Georgia comprehensive annual financial report, June 30, 1998

GEORGIA
Comprehensive Annual Financial Report June 30, 1998

State of Georgia
Comprehensive Annual Financial Report
June 30, 1998
Prepared by
GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
Claude L. Vickers, State Auditor
Georgia's State Flower Cover Drawing by Scott Fuss
In 1916, with the support of the Georgia Federation of Women's Clubs, the Cherokee rose was named the state floral emblem. The name "Cherokee Rose" is a local designation derived from the Cherokee Indians who widely distributed the plant.

State of Georgia
Table of Contents June 30, 1998
INTRODUCTORY SECTION
Letter of Transmittal.....................................................................................................................................................................................i Organizational Chart ..................................................................................................................................................................................xi Principal State Officials ............................................................................................................................................................................xiii
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, Investment Trust Fund and Discretely Presented Component Units....................................................22 Statements of Changes in Plan Net Assets Pension Trust Funds, Investment Trust Fund 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
Required Supplementary Information Retirement Systems - Required Supplementary Schedules ................................................................................................................91 Year 2000 Issues ........................................................................................................................................................................................95
Combining Statements and Schedules Primary Government Capital Projects Funds Capital Projects Funds Descriptions........................................................................................................................................... 101 Combining Balance Sheet ..............................................................................................................................................................102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................................................104
Internal Service Funds Internal Service Funds Descriptions............................................................................................................................................109 Combining Balance Sheet ..............................................................................................................................................................112 Combining Balance Sheet - Risk Management...........................................................................................................................114 Combining Statement of Revenues, Expenses and Changes in Fund Equity........................................................................116 Combining Statement of Revenues, Expenses and Changes in Equity - Risk Management...............................................118 Combining Statement of Cash Flows ...........................................................................................................................................120 Combining Statement of Cash Flows - Risk Management........................................................................................................124

State of Georgia
Table of Contents June 30, 1998
Trust and Agency Funds Combining Balance Sheet ..............................................................................................................................................................129
Expendable Trust Funds Expendable Trust Funds Descriptions.....................................................................................................................................131 Combining Balance Sheet ..........................................................................................................................................................132 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .........................................................134
Nonexpendable Trust Funds Nonexpendable Trust Funds Descriptions .............................................................................................................................137 Combining Balance Sheet ..........................................................................................................................................................139 Combining Statement of Revenues, Expenses and Changes in Fund Balances................................................................140 Combining Statement of Cash Flows .......................................................................................................................................141
Pension Trust Funds Pension Trust Funds Descriptions...........................................................................................................................................143 Combining Statement of Plan Net Assets ...............................................................................................................................144
Agency Funds Major Agency Funds Descriptions..........................................................................................................................................147 Combining Statement of Changes in Assets and Liabilities.................................................................................................149
College and University Funds College and University Funds Descriptions...............................................................................................................................155 Combining Balance Sheet ..............................................................................................................................................................156
General Fixed Assets Account Group General Fixed Assets Account Group Description....................................................................................................................161 Schedule of General Fixed Assets by Function..........................................................................................................................162 Schedule of Changes in General Fixed Assets by Function.....................................................................................................163
Component Units Governmental Fund Types Governmental Fund Types Descriptions.....................................................................................................................................167 Combining Balance Sheet ..............................................................................................................................................................168 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................................................169
Proprietary Fund Types Proprietary Fund Types Descriptions..........................................................................................................................................173 Combining Balance Sheet ..............................................................................................................................................................176 Combining Statement of Revenues, Expenses and Changes in Fund Equity........................................................................180 Combining Statement of Cash Flows ...........................................................................................................................................182
Fiduciary Fund Types Fiduciary Fund Types Descriptions.............................................................................................................................................189 Combining Statement of Plan Net Assets ...................................................................................................................................190
STATISTICAL SECTION
Index to Statistical Tables ......................................................................................................................................................................195

Introductory Section

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

May 13, 1999

The Honorable Roy E. Barnes 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, 1998, 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, the auditor's report on the financial statements, and required supplementary information. The Statistical Section, which is unaudited, includes selected financial and demographic information, generally presented for multiple years.
Federal laws 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
Eight years after reaching cyclical peaks in economic activity, Georgia's private and public economic sectors still register signs of strong growth. In the private sector, unemployment levels have fallen low enough to indicate a virtually fully-employed labor force. Except for the impact of additional capital or improved technology, output and income have moved to their paths of practical maxima. In the public sector, income and sales taxes have been reduced, but their yields, bolstered by direct and indirect effects of capital gains, have held to the trends of the last several years. Of course, with full-employment, the opportunity for jobs to climb much more rapidly than the population has been essentially exhausted. Hence, neither the growth rates for income nor state revenues have broken any records in fiscal year 1998. At year's end, nevertheless, there is no sign of serious economic imbalances or developing shocks on the economic horizon. While growth rates in both sectors will surely slow in fiscal year 1999, a "soft", rather than "hard", landing is in prospect. In fact, the record-setting 116-month span separating the activity peaks in the 1960's may be challenged before a recessionary slippage occurs. If so, fiscal year 1999 will be marked by gains not appreciably weaker than those which marked fiscal year 1998.
In the 1980's, increasing rates of participation of the population in the workforce allowed past achievements in the growth of jobs, incomes, and revenues to be exceeded. Georgia's employment rose by as much as 7.8 percent in one year (1984) and reached or exceeded 3.5 percent for 6 years running. The percentage of Georgia's population at work rose from 40 to 46 percent between the activity peaks of 1981 and 1990. In the 1990's, employment increases have drawn more from unemployment and much less from boosts in participation. The unemployed participants in the labor force have been reduced by 2 percentage points, while participation rates have risen by 3 percentage points to reach 49 percent. In fiscal year 1998, in contrast, participation rates in Georgia (as in the Nation) have been flat. Georgia's employment growth, fired by a rise in population of almost 2 percent and a reduction in the numbers unemployed to about 3.9 percent, has approached 3.0 percent. This is below the 3.7 and 3.1 percent rates for fiscal years 1997 and 1996, respectively. Undoubtedly, the restraint on worker supply will limit growth in employment in fiscal year 1999 as well.
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The calls for the output of the workers added in fiscal year 1998 have come mainly from three sources. Consumers in Georgia and in the Nation have shifted purchases towards durables, especially to motor vehicles and household furnishings-and-appliances. While a substantial proportion of these sales has been satisfied by imports, the domestic markets have strengthened as well. The surge in the consumption of durables in this year, the eighth after the cyclical peak, has been exceptional. It has been aided by strong gains in housing starts and home resales, low interest rates, weak inflation, and a continuing climb in the worth of financial assets. The calls for additional output have also come from Georgia businesses. Spending on information-processing equipment has continued to grow at an annual rate of over 15 percent for the fifth consecutive year. Finally, the greatest stimulus to the absorption of Georgia workers has come from the State's immersion in the U.S. economy. National output during fiscal year 1998 rose at a 3.8 percent rate. This was a stronger performance than in any other fiscal year in the 1990's.
As employment in Georgia has risen, so has the level of income climbed. Wage inflation tied to tight labor markets and increases in productivity have combined to push compensation rates in fiscal year 1998 upward by roughly 3.6 percent. In combination with the 3 percent gain in employment, personal income has risen by about 6.8 percent. In nominal terms, this gain falls below levels of earlier years in the decade. When adjusted for inflation, nevertheless, the growth was the strongest since the eighties. Without doubt, the gain in income would have been greater had retail trade and service employments not been such dominant absorbers of additional workers.
Income on a per capita basis, the mark of economic effectiveness, fared less well than total personal income. The gain during fiscal year 1998 was only 4.5 percent compared to an average of roughly 5.3 percent in the prior three years. Relative to U.S. per capita income, Georgia's per capita income slipped slightly to a level of about 94 percent. The catch-up which the State demonstrated in the 1980's (8 percentage points) flagged in the 1990's.
In Georgia's public sector, the pace of collections in fiscal year 1998 has remained strong. The revenue gain, when finally tabulated, will likely to be between 5 and 6 percent. While this gain is what was built into the State's financial and budgetary plans, the growth falls below the rate of 6.6 percent in fiscal year 1997, and drops well below the rates above 8 percent in fiscal years 1993 to 1996. In the main, the State's yield has been limited by the slowing in the growth of the tax bases. Neither individual income, corporate income, nor taxable sales have matched their earlier growth rates. Additionally, cuts in income taxes and exclusions of sales of food from the sales and use tax base have restrained revenue yield.
Since fiscal year 1999 begins in a condition of full employment, growth cannot be expected to match that achieved as full employment was being approached in fiscal year 1998. Certainly, it will fall far short of that experienced in the early years of the expansion when participation rates and worker absorption both contributed. In terms of output, productivity gains will be especially important. While output per hour will respond to the continuing investment in information-processing equipment, the response shows no signs of being sudden or concentrated. Should Georgia's economic advance fall short of the gains being achieved in states where labor supply and productivity are higher, the growth in population, which has driven the State's "horizontal expansion", may itself ease. Still, impressions of economic opportunity for households and businesses take time to change. Thus, a reduction in population growth will not likely be important in the next fiscal year. Overall, fiscal year 1999 will likely be marked by gains in employment of roughly 2 percent and in income of about 5 percent. If
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corporate profits are reduced because of rising labor costs in a world of competitively-stabilized prices, the growth in the State's revenues is likely to slip relative to growth in income and certainly to growth last year. Probably, an advance of about 4.5 percent is as much as can be assured for the State.
MAJOR INITIATIVES
Economic Development State funds will assist in launching a new program to create state development teams to promote and assist with regional and rural development in eleven regions throughout Georgia. These teams will focus on rural development and assist communities and businesses with planning, economic development, workforce development, infrastructure improvement and leadership development.
Education A special funding initiative will provide funds to develop a Statewide Desktop Distance Learning known as "Georgia On-Line". This two year network pilot program, offering both credit and non-credit courses over the World Wide Web, will enable working professionals throughout Georgia to meet their educational needs on-line.
Environment An executive order was issued during fiscal year 1998 requiring all departments of state government and all units of the university system in the thirteen county metropolitan Atlanta area to change ozone producing behaviors during summer months in order to improve the metro area's air quality. The Partnership for a Smog-Free Georgia (PSG) program was created to encourage voluntary participation in reducing ground-level ozone in the metro Atlanta area by an overall reduction of vehicles on the road during critical ozone producing hours. Prior to the State initiating the PSG program, the metro Atlanta area was considered in nonattainment for mandatory federal air quality standards for ground-level ozone; such standards must be met to avoid jeopardizing federal funding for Georgia and impacting the State's future economic growth and development. Additionally, enhancing the vehicle emission inspection program for the metro Atlanta area will ensure all vehicles will be required to meet tougher emission standards.
Human Resources Funds will be reduced in the Temporary Assistance for Needy Families (TANF) program due to the continued decline in caseloads. The welfare program funds, state and federal, are being redirected to the provision of childcare and to support various social services. An additional amount of redirected state funds from TANF will provide the match for federal funds to support the newly enacted federal Welfareto-Work grant for hard-to-employ TANF recipients.
Medicaid State funds were set aside to implement a federally enacted program to provide health care coverage for uninsured children from birth through age 18 in families with incomes under 200% of the Federal Poverty Level. This program, called the Children's Health Insurance Program (CHIP), will be implemented through passage of a new law creating a public-private partnership.
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Tax Reductions Funds were set aside from actual tax collections in order to fund two tax reductions. The first tax cut the largest in Georgia's history - represents the fourth and final year of the elimination of the State's 4 cents sales taxes on groceries. The second tax cut - the second largest in Georgia's history - will reduce state income taxes and will be implemented in two phases; the first phase will raise the income tax personal exemption for both taxpayers and dependents beginning January 1, 1998, and the second phase will raise the deductions for citizens over age 65.
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 financial 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 financial 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 1998 and 1997 are compared in the following table:
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FY 1998_____

FY 1997_____

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

Percent __ Amount___ of Total

$ 11,439,170,422 61.0%

346,081,148

1.8%

5,617,029,811 536,827,964

29.9% 2.9%

49,204,317 0.26%

275,999,300 13,920,492

1.5% 0.07%

192,209,388

1.0%

9,485,653 20,690,958

0.05% 0.1%

257,123,411

1.4%

5,409,857 $18,763,152,721

0.02% 100.0%

_ Amount____ $ 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

Percent of Total
58.8% 2.0% 31.1% 2.9% 0.3% 1.3% 0.06% 1.1% 0.04% 0.1% 2.1% 0.2%
100.0%

Increase (Decrease)
From _ FY 1997_
$ 955,672,718 (5,100,779) 67,223,934 22,918,650 (1,221,848) 36,692,559 3,927,549 1,367,403 2,786,014 572,937
(116,124,664) (27,112,654) $941,601,819

Percent of
Increase (Decrease)
9.1 % (1.5)% 1.2 % 4.5 % (2.4)% 15.3 % 39.3 % 0.7 % 41.6 % 2.8 % (31.1)% (83.4)% 5.3 %

1998 Revenues and Other Sources

Taxes

Licenses and Permits

In tergovernmental

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Other Revenue General Obligation
Bond Proceeds Unclaimed Property
Penalties & Interest On Ta xes Contributions & Donations
Rents & Royalties Intere st & Other Investment Incom e Fines and Forfe its Sales and Servic es

Expenditures by governmental fund type function for fiscal years 1998 and 1997 are compared in the following table:

FY 1998______

FY 1997______

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

Amount

Percent of Total

$ 653,302,692 6,155,220,908 6,479,723,177 1,385,250,996 1,193,748,916 264,913,965 185,622,125 45,865,385 346,296,387 645,791,398
$17,355,735,949

3.8% 35.5% 37.3%
7.9% 6.9% 1.53% 1.11% 0.26% 2.0% 3.7% 100.0%

Amount

Percent of Total

$ 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%

Increase (Decrease)
From FY 1997

Percent of
Increase (Decrease)

$ 16,055,405 454,830,914 (317,124,384) 271,462,405
69,206,869 1,823,458
14,955,025 (2,904,414) (27,380,759) 16,203,066 $497,127,585

2.5 % 8.0% (4.7)% 24.4 % 6.2 % 0.7 % 8.8 % (6.0)% (7.3)% 2.6 % 2.9 %

1998 Expenditures by Function

Ed uc ation H ea lt h and W e lfa re
T r an sp o r tatio n

General Government
Debt Serv ice
Capital Outlay Con ser va tion Culture and Recreatio n Economic Develo pment and As sistan ce Public Safety

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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 financial 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, 1998, outstanding general obligation debt issues of the State of Georgia totaled $4,505,775,000. Outstanding revenue bonds of certain blended and discretely presented component units totaled $ 1,247,653,898, of which $ 177,700,898 are guaranteed by the State of Georgia.

During fiscal year 1998, general obligation bonds in the amount of $ 387,030,000 were retired. General obligation debt issued during fiscal year 1998 totaled $ 256,875,000.

At June 30, 1998, 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 AAA 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.

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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
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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 ELECTORATE

xi

SUPREME COURT

COURT OF APPEALS

PUBLIC SERVICE COMMISSION

STATE SCHOOL SUPERINTENDENT

SECRETARY OF STATE

COMMISSIONER OF INSURANCE

GOVERNOR

ATTORNEY GENERAL

COMMISSIONER OF
AGRICULTURE

COMMISSIONER OF LABOR

LIEUTENANT GOVERNOR

GENERAL ASSEMBLY

SENATE

HOUSE OF REPRESENTATIVES

SUPERIOR COURTS

DISTRICT ATTORNEYS

JUDICIAL AGENCIES

OFFICE OF PLANNING AND
BUDGET

GOVERNOR'S OFFICE

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

DEPARTMENT OF ADMINISTRATIVE
SERVICES

DEPARTMENT OF REVENUE

DEPARTMENT OF BANKING AND FINANCE

DEPARTMENT OF DEFENSE

DEPARTMENT OF AUDITS AND ACCOUNTS

DEPARTMENT OF MEDICAL
ASSISTANCE

LEGISLATIVE AGENCIES

DEPARTMENT OF PUBLIC SAFETY

GEORGIA BUREAU OF INVESTIGATION

STATE FORESTRY COMMISSION

DEPARTMENT OF CORRECTIONS

BOARD OF PARDONS AND
PAROLES

DEPARTMENT OF HUMAN
RESOURCES

DEPARTMENT OF JUVENILE
JUSTICE

DEPARTMENT OF NATURAL RESOURCES

DEPARTMENT OF COMMUNITY
AFFAIRS

DEPARTMENT OF TRANSPORTATION

OFFICE OF TREASURY AND FISCAL SERVICES

DEPARTMENT OF INDUSTRY, TRADE,
AND TOURISM

GEORGIA STUDENT FINANCE
COMMISSION

UNIVERSITY SYSTEM
OF GEORGIA

STATE MERIT SYSTEM OF PERSONNEL
ADMINISTRATION

DEPARTMENT OF EDUCATION

TEACHERS RETIREMENT SYSTEM OF
GEORGIA

STATE EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

STATE DEPARTMENT OF VETERANS SERVICE

BOARD OF WORKERS' COMPENSATON

EXAMINING AND LICENSING BOARDS

ADVISORY BOARDS

OTHER EXECUTIVE AGENCIES

INTERSTATE AGENCIES

AUTHORITIES

1998 GEORGIA GOVERNMENT ORGANIZATION CHART
ELECTED APPOINTED

State of Georgia
Principal State Officials June 30, 1998
Executive:
Zell Miller Governor Lewis A. Massey Secretary of State Thurbert E. Baker Attorney General Marti Fullerton Commissioner of Labor Linda C. Schrenko State Superintendent of Schools John W. Oxendine Commissioner of Insurance Thomas T. Irvin Commissioner of Agriculture Bobby Baker, Chairman Dave Baker Bob Durden Stan Wise Public Service Commission
Legislative:
Pierre Howard Lieutenant Governor/President of the Senate Thomas B. Murphy Speaker of the House of Representatives
Judicial:
Robert Benham Chief Justice of the Supreme Court
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Financial Section

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174
INDEPENDENT AUDITOR'S REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS
The Honorable Roy E. Barnes Governor of Georgia
and Members of the 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, 1998. These general purpose financial statements are the responsibility of the 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% of the assets and revenues of the 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% of the assets of the fiduciary funds and less than 1% of the expendable trust funds revenues and 100% of the pension trust funds revenues, and 7% of the 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% of the assets and 95% of the 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 paragraphs, 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 of Georgia'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 of statewide 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 of the 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 expendituredriven 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 made payments to providers of medical services in excess of amounts authorized to be paid in accordance with the State of Georgia approved State Plan under Title XIX of the Social Security Act. The State of Georgia currently maintains on-going efforts to identify and recover overpayments made to providers. The actual amount of these overpayments, however, cannot be presently determined, and no provision for the amount of understatement of receivables from providers that may result has been made in the general purpose financial statements.
The State of Georgia did not maintain adequate systems to effect the timely detection of either duplicate claim payments or claim overpayments of the Risk Management Trust Funds maintained at the Department of Administrative Services. The Department of Administrative Services also made claim payments without providing supporting documentation. We were unable to determine the accuracy and completeness of the transactions and balances that comprise these Risk Management Trust Funds, which are included in the Internal Service Fund.
Apparent misappropriations of State of Georgia Building Authority assets were discovered in the food service and parking operations. The possible outcome of these matters, which have been reported to appropriate State officials, is uncertain at this time. Accordingly, no provision has been made in the Internal Service Fund for the resolution of these matters.
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, 1998, 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 4 to the general purpose financial statements, the State of Georgia implemented Statement No. 31 of the Governmental Accounting Standards Board, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, in fiscal year 1998.
In accordance with Government Auditing Standards, we have also issued a report dated May 13, 1999 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 of forming an opinion on the general purpose financial statements taken as a whole. The combining financial statements identified in the Table of Contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the State of Georgia. Further, the section entitled "Retirement Systems - Required Supplementary Schedules" within Financial Section, Required Supplementary Information is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. 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.
3

The section entitled "Year 2000 Issues" within Financial Section, Required Supplementary Information is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that the State of Georgia is or will become year 2000 compliant, that the State of Georgia's year 2000 remediation efforts will be successful in whole or in part, or that parties with which the State of Georgia does business are or will become year 2000 compliant.
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,

May 13, 1999

Claude L. Vickers State Auditor

4

General Purpose Financial Statements

State of Georgia
Combined Balance Sheet All Fund Types, Account Groups and Discretely Presented Component Units
June 30, 1998

Primary Government

Governmental Fund Types

Proprietary Fund Types

General

Special Revenue

Debt Service

Capital Projects

Enterprise

Internal Service

Assets and Other Debits

Assets: Cash and Cash Equivalents Cash and Cash Equivalents in Nonexpendable Trust Funds Investments Receivables (Net of Allowances for Uncollectibles) Intergovernmental - Federal Interest and Dividends Notes and Loans Taxes Other Due from Other Funds Due from Primary Government Due from Component Units Interfund Receivables 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 Accumulated Depreciation) Deferred Charges Other Assets
Other Debits: Amount Available in Debt Service Fund Amount to be Provided for Retirement of General Long-Term Debt

$ 2,712,193,919 $ 623,223,375
2,022,180,113 26,712,975
1,035,860,281 192,899,052
135,316 45,462,627 82,174,758
6,925 107,500
50,862,768

$ 233,215,021 $

$ 4,149,166 $ 7,283,687

2,872,348

963,777,869 222,841,604 1,014,906,672

11,903,012

2,338,835

1,779,103 1,599

1,189,172 3,300,425

16,230,434

10,837,247 18,191,794
419,830
12,262,992 682,774

15,209,275

313,620 411,401,860

Total Assets and Other Debits

$ 6,791,819,609 $ 4,653,050 $ 233,215,021 $ 995,379,753 $ 245,873,659 $ 1,475,986,856

Liabilities, Equity and Other Credits
Liabilities: Cash Overdraft Accounts Payable and Other Accruals Compensated Absences Payable Claims and Judgments Payable Contracts Payable Salaries/Withholdings Payable Benefits Payable Due to Other Funds Due to Primary Government Due to Component Units Accrued Interest Payable Undistributed Local Government Sales Tax Deferred Revenue Capital Leases/Installment Purchases Payable Mortgage Loans under Repurchase Agreements Funds Held for Others Other Liabilities Deposits and Overpayments Advances from Other Funds Advances from Primary Government Long-Term Debt Payable (Net of Unamortized Discounts)
Total Liabilities

$

$

921,741,086

1,570,048,158 616,236,408 399,851,894 15,038,805
2,204,421
53,157,604 102,123,002

38,992,479 486,838

119,305 $ 172,257
93,490
1,800

$ 3,719,880,695 $

386,852 $

$ 22,611,627 $

$

$

26,573,264

1,000,427

20,535,769

236,200

7,964,738

357,293,702

15,363,494

255,655

18,910,273

40,481

159,758,318

143

86,456

14,513,809

73,701 10,579,816

18,588,773

1,764,138

1,092,857 0 $ 83,223,614 $ 175,764,409 $ 418,255,618

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

Fiduciary Fund Type
Trust and Agency

College and University

Account Groups

General

General

Fixed

Long-Term

Assets

Debt

Totals (Memorandum
Only)
Primary Government

Component Units

Governmental Fund Types

Proprietary Fund Types

Fiduciary Fund Types

Totals (Memorandum
Only)
Reporting Entity

$ 1,797,015,993 $ 429,544,828 $

$

$ 5,183,402,614 $

185,698

185,698

14,644,907,465 209,917,340

17,682,446,673

1,014,811 93,409,000 4,104,717 71,787,161 40,504,983

38,607,643 57,940
48,693,306
155,835,048

24,544

26,848,073 10,094,414

2,061,802,567 134,421,762 52,798,023
1,107,647,442 419,275,039 18,191,794 0 555,146 3,300,425 84,573,692 92,978,089

0 0

394,622,648

0 0 6,925 15,316,775 394,622,648

4,636,846,469 2,914,888,301 37,733

7,963,450,250 0
50,900,501

233,215,021

233,215,021

4,492,541,351 4,492,541,351

$ 81,660,480 $

3,357,636 $ 5,268,420,730

185,698

801,970 340,726,843 35,806,181,708 53,830,157,194

100,989 1,325,853

108,188,065 16,148,160
936,455,396
63,895,216
2,204,564

95,126 228,367

5,001,303 2,782,433

250,880,885 180,376,720
42,175

2,169,990,632 401,450,807 989,354,408
1,107,647,442 664,872,828 18,191,794 2,204,564 555,146 3,300,425 89,670,121 96,031,064

158,947,976 412,589,856

158,947,976 412,589,856

6,121,452 598,113,658

6,121,452 598,113,658
6,925 15,316,775 394,622,648

91,630,744

818,669,441 19,649,989 83,810,966

741,634

8,874,492,069 19,649,989 134,711,467

233,215,021

11,879,924

4,504,421,275

$ 17,047,614,753 $ 5,556,445,061 $ 2,914,888,301 $ 4,725,756,372 $ 39,991,632,435 $ 106,062,973 $ 3,654,965,798 $ 36,241,580,758 $ 79,994,241,964

$

$

$

6,364,952 281,150,747

104,384,204

23,629 658,673

5,616,060 21,800,000 2,400,826

714,632,873 6,925

78,662,613 20,232,718
19,591,279 149,585
1,960,342

7,000 $ 721,687,052 $ 535,955,374 $

$

$ 22,730,932 $

1,257,538,502

212,076,813

324,661,955

697,979

357,991,681

1,604,577,580

621,916,578

581,410,212

18,191,794

0

2,204,564

0

53,157,604

195,461,381

4,344,386

35,156,920

0

773,216,631

19,225,196

3,724,480

6,925

0

4,508,637,194 4,509,737,051

0 $ 4,725,756,372 $ 10,380,909,986 $

1,157,986 $ 4,406,340 1,055,264
220,311

$ 86,933,034 2,961,892
2,125,414 319,857

290,951

224,249

16,444,144

215,666 10,824,660

96,167,505 739,421
17,728,827 302,332,077
11,699,366 14,651,065

107,500

1,534,164,900

18,171,178 $ 2,086,599,251 $

$ 2,254,730
68,434 39,946

23,888,918 1,351,132,606
328,679,111 357,991,681 1,606,702,994 622,525,180 581,410,212 18,191,794
555,146 2,204,564 16,444,144 53,157,604 291,844,552 46,721,001 17,728,827 1,075,548,708 30,924,562 18,375,545
6,925 107,500

6,043,901,951

2,363,110 $ 12,488,043,525

7

State of Georgia
Combined Balance Sheet All Fund Types, Account Groups and Discretely Presented Component Units (continued)
June 30, 1998

Primary Government

Governmental Fund Types

Proprietary Fund Types

General

Special Revenue

Debt Service

Capital Projects

Enterprise

Internal Service

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

$

$

$

$

$

$

$

Equity:

Net Investment in Plant

$

$

Colleges and Universities

Contributed Capital

Retained Earnings

Reserved

Unreserved

Fund Balances

Reserved for Encumbrances

4,174,127

Reserved for Advances

114,425

Reserved for Inventories

44,268,275

Reserved for Debt Service

Reserved for Disaster Assistance

588,489

Reserved for Distance Learning and Telemedicine

17,936,760

Reserved for Pension Benefits

Reserved for Guaranteed Revenue Debt Common Reserve Fund 17,921,100

Reserved for Hazardous Waste Trust Fund

13,321,355

Reserved for Investment Trust Fund

Reserved for Lottery for Education

201,315,730

Reserved for Midyear Adjustment

117,181,823

Reserved for Motor Fuel Tax Funds

887,743,155

Reserved for Revenue Shortfall

351,545,470

Reserved for Underground Storage Trust Fund

42,498,465

Reserved for Year 2000 Project

125,338,806

Reserved for Other Specific Purposes

72,247,308

Unreserved, Designated

Designated for Liability Trust Fund

10,256,598

Designated for Future Capital Outlay

Designated for Other Specific Purposes

112,000

Unreserved, Undesignated

1,165,375,028

Total Equity

$ 3,071,938,914 $

$

$

233,215,021

$

$

274,590,158

70,109,250

715,471,828 67,669,252

1,408,165

907,629,259

4,266,198

3,118,715

4,266,198 $ 233,215,021 $ 912,156,139 $

70,109,250 $ 1,057,731,238

Total Equity and Other Credits

$ 3,071,938,914 $ 4,266,198 $ 233,215,021 $ 912,156,139 $ 70,109,250 $ 1,057,731,238

