Georgia comprehensive annual financial report, June 30, 1999

EORGIA
Comprehensive Annual Financial Report June 30, 1999

State of Georgia
Comprehensive Annual Financial Report
June 30, 1999
Prepared by
GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton, State Auditor
Georgia's State Bird Cover Drawing by Scott Fuss At the request of the Garden Clubs of Georgia, the brown thrasher was designated by the Legislature as the official state bird in 1970. The thrasher is commonly found in the eastern section of the United States, ranging north to Canada and west to the Rockies. Almost a foot in length, the thrasher has a rich brown color on its top side and a creamy white breast heavily streaked with brown.

(This page intentionally left blank)

State of Georgia Table of Contents June 30, 1999
INTRODUCTORY SECTION
Letter of Transmittal ............................................................................................................................................................... i Organizational Chart........................................................................................................................................................... xiii Principal State Officials ........................................................................................................................................................xv
FINANCIAL SECTION
Independent Auditor's Report on General Purpose Financial Statements ...........................................................................1
General Purpose Financial Statements Combined Balance Sheet - All Fund Types, Account Groups and 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 ...................................................................................................87
Combining Statements and Schedules Primary Government Capital Projects Funds Capital Projects Funds Descriptions ..............................................................................................................................95 Combining Balance Sheet..............................................................................................................................................96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................................................98
Internal Service Funds Internal Service Funds Descriptions ............................................................................................................................103 Combining Balance Sheet............................................................................................................................................106 Combining Balance Sheet - Risk Management............................................................................................................108 Combining Statement of Revenues, Expenses and Changes in Fund Equity ...............................................................110 Combining Statement of Revenues, Expenses and Changes in Equity - Risk Management ........................................112 Combining Statement of Cash Flows...........................................................................................................................114 Combining Statement of Cash Flows - Risk Management...........................................................................................118

State of Georgia Table of Contents June 30, 1999
Trust and Agency Funds Combining Balance Sheet............................................................................................................................................123
Expendable Trust Funds Expendable Trust Funds Descriptions......................................................................................................................125 Combining Balance Sheet ........................................................................................................................................126 Combining Statement of Revenues, Expenditures and Changes in Fund Balances..................................................128
Nonexpendable Trust Funds Nonexpendable Trust Funds Descriptions................................................................................................................131 Combining Balance Sheet ........................................................................................................................................133 Combining Statement of Revenues, Expenses and Changes in Fund Balances........................................................134 Combining Statement of Cash Flows .......................................................................................................................135
Pension Trust Funds Pension Trust Funds Descriptions............................................................................................................................137 Combining Statement of Plan Net Assets.................................................................................................................138
Agency Funds Major Agency Funds Descriptions...........................................................................................................................141 Combining Statement of Changes in Assets and Liabilities .....................................................................................143
College and University Funds College and University Funds Descriptions.................................................................................................................149 Combining Balance Sheet............................................................................................................................................150
General Fixed Assets Account Group General Fixed Assets Account Group Description ......................................................................................................155 Schedule of General Fixed Assets by Function............................................................................................................156 Schedule of Changes in General Fixed Assets by Function .........................................................................................157
Component Units Governmental Fund Types Governmental Fund Types Descriptions......................................................................................................................161 Combining Balance Sheet............................................................................................................................................162 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .....................................................163
Proprietary Fund Types Proprietary Fund Types Descriptions ..........................................................................................................................167 Combining Balance Sheet............................................................................................................................................170 Combining Statement of Revenues, Expenses and Changes in Fund Equity ...............................................................174 Combining Statement of Cash Flows...........................................................................................................................176
Fiduciary Fund Types Fiduciary Fund Types Descriptions .............................................................................................................................183 Combining Statement of Plan Net Assets ....................................................................................................................184
STATISTICAL SECTION
Index to Statistical Tables...................................................................................................................................................189

