclaims filed by the defendants. A young professional woman was killed in an automobile accident when her car collided with a Stateowned vehicle driven by an employee of a for-profit corporation which had contracted with Fulton County to provide a transportation service. Fulton County had a contract with the Atlanta Regional Commission concerning the transportation service program, and the Atlanta Regional Commission, in turn, had a contract with the Georgia Department of Human Resources (DHR). In June, 1996, DHR and the Georgia Department of Administrative Services brought declaratory judgment actions against the decedent's estate and others to assert the absence of any duty to insure the second driver. In August, 1996, the estate and other parties filed counter-claims for wrongful death. The State's self-insurance program and the State's vehicle insurer have settled with the decedent's estate in a total amount of $675,000; the State's share was $175,000. The State is currently engaged in settlement negotiations as to all but one ofthe remaining claims, which are not expected to exceed the $175,000 amount already paid out. As to the

69

- - - - - - - - State of Georgia--------
Notes to the FJnandal Statements June 30. 1997

Note 14. Contingencies (continued)
other remaining claim of the for-profit corporation involved, the State believes that it has good and adequate defenses and intends to defend vigorously.
In two related cases, Cobb and DeKalb counties have sued the State of Georgia, the Department of Revenue, Zell Miller (in his official capacity as Governor), and T. Jerry Jackson (in his official capacity as Revenue Commissioner) (collectively, "the State") in connection with the State's collection and distribution of special local option sales taxes to the counties. In Cobb, the county seeks an accounting, a writ of mandamus, injunctive relief and. additional relief based upon theories of unjust enrichment and bailment. Cobb's claims relate to the State's administration of State and local option sales taxes from April 1, 1995, to the present. Cobb seeds as must as $12 million in relief. In DeKalb, the county asserts the same grounds for relief with the addition of a claim for declaratory relief. DeKalb's claims relate to the State's administration of State and local option sales taxes from July 1, 1997, to the present. DeKalb seeks unspecified monetary relief but estimates a shortfall in distributions from the State of $28 million. The State filed motions to dismiss in both cases and filed a counterclaim against Cobb County for $10.4 million. The trial court has granted both State motions to dismiss. The time for appeal remains open.
In a civil action filed in October, 1997, on behalf of all contributors to the Georgia Underground Storage Tank Trust Fund, the plaintiffs seek refund of alImonies collected under the Georgia Underground Storage Tank Act (OCGA 12-13-1), interest and attorney's fees. From the time of its inception in 1988 to the present, the Fund has collected approximately $82 million. The State believes that it has substantial defenses to assert and intends to defend the case vigorously. The State was granted a motion to dismiss the action, on the grounds that no justiciable controversy exists, and the plaintiffs have filed notice of intent to appeal.
Significant Discretely Presented Component Units
Proprietary Fund Types
The Federal Government, through the Guaranteed Student Loan Programs of the U.S. Department of Education, fully reinsured loans guaranteed through September 30, 1993, until the Corporation's rate of annual losses (defaults) exceeded five percent (5%). In the event of future adverse loss experience, the Corporation could be liable for up to (1)

twenty percent (20%) ofthe outstanding balance of loans in repayment status at the beginning of each year which were disbursed prior to October 1, 1993, and (2) twenty-two percent (22%) of the outstanding balance of loans in repayment status at the beginning of each year which were disbursed on or after October 1, 1993.
In a civil action case filed August 26, 1996, the plaintiffs seek a court order declaring that two games sponsored by the Georgia Lottery Corporation, "Quick Cash" and "Cash Three," are unconstitutional and enjoining the lottery from further offering ofthese games. Plaintiffs seek the return of all monies played on these games during a specified period, approximately $1,703,462,781. On an interlocutory appeal, the Georgia Court of Appeals ruled that the Lottery Corporation does not have sovereign immunity but ruled for the Corporation on the merits. The plaintiffs petitioned for a writ of certiorari to the Supreme Court of Georgia, and the Supreme Court denied the petition. The remittitur of the Court of Appeals has been returned to the trial court.
Note 15. Subsequent Events
Primary Government
General Obligation Bonds Issued
The State issued General Obligation Bonds in the amount of $256,875,000 on August 1, 1997 (Series 1997 B and 1997 C). Proceeds from these bonds will be used for the purpose of financing various capital outlay projects.
Year 2000 Project
Based on a preliminary study, the State of Georgia expects to spend approximately $250 million to $300 million from 1997 through 1999 to modify its computer information systems enabling proper processing of transactions relating to the Year 2000 and beyond. The State of Georgia continues to evaluate appropriate courses of corrective action, including replacement of systems. Accordingly, the State of Georgia does not expect the amounts required to be expended over the next three years to have a material effect on its fmandal position or results of operations.
Significant Discretely Presented Component Units
Proprietary Fund Types
On January 3, 1998, the Stone Mountain Memorial Association executed an agreement with Silver Dollar City