Total Liabilities, Equity and Other Credits

$ 6,791,819,609 $ 4,653,050 $ 233,215,021 $ 995,379,753 $ 245,873,659 $ 1,475,986,856

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

Fiduciary Fund Type
Trust and Agency

College and University

Account Groups

General

General

Fixed

Long-Term

Assets

Debt

Totals (Memorandum
Only)
Primary Government

Component Units

Governmental Fund Types

Proprietary Fund Types

Fiduciary Fund Types

Totals (Memorandum
Only)
Reporting Entity

$

$

$ 2,914,888,301 $

$ 2,914,888,301 $ 91,630,744 $

321,635 $

$ 3,006,840,680

$

$ 4,616,613,751 $

$

403,875,936

11,622,441,106 2,659,446,092

1,991,907,383

52,133,120

$ 16,325,927,701 $ 5,020,489,687 $

0$

$ 16,325,927,701 $ 5,020,489,687 $ 2,914,888,301 $

$ 4,616,613,751 $ 403,875,936 274,590,158

$

$

1,001,936,816

$ 4,616,613,751 403,875,936
1,276,526,974

785,581,078 67,669,252

95,622,405 455,169,458

881,203,483 522,838,710

4,174,127 114,425
44,268,275 233,215,021
588,489 17,936,760 11,622,441,106 17,921,100 13,321,355 2,659,446,092 201,315,730 117,181,823 887,743,155 351,545,470 42,498,465 125,338,806 2,065,562,856

375,041

12,898,278

36,239,217,648

4,174,127 114,425
44,268,275 233,215,021
588,489 17,936,760 47,861,658,754 17,921,100 13,321,355 2,659,446,092 201,315,730 117,181,823 887,743,155 351,545,470 42,498,465 125,338,806 2,078,836,175

10,256,598 907,629,259
112,000 1,224,893,061 0 $ 26,695,834,148 $

10,256,598

907,629,259

112,000

(4,113,990)

2,417,955

1,223,197,026

(3,738,949) $ 1,568,044,912 $ 36,239,217,648 $ 64,499,357,759

0 $ 29,610,722,449 $ 87,891,795 $ 1,568,366,547 $ 36,239,217,648 $ 67,506,198,439

$ 17,047,614,753 $ 5,556,445,061 $ 2,914,888,301 $ 4,725,756,372 $ 39,991,632,435 $ 106,062,973 $ 3,654,965,798 $ 36,241,580,758 $ 79,994,241,964

9

State of Georgia
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
All Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units For the Year Ended June 30, 1998

Revenues: Taxes Licenses and Permits 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
Total Revenues
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
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures

General

Primary Government

Governmental Fund Types

Special

Debt

Revenue

Service

$ 11,439,170,422 $

$

$

346,081,148

5,582,612,574 34,417,237
518,179,693 49,204,317
194,805,638 13,873,680
192,209,388 9,485,653 20,690,958 3,828,832

18,648,271 446,092

$ 18,404,559,540 $ 19,094,363 $

0

$ 650,346,672 $ 2,620,579 $

$

6,155,220,908

6,479,723,177

1,385,250,996

1,193,748,916

264,913,965

185,622,125

45,865,385

387,030,000 258,317,069

$ 16,360,692,144 $ 2,620,579 $ 645,347,069

$ 2,043,867,396 $ 16,473,784 $ (645,347,069)

The notes of the financial statements are an integral part of this statement. 10

Capital Projects

Fiduciary Fund Type
Expendable Trust

Totals -
(Memorandum Only)
Primary Government

Component Units
Governmental Fund Type

Totals -
(Memorandum Only)
Reporting Entity

$

$ 372,536,413 $ 11,811,706,835 $

$ 11,811,706,835

346,081,148

346,081,148

80,747,570 46,812
1,581,025

20,717,427 127,596
126,070,142 33,888
80,738

5,603,330,001 34,417,237 536,955,560 49,204,317 402,069,442 13,920,492 192,243,276 9,485,653 20,690,958 5,490,595

2,681,917
135,849 163,972 10,162,233

5,603,330,001 34,417,237
539,637,477 49,204,317
402,205,291 14,084,464
202,405,509 9,485,653
20,690,958 5,490,595

$ 82,375,407 $ 519,566,204 $ 19,025,595,514 $ 13,143,971 $ 19,038,739,485

$

335,441 $

$ 653,302,692 $

99,275 6,155,320,183

64,702,740 6,544,425,917

1,385,250,996

1,193,748,916

279,499,324

544,413,289

102,521

185,724,646

45,865,385

346,296,387

346,296,387

46,812 158,508 239,009

387,076,812 258,475,577
239,009

$ 347,076,157 $ 344,403,860 $ 17,700,139,809 $

$ 36,267,248

653,302,692 6,155,320,183 6,544,425,917 1,385,250,996 1,193,748,916
544,413,289 221,991,894
45,865,385 346,296,387

387,076,812 258,475,577
239,009

36,267,248 $ 17,736,407,057

$ (264,700,750) $ 175,162,344 $ 1,325,455,705 $ (23,123,277) $ 1,302,332,428 (continued)

11

State of Georgia
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
All Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units (continued) For the Year Ended June 30, 1998

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
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses
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 Transfer of Equity to Component Units Increase in Inventories

General

Primary Government

Governmental Fund Types

Special

Debt

Revenue

Service

$ 87,322,527 $

$ 669,908,746

555,451,008 (2,173,952,811)
(65,663,706) 4,114,623 131,085

(16,500,000)

$ (1,592,597,274) $ (16,500,000) $ 669,908,746

$ 451,270,122 $
2,603,974,320 1,504,009 82,000 14,894,947
(1,895,883)
2,109,399

(26,216) $ 24,561,677 4,292,414 208,653,344

Fund Balances, June 30

$ 3,071,938,914 $ 4,266,198 $ 233,215,021

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

Capital Projects

Fiduciary Fund Type
Expendable Trust

Totals -
(Memorandum Only)
Primary Government

Component Units
Governmental Fund Type

Totals -
(Memorandum Only)
Reporting Entity

$

$

4,414,614 (128,576,564)

257,123,411 $ 132,961,461 $

3,281,250 $ 760,512,523 $ 0
559,865,622 (2,319,029,375)
(65,663,706) 4,114,623 131,085
257,123,411
3,281,250 $ (802,945,817) $

$ 760,512,523

18,915,057

18,915,057

559,865,622

(2,319,029,375)

(65,663,706)

4,114,623

131,085

257,123,411

18,915,057 $ (784,030,760)

$ (131,739,289) $ 178,443,594 $ 522,509,888 $

1,041,854,815 1,865,582,103

21,658,031

(6,504)

18,509,700 (165,856)
(37,961,262)

(199,786)

5,724,356,996 23,155,536 82,000 33,404,647 (165,856) (39,857,145) (199,786) 2,109,399

(4,208,220) $ 518,301,668

469,271

5,724,826,267 23,155,536 82,000 33,404,647 (165,856) (39,857,145) (199,786) 2,109,399

$ 912,156,139 $ 2,043,819,407 $ 6,265,395,679 $ (3,738,949) $ 6,261,656,730

13

State of Georgia
Statement of Funds Available and Expenditures Compared to Budget Budget Fund
For the Fiscal Year Ended June 30, 1998

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
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 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 of the 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 Juvenile Justice, Department of Labor, Department of Law, Department of Medical Assistance, Department of Natural Resources, Department of

Original Appropriation

Final Budget

Actual

Variance Favorable (Unfavorable)

$ 11,262,036,635 $ 11,976,541,772 $ 11,971,597,333 $

506,500,000

601,923,390

601,923,390

4,600,936,445 5,775,791,064 5,190,228,443

3,027,666,502 4,535,210,525 3,976,927,885

(4,944,439) 0
(585,562,621) (558,282,640)

$ 19,397,139,582 $ 22,889,466,751 $ 21,740,677,051 $ (1,148,789,700)

1,938,643,415 1,463,059,924

(475,583,491)

$ 19,397,139,582 $ 24,828,110,166 $ 23,203,736,975 $ (1,624,373,191)

$ 180,889,649 $ 281,494,603 $ 252,980,630 $

5,590,902

6,288,967

6,289,058

49,508,646

52,754,577

51,901,339

1,370,111

1,508,217

1,119,309

20,156,774

21,257,896

21,203,333

9,523,070

9,523,070

9,036,117

37,782,538

46,765,710

45,277,549

58,520,527

175,358,891

158,264,931

723,076,907

751,140,269

738,323,139

17,617,939

24,445,636

23,198,244

5,142,447,933 5,644,848,973 5,579,253,240

4,382,732 39,489,852 27,168,900 390,520,369 37,344,826
0 2,384,380,940
20,302,479 17,206,008 48,215,166 93,183,496 172,924,813 152,143,392 14,733,081 3,779,764,130 133,165,383

5,111,144 42,426,505 29,574,114 596,125,028 327,770,873
0 2,651,336,637
34,787,776 18,120,900 59,818,561 97,116,298 202,399,674 221,790,319 36,539,914 4,295,813,679 223,052,166

4,891,392 41,998,968 23,011,250 596,125,028 176,276,577
0 2,500,132,722
23,319,426 16,996,941 59,199,822 98,064,801 194,026,433 157,203,316 35,182,838 3,734,522,066 217,888,741

28,513,973 (91)
853,238 388,908 54,563 486,953 1,488,161 17,093,960 12,817,130 1,247,392 65,595,733
219,752 427,537 6,562,864
0 151,494,296
0 151,203,915
11,468,350 1,123,959
618,739 (948,503) 8,373,241 64,587,003 1,357,076 561,291,613 5,163,425

The notes of the financial statements are an integral part of this statement. 14

State of Georgia
Statement of Funds Available and Expenditures Compared to Budget Budget Fund
For the Fiscal Year Ended June 30, 1998

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 of the 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

44,711,153 $
1,098,162,845 119,228,086 15,110,000 10,731,875 28,139,624
2,669,910,681 97,699,116 32,132,511 2,495,590 208,845,430 11,082,683 292,599,277
1,165,727,067 28,044,624 11,108,457

45,919,221 $
1,136,749,364 130,050,615 15,110,000 10,824,177 35,601,169
3,680,889,805 134,249,131 34,055,774 2,591,864 241,993,060 12,156,432 380,229,176
3,070,405,340 28,814,684 11,299,957

45,805,191 $
1,090,873,718 126,325,714 15,110,000 10,521,639 37,470,922
3,428,712,864 119,423,166 32,235,514 2,560,723 228,415,821 11,119,585 354,065,195
1,445,291,600 28,138,454 11,238,813

114,030
45,875,646 3,724,901
0 302,538 (1,869,753) 252,176,941 14,825,965 1,820,260 31,141 13,577,239 1,036,847 26,163,981 1,625,113,740 676,230 61,144

Total Expenditures

$ 19,397,139,582 $ 24,828,110,166 $ 21,752,996,129 $ 3,075,114,037

Excess of Funds Available over Expenditures

$ 1,450,740,846 $ 1,450,740,846

The notes of the financial statements are an integral part of this statement. 15

State of Georgia
Combined Statement of Revenues, Expenses and
Changes in Fund Equity/Fund Balances All Proprietary Fund Types, Nonexpendable Trust Funds and
Discretely Presented Component Units For the Fiscal Year Ended June 30, 1998

Operating Revenues: Contributions Insurance Recoveries Interest and Other Investment Income Intergovernmental Rents and Royalties Sales and Services Taxes Other
Total Operating Revenues
Operating Expenses: General and Administrative Goods and Services Interest Benefits Claims and Judgments Prizes Scholarships Depreciation Other
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses): Contributions and Intergovernmental Revenue Interest and Other Investment Income Gain on Sale of Loans Hotel/Motel Tax (Net) Interest Expense Other Debt Service Charges Other
Total Nonoperating Revenues (Expenses)
Net Income (Loss) Before Operating Transfers

Primary Government

Fiduciary

Proprietary Fund Types

Fund Type

Internal

Nonexpendable

Enterprise

Service

Trust

$ 1,039,788,654 $ 116,076,367 $ 1,763,355
13,614,428 145,271,963

29,396

31,614,994 259,211,959

1,364,309

$ 1,053,432,478 $ 555,302,947 $

$ 12,917
12,917

$ 224,492,609 $ 157,027,387 $

174,952,970

194,765

863,085,931

15,178,000

183,454,774

1,309,224

$ 1,087,578,540 $ 532,117,120 $ $ (34,146,062) $ 23,185,827 $

4,066
2,320 878
7,264 5,653

$

$

$

$

909,861

(57,945)

(6,870)

(1,537,414)

$

(6,870) $ (685,498) $

$ (34,152,932) $ 22,500,329 $

0 5,653

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

Totals -
(Memorandum Only)
Primary Government

Component Units
Proprietary Fund Types

Totals -
(Memorandum Only)
Reporting Entity

$ 1,155,865,021 $ 1,763,355
158,899,308 0
31,614,994 259,241,355
0 1,364,309

40,925 $ 1,155,905,946

1,763,355

76,750,929

235,650,237

21,091,686

21,091,686

63,009,735

94,624,729

1,873,520,358 2,132,761,713

1,569,994

1,569,994

22,897,569

24,261,878

$ 1,608,748,342 $ 2,058,881,196 $ 3,667,629,538

$ 381,524,062 $ 174,952,970 194,765 878,263,931 183,454,774 0 2,320 1,309,224 878

148,129,964 $ 321,862,745 59,393,081
902,465,000
34,405,479 48,937,250

529,654,026 496,815,715
59,587,846 878,263,931 183,454,774 902,465,000
2,320 35,714,703 48,938,128

$ 1,619,702,924 $ 1,515,193,519 $ 3,134,896,443

$ (10,954,582) $ 543,687,677 $ 532,733,095

$

0 $

909,861

0

0

(57,945)

0

(1,544,284)

$ (692,368) $

$ (11,646,950) $

571,059 $ 63,976,913
883,484 17,282,333 (35,695,827) (8,838,889) (12,288,879)

571,059 64,886,774
883,484 17,282,333 (35,753,772) (8,838,889) (13,833,163)

25,890,194 $ 25,197,826

569,577,871 $ 557,930,921

(continued)

17

State of Georgia
Combined Statement of Revenues, Expenses and
Changes in Fund Equity/Fund Balances All Proprietary Fund Types, Nonexpendable Trust Funds and
Discretely Presented Component Units (continued) For the Fiscal Year Ended June 30, 1998

Primary Government

Fiduciary

Proprietary Fund Types

Fund Type

Internal

Nonexpendable

Enterprise

Service

Trust

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

$

$ 54,197,836 $

$

(17,427,367)

Net Operating Transfers

$

0 $ 36,770,469 $

0

Net Income (Loss)

$ (34,152,932) $ 59,270,798 $

5,653

Deficiency of Revenues 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 Transfer of Equity from Primary Government Increase in Inventories

104,262,182

1,007,729,825 (10,336,230) 165,856

(82,000) 982,989

215,826 (383)

Fund Equity/Fund Balances, June 30

$ 70,109,250 $ 1,057,731,238 $

221,096

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

Totals -
(Memorandum Only)
Primary Government

Component Units
Proprietary Fund Types

Totals -
(Memorandum Only)
Reporting Entity

$ 54,197,836 $ 0
(17,427,367) 0

$ 62,019,706
(559,686,614)

54,197,836 62,019,706 (17,427,367) (559,686,614)

$ 36,770,469 $ (497,666,908) $ (460,896,439)

$ 25,123,519 $ 71,910,963 $ 97,034,482

0
1,112,207,833 (10,336,613) 165,856 0 0 0 (82,000) 0 0 982,989

(2,400,405)

(2,400,405)

1,453,154,306 (20,471,837)
39,857,145 35,688,800
4,957,024
(14,894,947) 199,786 44,077

2,565,362,139 (30,808,450) 165,856 39,857,145 35,688,800 4,957,024 (82,000) (14,894,947) 199,786 1,027,066

$ 1,128,061,584 $ 1,568,044,912 $ 2,696,106,496

19

State of Georgia
Combined Statement of Cash Flows
All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units For the Fiscal Year Ended June 30, 1998

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 Vendors Cash Paid to Employees Cash Paid for Benefits Cash Paid for Claims and Judgments Cash Paid for Lottery Prizes Cash Paid for Scholarships Origination of Program 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 of Program Loans Under Repurchase Agreements Issuance of Bonds/Loans/Notes Contributed Capital Hotel/Motel Tax (Net) Operating Transfers Out Operating Transfers to Primary Government Repayment of Advances Principal Paid on Bonds/Loans/Notes Interest Paid on Bonds/Loans/Notes Return of Contributed Capital Transfer of Equity from Primary Government 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 of Bonds/Loans/Notes Hotel/Motel Tax Received Contributed Capital Sale of Capital Assets Acquisition and Construction of Capital Assets Principal Paid on Bonds/Loans/Notes Interest Paid on Bonds/Loans/Notes 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 of Investments (Net) Interest on Investments Other Investing Items (Net)
Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1
Cash and Cash Equivalents, June 30

Primary Government

Fiduciary

Proprietary Fund Types

Fund Type

Internal

Nonexpendable

Enterprise

Service

Trust

Totals -
(Memorandum Only)
Primary Government

Totals -

(Memorandum

Component Units Only)

Proprietary

Reporting

Fund Types

Entity

$

29,396 $ 308,349,050 $

1,038,477,795 115,640,381

1,763,355

(223,443,697) (2,498,622)
(851,524,392)

(248,934,439) (81,119,778) (15,178,000) (84,658,119)

$ 308,378,446 $ 2,026,445,498 $ 2,334,823,944

1,154,118,176

1,154,118,176

1,763,355

1,763,355

0 123,192,291 123,192,291

0

75,218,750

75,218,750

(4,944) (472,383,080) (431,389,348) (903,772,428)

(83,618,400) (113,917,345) (197,535,745)

(866,702,392)

(866,702,392)

(84,658,119)

(84,658,119)

0 (864,420,000) (864,420,000)

(2,320)

(2,320)

(2,320)

0 (174,392,226) (174,392,226)

0 (17,303,499) (17,303,499)

0

166,120

166,120

$ (38,959,520) $ (4,137,550) $

(7,264) $ (43,104,334) $ 623,600,241 $ 580,495,907

$

$ 54,197,836 $

$ 54,197,836 $

$ 54,197,836

0

62,019,706

62,019,706

(17,427,367)
(82,000) 866,532

0 0 0 0 (17,427,367) 0 0 0 0 (82,000) 0 0 866,532

10,711,222 167,621,141 24,723,485
3,200,997
(555,617,071) (53,750)
(172,969,802) (51,560,281) (14,894,947) 199,786 (2,182,005) (1,989,564)

10,711,222 167,621,141
24,723,485 3,200,997
(17,427,367) (555,617,071)
(53,750) (172,969,802)
(51,560,281) (14,976,947)
199,786 (2,182,005) (1,123,032)

$

0 $ 37,555,001 $

0 $ 37,555,001 $ (530,791,083) $ (493,236,082)

$

$

$

165,856

(89,828)

(14,345,953) (242,857) (57,945)

$

(89,828) $ (14,480,899) $

$

0 $ 76,654,509 $ 76,654,509

0

13,781,971

13,781,971

165,856

45,336,032

45,501,888

0

614,951

614,951

(14,435,781) (60,165,419) (74,601,200)

(242,857) (90,215,248) (90,458,105)

(57,945) (32,338,417) (32,396,362)

0

(7,809,710)

(7,809,710)

0

(334,710)

(334,710)

0 $ (14,570,727) $ (54,476,041) $ (69,046,768)

$ (47,863,480) $ (320,961,015) $

14,078,045

37,008,604

$ (33,785,435) $ (283,952,411) $ $ (72,834,783) $ (265,015,859) $
76,983,949 272,299,546

161,724 $ (368,662,771) $ (211,337,264) $ (580,000,035)

12,136

51,098,785

44,271,915

95,370,700

0

121,036

121,036

173,860 $ (317,563,986) $ (166,944,313) $ (484,508,299)

166,596 $ (337,684,046) $ (128,611,196) $ (466,295,242)

19,102

349,302,597 369,219,652 718,522,249

$ 4,149,166 $ 7,283,687 $

185,698 $ 11,618,551 $ 240,608,456 $ 252,227,007

The notes to the financial statements are an integral part of this statement.
20

State of Georgia
Combined Statement of Cash Flows
All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units For the Fiscal Year Ended June 30, 1998

Operating Income (Loss)
Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities:
Depreciation/Amortization Interest and Other Investment Income Other Changes in Assets and Liabilities:
Increase in Intergovernmental Receivables Increase in Interest and Dividends Receivable Increase in Notes and Loans Receivable Decrease (Increase) in Other Receivables Decrease in Due from Other Funds Increase in Due from Primary Government Increase in Due from Component Units Decrease in Inventories Decrease (Increase) in Prepaid Items 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 Decrease in Salaries/Withholdings Payable Increase in Benefits Payable Increase in Due to Other Funds Increase in Due to Primary Government Increase in Due to Component Units Increase in Deferred Revenue Decrease in Funds Held for Others Decrease in Other Liabilities Increase (Decrease) in Deposits and Overpayments Increase in Grand Prizes Payable
Total Adjustments

Primary Government

Fiduciary

Proprietary Fund Types

Fund Type

Internal

Nonexpendable

Enterprise

Service

Trust

Totals -
(Memorandum Only)
Primary Government

Totals -

(Memorandum

Component Units Only)

Proprietary

Reporting

Fund Types

Entity

$ (34,146,062) $ 23,185,827 $

5,653 $ (10,954,582) $ 543,687,677 $ 532,733,095

$

$ 1,309,224 $

(13,614,428) (145,271,963)

(2,707,381)
(1,349,172) 84,269
(184,807) 11,561,539
1,396,522

55,534 13,832,580
50,589 (102,675) (22,928)
(3,180,875) 332,098
98,796,655 5,449,562
(79,794)
319,350
143 6,384

1,182,739

$ (4,813,458) $ (27,323,377) $

$ 1,309,224 $ 36,318,512 $ 37,627,736 (12,917) (158,899,308) 57,242,065 (101,657,243)
0 (38,043,891) (38,043,891)

0 0 0 (2,651,847) 13,832,580 0 50,589 (102,675) (22,928) 0 (4,530,047) 416,367 98,796,655 5,264,755 (79,794) 11,561,539 319,350 0 143 1,402,906 0 0 1,182,739 0

(2,518,671) (1,367,878) (51,180,079) 9,947,439
(71)
476,213 1,209,943 5,256,224
334,264 267,213
(347,551) (218,934)
45,454
736,463 (6,859)
(118,997) (550,295) 62,432,000

(2,518,671) (1,367,878) (51,180,079) 7,295,592 13,832,580
(71) 50,589 373,538 1,187,015 5,256,224 (4,195,783) 683,580 98,796,655 4,917,204 (298,728) 11,561,539 319,350 45,454
143 2,139,369
(6,859) (118,997) 632,444 62,432,000

(12,917) $ (32,149,752) $ 79,912,564 $ 47,762,812

Net Cash Provided by (Used in) Operating Activities

$ (38,959,520) $ (4,137,550) $

(7,264) $ (43,104,334) $ 623,600,241 $ 580,495,907

Noncash Investing, Capital, and Financing Activities: Acquisition of Fixed Assets through Capital Leases Disposal of Fixed Assets Donation of Fixed Assets Interest Earned on Grand Prize Investments and Grand Prizes Payable Purchase of Building on Account Refunding Bond Proceeds Deposited Directly into Escrow Account Write off of Fixed Assets

$

$ 10,520,820 $

(6,870)

(2,395,749)

(10,336,230)

$

(6,870) $ (12,731,979) $

$ 10,520,820 $

$ 10,520,820

(2,402,619)

(693,638)

(3,096,257)

0

1,777,741

1,777,741

0

20,839,000

20,839,000

0

46,403

46,403

0 (10,336,230)

90,526,229

90,526,229 (10,336,230)

0 $ (12,738,849) $ 112,495,735 $ 99,756,886

The notes to the financial statements are an integral part of this statement.
21

State of Georgia
Statements of Plan Net Assets Pension Trust Funds, Investment Trust Fund and
Discretely Presented Component Units June 30, 1998

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles)
Interest and Dividends Other Prepaid Items Fixed Assets (Net, Where Applicable, of Accumulated Depreciation)
Total Assets
Liabilities
Cash Overdraft Accounts Payable and Other Accruals Salaries/Withholdings Payable Due to Other Funds Due to Primary Government
Total Liabilities

Defined Contribution
Plan

District Attorneys Retirement
Fund

District Attorneys Retirement System

Primary Government

Employees' Retirement
System

Legislative Retirement
System

Superior Court Judges Retirement
Fund

Superior Court Judges Retirement
System

Trial Judges and Solicitors
Retirement Fund

$

70,000 $

25,888,000

3,000 $

17,000 $

$

31,001,000 11,275,768,772

82,854 $ 26,386,820

60,000 $

$

1,547,000

114,701,000

87,000 55,800,000

227,000 982,000

47,000

93,182,000 5,467,799 15,906

326

1,000

187,000

251,000

$ 27,167,000 $

3,000 $ 31,065,000 $ 11,374,434,477 $ 26,470,000 $

1,608,000 $ 114,888,000 $ 56,138,000

$

$

2,000

$

2,000 $

$ 3,000
3,000 $

$ 6,000

2,152,641 $ 6,232,428
23,629 632,673

6,000 $

9,041,371 $

$ 13,000 26,000
39,000 $

$ 36,000

153,000 $ 45,000

36,000 $

198,000 $

$ 7,000
7,000

Fund Balances Reserved for Pension Benefits and Investment Trust Fund $

27,165,000 $

(Schedules of funding progress are presented on pages 91 and 93)

0 $ 31,059,000 $ 11,365,393,106 $ 26,431,000 $

1,572,000 $ 114,690,000 $ 56,131,000

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

Investment Trust Fund

Total Primary Government

Firefighters' Pension Fund

Judges of the Probate Courts
Retirement Fund

Component Units - Fiduciary Fund Types

Public School

Peace Officers' Employees

Sheriffs'

Annuity and Benefit Fund

Retirement System

Retirement Fund

Superior Court Clerks' Retirement
Fund

Teachers Retirement
System

Total Component
Units

$

$

319,854 $

$

2,834,115,490 14,365,208,082

308,339,127

28,224 $ 3,389,458 $

$

35,543,811

242,328,596

702,149,000

$ 38,813,522

52,760 $

$

3,470,442

34,421,652 34,444,586,000 35,806,181,708

93,409,000 6,936,125
15,906
0
$ 2,834,115,490 $ 14,465,888,967 $

2,313,832
267,407 310,920,366 $

325,490

2,017,814

6,000

291,749

606

433,794

35,898,131 $ 248,169,662 $ 702,155,000 $

20,620 39,125,891 $

245,932,000 180,370,720
42,175

250,880,885 180,376,720
42,175

19,207

741,634

34,493,619 $ 34,870,930,895 $ 36,241,693,564

$ 174,669,398 $ $ 174,669,398 $

176,975,039 $ 6,344,428 23,629 658,673 0
184,001,769 $

394 $ 394 $

$ 1,279
1,279 $

$ 4,393

38,000 $ 267,000

4,393 $

305,000 $

9,130 $ 9,130 $

$

65,282 $

1,987,730

62,762

39,946

0 $

2,155,720 $

112,806 2,254,730
68,434 0
39,946
2,475,916

$ 2,659,446,092 $ 14,281,887,198 $ 310,919,972 $ 35,896,852 $ 248,165,269 $ 701,850,000 $ 39,116,761 $ 34,493,619 $ 34,868,775,175 $ 36,239,217,648