Introductory Section

RUSSELL W. HINTON
STATE AUDITOR (404) 656-2174

February 29, 2000

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, 1999, 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
Growth in a state's economy depends both upon the absorption into production of a larger volume and a higher quality of inputs and upon the improved effectiveness of technological combinations of inputs which are used. In the private sector, inputs rise in response to income-, credit-, or cyclically-driven calls for goods and services within the state. Their mix is settled by managers and entrepreneurs after consideration of productivity, selling opportunities, and prices. Inputs also rise to allow production of more goods and services for export to an expanding region outside, be it in the nation or in a foreign country. Even a rise in imports, which both "displaces" and "disciplines" domestic production, aids growth by stimulating the trade and distribution industries, bringing in new technologies, and by forcing activity into lines where in-state productivity can be made competitive. Though the full effects come later, growth is bolstered as well by business spending that enlarges and improves the stocks of physical capital (as through construction) and human capital (as through training).
In the government sector, activity increases as more is spent on the delivery of services and goods to satisfy final or intermediate users. Since government's power to buy inputs comes from the private sector, expansion there generally gives government the means to add to its programs and projects. However, in order that revenues rise, tax bases must be embodied within variables that register the private-sector advance. Shifts in patterns of expenditure or production can leave an unwary government separated from the process of growth. Moreover, when private growth is suddenly strong, an inertia in government spending can generate feelings of fiscal wellbeing and spawn tax adjustments, typically downward. It can also give opportunity for a redefinition of public needs and for a restructuring of expenditures to accommodate them. Consequently, in the short-term, an advance in private activity need not boost growth in the government sector.
Over time, a state's economic gains will be generated mainly by synergic action among the private and government sectors, both of which grow. Inter-sectoral seepage goes both ways and changes with time. New technologies evolve, capital is created, workforces are trained, and new markets develop. Furthermore, the replacement of technology, inputs, and products by new or better varieties waits upon
ii

the erosion of established sentiments and practices and upon the depreciation and obsolescence of competing resources. These changes are not identically paced among households, businesses, and governments. Accordingly, a state's economic growth is conditioned by performance in the past as well as by expectations regarding the future. Certainly, the mere passage of time, as might be measured from a prior activity peak or dip, is not determining.
Counterparts to the highlighted influences on growth emerge from Georgia data for fiscal year 1999. Looking first at available resources, Georgia's population has increased by about 2 percent over that of a year ago, essentially the mean annual rate recorded since 1993. Spurred by tight labor markets, the labor force has climbed commensurately. Admittedly, the gain has been less than in earlier years, especially in the 1980's and early 1990's, when participation rates rose at the same time. Though growth has been less, the employable proportion of the labor force has been greater. That is, the unemployment rate in fiscal year 1999 has dipped to 3.6 percent. While above the 2.9 percent rate achieved in the 1960's and the 3.4 percent low of the 1970's, this rate follows a declining trend starting at 6.9 percent in 1992. Judging by manufacturing, the worker stock in Georgia in fiscal year 1999 has also become more productive. Real wages have climbed to a level almost 1.0 percent above that of a year ago.
Of course, labor's productivity has been helped by a larger capital stock. Employment in heavy construction has increased by roughly 9 percent and, as in the U.S. economy, spending on additions to the stock of information processing equipment and software has risen by roughly 12 to 15 percent after adjustment for price changes. Although the net contribution to capital probably has grown more slowly than spending, given the technological innovation in the industry, both the quality and the size of Georgia's capital stock must have increased. In fact, using national data for fiscal year 1999 and applying the results to the State, it appears that Georgia's volume of physical capital used in production, after allowing for depreciation and obsolescence, has climbed by around 3 percent. In addition, experience with the new capital has induced businesses to continue investments in information processing equipment and software so as to maintain their competitive positions.
The inflow of new people, the response to economic opportunity of existing households, and the continued strength of the U.S. economy have undergirded the increase in activity levels in Georgia in fiscal year 1999. In-state needs of a growing population have driven expenditures for housing, furniture and appliances, and private and government services to new heights. A credit-financed extension of the boom in the purchases of motor vehicles has also helped business activity. Although the exact influence is not determinable, a stronger advance of the Nation's total output in fiscal year 1999 than in fiscal year 1998 (5.3 percent versus 5.1 percent) has strengthened an outside market for Georgia's outputs. The net effect of the spending stimuli has been to raise Georgia's non-agricultural employment by about 4.1 percent, a gain which has put Georgia among the five fastest-growing states in the Nation. The employment gain has been strongest in industries accommodating the purchasing of additional people. Construction employment has risen by 11.1 percent, wholesale and retail trade by 3.7 percent, and services by 7.1 percent. During fiscal year 1999, personal income, a summary measure of economic activity, has climbed by 7.4 percent and has accounted for 2.72 percent of the U.S. total; in fiscal year 1998, in comparison, the gain was 6.9 percent and the proportion of the U.S. total was 2.67 percent.
For the State, revenues in fiscal year 1999 have climbed by 8.3 percent. Collections from the individual income tax and the corporation income tax each have risen by 6.9 percent and from the sales and use tax have climbed by 11.3 percent. Comparing the revenue increase in fiscal year 1999 to that in fiscal year 1998, 8.3 versus 5.3 percent, it appears that aspects of tax provision and collection have somehow changed either among taxpayers or in the State. Though rates of gain of personal income in the two
iii