70

- - - - - - - - State of Georgia--------
Notes to the Flnandal Statements June 30, 1997

Note 15. Subsequent Events (continued)
Stone Mountain Park, Inc., (SDC) which leases to SDC almost all of the Association's assets and requires SDC to operate Stone Mountain Park.
This 30 year renewable lease includes an annual base rent payable monthly to the Association of $9.5 million and increases annually based on economic indices. SDC has also provided an $8.5 million letter of credit available to the Association as a security deposit. The leased property includes the park and recreation development known as Stone Mountain Park and allows SDC to conduct and operate the' park facilities within fee structures and operating hours as stipulated in the lease agreement between the Association and SDC.
Note 16. Deferred Compensation Plan
The State of Georgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State' of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. This plan is administered by a third party. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency.
All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor of the State of Georgia in an

amount equal to the fair market value of the deferred account of each participant. In the equity funds, the market value may be either greater or less than the participants' contributions. It is the opinion ofthe Attorney General that the State has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. It is unlikely that the State will use the assets of the plan to satisfy the claims of general creditors in the future.
Market values, which approximate cost, of investments at June 30, 1997, by plan type are as follows:

Guaranteed Investment Contracts Index Trust 500 Portfolio The Vanguard Group of Investment Companies Magellan Fund Fidelity Institutional Retirement Services Company Over-The-Counter Portfolio Fidelity Institutional Retirement Services Company Prime Portfolio
The Vanguard Group of Investment Companies United International Growth Fund
Waddell and Reed Asset Management Company Wellesley Income Fund
The Vanguard Group of Investment Companies Windsor II
The Vanguard Group ofInvestment Companies
Participants Accounts Reserve for Administration ofPlan

$ 128,745,892 42,068,974 55,502,156 21,876,362 3,139,739 6,364,531 23,998,853 32 510 300
$ 314 206 807 $ 308,827,113
5379694 $ 314 206 807

71

- - - - - - - - State of Georgia--------
Notes to the FD1ancial Statements Jmc 30, 1997

Note 17. Retirement Systems
Primary Government
Georgia Defined Contribution Plan
Plan Description
Organization and Purpose The Georgia Defmed Contribution Plan ("GDCP") is a single-employer defmed contribution plan established by the Georgia General Assembly in July 1993 for the purpose ofproviding retirement allowances for State employees who are not members of a public retirement or pension system. The GDCP is administered by the Employees' Retirement System (ERS) Board of Trustees.
Membership As of June 30, 1997, participation in GDCP is as follows:

Active Plan Members
Tenninated Employees Entitled to Benefits but not yet Receiving Benefits

52,900

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 hislher account, the Board has the option of requiring a lump sum distribution to the member. Upon the death of a member, a lump sum distribution equaling the amount credited to hislher account will be paid to the member's designated beneficiary.
Contributions Members are required to contribute seven and one-half percent (7.5%) oftheir gross salary. There are no employer contributions. Earnings will be credited to each member's account as adopted by the Board. Upon termination of employment, the amount of the member's account is refundable upon request by the member.

District Attorneys' Retirement Fund
Plan Description
Organization and Purpose The District Attorneys' Retirement Fund ("DARF") is a single-employer, defmed benefit pension plan established by the Georgia General Assembly in 1949 for the purpose of providing retirement benefits to the district attorneys of the State ofGeorgia. DARF is directed by its own Board of Trustees. The Boards of Trustees for ERS and DARF entered into a contract for ERS to administer the plan effective July 1, 1995.
Membership As of June 30, 1997, DARF had twelve (12) retirees and beneficiaries currently receiving benefits.
Benefits Persons appointed as district attorney emeritus shall receive an annual benefit of$15,000 or one-half of the State salary received by such person as a district attorney for the calendar year immediately prior to the person's retirement, whichever is greater.
Contributions and Vesting Member contributions were five percent (5.0%) of their salary plus an additional two and one-half percent (2.5%) for the spousal coverage benefit if elected. The State paid member contributions of five percent (5.0%) of the member's annual salary. Additional employer contributions are not actuarially determined but are provided on an asneeded basis to fund current benefits.
DistrictAttorneys' Retirement System
Plan Description
Organization and Purpose The District Attorneys' Retirement System (OARS) is a single-employer defined benefit pension plan established by the Georgia General Assembly in 1978 for the purpose of providing retirement benefits to the district attorneys of the State of Georgia. DARS is directed by its own Board of Trustees. The Boards of Trustees for ERS and DARS entered into a contract for ERS to administer the plan effective July 1, 1995.