23

State of Georgia
Statements of Changes in Plan Net Assets Pension Trust Funds, Investment Trust Fund and
Discretely Presented Component Units For the Fiscal Year Ended June 30, 1998

Additions: Contributions Employer and Employee Fines and Forfeits Fines and Bond Forfeitures Interest and Other Investment Income Dividends and Interest Net Appreciation in Fair Value of Investments
Less: Investment Expense Net Gain on Disposal of Investment Securities Pool Participant Deposits Sales and Services Civil Cases Marriage License Fees Real Estate Recording Fees Taxes Insurance Companies Other Miscellaneous
Total Additions
Deductions: General and Administrative Expenses Benefits Pool Participant Withdrawals Refunds
Total Deductions
Net Increase Before Operating Transfers
Operating Transfers: Transfers from Primary Government Transfers to Primary Government
Net Operating Transfers
Net Increase

Defined Contribution
Plan

District Attorneys Retirement
Fund

District Attorneys Retirement System

Employees' Retirement
System

Primary Government

Superior

Legislative

Court Judges

Retirement

Retirement

System

Fund

Superior Court Judges Retirement
System

Trial Judges and Solicitors
Retirement Fund

$ 10,473,000 $ 179,000 $ 574,000 $ 341,623,000 $ 406,000 $ 1,893,000 $ 2,223,000 $ 1,670,000

1,153,904 2,159,680
(11,584)

978,750 4,668,750
(22,500)

366,261,980 1,747,350,100
(8,824,080)

743,676 3,547,420
(17,096)

50,112 239,040
(1,152)

3,732,300 17,803,500
(85,800)

1,835,178 8,754,010
(42,188)

$ 13,775,000 $ 179,000 $ 6,199,000 $ 2,446,411,000 $ 4,680,000 $ 2,181,000 $ 23,673,000 $ 12,217,000

$ 245,000 $
7,939,000 $ 8,184,000 $ $ 5,591,000 $

$ 179,000
179,000 $ 0 $

$

3,760,108 $

380,000

357,434,000

23,000

10,221,000

403,000 $ 371,415,108 $

5,796,000 $ 2,074,995,892 $

$ 977,000
18,000
995,000 $
3,685,000 $

$ 1,877,000

$ 2,437,000

$ 591,000

253,000

11,000

1,877,000 $ 2,690,000 $

602,000

304,000 $ 20,983,000 $ 11,615,000

$

$

$

$

$

$

$

$

$

$

$

$ 5,591,000 $

$

$

$

$

0 $ 5,796,000 $ 2,074,995,892 $ 3,685,000 $

$

$

$

304,000 $ 20,983,000 $ 11,615,000

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

21,574,000

0 25,263,000 9,290,397,214 22,746,000

1,268,000

93,707,000

44,516,000

Fund Balances Reserved for Pension Benefits and Investment Trust Fund, June 30

$ 27,165,000 $

0 $ 31,059,000 $ 11,365,393,106 $ 26,431,000 $ 1,572,000 $ 114,690,000 $ 56,131,000

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

Investment Trust Fund

Total Primary Government

Firefighters' Pension Fund

Judges of the Probate Courts
Retirement Fund

Component Units - Fiduciary Fund Types

Public School

Peace Officers' Employees

Sheriffs'

Annuity and

Retirement

Retirement

Benefit Fund

System

Fund

Superior Court Clerks'
Retirement Fund

Teachers Retirement
System

Total Component
Units

$

$ 359,041,000 $

0

136,169,868 (1,231,885)
3,805,624,218

510,925,768 1,784,522,500
(10,236,285) 0
3,805,624,218

0 0 0

0

0

$ 3,940,562,201 $ 6,449,877,201 $

1,446,610 $ 13,302,641 32,756,216
11,476,882 139,729
59,122,078 $

191,961 $ 442,596 1,839,103
3,363,763

1,118,559 $ 16,274,000 $

12,591,469

11,658,921 14,511,655

23,099,022 110,184,990
(531,012)

99,897 $ 2,074,867 1,527,419
5,439,715

128,195

8,232 5,973,850 $

125,736 40,006,340 $ 149,027,000 $

9,141,898 $

82,682 $ 1,012,696,008 $ 1,031,909,717

608,956

15,717,888

2,104,104

1,104,247,000 5,483,218,000
(25,734,000)

1,157,778,210 5,593,402,990
(26,265,012) 56,071,349
0

290,579 1,244,726

290,579 128,195 1,244,726

11,476,882

273,697

4,331,047 $ 7,574,427,008 $ 7,842,029,221

$

$

3,391,131,132

4,005,108 $ 363,875,000 3,391,131,132 18,465,000

$ 3,391,131,132 $ 3,777,476,240 $

$ 549,431,069 $ 2,672,400,961 $

1,562,456 $ 10,869,240
167,688
12,599,384 $
46,522,694 $

128,864 $ 1,068,532
1,197,396 $ 4,776,454 $

1,134,560 $

575,000 $

9,820,201

24,537,000

96,481

364,000

11,051,242 $ 25,476,000 $

28,955,098 $ 123,551,000 $

387,048 $ 2,106,295
2,493,343 $ 6,648,555 $

79,547 $ 2,055,696
24,750

6,634,475 $ 780,582,000
42,098,000

10,501,950 831,038,964
0 42,750,919

2,159,993 $ 829,314,475 $ 884,291,833

2,171,054 $ 6,745,112,533 $ 6,957,737,388

$

$

0 $

0

$

$

0 $

$ 549,431,069 $ 2,672,400,961 $

$
$ 46,522,694 $

$

$

$

$

$ 4,776,454 $

$

$

28,955,098 $ 123,551,000 $

$ 6,648,555 $

$

3,644,000 $

3,644,000

(179,008)

(179,008)

$

3,464,992 $

3,464,992

2,171,054 $ 6,748,577,525 $ 6,961,202,380

0 2,110,015,023

9,499,471,214 2,110,015,023

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 0

$ 2,659,446,092 $ 14,281,887,198 $ 310,919,972 $ 35,896,852 $ 248,165,269 $ 701,850,000 $ 39,116,761 $ 34,493,619 $ 34,868,775,175 $ 36,239,217,648

25

State of Georgia
Combined Statement of Changes in Fund Balances
College and University Funds For the Fiscal Year Ended June 30, 1998

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 of Prior Year's Cancelled Loans and Collection Costs
Total Revenues and Other Additions
Expenditures and Other Deductions: Education and General Expenditures Auxiliary Enterprises Expenditures Hospital Expenditures Indirect Cost Recoveries Loans Assigned to Federal Government Loan Cancellations and Write-offs Administrative and Collection Costs Expended for Plant Facilities Capitalized Non-Capitalized Other Deductions (Net) Disposals/Deletions/Adjustments
Total Expenditures and Other Deductions

Current Funds

Unrestricted

Restricted

Loan Funds

$ 1,133,372,899 $

$ 648,291,341 247,659,991
6,097,377 153,543,228

9,006,016 77,125
5,109,504

$ 136,277
3,387 180,823
828,883
942,634

2,762,120

146,784

$ 1,136,135,019 $ 1,069,931,366 $

143,194 2,235,198

$ 2,185,798,986 $ 173,763,185 190,986,076

917,433,912 $
76,720,453 58,432,729

93,992

$
61,417 621,571 172,754

176,139 $ 2,550,548,247 $ 1,052,681,086 $ 1,031,881

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

Endowment and Similar
Funds

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Total (Memorandum
Only)

$

$

$

7,599,657

10,457,258

1,044,029

9,727,268

21,836

15,241,544

13,398

14,838,207

4,399,556 2,082,959

$ 15,917,470 $ 49,508,242 $

$

$ 1,133,372,899

656,027,275

258,117,249

6,100,764

17,164,125

181,659,473

606,894

9,027,852 16,754,446 5,109,504
13,398 942,634

182,464,434

182,464,434

156,404,105 9,956,482
120,647,308

156,404,105 9,956,482
120,647,308

56,009

4,399,556 19,886,079

143,194

662,903 $ 486,636,454 $ 2,761,026,652

$

$

$

$

$ 3,103,232,898

173,763,185

267,706,529

58,432,729

61,417

621,571

58,360

325,106

156,404,105 13,459,410

9,956,481 3,197,137

93,612,906

166,360,586 16,656,547 176,139 93,612,906

$

0 $ 169,921,875 $ 13,153,618 $ 93,612,906 $ 3,880,949,613

(continued)

27

State of Georgia
Combined Statement of Changes in Fund Balances
College and University Funds (continued) For the Fiscal Year Ended June 30, 1998

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 Adjustments Change in Accounting Principle Transfer of Equity
Fund Balances, June 30

Current Funds

Unrestricted

Restricted

Loan Funds

$ (1,500,000) $ (36,373,817)
$ (37,873,817) $

(519,664) $ (1,255,670)
(1,775,334) $

(62,151) 48,520
(13,631)

$ 1,450,720,478 $ (3,340,352)
(18,915,057)
$ 1,428,465,069 $
$ (23,821,976) $
123,914,009
256,446 400,296

$

$

0 $
15,474,946 $
55,262,001
1,738,172 (400,296)

0 1,189,686 59,452,142
289,846

$ 100,748,775 $ 72,074,823 $ 60,931,674

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

Endowment and Similar
Funds

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Total (Memorandum
Only)

$ 2,081,815 $

$

$

(490,706)

24,840,455

13,231,218

$

0

0

$ 1,591,109 $ 24,840,455 $ 13,231,218 $

0 $

0

$

$ 72,796,332 $

414,887 $

$ 1,523,931,697

1,155,038

(2,185,314)

(18,915,057)

$

0 $ 73,951,370 $

414,887 $

0 $ 1,502,831,326

$ 17,508,579 $ (21,621,808) $ 1,155,390 $ 393,023,548 $ 382,908,365

81,739,275

38,673,908

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

19,713,172

(35,588)

(2,023)

21,960,025 0

$ 118,961,026 $ 17,016,512 $ 34,143,126 $ 4,616,613,751 $ 5,020,489,687

29

State of Georgia
Combined Statement of Current Funds Revenues,
Expenditures and Other Changes College and University Funds
For the Fiscal Year Ended June 30, 1998

Current Funds

Unrestricted

Restricted

Total (Memorandum
Only)

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 of Auxiliary Enterprises Sales and Services of Hospital Other Sources

$ 535,016,387 $

$ 535,016,387

60,836,464

595,982,597

656,819,061

4,124,614

240,403,502

244,528,116

352,199

5,645,646

5,997,845

7,148,232

144,147,533

151,295,765

106,734

3,185,219

3,291,953

53,289,656

4,018,332

57,307,988

174,807,488

174,807,488

209,989,684

209,989,684

87,701,441

87,701,441

Total Revenues

$ 1,133,372,899 $ 993,382,829 $ 2,126,755,728

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 Staff Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units Hospital Expenditures Medical College of Georgia Hospital Georgia Correctional Health Care Georgia War Veterans Nursing Home Mandatory Transfers, Net (In) Out

$ 866,307,641 $ 87,458,437 $ 953,766,078

222,730,421

239,017,794

461,748,215

137,128,657

65,036,126

202,164,783

220,102,200

7,988,039

228,090,239

114,009,303

4,109,712

118,119,015

338,401,192

24,872,679

363,273,871

207,012,615

1,368,136

208,380,751

80,106,957

487,582,989

567,689,946

54,661,035 178,505
35,185,199 16,226,677 28,466,207 39,045,562

54,661,035 178,505
35,185,199 16,226,677 28,466,207 39,045,562

190,986,076 1,500,000

69,206,541 7,513,912 519,664

190,986,076 69,206,541 7,513,912 2,019,664

Total Expenditures and Mandatory Transfers

$ 2,552,048,247 $ 994,674,029 $ 3,546,722,276

Other Transfers and Additions (Deductions): Excess of Restricted Receipts over Transfers to Revenues Nonmandatory Transfers, Net In (Out) Other Additions (Deductions), Net Operating Transfers Transfers In Transfers Out Transfers to Component Units

$

$

(36,373,817)

2,762,120

1,450,720,478 (3,340,352)
(18,915,057)

17,969,024 $ (1,255,670)
52,792

17,969,024 (37,629,487)
2,814,912

1,450,720,478 (3,340,352)
(18,915,057)

Total Other Transfers and Additions (Deductions)

$ 1,394,853,372 $ 16,766,146 $ 1,411,619,518

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

$ (23,821,976) $ 15,474,946 $ (8,347,030)

State of Georgia
Notes to the Financial Statements
Index
Page Note 1 Summary of Significant Accounting Policies ................................................................................... 32 Note 2 Other Accounting Disclosures ....................................................................................................... 44 Note 3 Budgetary Accounting .................................................................................................................. 45 Note 4 Deposits and Investments ............................................................................................................. 48 Note 5 Receivables ................................................................................................................................. 55 Note 6 Fixed Assets................................................................................................................................ 57 Note 7 Risk Management ........................................................................................................................ 59 Note 8 Construction and Other Significant Commitments............................................................................ 60 Note 9 Operating Leases ......................................................................................................................... 60 Note 10 Capital Leases and Installment Purchases........................................................................................ 62 Note 11 Long-Term Debt.......................................................................................................................... 63 Note 12 Interfund Balances ....................................................................................................................... 68 Note 13 Contributed Capital....................................................................................................................... 70 Note 14 Contingencies .............................................................................................................................. 71 Note 15 Subsequent Events....................................................................................................................... 73 Note 16 Deferred Compensation Plan ......................................................................................................... 73 Note 17 Retirement Systems ..................................................................................................................... 74 Note 18 Nonmonetary Transactions ........................................................................................................... 81 Note 19 Postemployment Benefits.............................................................................................................. 82 Note 20 Fund Deficits .............................................................................................................................. 82 Note 21 Major Discretely Presented Component Unit Condensed Financial Statements..................................... 83
31

State of Georgia
Notes to the Financial Statements
June 30, 1998

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 financial statements of the State of Georgia 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 financial 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 financial 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 financial 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 of the GASB Codification of Governmental Accounting and Financial Reporting Standards. This Section defines a component unit as a legally separate organization for which the primary government is financially 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 financial 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 financial benefits or impose specific financial 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 financial 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 of the 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 of those 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 of four 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 of constructing and managing penal institutions, penitentiaries, prisons and prison institutes, detention and corrections institutions, rehabilitation facilities and county correctional institutions. The Board consists of four State officials designated by statute and one member appointed by the Governor.

32

State of Georgia
Notes to the Financial Statements
June 30, 1998

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 of five 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 defined 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 of the State. The Board consists of the mayor of the 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 financial data in columns separate from the financial 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 Georgia
Notes to the Financial Statements
June 30, 1998

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 of Commissioners of the 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 finance, and financing 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 of the State's import and export markets through its ports and other transportation modes. The Board consists of twelve 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 of Fame 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 of the 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, financing, 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. Of the 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 of whom are State officials and the remaining eleven are appointed by the Governor.
Geo. L. Smith II 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 Financial Statements
June 30, 1998

Note 1. Summary of Significant Accounting Policies (continued)
Georgia Sports Hall of Fame 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 sixteen members of the Board are appointed by State officials. The issuance of bonds 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 of the authority is to 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 of recreation, accommodation and tourist facilities and services. The nine members of the Board are appointed by the Governor.

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 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 Firefighters' Pension Fund (Fiduciary Fund Type) is a multiple-employer, defined 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 of the Probate Courts Retirement Fund of 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 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.

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 financial 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.

Peace Officers' Annuity and Benefit Fund of 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 peace officers of the State of Georgia. The Board of Commissioners of the 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, defined benefit pension plan established for the purpose of providing retirement

35

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 1. Summary of Significant Accounting Policies (continued)
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.
Sheriffs' Retirement Fund of 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 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 of 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 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.
Teachers Retirement System of 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 financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities.
A fund is a separate accounting entity with a 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 financial resources.
Primary Government - The financial 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 of principal 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 financial administration.

36

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 1. Summary of Significant Accounting Policies (continued)
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 be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination 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.
Investment Trust Fund - Investment Trust Funds are used to account for the external portion of a government-sponsored investment pool.

The primary government investment trust fund is Georgia Fund 1, which is administered by the Office of Treasury and Fiscal Services. Georgia Fund 1 was established to enable local governments to voluntarily invest any idle local moneys.
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 amounts held in custody for students, university-related organizations and others. Agency Funds are also used to account for the external portion of college and university fund-sponsored investment pools.
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-term liabilities not otherwise recorded in proprietary, fiduciary, and college and university funds.

37

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 1. Summary of Significant Accounting Policies (continued)
Discretely Presented Component Units - The financial statements of the component units, other than the component units which financial statements were blended with the financial statements of the primary government due to their relationship with the primary government, are presented in separate columns. The three columns presented reflect financial 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 determination of net income is necessary or useful for sound financial management.
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 financial 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 financial 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 financial 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 (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets.
All proprietary funds, nonexpendable trust funds, pension trust funds and investment 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, pension trust funds and investment 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 Firefighters' 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 of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements.
As permitted by generally accepted accounting principles for colleges and universities, no depreciation is provided for the physical properties.

38

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 1. Summary of Significant Accounting Policies (continued)
D. Budgets
The annual budget of the 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 of the 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 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, 1998, to the excess (deficiency) 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 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 financial 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 of the 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. The pooled investment fund is also available on a voluntary basis to organizations outside of the State reporting entity.
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 of the State.
Pooled cash and cash equivalents and investments are grouped into portfolios for investment purposes according to the operating needs of the State of Georgia and other pool contributors.
The Primary Liquidity Portfolio is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission (SEC) as an investment company, but does operate in a

39

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 1. Summary of Significant Accounting Policies (continued)
manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal. Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participants' shares sold and redeemed at the pool's share price, $1.00 per share.
The Extended Term Portfolio consist of repurchase agreements and certain U.S. Government Securities which include mortgage-backed securities such as collateralized mortgage obligations and adjustable rate mortgages. These mortgage-backed securities are reported as U.S. Government Securities in the disclosure of custodial credit risk (see Note 4). Investments in this portfolio are transacted by an external investment management firm under direction of an investment advisory agreement executed between the Office of Treasury and Fiscal Services and the investment management firm. The agreement directs the investment firm to utilize the Merrill Lynch 1-3 year Treasury Index in managing the average duration of the overall portfolio, excluding cash, to within plus or minus six months of the duration of the Index. As of June 30, 1998, the State had $47,362,040 invested in U. S. agency mortgage- and assetbacked securities.
Other organizations of the State of Georgia reporting entity invest in a variety of financial 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 of other organizations are stated at fair value at June 30, 1998.
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 of the proceeds of agricultural products or livestock handled or sold by the dealer. Cash bonds are required to designate the Department as trustee of the funds and may take the form of

certificates of deposit, letters of credit, money orders or cashiers' checks. At June 30, 1998, the Department held surety bonds in the amount of $32,920,366, and cash bonds in the amount of $11,416,189. 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 of a 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, 1998, securities in the amount of $194,651,483 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 of these 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, 1998, $42,105,490 in escrow deposits were administered by the Department of Transportation and $75,788 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 1-C) have been met. Estimates of allowances for uncollectible receivables have not been made for the majority of receivables included within the financial statements.

40

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 1. Summary of Significant Accounting Policies (continued)

assets. The fund balance reserve is based on values established by the U. S. Department of Agriculture.

G. Interfund Receivables
The short-term portion of balances arising in connection with interfund loans are recorded as interfund receivables.
H. 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.

K. Prepaid Items
Payments made to vendors and local government organizations for services that will benefit periods beyond June 30, 1998, are recorded as prepaid items.
L. 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.

I. Advances to Other Funds
Noncurrent portions of long-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 financial resources and therefore are not available for appropriation.
J. 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 first-in/first-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 of fund 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. 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

M. 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 expendable 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 of the 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 financial 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 of the 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

41

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 1. Summary of Significant Accounting Policies (continued)
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.
N. 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 of ninety days. Sick leave does not vest with the employee. Unused accumulated sick leave is forfeited upon retirement or termination of employment. However, certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave 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.

O. 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.
P. Mortgage Loans Under Repurchase Agreements
At June 30, 1998, mortgage loans totaling $17,728,827 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 of the 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.
Q. 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 financed from proprietary fund operations are accounted for in those funds.

42

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 1. Summary of Significant Accounting Policies (continued)
R. Fund Equity

Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all other interfund transactions.

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 financial resources.
S. Bond Discounts/Premiums/Issuance 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.
T. 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.

U. Intrafund Transactions
State accounting policies and procedures allow for the recording of revenues, receivables, expenses and liabilities for transactions between State organizations whose financial 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 financial 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.
V. Memorandum Only - Total Columns
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial 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.
W. Fiscal Reporting Periods
The financial statements include financial activity for the Stone Mountain Memorial Association whose fiscal reporting period differs from that of the State of Georgia (July 1, 1997 through June 30, 1998). 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 December 30, 1996, through January 2, 1998.

43

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 2. Other Accounting Disclosures

Change in Accounting Policy and Restatements
Atlanta and Savannah Technical Institutes have been added to the reporting entity as a part of the General Fund for the year ended June 30, 1998. The beginning fund balance for the general fund has been increased by $1,504,009 due to the inclusion of these organizations.

Primary Government

General Fund Restatement of Beginning Fund Balance
for the Inclusion of Atlanta and Savannah Technical Institutes

$ 1,504,009

In fiscal year 1998, the State implemented GASB Statement 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools." The statement establishes fair value standards for reporting certain investments and establishes financial statement reporting standards for external investment pools. These changes are reflected as adjustments to fund equity in the applicable funds.
A reconciliation of the 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 financial statement balance. The beginning fund equity of the internal service funds has been decreased by $10,336,230 for this correction.
In prior years, the Ports Authority recorded contributions from the primary government to be used to construct certain facilities. The expenditure of these funds was charged to construction in progress. The Authority believes this investment is not recoverable and that the related cash receipts and expenditures should not have been recorded as contributions or as an asset of the Authority. The beginning fund equity of the discretely presented component units - proprietary fund types has been decreased by $8,600,000, and construction in progress has been restated.

Capital Projects Funds Investments Reported at Fair Value Correction of Errors
Internal Service Funds Fixed Assets Correction
Expendable Trust Funds Investments Reported at Fair Value
Nonexpendable Trust Funds Investments Reported at Fair Value
Investment Trust Fund External Pool Reporting
College and University Funds Investments Reported at Fair Value

$ 14,058,031 7,600,000
$ 21,658,031

$ (10,336,230)

$

(6,504)

$

(383)

$2,110,015,023

$ 21,960,025

Fund balances/fund equity at July 1, 1997, have been adjusted as follows:

Discretely Presented Component Units

Proprietary Fund Types

Investments Reported at Fair Value

$ (4,573,552)

Contributed Capital Restatement

(8,600,000)

Correction of Errors

(7,298,285)

$ (20,471,837)

44

State of Georgia
Notes to the Financial Statements
June 30, 1998

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 financial requirements for the subsequent fiscal year to the Office of Planning and Budget, which operates under the direction of the Governor. Budget estimates relative to the legislative and judicial branches of State government are provided to the Office of Planning and Budget for the purpose of estimating the total financial needs of the 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 of 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 of the 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 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. 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 (i.e., agencies, commissions) of the State are responsible for budgetary control of their respective portion of the total State appropriated budget. The legal level of budgetary control is at the departmental level. Due to the complex nature of the 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 majority 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 Financial Statements
June 30, 1998
Note 3. Budgetary Accounting (continued)

Budgetary Fund

Financial Statement Fund Types Primary Government

Excess of Funds Available Over Expenditures - Budget Fund Budgetary Method

Budget

General

Special Revenue

Debt Service

Capital Projects

Enterprise

Internal Service

$ 1,450,740,846 $

-

$

-

$

-

$

-

$

-

$

-

Entity and Perspective Differences:
Reclassification of Budgetary 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 Expenditures/Expenses and Related Liabilities
Timing Differences:
Revenues
Expenditures/Expenses
Excess (Deficiency) 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

(1,450,740,846) -

1,381,141,302 578,997,585 -

(26,216)
-

24,561,677
-

(131,739,289)
-

80,102,715 -

27,055,475 45,703,375
-

-

(1,650,202,031)

-

-

-

136,156,841

-

-

-

5,176,425

-

-

-

-

-

-

-

(104,178,967)

(23,320,739)

-

(10,076,680)

11,111,554

-

-

-

-

-

(1,278,867)

$

-

$ 451,270,122 $ (26,216) $ 24,561,677 $ (131,739,289) $ (34,152,932) $ 59,270,798

46

State of Georgia
Notes to the Financial Statements
June 30, 1998

Excess of Funds Available Over Expenditures - Budget Fund Budgetary Method
Entity and Perspective Differences:
Reclassification of Budgetary 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 Expenditures/Expenses and Related Liabilities
Timing Differences:
Revenues
Expenditures/Expenses
Excess (Deficiency) 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

Expendable Trust

Financial Statement Fund Types

Primary Government

Nonexpendable Trust

Pension/ Investment
Trust

College and University

Discretely Presented Component Units

Governmental

Proprietary

Fiduciary

$

-

$

-

$

-

$

-

$

-

$

-

$

-

178,443,594
-

5,653
-

200 2,672,400,961
-

(33,479,864) (6,107,820) 22,979,866

(4,542,999) (732,931) -

283,008 69,898,531
-

181,009 6,961,199,855
-

-

-

(200)

9,208,371

(264,137)

(718,915)

(2,000)

-

-

-

(3,817,904)

1,331,847

47,934

2,525

-

-

-

18,760

-

-

-

-

-

-

2,851,561

-

-

(179,009)

$ 178,443,594 $

5,653 $ 2,672,400,961 $ (8,347,030) $ (4,208,220) $ 69,510,558 $ 6,961,202,380

47

State of Georgia
Notes to the Financial Statements
June 30, 1998

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 any one or more of the following securities as enumerated in OCGA 50-17-59:
1) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia.
2) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia.
3) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.

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 $551,093,963, and the bank balances were $1,119,194,950. 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 financial 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, 1998:

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.

Risk Category 1 2 3

Bank Balance $ 328,827,903
298,713,481 491,653,566 $ 1,119,194,950

48

State of Georgia
Notes to the Financial Statements
June 30, 1998
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:

Governmental Fund Types
Georgia Education Authority (Schools)
Georgia Public Telecommunications Commission
Proprietary Fund Types
Environmental Facilities Authority
Georgia Housing and Financing Authority
Geo. L. Smith II Georgia World Congress Center Authority
All Other Component Units
Fiduciary Fund Types
Peace Officers' Annuity and Benefit Fund
All Other Component Units

Risk Categories

1

2

Funds Held by (for)

3

Bank Balance

Primary Government

Carrying Amount

$

61 $

$

282,704 $

-

$

-

$

-

$

397,925 $

61 $ 680,629 $

601,120 $ 1,910 $

$

4,736,763 $

-

$

-

$

4,736,763 $

$ 41,056,020 $

-

$ 115,935,723 $ 156,991,743 $

$

179,018 $

$ 36,933,499 $

2,355,182 $ 6,211,864 $

-

$

38,596,715 $

2,534,200 $ 81,742,078 $

205,683,639 $ 9,085,952 $ 16,857 $
57,881,964 $

61 (1,118,441)
10,973,156 159,455,286
299,027 51,264,127

$

100,000 $

$

2,969,942 $

-

$

229,165 $

3,304,795 $

-

$

3,404,795 $ 3,199,107 $

13,008,506 $ 713,027,501 $

3,389,258 385,162

Investments - Investments 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 orits 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 Financial Statements
June 30, 1998
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 Municipal Bonds Repurchase Agreements Stocks U.S. Government
Securities and Corporate Obligations
Unclassified
Mortgages Mutual Funds Other Unemployment
Compensation Funds Pooled with the U.S. Treasury Total Investments

Risk Categories

1

2

$

1,708,951 $

354,827,597

8,385,100

-

2,785,068,420

13,642,636

7,817,024,677

52,525,687

3

$

-

-

-

-

10,216,310,485

98,760,653

-

$

20,828,497,633

$

519,756,573

$

Carrying Amount

$

356,536,548

8,385,100

2,798,711,056

7,869,550,364

10,315,071,138 $ 21,348,254,206

4,758,905 14,848,031
6,255

1,914,400,343 $ 23,282,267,740

50

State of Georgia
Notes to the Financial Statements
June 30, 1998
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:

Governmental Fund Types
Georgia Public Telecommunications Commission
Proprietary Fund Types
Georgia Housing and Finance Authority

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

Unclassified Mortgages

All Other Component Units

Commercial Paper Corporate Bonds
Repurchase Agreements U.S. Government
Securities and Corporate Obligations

Risk Categories

1

2

3

Carrying Amount

$

159,334

$

-

$

-

$

159,334

$

1,389,489

$

2,726,805

-

$

-

-

$

1,389,489

-

2,726,805

36,502,945

$

40,619,239

$

-

-

$

-

36,502,945

-

$

40,619,239

$

1,508,677

$

1,000,000

50,278,585

-

$

-

-

42,656,601

$

83,275,840

-

$

1,508,677

1,000,000 -

-

50,278,585

255,951,326

$

308,738,588 $

4,068,349 4,068,349 $

103,053,000 103,053,000

363,072,675

$

415,859,937

51

State of Georgia
Notes to the Financial Statements
June 30, 1998
Note 4. Deposits and Investments (continued)

Fiduciary Fund Types Teachers Retirement
System of Georgia
All Other Component Units

Type of Investment
Repurchase Agreements Stocks U.S. Government
Securities and Corporate Obligations
Unclassified Real Estate
Corporate Bonds Investment Accounts Notes Repurchase Agreements Stocks U.S. Government
Securities and Corporate Obligations
Unclassified Mutual Funds Real Estate

Risk Categories

1

2

3

Carrying Amount

$

486,319,000

$

20,685,510,000

13,268,987,000

$ 34,440,816,000

$

$

14,723,618

$

163,450

42,369,973

525,000

267,349,346

279,947,855

$

605,078,242

$

-

$

-

-

-

$

-

$

-

-

-

-

-

-

$

-

$

486,319,000

-

20,685,510,000

-

13,268,987,000

-

$ 34,440,816,000

3,770,000

$ 34,444,586,000

-

$

14,723,618

-

163,450

-

42,369,973

-

525,000

-

267,349,346

-

279,947,855

-

$

605,078,242

28,846,747

1,217,703

$

635,142,692

Investments Lending Program - The State is presently involved in a securities lending program with major brokerage firms. The State lends equity and fixed income securities for varying terms 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 firms pledge collateral securities consisting of U. S. Government and agency securities, mortgage-backed securities issued by a U. 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 $18,542,163,000 at June 30, 1998, and the collateral value was equal to 103.7%. 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 Georgia
Notes to the Financial Statements
June 30, 1998
Note 4. Deposits and Investments (continued)
Investment Pools - Separate reports on the State's external investment pools are not issued. Condensed financial statements, inclusive of external and internal participants for the fiscal year ended June 30, 1998, are as follows:

Assets Investments

State Investment Pool Statement of Net Assets
June 30, 1998
$ 4,281,356,647

Liabilities Cash Overdraft

238,942,916

Net Assets

$ 4,042,413,731

Distribution of Net Assets External Participant Account Balances Internal Participant Account Balances

$ 2,659,446,092 1,382,967,639
$ 4,042,413,731

State Investment Pool Statement of Changes in Net Assets For the Fiscal Year Ended June 30, 1998

Additions Pool Participant Deposits Investment Income Less: Investment Expense Total Additions

$ 9,937,242,067 333,916,752 (1,735,049)
$10,269,423,770

Deductions Pool Participant Withdrawals Net Increase
Net Assets July 1

9,557,355,504 $ 712,068,266
3,330,345,465

June 30

$ 4,042,413,731

53

State of Georgia
Notes to the Financial Statements
June 30, 1998
Note 4. Deposits and Investments (continued)

Regents Investment Pool Statement of Net Assets
June 30, 1998

Assets Investments Interest Receivable

$ 100,703,314 427,114

Total Assets

$ 101,130,428

Liabilities Cash Overdraft

1,523,174

Net Assets

$ 99,607,254

Distribution of Net Assets External Participant Account Balances Internal Participant Account Balances

$ 6,528,363 93,078,891
$ 99,607,254

Regents Investment Pool Statement of Changes in Net Assets For the Fiscal Year Ended June 30, 1998

Additions Investment Income Interest Fair Value Increases Less: Investment Expense Total Additions
Deductions Pool Participant Withdrawals Capital Transactions Total Deductions Net Decrease
Net Assets July 1

$ 4,022,844 10,531,063 (369,270)
$ 14,184,637
$ 59,250,391 (26,951,815)
$ 32,298,576 $ (18,113,939)
117,721,193

June 30

$ 99,607,254

54

Note 5. Receivables

State of Georgia
Notes to the Financial Statements
June 30, 1998

Primary Government

Receivables by fund type as of June 30, 1998, 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

$ 3,277,652,421 1,779,103 13,092,184
20,749,365 10,837,247
99,540,799 100,345,125 26,373,232 302,345,438
$ 3,852,714,914

$

-

-

-

(2,180,096) -

(15,438,484) -
(59,151,501)

$ (76,770,081)

$ 3,277,652,421 1,779,103
13,092,184
18,569,269 10,837,247
84,102,315 100,345,125 26,373,232 243,193,937
$3,775,944,833

55

State of Georgia
Notes to the Financial Statements
June 30, 1998
Note 5. Receivables (continued)
Significant Discretely Presented Component Units
Receivables of the significant discretely presented component units as of June 30, 1998, 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

$ 1,576,842 $ (150,000)

$

-

$

-

$ 1,426,842

554,071,211
664,695,260 398,394,189 149,429,109

-
(265,063) (1,727,749) (4,364,029)

-
(31,116,476)
-

-
(194,505)

554,071,211
664,430,197 365,549,964 144,870,575

426,302,720

-

4,954,885

-

-

-

426,302,720

-

-

4,954,885

$ 2,199,424,216 $ (6,506,841) $ (31,116,476) $ (194,505) $ 2,161,606,394

56

Note 6. Fixed Assets

State of Georgia
Notes to the Financial Statements
June 30, 1998

Primary Government

The following is a summary of changes in the general fixed assets account group during the fiscal year:

Land and Buildings Improvements Other Than Buildings Machinery and Equipment Construction in Progress
Total General Fixed Assets

Balance July 1, 1997 $ 1,856,103,612
389,573 850,747,262
-
$ 2,707,240,447

Additions $ 133,562,109
59,059 129,035,657
350,787
$ 263,007,612

Retirements $ (1,698,794)
(53,660,964)
-
$ (55,359,758)

Balance June 30, 1998 $ 1,987,966,927
448,632 926,121,955
350,787
$ 2,914,888,301

The following is a summary of the proprietary fund types and college and university funds fixed assets at June 30, 1998:

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

$

-

$ 242,027,505

-

-

313,620

181,354,768

-

(11,980,413)

-

-

$

313,620

$ 411,401,860

College and University Funds $ 2,692,992,145
181,591,288 1,561,332,914
200,930,122 $ 4,636,846,469

57

State of Georgia
Notes to the Financial Statements
June 30, 1998
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, 1998:

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

Governmental Fund Types

Proprietary Fund Types

Georgia Public Telecommunications
Commission

Georgia Ports
Authority

Stone Mountain Memorial Association

Geo. L. Smith II Georgia World Congress Center
Authority

All Other Component
Units

$

27,360,330 $

173,885,000 $

81,304,479 $

209,402,736 $

87,078,996

-

200,806,000

18,980,870

-

2,710,490

64,270,414

117,111,000

28,009,630

11,729,405

29,963,747

-

(204,906,000)

(32,656,784)

(43,869,410)

(20,100,103)

-

63,114,000

287,578

70,791,475

25,026,332

$

91,630,744 $

350,010,000 $

95,925,773 $

248,054,206 $

124,679,462

Land and Buildings Machinery and Equipment
Net Fixed Assets

Fiduciary Fund Types

Firefighters' Pension Fund
$ 135,197
132,210

Peace Officers' Annuity and Benefit Fund

$

310,296

123,498

All Other Component
Units

$

-

40,433

$ 267,407 $

433,794 $ 40,433

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

58

State of Georgia
Notes to the Financial Statements
June 30, 1998

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.

B. Board of Regents Employee Health Benefits Plan
The Board of Regents of the University System of Georgia maintains a program of health 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, 1998, and 1997, is shown below:

A reconciliation of total claims liabilities for fiscal years ended June 30, 1998, and 1997, is shown below:

Fiscal Year Ended June 30, 1998

Fiscal Year Ended June 30, 1997

Unpaid Claims and Claim Adjustments July 1

Fiscal Year Ended June 30, 1998

Fiscal Year Ended June 30, 1997

$148,196,779 $159,373,817

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

863,085,931

820,471,532

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

(851,524,392) (831,648,570)

Unpaid Claims and Claim Adjustments June 30

$159,758,318 $148,196,779

Unpaid Claims and Claim Adjustments July 1

$ 20,900,000 $ 19,600,000

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

140,916,616

138,407,492

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

(140,016,616) (137,107,492)

Unpaid Claims and Claim Adjustments June 30

$ 21,800,000 $ 20,900,000

C. Other Risk Management
The Department of Administrative 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.

59

State of Georgia
Notes to the Financial Statements
June 30, 1998

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 of loss 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.

Significant Discretely Presented Component Units
Proprietary Fund Types At June 30, 1998, the Georgia Ports Authority had commitments for construction projects of approximately $34,000,000.
Note 9. Operating Leases
A. Lessee

A reconciliation of total claims liabilities for fiscal year ended June 30, 1998, is shown below:

Fiscal Year Ended June 30, 1998

Fiscal Year Ended June 30, 1997

Unpaid Claims and Claim Adjustments July 1

$ 258,497,047

$ 239,893,133

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

183,454,774

123,841,662

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

(84,658,119)

(105,237,748)

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 of renewing 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, 1998, 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

Unpaid Claims and Claim Adjustments June 30

$ 357,293,702 $ 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, 1998, the undisbursed balance remaining on these agreements approximates $769,000,000.

Fiscal Year Ended June 30 1999 2000 2001 2002 2003 2004 and Subsequent
Total Minimum Commitments

$ 59,531,531 10,632,192 8,855,963 8,367,523 7,984,919 39,155,571
$134,527,699

Expenditures for rental of real property and equipment for the year ended June 30, 1998, totaled $70,253,027.

60

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 9. Operating Leases (continued)

B. Lessor

Significant Discretely Presented Component Units
Proprietary Fund Types

Georgia Lottery Corporation

Fiscal Year Ended June 30

1999

$ 1,961,000

2000

1,963,000

2001

1,963,000

2002

1,963,000

2003

1,963,000

2004 and Subsequent

14,000

$ 9,827,000

Less: Sublease Revenues

(1,804,000)

Total

$ 8,023,000

The State leases certain of its facilities for use by others for terms 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, 1998, are as follows:
Primary Government

Fiscal Year Ended June 30 1999 2000 2001 2002 2003 2004 and Subsequent
Total

$ 8,193,263 8,312,029 8,427,780 8,555,230 8,685,546
172,646,184 $ 214,820,032

Expenditures for rental of real property and equipment for the year ended June 30, 1998, totaled $1,606,000.

North Georgia Mountains Authority

Fiscal Year Ended June 30

1999

$ 1,429,219

2000

1,432,064

2001

1,434,982

2002

1,438,486

2003

1,448,954

2004 and Subsequent

16,858,914

Total Minimum Commitments

$ 24,042,619

Expenditures for rental of real property and equipment for the year ended June 30, 1998, totaled $1,426,635.

Revenues from rental of facilities for the year ended June 30, 1998, totaled $8,071,765.

Significant Discretely Presented Component Units
Proprietary Fund Types

Lake Lanier Islands Development Authority

Fiscal Year Ended June 30

1999

$ 3,100,000

2000

3,100,000

2001

3,100,000

2002

3,200,000

2003

3,200,000

2004 and Subsequent

141,066,667

Total

$ 156,766,667

61

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 9. Operating Leases (continued)

Primary Government

Revenues from rental of facilities for the year ended June 30, 1998, totaled $2,850,000.
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, 1998, future commitments under installment purchases and capital leases were as follows:

Fiscal Year Ended June 30 1999 2000 2001 2002 2003 2004 and Subsequent
Total Capital Lease and Installment Purchase Payments Less: Interest Present Value of Capital Lease and Installment Purchase
Payments
Installment Purchases Capital Leases

$ 14,153,483 12,978,185 9,012,456 2,418,097 140,830 34,835
$ 38,737,886 (3,580,966)
$ 35,156,920
$ 2,485,830 32,671,090
$ 35,156,920

Significant Discretely Presented Component Units
Governmental Fund Types

Georgia Public Telecommunications Commission

Fiscal Year Ended June 30

1999

$ 2,087,411

2000

2,083,804

2001

2,083,804

2002

2,083,804

2003

2,083,804

2004 and Subsequent

2,309,919

Total Installment Purchase Payments

$ 12,732,546

Less: Interest

(1,907,886)

Present Value of Installment Purchase Payments

$ 10,824,660

62

State of Georgia
Notes to the Financial Statements
June 30, 1998

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

Geo. L. Smith II Georgia World Congress Center Authority
Fiscal Year Ended June 30 1999 2000 2001 2002 2003 2004 and Subsequent
Total Capital Lease and Installment Purchase Payments
Less: Interest Present Value of Capital Leases and
Installment Purchases

$ 312,464 309,657 154,827 -
$ 776,948 (106,850)
$ 670,098

Installment Purchases Capital Leases

$ 670,098 -
$ 670,098

Note 11. Long-Term Debt
Primary Government
General Obligation Bonds. The State issues general obligation bonds to provide funds for the acquisition and construction of major 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:

Purpose General Government
General Government Refunding

Interest Rates
2.00% 9.00%
2.40% 6.75%

Amount $ 3,836,880,000
668,895,000 $ 4,505,775,000

63

State of Georgia
Notes to the Financial Statements
June 30, 1998
Note 11. Long-Term Debt (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:

Fiscal Year Ended June 30
1999 2000 2001 2002 2003 Thereafter

Principal
$ 303,500,000 305,920,000 248,290,000 256,455,000 257,215,000
3,134,395,000 $ 4,505,775,000

Interest
$ 263,587,830 244,851,877 227,637,800 212,068,870 196,730,950 994,420,584
$ 2,139,297,911

Total
$ 567,087,830 550,771,877 475,927,800 468,523,870 453,945,950
4,128,815,584 $ 6,645,072,911

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, 1998, 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, 1998, are as follows:

Georgia Military College - Library Building

Purpose

Interest Rates 3.00%

Amount

$

7,000

64

State of Georgia
Notes to the Financial Statements
June 30, 1998
Note 11. Long-Term Debt (continued)
Revenue bond debt service requirements to maturity are as follows:

Fiscal Year Ended June 30 1999 2000 2001 2002 2003
Thereafter

Georgia Military College

Principal

$ 7,000

-

-

-

-

-

$

7,000

Interest

$

210

-

-

-

-

-

$

210

Total $
$

7,210 0 0 0 0 0
7,210

At June 30, 1998, $110,675,000 of outstanding general obligation bonds (including prior years' refundings), and $2,378,000 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, 1998, 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 General Obligation Debt General State Bond Debt Long-Term Notes

Balance July 1

Additions

Reductions

Earned and Utilized (Net)

Balance June 30

$

203,717,363 $

-

$

-

$

8,359,450 $

212,076,813

697,979

-

-

-

697,979

5,319,332

1,128,801

(2,103,747)

-

4,344,386

4,635,930,000

256,875,000

(387,030,000)

-

4,505,775,000

15,505

-

-

-

15,505

2,893,501

-

(46,812)

-

2,846,689

$

4,848,573,680 $

258,003,801 $

(389,180,559) $

8,359,450 $

4,725,756,372

65

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 11. Long-Term Debt (continued)
Significant Discretely Presented Component Units
Governmental Fund Types
Defeased Debt. At June 30, 1998, $735,000 of outstanding Georgia Education Authority (Schools) revenue bonds (including prior year's defeasances) are considered defeased.
Proprietary Fund Types
Long-Term Operating Debt. Long-term operating debt has been issued by the Georgia Student Finance Authority. This debt consists of a financing agreement with SunTrust Bank with an outstanding balance at June 30, 1998, of $30,284,767.

Purpose
Georgia Student Finance Authority

Interest Rates

Amount

Varies Based on Market Rates

$ 30,284,767

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

Fiscal Year Ended June 30

Georgia Student Finance Authority

Principal

Interest

Total

1999

$ 30,284,767 $ -

$ 30,284,767

Interest varies based on market 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 of unamortized discounts, of $779,660,753 and $194,779,336 at the Georgia Housing and Finance Authority and the Geo. L. Smith II Georgia World Congress Center Authority, respectively, at June 30, 1998, are as follows:

66

State of Georgia
Notes to the Financial Statements
June 30, 1998
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

Interest Rates
2.95% - 9.50% -
6.850% - 7.875%

Revenue bond debt service requirements to maturity are as follows:

Amount

$ 775,802,753

$

3,858,000

$ 194,779,336

Georgia Housing and Finance Authority

Fiscal Year Ended June 30

Principal

Interest

Total

1999

$

7,880,000

$ 46,009,000

$

53,889,000

2000

9,950,000

45,389,000

55,339,000

2001

12,900,000

44,832,000

57,732,000

2002

15,515,000

44,106,000

59,621,000

2003

17,015,000

43,245,000

60,260,000

Thereafter

790,038,000

560,235,000

1,350,273,000

Unamortized Discount

(552,650)

552,650

-

Future Accretion of Capital Appreciation Bonds

(76,942,597)

76,942,597

-

$ 775,802,753

$ 861,311,247

$ 1,637,114,000

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% to 11.25%.

67

State of Georgia
Notes to the Financial Statements
June 30, 1998

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, 1998, was $3,858,000. 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 of the State of Georgia or any political subdivision thereof.

Fiscal Year Ended June 30 1999 2000 2001 2002 2003 Thereafter Unamortized Discount

Geo. L. Smith II Georgia World Congress Center Authority

Principal

$

3,150,000

3,485,000

3,745,000

4,025,000

4,330,000

176,515,000

(470,664)

$

194,779,336

Interest

$

15,042,440

14,813,449

14,559,398

14,281,550

13,977,522

153,387,804

470,664

$

226,532,827

Total

$

18,192,440

18,298,449

18,304,398

18,306,550

18,307,522

329,902,804

$ 421,312,163

Defeased Debt. At June 30, 1998, $1,380,000 of outstanding Georgia Highway Authority revenue bonds (including prior years' defeasances) are considered defeased.
Note 12. Interfund Balances
Interfund assets and liabilities at June 30, 1998, consist of the following:
Interfund Receivables:

Receivable Fund Capital Projects Funds

Payable Fund
Proprietary Fund Types - Discretely Presented Component Units

Interfund Receivable
$ 3,300,425

Interfund Payable
$ -

Georgia State Financing and Investment Commission (Capital Projects Funds) interfund receivables from Stone Mountain Memorial Association (Proprietary Fund Types - Discretely Presented Component Units) do not reconcile due to the difference in fiscal reporting periods (See Note 1).

68

State of Georgia
Notes to the Financial Statements
June 30, 1998
Note 12. Interfund Balances (continued)
Due From/To Other Funds:

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

Payable Fund Proprietary Fund Types - Discretely
Presented Component Units General Fund Special Revenue 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
Internal Service Funds
General Fund

Due From
$ 135,316 15,038,805 93,490 2,400,826 658,673
290,951
88,933
39,946
143
2,204,421 $ 20,951,504

Due To
$ 135,316 15,038,805 93,490 2,400,826 658,673
290,951
88,933
39,946
143
2,204,421 $ 20,951,504

Advances From/To Other Funds:

Receivable Fund General Fund General Fund
Capital Projects Funds
Total

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

Advance To $ 6,925

Advance From $ 6,925

107,500

107,500

15,209,275 $ 15,323,700

$ 114,425

Advances made from Georgia State Financing and Investment Commission (Capital Projects Funds) to Stone Mountain Memorial Association (Proprietary Fund Types - Discretely Presented Component Units) do not reconcile due to the difference in fiscal reporting periods (See Note 1).

69

State of Georgia
Notes to the Financial Statements
June 30, 1998
Note 13. Contributed Capital
During the year, contributed capital increased (decreased) 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, 1997 Contributed Capital June 30, 1998

Internal Service Funds

Department of Administrative
Services

Georgia Building Authority (Regular)

Georgia Correctional Industries Administration

Total

$

-

$

165,856

$

-

$ 165,856

-

-

(82,000)

(82,000)

$

-

$

165,856 $

(82,000) $

83,856

53,384,666

219,893,688

$ 53,384,666 $ 220,059,544 $

1,227,948 1,145,948

274,506,302 $ 274,590,158

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 Capital Contributions Written Off General Obligation Bond Proceeds/Capital Outlay Returned to Primary Government Net Additions Contributed Capital July 1, 1997 Contributed Capital June 30, 1998

Georgia Environmental
Facilities Authority

$

676,875

35,688,800

-

-

-

$ 36,365,675

490,479,608

$ 526,845,283

Georgia Ports
Authority $ 36,260,000
(8,600,000) (11,080,000) $ 16,580,000 233,116,794 $ 249,696,794

Geo. L. Smith Georgia World Congress Center
Authority

$

-

-

4,953,860

-

-

$

4,953,860

58,750,000

$

63,703,860

All Other Component
Units $ 2,920,270
3,164
(3,814,947) $ (891,513) 162,582,392 $ 161,690,879

70

State of Georgia
Notes to the Financial Statements
June 30, 1998
Note 13. Contributed Capital (continued)
Contributed Capital / Residual Equity Transfers for the fiscal year ended June 30, 1998, are as follows:

General Fund General Fund

Receiving Fund

Capital Projects Funds

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

Received

$

82,000

Contributed

$

82,000

14,894,947

14,894,947

18,509,700 165,856

165,856

1,895,883

1,895,883

37,961,262

37,961,262

$ 73,509,648

$

54,999,948

40,645,824

-

$ 114,155,472

$

54,999,948

Residual equity transfers received by Georgia State Financing and Investment commission (Capital Projects Funds) from Stone Mountain Memorial Association (Proprietary Fund Types - Discretely Presented Component Units) do not reconcile due to the difference in fiscal reporting periods (See Note 1).

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 financial 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 financial 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 3-4-60. 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, for later time periods. The trial court has granted the State's motion for summary judgment, and 12 of the 23 claimants have appealed to the Georgia Supreme Court. The total principal amount of the claims for refund by the 12 plaintiffs who did appeal now appears to be approximately $42,000,000. The total principal dollar amount of the claims for refund by the 11 plaintiffs who did not appeal, which claims appear to be

71

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 14. Contingencies (continued)
conclusively resolved in favor of the State by virtue of the trial court's judgement, now appears to be approximately $54,000,000.
A suit was filed March 13, 1998, by DeKalb County against 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 a special local option sales tax in effect in DeKalb County since July 1997. DeKalb's complaint, as amended, seeks an accounting, mandamus, injunctive relief, declaratory judgment, unjust enrichment, bailment, inverse condemnation, and a determination that OCGA Section 48-8-67 is unconstitutional. The complaint, as amended, seeks damages of $27,700,000. Subsequently, DeKalb County has re-estimated its alleged damages as $12,000,000. DeKalb County's action was dismissed by the trial court, and this dismissal was affirmed in part and reversed in part by the Georgia Supreme Court in an order dated February 22, 1999. The Supreme Court's decision remands to the trial court the accounting claim on the question of whether the Department of Revenue made reasonable efforts to identify county tax proceeds that have been determined by the Department to be unidentifiable to any county. The defendants may seek reconsideration of this issue before the case is remitted to the trial court.

Georgia Biocontainment Research Center. The claimant bases its claim upon the encountering of extensive subsurface rock, delays allegedly caused by the Board of Regents (as owner) and redesign overhead costs and time extensions. The total contract cost is approximately $18,270,000. The Board of Regents believes the claim to be grossly overstated and anticipates resolving any legitimate portions of the claim for a substantially lesser sum than that claimed.
A contract claim has been made in the amount of $9,850,000 against the Board of Regents of the University System of Georgia in connection with construction at the Children's Medical Center, Augusta, Georgia. The claimant bases the claim upon delays allegedly caused by the Board of Regents (as owner) and redesign overhead costs and time extensions. A subcontractor has filed suit for $5,000,000 on its claim against the Construction Manager, which amount is a part of the Construction Manager's contract claim against the Board of Regents. The total contract cost is approximately $44,000,000. The Board of Regents believes that the claim is grossly overstated and anticipates resolving any legitimate portions of the claim for a substantially lesser sum than that claimed.
Significant Discretely Presented Component Units
Proprietary Fund Types

A suit was filed against the Department of Administrative Services and the Department of Human Resources seeking damages of approximately $8,500,000 under breach of contract and promissory estoppel theories. The case arises out of a notice of award in connection with the federallyfunded WIC Infant Formula Rebate Program. The award was subsequently cancelled and rebidding ordered because of conflicting information that had created a contradiction in the initial bidding specifications. Discovery is ongoing in this matter. At present, the State intends to file a motion for summary judgment at the close of discovery.
A financial institution has filed suit for refund of sales taxes based upon alleged bad debts on installment sales contracts purchased from motor vehicle dealers. The suit seeks a refund of approximately $300,000. The total amount of all similar pending administrative claims for refund (for the years 1991 - 1998) is approximately $24,000,000. This case is in the discovery phase.
A contract claim has been made in the amount of $6,600,000 against the Board of Regents of the University System of Georgia in connection with construction at the University of

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 State's rate of annual losses (defaults) exceeded five percent (5%). In the event of future adverse loss experience, the State could be liable for up to (1) twenty percent (20%) of the 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 of these 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

72

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 14. Contingencies (continued)
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 $326,350,000 on July 1, 1998 (Series 1998A and 1998B); in the amount of $220,645,000 on September 1, 1998 (Series 1998C); and in the amount of $172,610,000 on October 1, 1998 (Series 1998D).
Proceeds from these bonds will be used for the purpose of financing various capital outlay projects.
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 of their 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 of the 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, 1998, 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 of Investment Companies
Participants Accounts Reserve for Administration of Plan

$ 135,028,960 67,760,617 72,827,465 27,162,014 3,444,203 9,320,620 29,525,508 49,553,261
$ 394,622,648 $ 388,104,810
6,517,838 $ 394,622,648

73

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 17. Retirement Systems

District Attorneys' Retirement Fund

Primary Government
Georgia Defined Contribution Plan
Plan Description
Organization and Purpose The Georgia Defined Contribution Plan ("GDCP") is a singleemployer, defined contribution plan established by the Georgia General Assembly in July 1993 for the purpose of providing retirement allowances for State employees who are not members of a public retirement or pension system. GDCP is administered by the Employees' Retirement System (ERS) Board of Trustees.
Membership As of June 30, 1998, participation in GDCP is as follows:

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

61,103
61,570 122,673

Benefits A member may retire and elect to receive periodic payments after attainment of age sixty-five (65). The payments 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 his/her 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 his/her account will be paid to the member's designated beneficiary.
Contributions Members are required to contribute seven and one-half percent (7.5%) of their 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.