72

- - - - - - - - - State of Georgia - - - - - - - - -
Notes to the Fll1mdal Statements
June 30, 1997

Note 17. Retirement Systems (continued)
Membership As ofJune 30, 1997, participation in OARS is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

9

Active Plan Members

54

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Employees' Retirement System of Georgia
Plan Description
Organization and Purpose Employees' Retirement System of Georgia ("ERS") is a single-employer, defmed benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation.
Membership As of June 30, 1997, participation in ERS is as follows:

Benefits The nonnal retirement for OARS is age sixty (60) with ten (10) years of creditable service with a benefit of four percent (4.0%) of the member's average annual compensation for each year of creditable service. If service exceeds sixteen (16) years, the benefit is four percent (4.0%) for each year of creditable service plus one percent (1.0%) for each year served after sixteen (16), notto exceed twenty four (24) years (72%). "Average annual compensation" is the highest average of two consecutive years of creditable service, except no increase during such period in excess offive percent (5.0%) may be used. Death, disability, and spousal benefits are also available. Early retirement benefits are not available.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of their salary plus an additional two and one-half percent (2.5%) for the spousal coverage benefit if elected. The State pays member contributions of four and threefourths percent (4.75%) of the member's annual salary. Employer contributions are actuarially detennined and approved and certified by the Board.
Members become vested after ten years of creditable service. Upon tennination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if a member later holds office as a district attorney, the member shall be reinstated as if never before a member and may reestablish prior service by repaying the amount withdrawn, plus interest.

Retirees and Beneficiaries Currently Receiving Benefits
Active Plan Members
Terminated Employees Entitled to Benefits but not yet Receiving Benefits

20,988 71,059

Benefits The benefit structure ofERS was significantly modified on July 1, 1982. Unless the employee elects 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 provision in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.
Under both the old and new plans, a member may retire and receive nonnal retirement benefits after completion of ten (10) years creditable service and attainment of age sixtyfive (65). Iften years of service is completed and age sixty (60) is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after thirty (30) years of service regardless of age.
Retirement benefits paid to members are based upon the monthly average ofthe member's highest eight consecutive calendar quarters mUltiplied by the number of years of creditable service. Post - retirement cost - of- living

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Notes to the Flnandal Statements
June 30, 1997

Note 17. Retirement Systems (continued)
adjustments are also made to members' 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.
Contributions and Vesting Member contributions under the old plan are four percent (4%) of annual compensation up to $4,200 plus six percent (6%) of annual compensation in excess of $4,200. Under the old plan, the State pays member contributions in excess of one and one-quarter percent (1.25%) of annual compensation. Under the old plan, these State contributions are included in the members' accounts for refund purposes. Member contributions under the new plan are one and onequarter percent (1.25%) of annual compensation. The State is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation.
Members become vested after ten (10) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.
The employer contributions are projected to liquidate the unfunded actuarial accrued liability within eleven (11) years based upon the actuarial valuation at June 30, 1996.
Legislative Retirement System
Plan Description
Organization and Purpose Legislative Retirement System ("LRS") is a singleemployer defmed benefit plan established by the Georgia General Assembly in 1979 for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board of Trustees.
Membership As of June 30, 1997, participation in LRS is as follows:

Retirees and Beneficiaries

Currently Receiving Benefits

174

Active Plan Members

204

Terminated employees Entitled to Benefits but not yet Receiving Benefits

Benefits A member's normal retirement is after eight (8) years of creditable service and attainment of age sixty-five (65) or eight (8) years of membership service (4 legislative terms) and attainment of age sixty-two (62). A member may retire early and elect to receive a monthly retirement benefit after completion of eight (8) years of membership service and attainment of age sixty (60); however, the retirement benefit is reduced by five percent (5%) for each year the member is under age sixty-two (62).
Upon retirement, the member will receive a monthly service retirement allowance of $28 multiplied by the number of years of creditable service reduced by age reduction factors, ifapplicable. Death, disability, and spousal benefits are also available through the plan.
Contributions and Vesting Member contributions are eight and one-halfpercent (8.5%) of annual salary. The State pays member contributions in excess of four percent (4%) of annual compensation. Employer contributions are actuarially determined and approved and certified by the Board.
Members become vested after eight (8) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.
Based on the June 30, 1995, actuarial valuation of LRS (the latest actuarial valuation; present Board policy requires a biennial valuation), the employer contributions are projected to liquidate the unfunded actuarial accrued liability within twelve (12) years.