Plan Description
Organization and Purpose The District Attorneys' Retirement Fund ("DARF") is a single-employer, defined 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 of Georgia. 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, 1998, 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 as-needed basis to fund current benefits.
District Attorneys' Retirement System
Plan Description
Organization and Purpose The District Attorneys' Retirement System (DARS) 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. Any person who on June 30, 1998, was an active, inactive or retired member or beneficiary of DARS shall be transferred to the newly created Georgia Judicial Retirement System in the same status effective July 1, 1998.

74

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 17. Retirement Systems (continued)
Membership As of June 30, 1998, participation in DARS is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

9

Active Plan Members

54

Terminated Employees Entitled to

Benefits but not yet Receiving Benefits

8

71

Benefits The normal retirement for DARS 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), not to exceed twenty four (24) years (72%). "Average annual compensation" is the highest average of two (2) consecutive years of creditable service, except no increase during such period in excess of five 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 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 district attorney, the member shall be reinstated as if never before a member and may re-establish prior service by repaying the amount withdrawn, plus interest.

Employees' Retirement System of Georgia
Plan Description
Organization and Purpose Employees' Retirement System of Georgia ("ERS") is a single-employer, defined 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.
On November 20, 1997, the Board created the Supplemental Retirement Benefit Plan ("SRBP") of ERS. SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code ("IRC") as a portion of ERS. The purpose of the SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC Section 415. Beginning January 1, 1998, all members and retired former members in ERS are eligible to participate in the SRBP whenever their benefits under ERS exceed the IRC Section 415 imposed limitation on benefits.
Membership As of June 30, 1998, participation in ERS is as follows:

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

22,011 71,161 64,176 157,348

As of June 30, 1998, one hundred sixty-four (164) members were eligible to participate in the SRBP of ERS.
Benefits The benefit structure of ERS 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.

75

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 17. Retirement Systems (continued)
Under both the old and new plans, a member may retire and receive normal retirement benefits after completion of ten (10) years creditable service and attainment of age sixty (60). Additionally, there are certain provisions allowing for retirement after twenty-five (25) years of service regardless of age.
Retirement benefits paid to members are based upon the monthly average of the member's highest twenty-four (24) consecutive calendar quarters multiplied by the number of years of creditable service. Post - retirement cost - of - living adjustments are also made to members' benefits.

Legislative Retirement System
Plan Description
Organization and Purpose Legislative Retirement System ("LRS") is a single-employer, defined 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, 1998, participation in LRS is as follows:

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 (4.0%) of annual compensation up to $4,200 plus six percent (6.0%) of annual compensation in excess of $4,200. Under the old plan, the State pays member contributions in excess of one and one-fourth 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 one-fourth 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.
Under the SRBP, employer contributions of $626,000 and retirement payments of $480,000 are included in the Statement of Changes in Plan Net Assets for the year ended June 30, 1998. Cash of $30,000 and employer receivable of $116,000 are included in the Statement of Plan Net Assets for the year ended June 30, 1998.

Retirees and Beneficiaries

Currently Receiving Benefits

178

Active Plan Members

206

Terminated Employees Entitled to

Benefits but not yet Receiving Benefits

362

746

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 (5.0%) 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, if applicable. Death, disability, and spousal benefits are also available through the plan.

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 eight (8) years based upon the actuarial valuation at June 30, 1997.

Contributions and Vesting Member contributions are eight and one-half percent (8.5%) of annual salary. The State pays member contributions in excess of four percent (4.0%) 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

76

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 17. Retirement Systems (continued)
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.

Contributions and Vesting Member contributions are 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 pays 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 as-needed basis to fund current benefits.

Based on the June 30, 1997, actuarial valuation of LRS (the latest actuarial valuation; present Board policy requires a biennial valuation), LRS does not have an unfunded accrued liability.
Superior Court Judges Retirement Fund
Plan Description
Organization and Purpose The Superior Court Judges Retirement Fund ("SCJRF") is a single-employer, defined 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, 1998, participation in SCJRF is as follows:

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 of providing 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. Any person who on June 30, 1998, was an active, inactive or retired member or beneficiary of SCJRS shall be transferred to the newly created Georgia Judicial Retirement System in the same status effective July 1, 1998.
Membership As of June 30, 1998, participation in SCJRS is as follows:

Retirees and Beneficiaries Currently Receiving Benefits

Retirees and Beneficiaries Currently

Receiving Benefits

57

33

Active Plan Members

154

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

3

Terminated Employees Entitled to

Benefits but not yet Receiving Benefits

24

3

235

39

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 onehalf the salary paid to superior court judges. Death, disability, and spousal benefits are also available.

Benefits The normal retirement for SCJRS is age sixty (60) with sixteen (16) years of creditable service with a benefit of twothirds 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

77

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 17. Retirement Systems (continued)

Retirees and Beneficiaries

Currently Receiving Benefits

36

the term in which the member becomes seventy-five (75), or

Active Plan Members

174

forfeit all retirement and disability benefits. Death,

Terminated Employees Entitled to

disability, and spousal benefits are also available.

Benefits but not yet Receiving Benefits

121

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 threefourths percent (2.75%) for the spouse plus benefit if elected. The State pays member contributions of four and 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 defined 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. Any person who on June 30, 1998, was an active, inactive or retired member or beneficiary of TJSRF shall be transferred to the newly created Georgia Judicial Retirement System in the same status effective July 1, 1998.
Membership As of June 30, 1998, participation in TJSRF is as follows:

331
Benefits The normal 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 (4.0%) of the 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 (2) consecutive years of creditable service producing the highest such average but excluding any salary increases exceeding five percent (5.0%) 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, 1997, actuarial valuation (the latest actuarial valuation; present Board policy requires a biennial valuation), TJSRF does not have an unfunded accrued liability.

78

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 17. Retirement Systems (continued)
Regents Retirement Plan

Significant Discretely Presented Component Units
Georgia Ports Authority Retirement Plan

Plan Description

Plan Description

Organization and Purpose The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan established and administered by the Board of Regents of the 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.
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 (5.0%) of the earnable compensation.

Organization and Purpose The Georgia Ports Authority Retirement Plan ("Plan") is a single-employer defined 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 (1.0%) of their earnings each month for the first $9,000 earned during the plan year and one and one-half percent (1.5%) after earnings reach $9,000. The employer's contributions are two and onefourth percent (2.25%) of the employee's first $9,000 of annual earnings for the plan year plus three and one-fourth percent (3.25%) of the 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

B) State of Georgia Contributions:
Employer contributions are calculated as seven and three-fourths percent (7.75%) of the participating employee's earnable compensation.
Amounts attributable to all plan contributions are fully vested and non-forfeitable.

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 of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS.

79

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 17. Retirement Systems (continued)
On October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia Teachers ("SRBP"). SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code ("IRC") as a portion of TRS. The purpose of the SRBP is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits.
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.
As of June 30, 1998, participation in TRS is as follows:

by the number of years of creditable service up to forty (40) years. Early retirement benefits are reduced by the lesser of one-twelfth (1/12) of seven percent (7.0%) for each month the member is below age sixty (60), or by seven percent (7.0%) 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.
Under the SRBP, employer contributions of $83,000 and retirement payments of $82,000 were reflected in the Statement of Changes in Plan Net Assets for the year ended June 30, 1998.
Contributions required by the annual actuarial valuation are as follows:

Member

5.00%

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

41,420 180,417
27,518 249,355

Employer: Normal Unfunded Accrued Liability Expenses

7.75% 3.91% .15% 11.81%

As of June 30, 1998, seven (7) members were eligible to participate in the SRBP of TRS.
Benefits A member is eligible for normal service retirement after thirty (30) years of creditable service, regardless of age, or after ten (10) years of service and attainment of age sixty (60). A member is eligible for early retirement after twenty-five (25) years of creditable service.
Normal retirement (pension) benefits paid to members are equal to two percent (2.0%) of the average of the member's two (2) highest paid consecutive years of service multiplied

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 eighteen (18) years on the assumption that the aggregate amount of unfunded accrued liability contribution will increase by three and one-half percent (3.5%) each year.

80

State of Georgia
Notes to the Financial Statements
June 30, 1998
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
HIV 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

Value of Inventory Received

Value of Inventory Reported at June 30, 1998

$

27,544,161 $

$

4,323,951 $

154,808 2,093,495

$

149,853 $

-

$

34,000 $

-

$

408,986 $

-

$

1,085,100 $

-

$

145,112 $

-

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, 1998, is not reported on the combined balance

sheet. The changes in Federal surplus personal property inventory during the fiscal year ended June 30, 1998, were as follows:

Balance July 1, 1997 Additions
Property Received
Deductions Property Donated and Other Distributions
Balance June 30, 1998

$ 9,923,202 12,878,908
$ 22,802,110
13,043,580 $ 9,758,530

81

State of Georgia
Notes to the Financial Statements
June 30, 1998

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 determining 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 $454,601,632.
Significant Discretely Presented Component Units
Governmental Fund Types
Donated support of volunteer services and other sources totaling $566,543 was provided to the Georgia Public Telecommunications Commission during the year ended June 30, 1998. 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 determined 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, 1998, there were 53,055 employees who had retired and were receiving postretirement health care benefits through the State Health Benefit Plan. For the fiscal year ended June 30, 1998, the State recognized expenditures of $185,695,559, which was net of retiree contributions of $46,382,185.
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 permit employees of the University System eligible for retirement or that become permanently 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, 1998, the University System recognized expenditures of $18,526,266, which was net of participant contributions of $4,960,723.
Note 20. Fund Deficits
The following organizations had deficit balances at June 30, 1998.
Primary Government
Internal Service Funds
Hazard and Insurance Reserve Fund - At June 30, 1998, the Fund had an unreserved retained earnings deficit of $601,888.
Liability Self-Insurance Reserve Fund - At June 30, 1998, the Fund had an unreserved retained earnings deficit of $5,894,056.
Unemployment Compensation Fund - At June 30, 1998, the Fund had an unreserved retained earnings deficit of $1,509,313.
Workers' Compensation Fund - At June 30, 1998, the Fund had an unreserved retained earnings deficit of $68,774,678.

82

State of Georgia
Notes to the Financial Statements
June 30, 1998

Note 20. Fund Deficits (continued)

North Georgia Mountains Authority - At June 30, 1998, the Authority had an unreserved retained earnings deficit of $1,570,931.

Significant Discretely Presented Component Units
Governmental Fund Types

Note 21. Major Discretely Presented Component Unit Condensed Financial Statements

Georgia Public Telecommunications Commission - At June 30, 1998, the Commission had an unreserved, undesignated fund balance deficit of $4,340,130.
Proprietary Fund Types
Lake Lanier Islands Development Authority - At June 30, 1998, the Authority had an unreserved retained earnings deficit of $19,196,141.

The condensed financial statements of the major discretely presented component units of the 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 financial statements for all nonmajor discretely presented component units are presented in the aggregate.

83

State of Georgia
Notes to the Financial Statements June 30, 1998
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

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 $ 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

REVENUES

$

29,655 $ 15,481,330 $ 15,510,985

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
85

$

0 $ 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

State of Georgia
Notes to the Financial Statements June 30, 1998

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

Environmental Facilities Authority

Housing and Finance Authority

Lottery Corporation

Ports Authority

$ 2,204,493 $ 776,993,205
321,635

$ 134,284,294 801,473,270
5,840,980

$ 41,505,930 309,380,000
2,994,000

51,531,298 1,240,269
350,010,000

$ 779,519,333 $ 941,598,544 $ 353,879,930 $ 402,781,567

$

$

21,600,352

88,665,393

$ 110,265,745 $

1,852 $ 79,788,010 782,092,228 861,882,090 $

16,143 $ 44,034,787 297,298,000 341,348,930 $

50,659 11,334,802 33,109,539 44,495,000

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

$

321,635 $

526,845,283

2,925,051 126,065,307

12,265,010 831,302
$ 669,253,588 $

$
28,726,437 48,770,096
633,268 1,586,653 79,716,454 $

$ 249,696,794

12,531,000

108,589,773

12,531,000 $ 358,286,567

Total Liabilities, Equity and Other Credits

$ 779,519,333 $ 941,598,544 $ 353,879,930 $ 402,781,567

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

$

$ 6,487,484 $ 1,676,898,000 $ 94,075,000

19,364,313

47,972,705

$ 19,364,313 $ 54,460,189 $ 1,676,898,000 $ 94,075,000

OPERATING EXPENSES Depreciation Other Total Operating Expenses

$

$

534,847 $ 1,393,000 $ 16,494,000

5,425,862

64,605,115 1,125,253,000

65,552,000

$ 5,425,862 $ 65,139,962 $ 1,126,646,000 $ 82,046,000

OPERATING INCOME (LOSS)

$ 13,938,451 $ (10,679,773) $ 550,252,000 $ 12,029,000

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

8,308,325 4,624,073 $ 26,870,849 $

20,580,929

20,220,000

(555,272,000)

9,901,156 $ 15,200,000 $

(18,227,080) (6,198,080)

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

(2,317,783)

(110,501)

FUND EQUITY, JULY 1 Adjustments (Net) Current Capital Contributions (Net) Transfer of Equity from Primary Government Increase (Decrease) in Inventories

615,311,497 (7,298,285) 36,365,675

71,582,858 (1,657,059)

287,000 (2,956,000)

347,904,647 (8,600,000) 25,180,000

FUND EQUITY, JUNE 30

$ 668,931,953 $ 86

79,716,454 $

12,531,000 $ 358,286,567

State of Georgia
Notes to the Financial Statements June 30, 1998

Student Finance Authority

Geo L. Smith II

All Other

Georgia World Discretely Presented

Congress Center Proprietary

Authority

Fund Types

Total

$

$

$

382,398,598

36,014,434

46,333,730

2,649,874 248,054,206

71 $ 2,204,564 245,296,933 1,668,024,692
17,345,673 1,175,772,942 208,798,746 818,669,441

$ 385,048,472 $ 330,402,370 $ 471,441,423 $ 3,664,671,639

$

135,316 $

19,782 $

2,184,570

31,992,478

335,450,022 211,341,977

$ 337,769,908 $ 243,354,237 $

497 $

224,249

20,760,796 211,695,795

136,427,889 1,884,385,048

157,189,182 $ 2,096,305,092

$

$

$

$

321,635

63,703,860

161,690,879 1,001,936,816

27,604,818 19,673,746

124,634 23,219,639

23,710,465 128,850,897

95,622,405 455,169,458

12,898,278 2,417,955
$ 47,278,564 $ 87,048,133 $ 314,252,241 $ 1,568,366,547

$ 385,048,472 $ 330,402,370 $ 471,441,423 $ 3,664,671,639

$ 2,240,224 $ 18,395,317 $ 75,424,333 $ 1,873,520,358

21,091,686

21,091,686

1,569,994

1,569,994

5,852,868

34,122,987

55,386,285 162,699,158

$ 8,093,092 $ 52,518,304 $ 153,472,298 $ 2,058,881,196

$

321,456 $ 8,758,583 $

6,903,593 $ 34,405,479

45,669,148

45,593,493

128,689,422 1,480,788,040

$ 45,990,604 $ 54,352,076 $ 135,593,015 $ 1,515,193,519

$ (37,897,512) $ (1,833,772) $ 17,879,283 $ 543,687,677

865,001 47,956,323 $ 10,923,812 $

1,372,978 (238,985) (699,779) $

(7,229,959)

25,890,194

5,263,681 (497,666,908)

15,913,005 $ 71,910,963

27,879

(2,400,405)

36,354,752

82,786,492 4,953,860 7,560

298,927,060 39,507
(891,513) 199,786
36,517

1,453,154,306 (20,471,837) 65,608,022 199,786 44,077

$ 47,278,564 $ 87,048,133 $ 314,252,241 $ 1,568,044,912 87

Required Supplementary Information

State of Georgia
Required Supplementary Information
June 30, 1998

Retirement Systems - Required Supplementary Schedules
Primary Government
Schedule of Funding Progress
(Thousands of Dollars)

DARS ERS LRS (1) SCJRS TJSRF (1)

Actuarial Valuation
Date
6/30/96 6/30/97
6/30/96 6/30/97
6/30/95 6/30/97
6/30/96 6/30/97
6/30/95 6/30/97

Actuarial Value of Plan Assets
(a)

$

19,277

21,816

$ 6,140,080 7,432,306

$

13,137

18,197

$

72,642

81,921

$

25,925

35,613

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

$

12,669

14,068

$ 7,243,105 8,159,345

$

13,860

18,086

$

50,753

56,132

$

21,953

26,308

Unfunded AAL/(Funding
Excess) (b - a)

$

(6,608)

(7,748)

$ 1,103,025 727,039

$

723

(111)

$ (21,889) (25,159)

$

(3,972)

(9,305)

Funded Ratio (a/b)
152.2% 155.1%
84.8% 91.1%
94.8% 100.6%
143.1% 144.8%
118.1% 135.4%

Annual Covered Payroll
(c)

Unfunded AAL/(Funding
Excess) as a Percentage of Covered Payroll
[(b - a)/c]

$

3,737

4,113

(176.8)% (188.4)%

$ 1,968,714 1,977,928

56.0 % 36.8 %

$

2,186

2,340

33.1 % (4.7)%

$

13,294

13,678

(164.7)% (183.9)%

$

5,991

7,305

(66.3)% (127.4)%

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.
(1) Actuarial valuations are performed biennially

Schedule of Employer Contributions
(Thousands of Dollars)

DARS ERS LRS SCJRS TJSRF

Year Ended June 30
1996 1997
1996 1997
1996 1997
1996 1997
1996 1997

State Annual Required Contribution

-

$

271,342

282,249

$

164

159

-

$

472

809

Percentage Contributed
100.0% 100.0%
100.0% 100.0%
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.

91

State of Georgia
Required Supplementary Information
June 30, 1998

Retirement Systems - Required Supplementary Schedules (continued)
Notes to Required Supplementary Schedules
Schedule of Funding Progress The actuarial value of assets recognizes a portion of the difference between the market value of assets and the expected actuarial value of assets, based on the assumed valuation rate of return. The amount recognized each year is 20% of the difference between market value and expected actuarial value. The actuarial value of assets is limited to a range between 80% and 120% of market value.
Schedule of Employee Contributions The required employer contributions and percent of those contributions actually made are presented in the schedule.
Actuarial Assumptions The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation is presented in the following table:

DARS

ERS

LRS

SCJRS

TJSRF

Actuarial Valuation Date Actuarial Cost Method Amortization Method
Remaining Amortization Period
Asset Valuation Method
Actuarial Assumptions: Investment Rate of Return Projected Salary Increases
Post-Retirement Cost-ofLiving Adjustment

June 30, 1997
Entry Age Normal
Level payment, closed

June 30, 1997

June 30, 1997

Entry Age

Unit Credit

Level percentage of pay, Level dollar, open open

June 30, 1997 Entry Age Normal Level payment, closed

June 30, 1997
Entry Age
Level percentage of pay, open

26 years
Market-related value

8 years

40 years

26 years

5-year smoothed market 5-year smoothed market Market-related value

26 years
5-year smoothed market

7.5% (2) 5.5% (2)

7.0% (1) 5.20 - 9.0% (1)

7.0% (1) n/a

7.5% (2) 5.5% (2)

7.0% (1) 5.5% (1)

None

None

3% annually

None (3)

None

(1) Includes inflation rate of 3.50% (2) Includes inflation rate of 3.00% (3) Certain members retired from other systems who are due death benefits from this system are assumed to receive 5.50% cost-of-living adjustments.

92

State of Georgia
Required Supplementary Information
June 30, 1998

Retirement Systems - Required Supplementary Schedules (continued)

Significant Discretely Presented Component Units

Schedule of Funding Progress
(Thousands of Dollars)

Actuarial Valuation
Date

Actuarial Value of Plan Assets
(a)

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

Unfunded AAL/(Funding
Excess) (b - a)

Funded Ratio (a/b)

Annual Covered Payroll
(c)

Unfunded AAL/(Funding
Excess) as a Percentage of
Covered Payroll [(b - a)/c]

TRS

6/30/95

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

82.6% $ 4,712,292

72.9%

6/30/96

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

84.6% $ 5,086,924

67.1%

6/30/97

$ 22,496,125 $ 24,895,047 $ 2,398,922

90.4% $ 5,467,905

43.9%

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.

Schedule of Employer Contributions
(Thousands of Dollars)

Year Ended June 30

State Annual Required Contribution

Percentage Contributed

TRS

1991

$

452,522

100.0%

1992

$

454,138

100.0%

1993

$

485,121

100.0%

1994

$

512,429

100.0%

1995

$

1996

$

1997

$

556,522 600,766 652,928

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.

93

State of Georgia
Required Supplementary Information
June 30, 1998

Retirement Systems - Required Supplementary Schedules (continued)

Notes to Required Supplementary Schedules

Schedule of Funding Progress The actuarial value of assets recognizes a portion of the difference between the market value of assets and the expected actuarial value of assets, based on the assumed valuation rate of return. The amount recognized each year is 20% of the difference between market value and expected actuarial value. The actuarial value of assets is limited to a range between 80% and 120% of market value.
Schedule of Employee Contributions The required employer contributions and percent of those contributions actually made are presented in the schedule.
Actuarial Assumptions The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation is presented in the following table:

Actuarial Valuation Date Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Actuarial Assumptions: Investment Rate of Return Projected Salary Increases Inflation Rate Post-Retirement Cost-of-Living Adjustment

June 30, 1997 Entry Age Level percentage of pay, open 18 years 5-year smoothed market
7.25% 3.50% - 6.25% 3.50%
3% annually

94

State of Georgia
Required Supplementary Information
June 30, 1998

Year 2000 Issues
On March 29, 1999, the Governmental Accounting Standards Board (GASB) issued Technical Bulletin 99-1, "Disclosures about Year 2000 Issues-An Amendment of Technical Bulletin 98-1." The amendment provides that required year 2000 disclosures may be reported as required supplementary information. The State of Georgia has elected to present year 2000 disclosures as required supplementary information.
The year 2000 issue refers to the fact that many computer programs use only the last two digits to refer to a year. Therefore, both 1900 and 2000 would be referred to as "00." Computer programs have to be adjusted to recognize the difference between those two years or programs will fail or create errors. In addition, some programs may not be able to recognize the year 2000 as a leap year. Further, the year 2000 issue could affect electronic equipment - such as environmental systems, elevators, and vehicles - containing computer chips that have date recognition features.
The State has established a State of Georgia Year 2000 Project Office (Year 2000 Project Office) to coordinate remediation efforts. The mission of the Year 2000 Project Office is to provide policies, standards, state-level management, compliance reporting and project oversight for all year 2000 activities within and among state agencies and the University System of Georgia. The Year 2000 Project Office communicates agency readiness status and risks to the Governor on a monthly basis. The statewide effort began in 1996 with the development of a condition assessment, followed by a statewide assessment of mission critical projects and the establishment of the State of Georgia Year 2000 Project Office. This effort is receiving a high priority from the Governor and Georgia General Assembly.
The following stages have been identified as necessary to address the year 2000 issue:
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue.
Assessment Stage - When the organization begins the actual process of identifying all of its systems and individual components of the systems. An organization may decide to review all system components or, through a risk analysis, identify only mission-critical systems - systems and equipment critical to conducting operations.
Remediation Stage - When the organization actually makes changes to systems and equipment. This stage

deals primarily with the technical issues of converting existing systems, or switching to compliant systems. During this stage, decisions are made on how to address year 2000 system or equipment issues, and the required changes are made.
Validation/Testing Stage - When the organization validates and tests changes made during the conversion process. The development of test data and test scripts, the running of test scripts, and the review of test results are crucial for this stage of the conversion process to be successful. If the testing results show anomalies, the tested area needs to be corrected and retested.
The Year 2000 Project Office has completed an extensive impact assessment of major systems including identification of risk, program impact, and cost and conversion alternatives. Corresponding hardware upgrades and/or purchases have also been identified. The Year 2000 Project Office is currently tracking 366 projects which various State agencies have identified as critical to their operations. Of these projects, the State has currently identified 133 mission-critical systems. Reported items for these systems include software remediation, re-writing or replacement and corresponding hardware upgrades or purchases. The State of Georgia Year 2000 Project Office is currently not compiling Year 2000 readiness information for the State Judicial System, the University System of Georgia, the Georgia Lottery Corporation or the Georgia General Assembly. Process control devices, and general purpose agency infrastructure, if they are not a part of these reported information technology systems, are not included in the 133 mission-critical systems being tracked.
The Year 2000 Project Office defines technical testing as the point where a particular system has been fixed, replaced or remediated, systems and user acceptance testing has been satisfactorily completed, and the system is ready for deployment in the operating environment. As of March 26, 1999, the State of Georgia had completed technical testing (as defined in the preceding sentence) for 56% of its mission critical-systems.
Units of the University System of Georgia are responsible for assessment and remediation of systems unique to their operations. The majority of these institution-specific systems are in the remediation and validation/testing stages. The Board of Regents of the University System of Georgia supports the College and University Fund Accounting System, the Regents Budget Reporting System, the Property Inventory System, the Regents Payroll/Personnel System and the Banner Student Information System on behalf a majority of its member institutions. The Regents Budget Reporting System and the Property Inventory System are

95

State of Georgia
Required Supplementary Information
June 30, 1998
Year 2000 Issues (contintued)
beyond the validation/testing stage and management considers them year 2000 ready. The remainder of these common systems are in the remediation and validation/testing stages. The General Assembly appropriated $152 million in Fiscal Year 1998 and an additional $170 million in Fiscal Year 1999 for remediation efforts.. Anticipated Federal funding for year 2000 remediation efforts will boost total funding for year 2000 related activities to approximately $369 million. Because of the unprecedented nature of the year 2000 issue, its effects and the success of related remediation efforts will not be fully determinable until the year 2000 and thereafter. Management cannot assure that the State of Georgia is or will be year 2000 ready, that the State's remediation efforts will be successful in whole or in part, or that parties with whom the State does business will be year 2000 ready.
96

Combining Statements and Schedules

Primary Government Capital Projects Funds

State of Georgia
Primary Government - Capital Projects Funds For the Fiscal Year Ended June 30, 1998
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 acquisition, 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.
101

State of Georgia
Primary Government - Capital Projects Funds Combining Balance Sheet June 30, 1998

Assets
Investments Receivables (Net of Allowances for Uncollectibles)
Interest and Dividends Other Interfund Receivables Advances to Component Units
Total Assets
Liabilities and Fund Balances
Liabilities: Cash Overdraft Accounts Payable and Other Accruals Contracts Payable Deferred Revenue 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)

$

294,798 $

283,409

$

294,798 $

283,409

$

15,562 $

14,787

$

15,562 $

14,787

$

$

30,763

279,236

237,859

$

279,236 $

268,622

$

294,798 $

283,409

102

Georgia Building Authority (Penal)

Georgia Education Authority (University)

Georgia State Financing and
Investment Commission

Total

$

1,657,452 $

1,336,508 $ 960,205,702 $ 963,777,869

1,189,172

11,903,012
3,300,425 15,209,275

11,903,012 1,189,172 3,300,425 15,209,275

$

1,657,452 $

2,525,680 $ 990,618,414 $ 995,379,753

$

100,590 $

17,064 $ 86,456

22,463,624 $ 26,573,264 15,363,494
18,588,773

22,611,627 26,573,264 15,363,494
86,456 18,588,773

$

100,590 $

103,520 $ 82,989,155 $ 83,223,614

$

1,377,402 $

$

$

1,408,165

179,460

2,422,160

907,629,259

907,629,259 3,118,715

$

1,556,862 $

2,422,160 $ 907,629,259 $ 912,156,139

$

1,657,452 $

2,525,680 $ 990,618,414 $ 995,379,753

103

State of Georgia
Primary Government - Capital Projects Funds Combining Statement of Revenues, Expenditures and
Changes in Fund Balances For the Fiscal Year Ended June 30, 1998

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) of Revenues 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 Adjustments Change in Accounting Principle Other Residual Equity Transfers from Component Units Residual Equity Transfers Out Residual Equity Transfers to Component Units

Georgia Building Authority (Hospital)

Georgia Building Authority (Markets)

Georgia Building Authority (Penal)

$

19,953 $

21,543 $

84,648

$

19,953 $

21,543 $

$

111,154 $

191,367 $

84,648
6,074 2,000

$

111,154 $

191,367 $

$

(91,201) $

(169,824) $

$

$

$

8,074 76,574
$

$

0 $

0 $

0

$

(91,201) $

(169,824) $

76,574

370,437

438,446

1,480,288

Fund Balances, June 30

$

279,236 $

268,622 $

1,556,862

104

Georgia Education Authority (University)

Georgia State Financing and
Investment Commission

Total

$

183,363 $ 80,438,063 $ 80,747,570

46,812

46,812

6,979

1,574,046

1,581,025

$

237,154 $ 82,012,109 $ 82,375,407

$

26,846 $

$

335,441

346,294,387

346,296,387

46,812 158,508

239,009

46,812 158,508 239,009

$

232,166 $ 346,533,396 $ 347,076,157

$

4,988 $ (264,521,287) $ (264,700,750)

$

$ 4,414,614 $ 4,414,614

(128,576,564) (128,576,564)

257,123,411

257,123,411

$

0 $ 132,961,461 $ 132,961,461

$

4,988 $ (131,559,826) $ (131,739,289)

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

14,058,031 7,600,000
18,509,700 (165,856)
(37,961,262)

14,058,031 7,600,000
18,509,700 (165,856)
(37,961,262)

$ 2,422,160 $ 907,629,259 $ 912,156,139

105

Primary Government Internal Service Funds

State of Georgia
Primary Government - Internal Service Funds For the Fiscal Year Ended June 30, 1998
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 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 of the Employees' Retirement System.
109

State of Georgia
Primary Government - Internal Service Funds For the Fiscal Year Ended June 30, 1998
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 of the State.
110

State of Georgia
Primary Government - Internal Service Funds
Combining Balance Sheet June 30, 1998

Assets
Current Assets: Cash and Cash Equivalents Receivables (Net of Allowances for Uncollectibles)
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 Salaries/Withholdings Payable Due to Other Funds Due to Component Units Deferred Revenue Long-Term Liabilities: Capital Leases/Installment Purchases Payable Deposits and Overpayments Long-Term Debt Payable (Net of Unamortized Discounts)
Notes and Loans Payable
Total Liabilities
Fund Equity Contributed Capital State of Georgia 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 Merit System

Industries

of Personnel

Administration Administration

$ 13,377,269 $

$

$ 2,223,168

706,704
18,039,383 419,830
4,405,271 401,754
1,880,064
12,021,743 154,727,903

3,946,583
402,822 139,628 10,791,659 221,366,831 11,230,646

3,156,487 2,463
7,431,720 75,741
6,837,614
8,638,931 13,184,028 (11,980,413)

201,964 60,229 65,651
1,108,109

$ 205,979,921 $ 247,878,169 $ 27,346,571 $ 3,659,121

$

$

16,645,483

4,910,382

15,999,408 1,058

143

10,507,655

$ 48,064,129 $

661,091 $ 1,654,878 1,810,134 1,180,470
38,080 17,552 73,701
1,764,138
7,200,044 $

177,717 $ 966,831 684,870
129 21,874
38,808
1,092,857 2,983,086 $

$ 632,419 559,352 1,730,395
1,214
33,353
2,956,733

$ 53,384,666 $ 198,222,120 $ 1,145,948 $

$

21,837,424

$ 53,384,666 $ 220,059,544 $ 1,145,948 $

0

$ 6,488,100 $

$

$

98,043,026

20,618,581

23,217,537

$ 104,531,126 $ 20,618,581 $ 23,217,537 $

$ 157,915,792 $ 240,678,125 $ 24,363,485 $

549 701,839
702,388
702,388

$ 205,979,921 $ 247,878,169 $ 27,346,571 $ 3,659,121

112

Removal of Hazardous Materials, Agency for

Risk Management

Total
Before Eliminations

Eliminations

Total

$

332,376 $

$ 15,932,813 $

$ 15,932,813

304,353 9,688
23,179
1,104,082

2,509,005 1,042,660

8,316,091 2,521,156 19,142,272
419,830 12,262,992
682,774

995,397,335 1,014,906,672

242,027,505 181,354,768 (11,980,413)

(950,478)

8,316,091 2,521,156 18,191,794
419,830 12,262,992
682,774

1,014,906,672

242,027,505 181,354,768 (11,980,413)

$ 1,773,678 $ 998,949,000 $ 1,485,586,460 $ (950,478) $ 1,484,635,982

$

$ 7,810,318 $ 8,649,126 $

$ 8,649,126

636,158

20,535,769

20,535,769

7,964,738

7,964,738

357,293,702 357,293,702

357,293,702

18,910,273

18,910,273

40,481

40,481

911,052

950,478

(950,478)

0

143

143

73,701

73,701

10,579,816 1,764,138

10,579,816 1,764,138

1,092,857

1,092,857

$

636,158 $ 366,015,072 $ 427,855,222 $

(950,478) $ 426,904,744

$

$

$ 252,752,734 $

$ 252,752,734

21,837,424

21,837,424

$

0 $

0 $ 274,590,158 $

0 $ 274,590,158

$

23,179 $ 708,960,000 $ 715,471,828 $

1,114,341 (76,026,072) 67,669,252

$ 1,137,520 $ 632,933,928 $ 783,141,080 $

$ 1,137,520 $ 632,933,928 $ 1,057,731,238 $

$ 715,471,828 67,669,252
0 $ 783,141,080
0 $ 1,057,731,238

$ 1,773,678 $ 998,949,000 $ 1,485,586,460 $

(950,478) $ 1,484,635,982

113

State of Georgia
Primary Government - Internal Service Funds Risk Management
Combining Balance Sheet June 30, 1998

Assets
Current Assets: Receivables (Net of Allowances for Uncollectibles) Other
Miscellaneous Due from Other Funds Long-Term Assets: Investments
Total Assets
Liabilities and Equity
Liabilities Current Liabilities: Cash Overdraft Claims and Judgments Payable Due to Other Funds
Total Liabilities
Equity Retained Earnings Reserved Unreserved
Total Equity
Total Liabilities and Equity

Georgia State Indemnification
Commission

Hazard and Insurance Reserve Fund

Liability Self-Insurance Reserve Fund

State Employees' Assurance Department

Unemployment Compensation
Fund

$

$

117,419 $

851,712 $

$

15,686

442,598

600,000

62

891,453

16,217,961 191,661,182 708,360,000

1,487,965

$

891,453 $ 16,335,380 $ 192,955,492 $ 708,960,000 $ 1,503,713

$

24,257 $

441,292 $ 5,215,122 $

113,333

16,221,404 193,634,426

274,572

$

137,590 $ 16,937,268 $ 198,849,548 $

$

40,487

2,972,539

0 $ 3,013,026

$

$

$

$ 708,960,000 $

$

753,863

(601,888)

(5,894,056)

(1,509,313)

$

753,863 $ (601,888) $ (5,894,056) $ 708,960,000 $ (1,509,313)

$

891,453 $ 16,335,380 $ 192,955,492 $ 708,960,000 $ 1,503,713

114

Workers' Compensation
Fund

Total

$ 1,524,188 $ 2,509,005 1,042,660
76,778,774 995,397,335
$ 78,302,962 $ 998,949,000

$ 2,089,160 $ 7,810,318

144,352,000 357,293,702

636,480

911,052

$ 147,077,640 $ 366,015,072

$

$ 708,960,000

(68,774,678) (76,026,072)

$ (68,774,678) $ 632,933,928

$ 78,302,962 $ 998,949,000

115

State of Georgia
Primary Government - Internal Service Funds Combining Statement of Revenues, Expenses and
Changes in Fund Equity For the Fiscal Year Ended June 30, 1998

Operating Revenues: Contributions Insurance Recoveries Interest and Other Investment Income Rents and Royalties Sales and Services Other
Total Operating Revenues
Operating Expenses: General and Administrative Goods and Services Interest Benefits Claims and Judgments Depreciation
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses): Interest and Other Investment 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 Adjustments Other Contributed Capital Transfer of Contributed Capital Increase in Inventories
Fund Equity, June 30

Administrative Services,
Department of

Building Authority, Georgia

Correctional Merit System

Industries

of Personnel

Administration Administration

$

$

$

$

$

199,289,789 1,364,309

31,614,994 17,372,731

27,364,273

13,265,891

$ 200,654,098 $ 48,987,725 $ 27,364,273 $ 13,265,891

$ 96,729,496 $ 130,338,622 194,765

27,108,319 $ 17,222,704

9,997,677 $ 15,149,046

13,168,305

1,309,224

$ 227,262,883 $ 44,331,023 $ 26,455,947 $ 13,168,305

$ (26,608,785) $ 4,656,702 $

908,326 $

97,586

$

209,740 $

(2,405,788)

$ (2,196,048) $

$ (28,804,833) $

307,078 $ 567,171 874,249 $ 5,530,951 $

393,043 $ (57,945) 327,953
663,051 $
1,571,377 $

$ (26,750) (26,750) 70,836

$ 53,897,836 $

$

$

(17,226,464)

$ 36,671,372 $

0 $

0 $

$ 7,866,539 $ 5,530,951 $ 1,571,377 $

159,402,494 234,981,318

22,874,108

(10,336,230) 982,989

165,856

(82,000)

$ 157,915,792 $ 240,678,125 $ 24,363,485 $

300,000 (200,903)
99,097 169,933 532,455
702,388

116

Removal of Hazardous Materials, Agency for

Risk Management

Total Before Eliminations

Eliminations

Total

$

$ 116,167,640 $ 116,167,640 $

1,763,355

1,763,355

145,271,963 145,271,963

31,614,994

1,919,275

259,211,959

1,364,309

$ 1,919,275 $ 263,202,958 $ 555,394,220 $

(91,273) $

116,076,367 1,763,355
145,271,963 31,614,994
259,211,959 1,364,309

(91,273) $ 555,302,947

$

454,408 $ 9,660,455 $ 157,118,660 $

1,461,964

10,780,634

174,952,970

194,765

15,178,000

15,178,000

183,454,774 183,454,774

1,309,224

$ 1,916,372 $ 219,073,863 $ 532,208,393 $

$

2,903 $ 44,129,095 $ 23,185,827 $

(91,273) $

157,027,387 174,952,970
194,765 15,178,000 183,454,774
1,309,224

(91,273) $ 532,117,120

0 $ 23,185,827

$

$

$

909,861 $

(57,945)

(1,537,414)

$

0 $

0 $

(685,498) $

$

2,903 $ 44,129,095 $ 22,500,329 $

$

909,861

(57,945)

(1,537,414)

0 $

(685,498)

0 $ 22,500,329

$

$

$ 54,197,836 $

(17,427,367)

$

0 $

0 $ 36,770,469 $

$

2,903 $ 44,129,095 $ 59,270,798 $

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

(10,336,230) 165,856 (82,000) 982,989

$ 1,137,520 $ 632,933,928 $ 1,057,731,238 $

$ 54,197,836 (17,427,367)
0 $ 36,770,469
0 $ 59,270,798
1,007,729,825
(10,336,230) 165,856 (82,000) 982,989
0 $ 1,057,731,238

117

State of Georgia
Primary Government - Internal Service Funds Risk Management
Combining Statement of Revenues, Expenses and Changes in Equity
For the Fiscal Year Ended June 30, 1998

Operating Revenues: Contributions Insurance Recoveries Interest and Other Investment Income
Total Operating Revenues
Operating Expenses: General and Administrative Goods and Services Benefits Claims and Judgments
Total Operating Expenses
Net Income (Loss)
Equity, July 1

Georgia State Indemnification
Commission

Hazard and Insurance Reserve Fund

Liability Self-Insurance Reserve Fund

State Employees' Assurance Department

$

700,000 $ 14,452,316 $ 35,006,061 $ 11,162,000

1,763,355

73,642

751,715

9,149,483 131,534,000

$

773,642 $ 16,967,386 $ 44,155,544 $ 142,696,000

$

$

612,479 $ 3,408,862 $

147,000

3,055,025

4,155,213

15,178,000

1,024,644

2,969,496 123,255,086

$ 1,024,644 $ 6,637,000 $ 130,819,161 $ 15,325,000

$ (251,002) $ 10,330,386 $ (86,663,617) $ 127,371,000

1,004,865 (10,932,274) 80,769,561 581,589,000

Equity, June 30

$

753,863 $ (601,888) $ (5,894,056) $ 708,960,000

118

Unemployment Compensation
Fund

Workers' Compensation
Fund

Total

$ 2,757,483 $ 52,089,780 $ 116,167,640

1,763,355

155,507

3,607,616 145,271,963

$ 2,912,990 $ 55,697,396 $ 263,202,958

$

529,421 $ 4,962,693 $ 9,660,455

3,570,396

10,780,634

15,178,000

3,076,297

53,129,251 183,454,774

$ 3,605,718 $ 61,662,340 $ 219,073,863

$ (692,728) $ (5,964,944) $ 44,129,095

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

$ (1,509,313) $ (68,774,678) $ 632,933,928

119

State of Georgia
Primary Government - Internal Service Funds Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 1998

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 Cash Used in 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

$ 217,086,341 $ 48,433,451

(176,864,679) (47,906,257)

(24,423,172) (19,962,450)

$ (7,684,595) $ 4,047,829

$ 53,897,836 $ (17,226,464)
(3,810,139)
$ 32,861,233 $

$
1,228,262 1,228,262

$

$

165,856

(10,587,843)

(2,228,216)

$ (10,587,843) $ (2,062,360)

$ (1,421,266) $ (8,834,408)

209,740

307,078

$ (1,211,526) $ (8,527,330)

$ 13,377,269 $ (5,313,599)

0

5,313,599

$ 13,377,269 $

0

120

Correctional Merit System

Industries

of Personnel

Administration Administration

Removal of Hazardous Materials, Agency for

Risk Management

Total

$ 27,726,515 $ 13,136,449 $

(18,457,461) (7,022,301)

(6,977,890) (6,228,770)

$ 2,246,753 $

(70,211) $

1,966,294 $ (1,889,639)

$ 308,349,050

115,640,381 115,640,381

1,763,355

1,763,355

(20,321,598) (248,934,439)

(81,119,778)

(15,178,000) (15,178,000)

(84,658,119) (84,658,119)

76,655 $ (2,753,981) $ (4,137,550)

$

$

300,000 $

(200,903)

(82,000)

460,367

$

378,367 $

99,097 $

$

$ 54,197,836

(17,427,367)

(82,000)

7,810,318

5,688,808

0 $ 7,810,318 $ 42,377,277

$

$

(1,377,759)

(242,857)

(57,945)

$ (1,678,561) $

$ (150,155)
(150,155) $

$ (1,980)
(1,980) $

$

165,856

(14,345,953)

(242,857)

(57,945)

0 $ (14,480,899)

$ (5,406,226) $ 393,043
$ (5,013,183) $
$ (4,066,624) $
4,066,624

$
0 $ (121,269) $ 2,344,437

$ (305,299,115) $ (320,961,015)

36,098,743

37,008,604

0 $ (269,200,372) $ (283,952,411)

74,675 $ (264,144,035) $ (260,193,583)

257,701 264,144,035 276,126,396

$

0 $ 2,223,168 $

332,376 $

0 $ 15,932,813

(continued)

121

State of Georgia
Primary Government - Internal Service Funds Combining Statement of Cash Flows (continued)
For the Fiscal Year Ended June 30, 1998

Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used In) Operating Activities:
Depreciation Interest and Other Investment Income Changes in Assets and Liabilities:
Decrease (Increase) in Other Receivables Decrease (Increase) in Due from Other Funds Decrease 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 in Contracts Payable Increase (Decrease) in Salaries/Withholdings Payable Increase (Decrease) in Due to Other Funds Increase in Due to Component Units Increase (Decrease) in Deferred Revenue Increase in Deposits and Overpayments
Total Adjustments
Net Cash Provided by (Used in) Operating Activities
Noncash Investing, Capital, and Financing Activities: Disposal of Fixed Assets Acquisition of Fixed Assets through Capital Leases Write off of Fixed Assets

Administrative Services,
Department of

Building Authority, Georgia

$ (26,608,785) $ 4,656,702

$

$

$

2,111,285 14,270,226
50,589
(23,213) (2,827,844)
251,170

(1,749,557)
69,933 (826)
(249,154) 93,905

5,147,388 (55,554)
143

10,750 25,422 (4,629)
12,544 1,182,739

$ 18,924,190 $ (608,873)

$ (7,684,595) $ 4,047,829

$ (2,422,499) $

$

10,520,820

(10,336,230)

$ (2,237,909) $

0

122

Correctional Merit System

Industries

of Personnel

Administration Administration

Removal of Hazardous Materials, Agency for

Risk Management

Total

$

908,326 $

97,586 $

2,903 $ 44,129,095 $ 23,185,827

$ 1,309,224 $

$

367,488
(172,919) 3,111
(239,926) 55,722
13 21,874
(6,160)

(129,442) (60,229)
(2,000) 110,870 (68,699)
291,424 (49,675) (260,046)

$ 1,338,427 $ (167,797) $

$ 2,246,753 $

(70,211) $

$

$ 1,309,224

(145,271,963) (145,271,963)

47,019 1,243
311
25,179

(591,259) (378,660)
98,796,655 562,151

55,534 13,832,580
50,589 (102,675)
(22,928) (3,180,875)
332,098 98,796,655 5,449,562
(79,794) 319,350
143 6,384 1,182,739

73,752 $ (46,883,076) $ (27,323,377)

76,655 $ (2,753,981) $ (4,137,550)

$

$

(26,750) $

$

$ (2,449,249)

10,520,820

(10,336,230)

$

0 $

(26,750) $

0 $

0 $ (2,264,659)

123

State of Georgia
Primary Government - Internal Service Funds
Risk Management Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 1998

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: Other Noncapital Items (Net)
Cash Flows from Investing Activities: Purchase of Investments (Net) Interest on Investments
Net Cash Provided by (Used in) Investing Activities
Net 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 and Other Investment Income Changes in Assets and Liabilities:
Increase in Other Receivables Decrease (Increase) in Due from Other Funds Increase (Decrease) in Claims and Judgments Payable Increase (Decrease) in Due to Other Funds
Total Adjustments
Net Cash Provided by (Used in) Operating Activities

Georgia State Indemnification
Commission

Hazard and Insurance Reserve Fund

Liability Self-Insurance Reserve Fund

State Employees' Assurance Department

$

700,000 $ 14,436,314 $ 34,638,497 $ 11,226,000

1,763,355

(3,413,401)

(8,125,746)

(147,000)

(15,178,000)

(933,811)

(6,156,735) (28,067,112)

$ (233,811) $ 6,629,533 $ (1,554,361) $ (4,099,000)

$

24,257 $

441,292 $ 5,215,122 $

$

$ (891,453) $ (16,217,961) $ (191,661,182) $ (18,261,780)

73,642

751,715

9,149,483

22,360,780

$ (817,811) $ (15,466,246) $ (182,511,699) $ 4,099,000

$ (1,027,365) $ (8,395,421) $ (178,850,938) $

0

1,027,365

8,395,421 178,850,938

0

$

0 $

0 $

0 $

0

$ (251,002) $ 10,330,386 $ (86,663,617) $ 127,371,000

$

(73,642) $ (751,715) $ (9,149,483) $ (131,534,000)

90,833

(16,002)
(3,187,239) 254,103

(367,564) (442,598) 95,187,974 (119,073)

64,000

$

17,191 $ (3,700,853) $ 85,109,256 $ (131,470,000)

$ (233,811) $ 6,629,533 $ (1,554,361) $ (4,099,000)

124

Unemployment Compensation
Fund

Workers' Compensation
Fund

Total

$ 2,741,797 $ 51,897,773 $ 115,640,381

1,763,355

(534,864)

(8,100,587) (20,321,598)

(15,178,000)

(2,668,210) (46,832,251) (84,658,119)

$ (461,277) $ (3,035,065) $ (2,753,981)

$

40,487 $ 2,089,160 $ 7,810,318

$ (1,487,965) $ (76,778,774) $ (305,299,115)

155,507

3,607,616

36,098,743

$ (1,332,458) $ (73,171,158) $ (269,200,372)

$ (1,753,248) $ (74,117,063) $ (264,144,035)

1,753,248

74,117,063 264,144,035

$

0 $

0 $

0

$ (692,728) $ (5,964,944) $ 44,129,095

$ (155,507) $ (3,607,616) $ (145,271,963)

(15,686) (62)
408,087 (5,381)

(192,007)
6,297,000 432,502

(591,259) (378,660) 98,796,655 562,151

$

231,451 $ 2,929,879 $ (46,883,076)

$ (461,277) $ (3,035,065) $ (2,753,981)

125

Primary Government Trust and Agency Funds

State of Georgia
Primary Government - Trust and Agency Funds Combining Balance Sheet June 30, 1998

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles)
Intergovernmental - Federal Interest and Dividends Notes and Loans Taxes Other Prepaid Items Other Assets Deferred Compensation Plan Assets

Expendable Trust

Nonexpendable Trust

Pension Trust

Investment Trust

Agency

Total

$ 1,909,739,632 $ 49,989,346
270,823
4,104,717 71,787,161
7,939,614 8,638

185,698 $

$

$ 63,931,546 $ 1,973,856,876

35,398 11,531,092,592 2,834,115,490 229,674,639 14,644,907,465

93,409,000
6,936,125 15,906

743,988
25,629,244 37,733
394,622,648

1,014,811 93,409,000
4,104,717 71,787,161 40,504,983
24,544 37,733 394,622,648

Total Assets

$ 2,043,839,931 $

221,096 $ 11,631,453,623 $ 2,834,115,490 $ 714,639,798 $ 17,224,269,938

Liabilities and Fund Balances
Liabilities: Cash Overdraft Accounts Payable and Other Accruals Salaries/Withholdings Payable Due to Other Funds Funds Held for Others Advances from Other Funds
Total Liabilities
Fund Balances: Reserved for Pension Benefits Reserved for Investment Trust Fund Reserved for Other Specific Purposes Unreserved, Undesignated
Total Fund Balances
Total Liabilities and Fund Balances

$

$

20,524

$

20,524 $

$

$

1,991,758,883 52,060,524

$ 2,043,819,407 $

$ 2,043,839,931 $

$

1,985,787 $ 174,669,398 $

$ 176,655,185

6,344,428

6,364,952

23,629

23,629

658,673

658,673

714,632,873

714,632,873

6,925

6,925

0 $

9,012,517 $ 174,669,398 $ 714,639,798 $ 898,342,237

$ 11,622,441,106 $

$

2,659,446,092

148,500

72,596

221,096 $ 11,622,441,106 $ 2,659,446,092 $

$ 11,622,441,106 2,659,446,092 1,991,907,383 52,133,120
0 $ 16,325,927,701

221,096 $ 11,631,453,623 $ 2,834,115,490 $ 714,639,798 $ 17,224,269,938

129

State of Georgia
Primary Government - Expendable Trust Funds
For the Fiscal Year Ended June 30, 1998
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.
131

State of Georgia
Primary Government - Expendable Trust Funds Combining Balance Sheet June 30, 1998

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles)
Intergovernmental - Federal Notes and Loans Taxes Other Prepaid Items
Total Assets
Liabilities and Fund Balances
Liabilities: Cash Overdraft Accounts Payable and Other Accruals
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

$

248,944 $

$

12,925,423

4,104,717 17,315

64,999

$

248,944 $ 17,047,455 $

64,999

$

$

721,624 $

$

$

0 $

721,624 $

0

$

$

$

248,944

16,325,831

$

248,944 $ 16,325,831 $

$

248,944 $ 17,047,455 $

64,999 64,999
64,999

132

Real Estate

Sports Hall

Recovery Fund of Fame Board

Subsequent Injury
Trust Fund

Unemployment Compensation Contributions and Benefits
Fund

Total

$

$

1,601,194

$ 1,601,194 $

$

$ 1,911,796,903 $ 1,912,110,846

35,462,729

49,989,346

8,638

270,823
71,787,161 7,922,299

270,823 4,104,717 71,787,161 7,939,614
8,638

0 $ 35,471,367 $ 1,991,777,186 $ 2,046,211,145

$

59,007 $

$

59,007 $

$

$

1,542,187

$ 1,542,187 $

$ 1,601,194 $

$ 1,590,583 $ 2,221
0 $ 1,592,804 $

$ 18,303
18,303 $

2,371,214 20,524
2,391,738

$

$ 1,991,758,883 $ 1,991,758,883

33,878,563

52,060,524

0 $ 33,878,563 $ 1,991,758,883 $ 2,043,819,407

0 $ 35,471,367 $ 1,991,777,186 $ 2,046,211,145

133

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, 1998

Revenues: Taxes Intergovernmental Federal Sales and Services Interest and Other Investment Income Contributions and Donations Other
Total Revenues
Expenditures: 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 Adjustments Change in Accounting Principle Transfer of Equity
Fund Balances, June 30

Auctioneers Recovery Fund

Housing Trust Fund for the Homeless

Keds Corporation Settlement Fund

$

$

$

17,550

764,001

$

17,550 $

764,001 $

$

$

$

3,321,836

$

0 $ 3,321,836 $

$

17,550 $ (2,557,835) $

3,281,250

$

17,550 $

723,415 $

231,394

15,608,920

(6,504)

0 $
1,546 1,546 (1,546)
(1,546) 66,545

$

248,944 $ 16,325,831 $

64,999

134

Real Estate

Sports Hall

Recovery Fund of Fame Board

Subsequent Injury
Trust Fund

Unemployment Compensation Contributions and Benefits
Fund

Total

$

$

$ 85,081,284 $ 287,455,129 $ 372,536,413

105,193 81,188

1,385 9,344 33,888 57,351

3,468 3,177,700

20,717,427 122,037,909
23,387

20,717,427 127,596
126,070,142 33,888 80,738

$

186,381 $

101,968 $ 88,262,452 $ 430,233,852 $ 519,566,204

$

99,275 $

$

$

$

99,275

64,702,740

64,702,740

276,175,942

279,499,324

102,521

102,521

$

99,275 $

102,521 $ 64,702,740 $ 276,175,942 $ 344,403,860

$

87,106 $

(553) $ 23,559,712 $ 154,057,910 $ 175,162,344

3,281,250

$

87,106 $

1,455,081

(553) $ 200,339
(199,786)

23,559,712 $ 154,057,910 $ 178,443,594
10,318,851 1,837,700,973 1,865,582,103
(6,504) (199,786)

$ 1,542,187 $

0 $ 33,878,563 $ 1,991,758,883 $ 2,043,819,407

135

State of Georgia
Primary Government - Nonexpendable Trust Funds
For the Fiscal Year Ended June 30, 1998
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.
137

State of Georgia
Primary Government - Nonexpendable Trust Funds Combining Balance Sheet June 30, 1998

Assets Cash and Cash Equivalents Investments
Total Assets
Fund Balances Reserved for Other Specific Purposes Unreserved, Undesignated
Total Fund Balances

Pupils' Trust Fund -
Georgia Academy for the Blind

Lenora M. Sarling
Scholarship Fund

Carl Patrick Chair

Total

$

13,500 $

592 $

171,606 $

185,698

35,398

35,398

$

13,500 $

35,990 $

171,606 $

221,096

$

13,500 $

35,000 $

100,000 $

148,500

990

71,606

72,596

$

13,500 $

35,990 $

171,606 $

221,096

139

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, 1998

Operating Revenues: Interest and Other Investment Income
Operating Expenses: General and Administrative Scholarships Other
Total Operating Expenses
Net Income
Fund Balances, July 1 Adjustments Change in Accounting Principle
Fund Balances, June 30