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Notes to the Flf\andal Statements June 30. 1997

Note 17. Retirement Systems (continued)
Superior Court Judges Retirement Fund
Plan Description
Organization and Purpose The Superior Court Judges Retirement Fund ("SCJRF") is a single-employer, defmed benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges of the State of Georgia. SCJRF is directed by its own Board of Trustees. The Boards of Trustees for ERS and SCJRF entered into a contract for ERS to administer the Plan effective July 1, 1995.
Membership As of June 30, 1997, participation in SCJRF is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

36

Active Plan Members

3

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Benefits The normal retirement for SCJRF is age sixty-eight (68) with nineteen (19) years of creditable service with a benefit of two-thirds the salary paid to superior court judges. A member may also retire at age sixty-five (65) with a minimum of ten (10) years of creditable service with a benefit of one-half the salary paid to superior court judges. Death, disability, and spousal benefits are also available.
Contributions and Vesting Member contributions are five percent (5.0%) oftheir salary plus an additional two and one half percent (2.5%) for the spousal coverage benefit if elected. The State pays member contributions offive percent (5.0%) ofthe member's annual salary. Additional employer contributions are not actuarially determined but are provided on an as-needed basis to fund current benefits.

Superior Court Judges Retirement System
Plan Description
Organization and Purpose The Superior Court Judges Retirement System ("SCJRS") is a single-employer, defined benefit pension plan established by the Georgia General Assembly in 1976 for the purpose ofproviding retirement benefits to the superior court judges of the State of Georgia. SCJRS is directed by its own Board of Trustees. The Boards of Trustees for ERS and SCJRS entered into a contract for ERS to administer the plan effective July 1, 1995.
Membership As of June 30, 1997, participation in SCJRS is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

55

Active Plan Members

156

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Benefits The normal retirement for SCJRS is age sixty (60) with sixteen (16) years of creditable service with a benefit of two-thirds of the State salary paid to superior court judges at the time of the member's retirement, plus one percent (1.0%) for each year of creditable service over sixteen (16) up to a maximum of twenty-four (24) years. Additionally, a member may retire with reduced benefits at age sixty (60) with a minimum of ten (10) years of creditable service. A member must retire at age seventy-five (75), or at the end of the term in which the member becomes seventy-five (75), or forfeit all retirement and disability benefits. Death, disability, and spousal benefits are also available.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of their salary plus an additional two and one-half percent (2.5%) for the spousal coverage benefit or two and three-fourths percent (2.75%) for the spouse plus benefit if elected. The State pays member contributions offour and

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Notes to the Flf1andal Statements June 30, 1997

Note 17. Retirement Systems (continued)
three-fourths percent (4.75%) of the member's annual salary. Employer contributions are actuarially determined and approved and certified by the Board.
Members become vested after ten (10) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if a member later holds office as a superior court judge, the member shall be reinstated as if never before a member and may re-establish prior service by repaying the amount withdrawn, plus interest, within sixty (60) days of certification of such amount.
Trial Judges and Solicitors Retirement Fund
Plan Description
Organization and Purpose Trial Judges and Solicitors Retirement Fund ("TJSRF") is a multiple-employer cost-sharing defmed benefit plan established by the Georgia General Assembly in 1968 for the purpose of providing retirement allowances for trial judges and solicitors of certain courts of Georgia, and their survivors and other beneficiaries. TJSRF is administered by the ERS Board of Trustees and three other trustees not on the ERS Board.
Membership As of June 30, 1997, participation in TJSRF is as follows:

Retirees and Beneficiaries

Currently Receiving Benefits

36

Active Plan Members

163

Tenninated Employees Entitled to Benefits but not yet Receiving Benefits

Benefits The nonnal retirement for TJSRF is age sixty (60) with sixteen (16) years of creditable service; however, a member may retire at age sixty (60) with a minimum of ten (10) years of creditable service. Additionally, a member must

retire at age seventy (70) or forfeit all retirement and disability benefits. Members holding office on July 1, 1980, are exempt from this provision.
Retirement benefits paid to members are computed as four percent (4%) ofthe average annual compensation multiplied by the total years of creditable service not to exceed sixteen (16) years. The average annual compensation is the average salary of a member during the two consecutive years of creditable service producing the highest such average but excluding any salary increases exceeding five percent (5%) over the previous year during the two-year period. Death, disability and spousal benefits are also available.
Contributions and Vesting Members are required to contribute seven and one-half percent (7.5%) of their salary plus an additional two and one-half percent (2.5%) if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the Board.
Members become vested after ten (10) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.
Based on the June 30, 1995, actuarial valuation (the latest actuarial valuation; present Board policy requires a biennial valuation), TJSRF does not have an unfunded accrued liability.
Regents Retirement Plan
Plan Description
Organization and Purpose The Regents Retirement Plan, a single-employer defmed contribution plan, is an optional retirement plan established and administered by the Board of Regents ofthe University System of Georgia (College and University Funds), under which it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators.
Benefits Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts.

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