Pupils' Trust Fund -
Georgia Academy for the Blind

Lenora M. Sarling
Scholarship Fund

Carl Patrick Chair

Total

$

878 $

2,668 $

9,371 $

12,917

$

$

$

4,066 $

4,066

2,320

2,320

878

878

$

878 $

2,320 $

4,066 $

7,264

$

0 $

348 $

5,305 $

5,653

13,500

36,025

166,301

215,826

(383)

(383)

$

13,500 $

35,990 $

171,606 $

221,096

140

State of Georgia
Primary Government - Nonexpendable Trust Funds
Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 1998

Cash Flows from Operating Activities: Cash Paid to Vendors Cash Paid for Scholarships
Net Cash Used in Operating Activities Cash Flows from Investing Activities: Purchase of Investments (Net) Interest on Investments
Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July 1
Cash and Cash Equivalents, June 30
Operating Income Adjustments to Reconcile Operating Income to Net Cash Used in Operating Activities: Interest and Other Investment Income
Net Cash Used in Operating Activities

Pupils' Trust Fund -
Georgia Academy for the Blind

Lenora M. Sarling
Scholarship Fund

Carl Patrick Chair

Total

$

(878) $

$

(4,066) $

(4,944)

(2,320)

(2,320)

$

(878) $

(2,320) $

(4,066) $

(7,264)

$

$

$

161,724 $

161,724

878

1,887

9,371

12,136

$

878 $

1,887 $

171,095 $

173,860

$

0 $

13,500

$

13,500 $

(433) $ 1,025

167,029 $ 4,577

166,596 19,102

592 $

171,606 $

185,698

$

0 $

348 $

5,305 $

5,653

(878)

(2,668)

(9,371)

(12,917)

$

(878) $

(2,320) $

(4,066) $

(7,264)

141

State of Georgia
Primary Government - Pension Trust Funds
For the Fiscal Year Ended June 30, 1998
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 of the 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.
143

State of Georgia
Primary Government - Pension Trust Funds
Combining Statement of Plan Net Assets June 30, 1998

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances
for Uncollectibles) Interest and Dividends Other Miscellaneous
Prepaid Items

Defined Contribution
Plan

District Attorneys Retirement
Fund

District Attorneys Retirement System

Employees' Retirement
System

Legislative Retirement
System

$

70,000 $

25,888,000

227,000 982,000

3,000 $

17,000 $

$

82,854

31,001,000 11,275,768,772

26,386,820

93,182,000

47,000

5,467,799

326

15,906

Total Assets
Liabilities
Cash Overdraft Accounts Payable and Other Accruals Salaries/Withholdings Payable Due to Other Funds
Total Liabilities

$ 27,167,000 $

3,000 $ 31,065,000 $ 11,374,434,477 $ 26,470,000

$

$

$

$

2,152,641 $

$

2,000

3,000

6,000

6,232,428

13,000

23,629

632,673

26,000

$

2,000 $

3,000 $

6,000 $

9,041,371 $

39,000

Fund Balances Reserved for Pension Benefits

$ 27,165,000 $

0 $ 31,059,000 $ 11,365,393,106 $ 26,431,000

144

Superior Court Judges Retirement
Fund

Superior Court Judges Retirement
System

Trial Judges and Solicitors
Retirement Fund

Total

$

60,000 $

$

87,000 $

319,854

1,547,000 114,701,000

55,800,000 11,531,092,592

1,000

187,000

251,000

93,409,000
6,936,125 15,906

$ 1,608,000 $ 114,888,000 $ 56,138,000 $ 11,631,773,477

$

$

153,000 $

36,000

45,000

$

36,000 $

198,000 $

$ 7,000
7,000 $

2,305,641 6,344,428
23,629 658,673
9,332,371

$ 1,572,000 $ 114,690,000 $ 56,131,000 $ 11,622,441,106

145

State of Georgia
Primary Government - Agency Funds
For the Fiscal Year Ended June 30, 1998
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 of Personnel Administration, State Personnel Board The Deferred Compensation Program accounts for participant earnings deferred in accordance with Internal Revenue Code Section 457.
147

State of Georgia
Primary Government - Agency Funds
For the Fiscal Year Ended June 30, 1998
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 of the 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.
148

State of Georgia
Primary Government - Agency Funds
Combining Statement of Changes in Assets and Liabilities For the Fiscal Year Ended June 30, 1998

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, 1997

Additions

Deletions

Balance June 30, 1998

$

2,567,817 $

5,655,144 $

7,687,614 $

535,347

1,821,788

3,519,267

771,788

4,569,267

$

4,389,605 $

9,174,411 $

8,459,402 $

5,104,614

$

4,389,605 $

5,273,356 $

4,558,347 $

5,104,614

$

26,512,433 $

110,470,688 $

108,556,925 $

28,426,196

$

26,512,433 $

110,470,688 $

108,556,925 $

28,426,196

$

6,744,606 $

311,704,694 $

315,215,102 $

3,234,198

$

6,744,606 $

311,704,694 $

315,215,102 $

3,234,198

$

4,689,313 $

17,005,047 $

17,402,186 $

4,292,174

3,305,945

844,846

465,815

3,684,976

48,694

133,159

181,853

0

$

8,043,952 $

17,983,052 $

18,049,854 $

7,977,150

$

8,043,952 $

17,325,861 $

17,392,663 $

7,977,150

(continued)

149

State of Georgia
Primary Government - Agency Funds
Combining Statement of Changes in Assets and Liabilities (continued) For the Fiscal Year Ended June 30, 1998

Insurance, Department of
Receiverships Assets Cash and Cash Equivalents
Liabilities Funds Held for Others
Medical Assistance, Department of
Medicaid Special Holding Account Assets Cash and Cash Equivalents Receivables Other Total Assets
Liabilities Funds Held for Others
Merit System of Personnel 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 Investments Receivables Other Total Assets
Liabilities Funds Held for Others

Balance July 1, 1997

Additions

Deletions

Balance June 30, 1998

$

1,369,521 $

$

1,369,521 $

27,838 $ 27,838 $

12 $ 12 $

1,397,347 1,397,347

$

6,371,492 $

899,590,460 $

890,519,078 $

15,442,874

24,564,277

1,998,978

22,565,299

$

30,935,769 $

899,590,460 $

892,518,056 $

38,008,173

$

30,935,769 $

899,590,460 $

892,518,056 $

38,008,173

$

1,880,482 $

$

101,475

314,206,807

129,885,792

$

316,188,764 $

129,885,792 $

1,986,929 $
101,475 49,469,951 51,558,355 $

(106,447)
0 394,622,648 394,516,201

$

316,188,764 $

129,885,792 $

51,558,355 $ 394,516,201

$

8,901,974 $

46,456,734 $

51,815,357 $

3,543,351

0

7,904,214

7,904,214

108,703

260,801

231,520

137,984

$

9,010,677 $

54,621,749 $

52,046,877 $

11,585,549

$

9,010,677 $

2,574,872 $

150

$

11,585,549

State of Georgia
Primary Government - Agency Funds
Combining Statement of Changes in Assets and Liabilities (continued) For the Fiscal Year Ended June 30, 1998

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
Education Local Option Sales Tax Collections Assets Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Homestead Option Sales Tax Collections Assets Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others

Balance July 1, 1997

Additions

Deletions

Balance June 30, 1998

$

6,743,356 $

14,627,273 $

21,245,930 $

124,699

1,298,321

1,319,613

1,298,321

1,319,613

$

8,041,677 $

15,946,886 $

22,544,251 $

1,444,312

$

8,041,677 $

13,328,952 $

19,926,317 $

1,444,312

$

3,480,841 $

43,074,804 $

44,365,178 $

2,190,467

1,210,392

12,266,962

1,210,392

12,266,962

$

4,691,233 $

55,341,766 $

45,575,570 $

14,457,429

$

4,691,233 $

41,864,412 $

32,098,216 $

14,457,429

$

0 $

586,968,184 $

590,287,937 $

(3,319,753)

0

53,864,985

53,864,985

$

0 $

640,833,169 $

590,287,937 $

50,545,232

$

0 $

586,968,184 $

536,422,952 $

50,545,232

$

0 $

60,452,454 $

60,760,009 $

(307,555)

0

4,990,263

4,990,263

$

0 $

65,442,717 $

60,760,009 $

4,682,708

$

0 $

60,452,454 $

55,769,746 $

4,682,708

(continued)

151

State of Georgia
Primary Government - Agency Funds
Combining Statement of Changes in Assets and Liabilities (continued) For the Fiscal Year Ended June 30, 1998

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
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, 1997

Additions

Deletions

Balance June 30, 1998

$ 1,530,083,996 $

$ 1,530,083,996 $

0

579,931,027

579,931,027

0

$ 2,110,015,023 $

0 $ 2,110,015,023 $

0

$ 2,110,015,023 $

$ 2,110,015,023 $

0

$

39,081,102 $

777,543,437 $

819,903,668 $

(3,279,129)

14,812,483

53,205,830

14,812,483

53,205,830

$

53,893,585 $

830,749,267 $

834,716,151 $

49,926,701

$

53,893,585 $

762,730,954 $

766,697,838 $

49,926,701

$

33,231,484 $

672,272,743 $

708,299,705 $

(2,795,478)

12,595,367

45,358,311

12,595,367

45,358,311

$

45,826,851 $

717,631,054 $

720,895,072 $

42,562,833

$

45,826,851 $

659,677,376 $

662,941,394 $

42,562,833

$

18,864,733 $

436,420,226 $

440,731,704 $

14,553,255

9,368,301

43,798,707

10,656,790

42,510,218

528,640

757,868

542,520

743,988

2,513,234

11,945,763

11,533,036

2,925,961

139,913

2,800

104,980

37,733

$

31,414,821 $

492,925,364 $

463,569,030 $

60,771,155

$

31,407,896 $

458,724,488 $

429,368,154 $

60,764,230

6,925

6,925

$

31,414,821 $

458,724,488 $

429,368,154 $

60,771,155

152

Primary Government College and University Funds

State of Georgia
Primary Government - College and University Funds
For the Fiscal Year Ended June 30, 1998
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.
155

State of Georgia
Primary Government - College and University Funds
Combining Balance Sheet June 30, 1998

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 Salaries/Withholdings 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

$ 186,509,233 $ 18,642,912 $ 10,838,968 $ 66,156,765

135,681,398

14,894,711

45,677

52,775,542

997,458
103,496,053 7,706,580
26,848,073 6,945,666

34,485,678 35,211,990
474,664

27,421 57,940 48,682,699 26,461 1,264,536

10,607 40,946
6,384

$ 468,184,461 $ 103,709,955 $ 60,943,702 $ 118,990,244

$ 154,120,708 $ 88,835,673 5,616,060 21,800,000 16,291,992 78,662,613

661,916 $ 15,526,289
15,446,927

148,298 1,960,342

$ 12,028

$ 29,218

$ 367,435,686 $ 31,635,132 $

12,028 $

29,218

$

$

$ 47,793,530 $

$

13,120,618

17,526

100,356,768

3,012,354

8,082,933

7,508,971

100,748,775

72,074,823

$ 100,748,775 $ 72,074,823 $ 60,931,674 $ 118,961,026

$ 468,184,461 $ 103,709,955 $ 60,943,702 $ 118,990,244 156

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Agency Funds

Total Before Eliminations

Eliminations

Total (Memorandum
Only)

$ 76,741,093 $ 30,754,678 $

5,496,009

1,020,410

$ 39,901,179 $ 429,544,828 $ 3,593 209,917,340

$ 429,544,828 209,917,340

2,681,192
15,692,300 5,834,972 2,604,584

184,272 9,940,491

415,894
1,183,026 7,277,607
69,500

38,607,643 57,940
48,693,306 155,835,048
32,030,570 26,848,073 10,094,414

(32,030,570)

38,607,643 57,940
48,693,306 155,835,048
0 26,848,073 10,094,414

94,233,195 2,598,758,950
181,591,288 1,561,332,914
200,930,122

94,233,195 2,598,758,950
181,591,288 1,561,332,914
200,930,122

94,233,195 2,598,758,950
181,591,288 1,561,332,914
200,930,122

$ 109,050,150 $ 41,899,851 $ 4,636,846,469 $ 48,850,799 $ 5,588,475,631 $ (32,030,570) $ 5,556,445,061

$ 90,998,400 $ 22,242
1,004,709
1,287 7,000 $ 92,033,638 $

7,438,340 $ 318,385
7,756,725 $

$ 20,232,718

27,931,383 $ 1,328,137
19,591,279

281,150,747 $ 104,384,204
5,616,060 21,800,000 34,431,396 78,662,613 20,232,718 19,591,279
149,585 1,960,342

$ (32,030,570)

281,150,747 104,384,204
5,616,060 21,800,000
2,400,826 78,662,613 20,232,718 19,591,279
149,585 1,960,342

7,000

7,000

20,232,718 $ 48,850,799 $ 567,985,944 $ (32,030,570) $ 535,955,374

$

$

$

$

491,081 16,525,431

4,616,613,751 34,143,126

$ 17,016,512 $ 34,143,126 $ 4,616,613,751 $

$ 47,793,530 $ 13,120,618 17,526
100,356,768 3,012,354 8,082,933 7,508,971
4,616,613,751 72,565,904
151,417,332
0 $ 5,020,489,687 $

$ 47,793,530 13,120,618 17,526
100,356,768 3,012,354 8,082,933 7,508,971
4,616,613,751 72,565,904
151,417,332
0 $ 5,020,489,687

$ 109,050,150 $ 41,899,851 $ 4,636,846,469 $ 48,850,799 $ 5,588,475,631 $ (32,030,570) $ 5,556,445,061 157

Primary Government GeneralFixed AssetsAccountGroup

State of Georgia
Primary Government - General Fixed Assets Account Group
For the Fiscal Year Ended June 30, 1998 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.
161

State of Georgia
Schedule of General Fixed Assets By Function
June 30, 1998

Land and Buildings

Improvements Other Than Buildings

Construction In Progress

Equipment

Total

Function

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

$ 339,656,745 $ 282,537,505 161,851,036
758,622,446 77,558,558
178,361,570 6,349,029
183,030,038

$ 448,632

$ 350,787

55,978,786 $ 189,906,049 152,895,071 189,024,826 169,015,443 36,315,287 68,093,451 64,893,042

395,635,531 472,443,554 314,746,107 189,024,826 927,637,889 113,873,845 247,254,440 71,242,071 183,030,038

Total General Fixed Assets

$ 1,987,966,927 $

448,632 $

350,787 $ 926,121,955 $ 2,914,888,301

162

State of Georgia
Schedule of Changes in General Fixed Assets
By Function For the Fiscal Year Ended June 30, 1998

General Fixed Assets July 1, 1997

Function

General Government

$

Education

Health and Welfare

Transportation

Public Safety

Economic Development and Assistance

Culture and Recreation

Conservation

Capital Outlay

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

Additions
19,670,238 $ 76,189,633 41,741,409 17,309,691 77,989,457
5,328,786 20,654,015
3,623,737 228,431

Deletions

Retroactive Restatement of Prior Year
Balance

General Fixed Assets June 30, 1998

4,916,877 $ 9,239,895 15,093,716 5,727,519 13,874,561
525,285 3,375,640
922,854 1,683,411

$ 272,215

395,635,531 472,443,554 314,746,107 189,024,826 927,637,889 113,873,845 247,254,440
71,242,071 183,030,038

$ 2,707,240,447 $ 262,735,397 $

55,359,758 $

272,215 $ 2,914,888,301

163

Component Units Governmental Fund Types

State of Georgia
Component Units - Governmental Fund Types
For the Fiscal Year Ended June 30, 1998 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.
167

State of Georgia
Component Units - Governmental Fund Types Combining Balance Sheet June 30, 1998

Assets and Other Debits
Assets: 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, Fund Balances and Other Credits
Liabilities: Cash Overdraft Accounts Payable and Other Accruals Compensated Absences Payable Salaries/Withholdings Payable 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: Reserved for Other Specific Purposes Unreserved, Undesignated
Total Fund Balances
Total Fund Balances and Other Credits
Total Liabilities, Fund Balances and Other Credits

Georgia Education Authority (Schools)

Georgia Public Telecommunications Commission

Total

$

640,601 $

161,369 $

801,970

100,989 1,325,853
95,126 228,367

100,989 1,325,853
95,126 228,367

27,360,330 64,270,414

27,360,330 64,270,414

11,879,924

11,879,924

$

640,601 $ 105,422,372 $ 106,062,973

$

39,420 $ 1,118,566 $ 1,157,986

4,406,340

4,406,340

1,055,264

1,055,264

220,311

220,311

290,951

290,951

215,666

215,666

10,824,660

10,824,660

$

39,420 $ 18,131,758 $ 18,171,178

$ $ $ $ $ 168

$ 91,630,744 $ 91,630,744

$ 601,181
601,181 $
601,181 $

375,041 $ (4,715,171)
(4,340,130) $
87,290,614 $

375,041 (4,113,990)
(3,738,949)
87,891,795

640,601 $ 105,422,372 $ 106,062,973

State of Georgia
Component Units - Governmental Fund Types Combining Statement of Revenues, Expenditures and
Changes in Fund Balances For the Fiscal Year Ended June 30, 1998

Revenues: Sales and Services Interest and Other Investment Income Rents and Royalties Contributions and Donations
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
Fund Balances, June 30

Georgia Education Authority (Schools)

Georgia Public Telecommunications Commission

Total

$

$ 2,681,917 $ 2,681,917

32,339

103,510

135,849

163,972

163,972

10,162,233

10,162,233

$

32,339 $ 13,111,632 $ 13,143,971

$

0 $ 36,267,248 $ 36,267,248

$

32,339 $ (23,155,616) $ (23,123,277)

$

0 $ 18,915,057 $ 18,915,057

$

32,339 $ (4,240,559) $ (4,208,220)

568,842

(99,571)

469,271

$

601,181 $ (4,340,130) $ (3,738,949)

169

Component Units Proprietary Fund Types

State of Georgia
Component Units - Proprietary Fund Types
For the Fiscal Year Ended June 30, 1998
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 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 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 of the 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.
173

State of Georgia
Component Units - Proprietary Fund Types
For the Fiscal Year Ended June 30, 1998
The Agrirama Development Authority operates and maintains an agricultural museum and restoration complex at Tifton, Georgia. 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 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 of the State.
174

State of Georgia
Component Units - Proprietary Fund Types Combining Balance Sheet June 30, 1998

Assets
Current Assets: Cash and Cash Equivalents Receivables (Net of Allowances for Uncollectibles) Intergovernmental - Federal Interest and Dividends Other Accounts Miscellaneous Due from Primary Government Inventories Prepaid Items
Long-Term Assets: Investments Receivables Notes and Loans Restricted Assets Cash and Cash Equivalents Investments Receivables Interest and Dividends Loans
Deferred Charges Fixed Assets:
Land and Buildings Improvements Other Than Buildings Machinery and Equipment Accumulated Depreciation Construction in Progress Other Assets

Development Authority

Environmental Facilities Authority

Housing and Finance Authority

Jekyll Island State Park Authority

Lake Lanier Islands
Development Authority

$

37,047 $

$ 13,408,834 $

5,290 $

2,237,676

103,020,611 4,527,397

405,437

20,646

1,020,521

2,204,493 8,404

200,998 87,560

565,285 219,192,706

41,170,084

3,631,038

75,315,920 446,502,557

59,789,650

145,449,696 51,788,464

3,620,884

6,121,452 598,113,658 12,901,365

6,488,422

30,648,410

321,635

1,400,665 (2,048,107)

3,485,571

100,000

6,608,924

1,527,112 112,463 1,153
3,300,000
13,456 4,578

Total Assets
Liabilities and Fund Equity
Liabilities Current Liabilities: Cash Overdraft Accounts Payable and Other Accruals Compensated Absences Payable Contracts Payable Salaries/Withholdings Payable Due to Primary Government Accrued Interest Payable Deferred Revenue Long-Term Liabilities: Capital Leases/Installment Purchases Payable Mortgage Loans under Repurchase Agreements Funds Held for Others Other Liabilities Deposits and Overpayments Advances from Primary Government Long-Term Debt Payable (Net of Unamortized Discounts) Grand Prizes Payable Notes and Loans Payable Revenue Bonds Payable
Total Liabilities

$ 78,155,928 $ 779,519,333 $ 941,598,544 $ 39,079,388 $ 4,958,762

$

$ 2,535,911 $

$

1,094,297

4,307,417

18,785,550

500,000

2,367,697 12,389,327

1,852 3,913,540 57,088,920

$ 359,247 413,716 257,455
318,828

17,728,827

2,000,000

931 107,500

$ 30,672 17,946
4,578

32,134,000

88,665,393

431,475 779,660,753

$ 51,457,124 $ 110,265,745 $ 861,882,090 $

1,457,677 $

176

53,196

Lottery Corporation

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress
Center Authority

Other Entities

Total

$

$ 11,349,610 $ 9,386,794 $ 3,161,859 $ 9,053,397 $ 15,574,259 $ 27,862,119 $ 91,366,321

206,463 8,879,367

57,496

4,960,991 40,787

108,188,065 16,148,160

38,560,207 1,886,000

13,019,000 216,000
2,746,000 165,000

1,403,006
15 1,498,819
444,540

1,616,865

88,404 1,888

6,699,066 100,000
243,242 159,633

1,021,861 17,177 56
312,244 28,255

63,562,039 333,177
2,204,564 5,001,303 2,782,433

1,059,723

7,530,688

13,686,775

14,485,136

10,110,494

25,994,914

340,726,843

354,847,269

936,455,396

347,000 309,033,000

(81,486) 1,321,755

3,414,025 13,931,648

9,818,741 36,514,989

158,947,976 412,589,856

3,127,740

6,121,452 598,113,658
19,649,989

1,962,000
11,847,000 (10,815,000)

173,885,000 200,806,000 117,111,000 (204,906,000) 63,114,000 16,505,000

81,304,479 18,980,870 28,009,630 (32,656,784)
287,578 235,872

4,067,835
993,181 (2,411,142)

4,950,883 2,710,490 4,085,722 (4,798,058) 1,095,712 60,118,446

209,402,736
11,729,405 (43,869,410) 70,791,475

38,961,446
7,816,517 (27,796)
23,930,620 238,146

551,671,211 222,497,360 186,813,782 (301,532,297) 159,219,385
83,810,966

$ 353,879,930 $ 402,781,567 $ 108,894,819 $ 385,048,472 $ 109,195,189 $ 330,402,370 $ 131,157,337 $ 3,664,671,639

$ 7,169,930 $ 36,864,857 16,143
449,000

$ 8,839,099 1,081,539 1,442,000
46,703 50,659
1,007,000
6,183,000

$ 4,408,677

$ 325,955

952,697

135,316 1,858,615

302,270,278 2,894,977

$ 648,723
164,687

$ 4,057,516 1,196,131

1,634,055 2,059,616

19,782 7,575,164 20,359,798

670,098

133,245

6,203 172,389 14,517,820

$ 7,211,024
252,560 518,727
15,699 497 991
585,401

9,705,841 86,933,034 2,961,892 2,125,414
319,857 224,249 16,444,144 96,167,505

69,323 50,087

739,421 17,728,827 302,332,077 11,699,366 14,651,065
107,500

296,849,000

8,445,000 17,400,000

$ 341,348,930 $ 44,495,000 $

30,284,767

85,375,176 194,779,336

5,361,374 $ 337,769,908 $ 90,015,502 $ 243,354,237 $

177

140,000

296,849,000 71,295,242
1,166,020,658

8,844,309 $ 2,096,305,092 (continued)

State of Georgia
Component Units - Proprietary Fund Types Combining Balance Sheet (continued) June 30, 1998

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 Balances 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

Jekyll Island State Park Authority

Lake Lanier Islands
Development Authority

$

$

321,635 $

$

$

$

$

$ 208,140,508 $

$ 12,969,775 $ 21,822,261

318,704,775

$

0 $ 526,845,283 $

0 $ 12,969,775 $ 21,822,261

$ 2,668,771 $ 2,925,051 $ 28,726,437 $

$ 2,279,446

24,030,033 126,065,307

48,770,096

24,651,936 (19,196,141)

$ 26,698,804 $ 128,990,358 $ 77,496,533 $ 24,651,936 $ (16,916,695)

$

$ 12,265,010 $

633,268 $

$

831,302

1,586,653

$

0 $ 13,096,312 $ 2,219,921 $

0 $

$ 26,698,804 $ 668,931,953 $ 79,716,454 $ 37,621,711 $

$ 26,698,804 $ 669,253,588 $ 79,716,454 $ 37,621,711 $

$
0 4,905,566 4,905,566

$ 78,155,928 $ 779,519,333 $ 941,598,544 $ 39,079,388 $ 4,958,762

178

Lottery Corporation

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress
Center Authority

Other Entities

Total

$

$

$

$

$

$

$

$

321,635

$

$ 239,727,849 $ 43,536,341 $

$

$

$ 67,194,277 $ 593,391,011

9,676,882

328,381,657

292,063

15,126,652

63,703,860

1,041,573

80,164,148

$

0 $ 249,696,794 $ 58,662,993 $

0 $

0 $ 63,703,860 $ 68,235,850 $ 1,001,936,816

$ 12,531,000 $

$

$ 27,604,818 $

$

124,634 $ 18,762,248 $ 95,622,405

108,589,773

44,870,452

19,673,746

19,179,687

23,219,639

35,314,930

455,169,458

$ 12,531,000 $ 108,589,773 $ 44,870,452 $ 47,278,564 $ 19,179,687 $ 23,344,273 $ 54,077,178 $ 550,791,863

$

$

$

$

$

$

$

$ 12,898,278

2,417,955

$

0 $

0 $

0 $

0 $

0 $

0 $

0 $ 15,316,233

$ 12,531,000 $ 358,286,567 $ 103,533,445 $ 47,278,564 $ 19,179,687 $ 87,048,133 $ 122,313,028 $ 1,568,044,912

$ 12,531,000 $ 358,286,567 $ 103,533,445 $ 47,278,564 $ 19,179,687 $ 87,048,133 $ 122,313,028 $ 1,568,366,547

$ 353,879,930 $ 402,781,567 $ 108,894,819 $ 385,048,472 $ 109,195,189 $ 330,402,370 $ 131,157,337 $ 3,664,671,639

179

State of Georgia
Component Units - Proprietary Fund Types Combining Statement of Revenues, Expenses and
Changes in Fund Equity For the Fiscal Yea r Ended June 30, 1998

Operating Revenues: Contributions Interest and Other Investment Income Intergovernmental Rents and Royalties Sales and Services Taxes Other
Total Operating Revenues
Operating Expenses: General and Administrative Goods and Services Interest Prizes Depreciation Other
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses): Contributions and Intergovernmental Revenue Interest and Other Investment Income Gain on Sale of Loans Hotel/Motel Tax (Net) Interest Expense Other Debt Service Charges Other
Total Nonoperating Revenues (Expenses)
Net Income (Loss) Before Operating Transfers
Operating Transfers: Transfers from Primary Government Transfers to Primary Government
Net Operating Transfers
Net Income (Loss)
Excess (Deficiency) of Revenues Over (Under) Expenditures from Governmental Operations and Expendable Trust Funds
Fund Equity, July 1 Adjustments Change in Accounting Principle Other Contributed Capital from Primary Government Contributed Capital from Federal Government Contributed Capital from Other Sources Transfer of Contributed Capital to Primary Government Transfer of Equity from Primary Government Increase (Decrease) in Inventories
Fund Equity, June 30

Development Authority

Environmental Facilities Authority

Housing and Finance Authority

Jekyll Island State Park Authority

Lake Lanier Islands
Development Authority

$

$

$

$

$

4,745,401

19,364,313

47,007,238

18,808

692,247 6,487,484
273,220

4,293,653 9,713,858 1,182,394
20,388

2,878,053 35,497
387,600 12,827

$ 4,764,209 $ 19,364,313 $ 54,460,189 $ 15,210,293 $ 3,313,977

$

644,058 $

776,864 $ 9,645,279 $ 13,211,742 $

2,274,519

1,181,557

2,151,016

4,648,998

52,593,067

657,468

(20,587)

534,847 92,250

$ 2,774,487 $ 5,425,862 $ 65,139,962 $ 14,393,299 $

657,468

$ 1,989,722 $ 13,938,451 $ (10,679,773) $

816,994 $ 2,656,509

$

$

$

$

88,459 $

217,516

9,906,864

21,594,772

261,461

356,934

(190) (1,598,349)

(1,013,843)

(388,478) (149)
(7,167)

(1,478,334)

$

217,516 $ 8,308,325 $ 20,580,929 $

(45,874) $ (1,121,400)

$ 2,207,238 $ 22,246,776 $ 9,901,156 $

771,120 $ 1,535,109

$

$ 4,624,073 $

$

$

0 $ 4,624,073 $

0 $

$ 2,207,238 $ 26,870,849 $ 9,901,156 $

$
0 $ 771,120 $

(4,175,629) (4,175,629) (2,640,520)

24,491,566

(2,317,783) 615,311,497

(7,298,285) 676,875
35,688,800

(110,501) 71,582,858 (1,657,059)

37,301,198 (450,607)

8,731,684 (1,185,598)

$ 26,698,804 $ 668,931,953 $ 79,716,454 $ 37,621,711 $ 4,905,566

180

Lottery Corporation

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress Center Authority

Other Entities

Total

$

$

$

$

1,676,898,000 $ 1,676,898,000 $

94,075,000 94,075,000 $

19,578,152 25,781,123
1,353,929
46,713,204 $

$ 5,633,977
2,240,224 218,891
8,093,092 $

$ 56,490 21,234,951
21,291,441 $

$ 34,122,987 18,395,317
52,518,304 $

40,925
21,091,686 1,388,153 18,658,904
20,999,506

$

40,925

76,750,929

21,091,686

63,009,735

1,873,520,358

1,569,994

22,897,569

62,179,174 $ 2,058,881,196

$ 18,581,000 $ 202,748,000
902,465,000 1,393,000 1,459,000
$ 1,126,646,000 $
$ 550,252,000 $

19,808,000 $ 45,744,000
16,494,000
82,046,000 $ 12,029,000 $

33,103,738 $ 4,605,835 $

7,196,530

31,388,524

5,984,705

321,456 9,674,789

46,284,973 $ 45,990,604 $

428,231 $ (37,897,512) $

2,973,868 $ 3,180,009
908,587 2,613,082 9,675,546 $ 11,615,895 $

20,707,718 $ 24,885,775
8,758,583
54,352,076 $ (1,833,772) $

23,414,394 $ 3,263,831
10,301 35,118,716

148,129,964 321,862,745
59,393,081 902,465,000
34,405,479 48,937,250

61,807,242 $ 1,515,193,519

371,932 $ 543,687,677

$

$

$

$

$

$

$

20,099,000

1,907,920

498,967

1,409,112

2,084,511

3,412,530

81,000

802,484

17,282,333

(9,288,000)

(2,132,791)

(1,731,740)

(4,575,059) (15,209,386)

(3,519,570)

(4,304,636)

121,000

(10,928,000)

(173,244)

385,145

(283,004)

192,137

$ 20,220,000 $ (18,227,080) $ (1,807,068) $

865,001 $ (6,293,122) $ 1,372,978 $

482,600 $ 2,227,326
(892,039) (501) 2,603

571,059 63,976,913
883,484 17,282,333 (35,695,827) (8,838,889) (12,288,879)

1,819,989 $ 25,890,194

$ 570,472,000 $ (6,198,080) $ (1,378,837) $ (37,032,511) $ 5,322,773 $

(460,794) $ 2,191,921 $ 569,577,871

$

$

(555,272,000)

$ (555,272,000) $

$ 15,200,000 $

$
0 $ (6,198,080) $

$ 47,956,323 $

0 $ (1,378,837) $

47,956,323 $ 10,923,812 $

$
0 $ 5,322,773 $

$ (238,985)
(238,985) $
(699,779) $

9,439,310 $ 62,019,706 (559,686,614)
9,439,310 $ (497,666,908)
11,631,231 $ 71,910,963

287,000 (2,956,000)

347,904,647
(8,600,000) 36,260,000

106,547,376

36,354,752

(11,080,000)

(1,635,094)

13,856,914

82,786,492 4,953,860
7,560

27,879
107,998,322
39,507
2,920,270
3,164
(543,648) 199,786
36,517

(2,400,405)
1,453,154,306
(4,573,552) (15,898,285) 39,857,145 35,688,800
4,957,024
(14,894,947) 199,786 44,077

$ 12,531,000 $ 358,286,567 $ 103,533,445 $ 47,278,564 $ 19,179,687 $ 87,048,133 $ 122,313,028 $ 1,568,044,912

181

State of Georgia
Component Units - Proprietary Fund Types
Combining Statement of Cash Flows For the Fiscal Yea r Ended June 30, 1998

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 Lottery Prizes Origination of Program 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 Primary Government Proceeds from Assignment of Program Loans Under Repurchase Agreements Issuance of Bonds/Loans/Notes Contributed Capital Hotel/Motel Tax (Net) Operating Transfers to Primary Government Repayment of Advances Principal Paid on Bonds/Loans/Notes Interest Paid on Bonds/Loans/Notes Return of Contributed Capital Transfer of Equity from Primary Government 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 of Bonds/Loans/Notes Hotel/Motel Tax Received Contributed Capital Sale of Capital Assets Acquisition and Construction of Capital Assets Principal Paid on Bonds/Loans/Notes Interest Paid on Bonds/Loans/Notes 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

Jekyll Island State Park Authority

Lake Lanier Islands
Development Authority

$

$

$ 7,193,756 $ 15,427,719 $

16,762,648

29,065,192

77,364,451

4,895,511

19,147,854

46,307,189

(2,546,087)

(669,470)

(5,209,057)

(7,421,980)

(445,500)

(653,848)

(5,386,812)

(6,927,783)

(15,732,050)

(58,863,718) (20,725,106)

(94,185,835) 2,585,824

(491)

7,176,742
191,834 (153,347)

$ 2,934,522 $ (32,699,096) $ 28,669,516 $ 1,077,465 $ 7,215,229

$

$ 4,624,073 $

$

$

10,711,222 29,434,000

24,723,485

135,147,884

(47,562,819)

(117,879,715) (49,731,484)

937,562

(2,182,005)

(53,750) (450,607)
90,836

(1,185,598) (2,775,629)

$ (7,417,597) $ 30,285,120 $ (34,645,320) $ (413,521) $ (3,961,227)

$

$ 76,654,509 $

$

$

(80,124,248) (5,052,715) (190)

(387,184)

(449,423) (130,000) (388,478)
(149)

(4,065) (1,478,334)

$

0 $ (8,522,644) $ (387,184) $ (968,050) $ (1,482,399)

$ (404,966) $ (149,626,689) $ 16,277,846 $ (2,744,945) $ (3,244,656)

217,516

9,906,864

16,679,397

261,461

301,590

$ (187,450) $ (139,719,825) $ 32,957,243 $ (2,483,484) $ (2,943,066)

$ (4,670,525) $ (150,656,445) $ 26,594,255 $ (2,787,590) $ (1,171,463)

4,707,572 150,656,445 132,264,275

2,792,880

2,698,575

$

37,047 $

0 $ 158,858,530 $

5,290 $ 1,527,112

182

Lottery Corporation

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress
Center Authority

Other Entities

Total

$ 1,683,230,793 $ 95,168,000 $ 47,231,438 $ 1,843,281 $

(204,844,000) (13,819,000)
(864,420,000)

(23,523,443) (41,967,557)

(18,317,056) (19,897,060)

4,868,196 (45,652,795)
(5,610,623) 814,262

21,588,602 $ (6,679,909)

88,355,310 $
(64,909,091) (20,062,329)
(8,562) 166,120

59,229,857 $ 2,026,445,498

123,192,291

75,218,750

(51,808,294) (431,389,348)

(4,604,109) (113,917,345)

(864,420,000)

(174,392,226)

30,574

(17,303,499)

166,120

$ 600,147,793 $ 29,677,000 $ 9,017,322 $ (43,737,679) $ 14,908,693 $ 3,541,448 $ 2,848,028 $ 623,600,241

$

$

$

$ 47,956,323 $

3,039,257

(555,272,000) (11,080,000)

(1,635,094)

(7,527,268) (1,828,797)

(11,296,289)

1,072,000

385,145

$

$ 9,439,310 $ 62,019,706

3,200,997 (345,071)
362,027

(543,648) 199,786
414,406

10,711,222 167,621,141
24,723,485 3,200,997
(555,617,071) (53,750)
(172,969,802) (51,560,281) (14,894,947) 199,786 (2,182,005) (10,809,942)

$ (566,568,289) $ (10,008,000) $ (1,635,094) $ 42,024,660 $

0 $ 3,217,953 $ 9,509,854 $ (539,611,461)

$

$

$

$

(1,042,000)

36,260,000 608,000
(43,940,000) (3,696,000) (1,358,000)

6,951 (1,940,815)
(2,176,869)

$ (48,319)

$

$

13,781,971

7,853,860

(1,164,016) (3,720,000) (5,758,467) (3,181,012)

(9,870,382) (2,500,000) (15,234,704) (4,627,858)
(334,710)

$
1,222,172
(1,319,215) (45,000)
(890,850) (501)

76,654,509 13,781,971 45,336,032
614,951 (60,165,419) (90,215,248) (32,338,417)
(7,809,710) (334,710)

$ (1,042,000) $ (12,126,000) $ (4,110,733) $

(48,319) $ (13,823,495) $ (10,931,823) $ (1,033,394) $ (54,476,041)

$ (37,437,504) $ (6,422,158) $

4,960,000

1,988,000

$ (32,477,504) $

$

60,000 $

287,000

(4,434,158) $ 3,108,842 $ 8,159,282

$ (12,412,844) $

381,848

1,445,232

121,036

(2,251,250) $ 1,928,230

5,659,320 $ (18,729,418) $ (211,337,264)

3,976,809

2,224,968

44,271,915

121,036

502,884 $ (10,967,612) $ (323,020) $ 9,636,129 $ (16,504,450) $ (166,944,313)

3,774,379 $ (12,728,950) $

762,178 $ 5,463,707 $ (5,179,962) $ (137,431,574)

5,612,415

15,890,809

11,705,244

19,929,293

33,042,081

387,745,871

$

347,000 $ 11,268,124 $ 9,386,794 $ 3,161,859 $ 12,467,422 $ 25,393,000 $ 27,862,119 $ 250,314,297

(continued)

183

State of Georgia
Component Units - Proprietary Fund Types
Combining Statement of Cash Flows (continued) For the Fiscal Yea r Ended June 30, 1998

Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities: Depreciation/Amortization Interest and Other Investment Income Other Changes in Assets and Liabilities:
Decrease (Increase) in Intergovernmental Receivables Decrease (Increase) in Interest and Dividends Receivable Decrease (Increase) in Notes and Loans Receivable Decrease (Increase) in Other Receivables Increase in Due from Primary Government Decrease (Increase) in Inventories Decrease (Increase) in Prepaid Items 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 Salaries/Withholdings Payable Increase (Decrease) in Due to Primary Government Increase (Decrease) in Deferred Revenue Increase (Decrease) in Funds Held for Others Increase (Decrease) in Other Liabilities Increase (Decrease) in Deposits and Overpayments Increase in Grand Prizes Payable
Total Adjustments
Net Cash Provided by (Used in) Operating Activities
Noncash Investing, Capital, and Financing Activities: Disposal of Fixed Assets Donation of Fixed Assets Interest Earned on Grand Prize Investments and Grand Prizes Payable Purchase of Building on Account Refunding Bond Proceeds Deposited Directly into Escrow Account

Development Authority

Environmental Facilities Authority

Housing and Finance Authority

Jekyll Island State Park Authority

Lake Lanier Islands
Development Authority

$ 1,989,722 $ 13,938,451 $ (10,679,773) $

816,994 $ 2,656,509

$

$

$ (165,202) $

$

4,648,998

52,593,067

(20,725,106)

2,678,074

131,302 1,030,598

(766,001) (29,778,670)

(16,821,384)

(217,100)

(19,856) (546,454)

(259,195) 1,339,044

549,542

(15,115)

279,360
(34,042) (40,680)
(31,042) 23,246
126,449 (395)
(61,934) (491)

6,352,530
28,381 501
(1,820,248) (1,943)
(501)

$

944,800 $ (46,637,547) $ 39,349,289 $

260,471 $ 4,558,720

$ 2,934,522 $ (32,699,096) $ 28,669,516 $ 1,077,465 $ 7,215,229

$

$

$

$

(23,544) $

14,000

$

0 $

0 $

0 $

(9,544) $

0

184

Lottery Corporation

Ports Authority

Stone Mountain Memorial Association

Student Finance Authority

Tollway Authority

World Congress
Center Authority

$ 550,252,000 $ 12,029,000 $

428,231 $ (37,897,512) $ 11,615,895 $ (1,833,772) $

Other Entities

Total

371,932 $ 543,687,677

$ 1,393,000 $ 16,494,000 $ (20,839,000)

6,332,793

(423,000)

486,000 4,244,000 (4,047,580)
(13,420)

(288,000) 469,000 1,292,000 636,348
64,948 (468,000) (355,227)
1,931 224,000

(92,000)

62,432,000

$ 49,895,793 $ 17,648,000 $

5,984,705 $

321,456 $

814,262

518,234 (15)
793,598 211,956

160,154 (765,781) (5,610,623) (936,667)

1,080,613

(12,191)

67,776 320,833
(199,386)

8,589,091 $ (5,840,167) $

3,521,669 $ 8,758,583 $

10,301 $ 36,318,512

57,242,065

27,879

(38,043,891)

3,136 123
(431,945) (94,210) 271,240 22,785

(1,766,184)
12,558 60,202
(736,421) 124,544
(79) 9,383 (678,113) (8,562) 172,389 (573,080)

(2,678,825) 32,602
(412,763) (56)
(7,901) (5,039) (1,226) 5,121,240 56,418 214,659 9,923 (4,706) 110,895 2,695

(2,518,671) (1,367,878) (51,180,079) 9,947,439
(71) 476,213 1,209,943 5,256,224 334,264 267,213 (347,551) (218,934)
45,454 736,463
(6,859) (118,997) (550,295) 62,432,000

3,292,798 $ 5,375,220 $ 2,476,096 $ 79,912,564

$ 600,147,793 $ 29,677,000 $ 9,017,322 $ (43,737,679) $ 14,908,693 $ 3,541,448 $ 2,848,028 $ 623,600,241

$

(61,000) $

20,839,000

$ 20,778,000 $

$ 0 $

$ 0 $

$ (536,218) $
46,403 90,526,229 0 $ 90,036,414 $

$

(72,876) $

(693,638)

1,763,741

1,777,741

20,839,000 46,403

90,526,229

0 $ 1,690,865 $ 112,495,735

185

Component Units Fiduciary Fund Types

State of Georgia
Component Units - Fiduciary Fund Types
For the Fiscal Yea r Ended June 30, 1998
The Firefighter'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 of the 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.
189

State of Georgia
Component Units - Fiduciary Fund Types Combining Statement of Plan Net Assets June 30, 1998

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
Cash Overdraft Accounts Payable and Other Accruals Salaries/Withholdings Payable Due to Primary Government
Total Liabilities
Fund Balances Reserved for Pension Benefits

Firefighters' Pension Fund

Judges of the Probate Courts
Retirement Fund

Peace Officers' Annuity and Benefit Fund

$

$

308,339,127

28,224 $

3,389,458

35,543,811

242,328,596

2,313,832

325,490

2,017,814

135,197 132,210
$ 310,920,366 $

310,296

606

123,498

35,898,131 $ 248,169,662

$

394 $

$

$

1,279

4,393

$

394 $

1,279 $

4,393

$ 310,919,972 $ 35,896,852 $ 248,165,269

190

Public School Employees Retirement System

Sheriffs' Retirement
Fund

Superior Court Clerks' Retirement
Fund

Teachers Retirement
System

Total

$

$

702,149,000

$ 38,813,522

52,760 $

$

3,470,442

34,421,652 34,444,586,000 35,806,181,708

6,000 $ 702,155,000 $

291,749
20,620 39,125,891 $

245,932,000

250,880,885

180,370,720 42,175

180,376,720 42,175

19,207

445,493 296,141

34,493,619 $ 34,870,930,895 $ 36,241,693,564

$

38,000 $

267,000

$

305,000 $

9,130 $ 9,130 $

$

65,282 $

112,806

1,987,730

2,254,730

62,762

68,434

39,946

39,946

0 $

2,155,720 $

2,475,916

$ 701,850,000 $ 39,116,761 $ 34,493,619 $ 34,868,775,175 $ 36,239,217,648

191

Statistical Section

Table 1 Table 2 Table 3 Table 4 Table 5 Table 6
Table 7 Table 8 Table 9

State of Georgia
Statistical Section
Index
Page General Governmental Expenditures by Function..............................................................................196 General Governmental Revenues by Source.......................................................................................198 State Tax Revenues by Source - All Governmental Fund Types.....................................................200 Principal Nongovernmental Employers................................................................................................202 Computation of Legal Debt Margin......................................................................................................203 Ratio of Annual Debt Service Expenditures for General Obligation Debt
to Total General Governmental Expenditures................................................................................203 Demographic Statistics...........................................................................................................................204 Schedule of Bank Deposits....................................................................................................................204 Miscellaneous Statistics ........................................................................................................................205

195

State of Georgia
General Governmental Expenditures by Function (1)
For the Last Eight Fiscal Years (2) Table 1

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
Total General Governmental Expenditures

1998

1997

1996

1995

$ 653,302,692 $ 637,247,287 $

6,155,220,908 5,700,389,994

6,479,723,177 6,796,847,561

1,385,250,996 1,113,788,591

1,193,748,916 1,124,542,047

264,913,965

263,090,507

185,622,125

170,667,100

45,865,385

48,769,799

346,296,387

373,677,146

645,791,398

629,588,332

(3)

(3)

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
(3)

539,762,518 4,625,591,699 5,693,088,331 1,401,010,780 1,030,957,652
190,029,084 156,234,675 45,875,856 493,326,267 537,800,975
(3)

$ 17,355,735,949 $ 16,858,608,364 $ 15,893,960,648 $ 14,713,677,837

(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" expenditure 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.

196

1994

1993

1992

1991

$ 409,630,033 $ 380,920,519 $ 297,671,885 $ 307,358,275

4,168,677,500 3,738,241,752 3,356,647,585 3,429,066,240

5,257,989,665 4,684,027,431 4,159,170,527 3,589,402,101

975,771,056 1,088,108,187

898,101,022 1,056,209,827

891,894,168

798,451,763

702,543,743

706,878,373

175,159,029

184,179,867

186,742,307

173,618,821

121,413,898

116,370,238

103,007,704

97,930,563

45,299,326

42,923,710

40,267,999

43,968,291

325,340,789

347,403,119

249,777,992

242,582,555

427,689,905

451,136,869

409,267,811

417,490,455

(3)

(3)

325,890,492

330,633,230

$ 12,798,865,369 $ 11,831,763,455 $ 10,729,089,067 $ 10,395,138,731

197

State of Georgia
General Governmental Revenues by Source (1)
For the Last Eight Fiscal Years (2) Table 2

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

1998

1997

1996

1995

$ 11,439,170,422 $ 10,483,497,704 $

346,081,148

351,181,927

5,617,029,811 5,549,805,877

536,827,964

513,909,314

49,204,317

50,426,165

275,999,300

239,306,741

13,920,492

9,992,943

192,209,388

190,841,985

9,485,653

6,699,639

20,690,958

20,118,021

257,123,411

373,248,075

5,409,857

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

$ 18,763,152,721 $ 17,821,550,902 $ 17,518,080,982 $ 15,768,685,733

(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.

198

1994

1993

1992

1991

$ 8,337,801,318 $ 7,761,536,952 $ 7,014,576,028 $ 6,913,824,337

323,679,549

273,530,522

156,555,971

142,682,174

4,163,447,196 4,024,383,231 3,481,785,992 3,059,490,557

304,600,443

273,321,290

284,191,405

254,698,693

32,570,070

27,968,839

26,684,051

23,819,450

131,238,703

122,575,976

113,224,780

138,668,503

9,285,637

22,275,341

25,757,175

18,912,013

149,621,154

103,743,601

95,966,335

39,881,852

16,110,883

18,888,188

17,936,355

19,715,782

19,935,473

34,611,896

11,798,133

10,972,108

977,957,328

356,333,042

667,655,288

612,441,613

121,670,497

6,437,851

9,936,790

19,964,620

$ 14,587,918,251 $ 13,025,606,729 $ 11,906,068,303 $ 11,255,071,702

199

State of Georgia
State Tax Revenues by Source - All Governmental Fund Types
For the Last Ten Fiscal 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

1998

1997

1996

1995

$ 6,133,784,892 $ 5,488,547,143 $ 4,964,393,724 $ 4,498,902,508 4,238,397,531 4,062,494,318 3,954,442,920 3,651,583,790

405,269,766 126,825,895 80,051,470 212,839,904 84,808,642 36,021,442 108,615,750 12,555,130

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

(1) $ 11,439,170,422 $ 10,483,497,704 $ 9,891,126,837 $ 9,068,979,799

(1) In Fiscal Year 1995, the state began accounting for certain tax revenues on the modified accrual basis.
Sources: Fiscal Years 1989-1990 - Annual Audit Reports: Georgia Departments of Revenue and Insurance Fiscal Years 1991-1998 - Georgia Comprehensive Annual Financial Report
Note: Governmental Fund Types are described in the Notes to the Financial Statements.

200

1994

1993

1992

1991

1990

1989

$ 4,102,592,850 $ 3,850,571,615 $ 3,452,551,939 $ 3,355,808,517 $ 3,342,947,428 $ 3,250,782,776 3,361,513,613 3,072,269,685 2,777,595,357 2,754,539,969 2,724,130,258 2,100,042,193

365,243,573 110,633,761
83,186,371 162,867,502
87,808,192 29,969,838 18,830,421 15,155,197

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

$ 8,337,801,318 $ 7,761,536,952 $ 7,014,576,028 $ 6,913,824,337 $ 6,837,006,794 $ 6,118,574,469

201

State of Georgia
Principal Nongovernmental Employers
June 30, 1998 Table 4
Company
Wal-Mart Stores, Incorporated Delta Air Lines, Incorporated * Bell South Corporation * Promina Health System * Shaw Industries, Incorporated * Publix Supermarkets, Incorporated The Southern Company/Georgia Power Company * Columbia Healthcare Corporation Mohawk Industries * Emory System of Health Care* AT&T Company K-Mart Corporation The Kroger Company Lockheed Martin Corporation CVS/Pharmacy Winn Dixie Stores, Incorporated Georgia-Pacific Corporation * United Parcel Service * Beaulieu of America Dayton Hudson/Target Stores Cox Enterprises* Lucent Technologies IBM Inc. NationsBank Springs Industries SunTrust Banks, Incorporated Home Depot, Incorporated * Marriott Corporation General Motors Corporation Morris Communications Queen Carpet Corporation Federated Department Stores National Service Industries, Incorporated * Southwire Company RTM Restaurant Group Sears, Roebuck and Company Coca-Cola Company* J.C. Penney Company Wachovia Corporation Gold Kist Corporation
* Indicates Georgia Headquarters
Source: Georgia Department of Industry, Trade and Tourism, January, 1999.
202

Number of Employees
29,920 27,552 21,651 18,000 17,350 15,377 13,603 12,000 11,750 10,800 10,550 10,500 10,500 10,100 10,000 10,000 9,600 9,500 9,000 8,600 7,720 7,300 7,200 7,000 6,310 6,118 6,091 5,700 5,641 5,600 5,500 5,340 5,306 5,300 5,250 5,200 5,150 5,100 5,100 5,000

State of Georgia
Computation of Legal Debt Margin June 30, 1998 Table 5

Treasury Receipts - Fiscal Year Ended June 30, 1997 (1)

$ 11,905,829,999

Legal Debt Margin: Highest Annual Commitments Permitted Under Constitutional Limitation (10% of above)

$ 1,190,583,000

Highest Total Annual Commitments in any Fiscal Year (Highest FY 1999) As a Percentage of FY 1997 State Treasury Receipts As a Percentage of FY 1998 State Treasury Receipts

$ 580,531,875 4.88% 4.65%

(1) Includes Indigent Care Trust Fund Receipts and Lottery Proceeds

Source:

Georgia State Financing and Investment Commission

Ratio of Annual Debt Service Expenditures For General Obligation Debt to Total
General Governmental Expenditures (1) For the Last Eight Fiscal Years (2)
Table 6

Fiscal Year

Principal

General Bonded Debt

Interest and Other

Total

Fiscal Charges Debt Service

General Governmental Expenditures (1)

Ratio of Debt Service to General
Governmental Expenditures

1998 1997 1996 1995 1994 1993 1992 1991

$ 387,030,000 $ 392,165,000 352,300,000 350,385,000 246,840,000 258,548,346 243,921,646 274,980,000

258,317,069 $ 236,835,498 218,523,118 186,826,275 179,738,306 191,022,895 164,291,856 135,960,182

645,347,069 629,000,498 570,823,118 537,211,275 426,578,306 449,571,241 408,213,502 410,940,182

$ 17,355,735,949 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

3.72% 3.73% 3.59% 3.65% 3.33% 3.80% 3.80% 3.95%

(1) See Table 1, Total General Governmental Expenditures

(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.

Source:

Georgia Comprehensive Annual Financial Report 203

State of Georgia
Demographic Statistics For the Last Ten Calendar Years
Table 7

Calendar Year
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989

Population
7,642,207 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

Per Capita Personal Income
25,020 24,061 22,709 21,278 20,251 19,278 18,549 17,364 17,045 16,223

Public School Enrollment
1,401,291 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

Unemployment Rate
4.20% 4.50% 4.60% 4.90% 5.20% 5.80% 6.90% 5.00% 5.40% 5.50%

Source:

Population - U. S. Department of Commerce, Bureau of the Census Per Capita Income - U. S. Department of Commerce, Bureau of Economic Analysis Public School Enrollment - Georgia Department of Education
Note: Calculation Method for Public School Enrollment Changed in 1990 Unemployment Rate - Georgia Department of Labor

Fiscal Year
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989

Schedule of Bank Deposits For the Last Ten Years (Dollars in Thousands)
Table 8

Commercial Banks
$ 77,505,212 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

Savings and Loan
Associations

Total Deposits

$ 4,191,658 $ 81,696,870

4,798,940

47,034,252

4,640,878

96,574,868

5,107,013

72,002,911

5,285,489

67,350,928

5,180,763

65,244,047

10,659,544

65,726,402

13,140,105

65,435,411

13,406,430

63,319,416

14,402,867

60,578,030

Source:

Federal Reserve Bank of Atlanta 204

State of Georgia
Miscellaneous Statistics June 30, 1998 Table 9

Date Entered Union Form of Government Miles of State Highway Land Area

January 2, 1788 Legislative-Executive-Judicial
17,954 59,441 Square Miles

State Police Protection:

Number of Stations

48

Number of State Troopers

881

State Colleges and Universities: Number of Separate Institutions Number of Educators Number of Students

34 9,426 205,389

Recreation: Number of State Parks Number of Historic Sites Area of State Parks and Historic Sites

48 15 71,150 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 of the University System of Georgia Georgia Department of Natural Resources

205