fiscal years differed by only one-half of a percentage-point, the difference in the rate of gain of collections was three percentage-points. Among major components, the tax responses to private growth differed as well. In fiscal year 1998, the gain in individual income taxes had been higher (12.2 versus 6.9 percent) while gains in corporation income and sales and use taxes had been lower (5.4 versus 6.9 and 1.5 percent versus 11.3 percent, respectively).
Although the State's revenues in fiscal year 1999 have risen by more, its budgetary allotments have advanced by less than in fiscal year 1998. Allotments have risen by only 5.4 percent whereas in the preceding year they had climbed by 6.5 percent. The "excess revenues" resulting from the higher yield in fiscal year 1999 has given the State a hedge against the risk of revenue fluctuation. Fiscal year 1998's gain of 5.3 percent sandwiched between prior and subsequent rates of 6.6 and 8.3 percent, respectively, has shown that risks of significant revenue variation are faced even when growth in the private sector is stable.
As already remarked, the economy of Georgia in fiscal year 2000 will bear marks of constraint and expansion which have surfaced or developed in fiscal years 1999 and 1998. At the same time, unique influences will emerge. In the private sector, the stimulus to business spending on structures and on equipment and software will continue to be pushed by technological advance and falling prices. It will be aided by real interest rates, which stand unchanged. However, with U.S. and Georgia labor supplies fully employed, much of the growth in purchases of equipment and of software will be met, as in fiscal year 1999, by imports rather than by domestic production. Growth in earnings in fiscal year 2000 will fuel most of the increase in within-state personal spending. The rate of increase in earnings in fiscal year 1999 has been about 10.5 percent, a percentage point above that in fiscal year 1998. With labor markets "tight", an earnings gain in fiscal year 2000 of more than 10.5 percent would be unlikely. Its realization would require that the expected gains in labor force (2 percent) and in average compensation (5 percent) be bolstered by shifts of workers toward higher-pay occupations and industries. During fiscal year 1999, manufacturing wages were about 30 percent above those in services and about 125 percent above those in retail trade. Yet, the services and retail trade industries added workers at about 7 and 4 percent rates, respectively, whereas manufacturers recorded less than 1 percent. The heading of industry shifts, were it to continue, runs counter to what is needed to push growth in fiscal year 2000 to a higher plane. An upsurge in productivity beyond the 3 percent record of last year clearly could lift earnings beyond the year-ago level. Similarly, a continuing increase in wealth tied to equities could raise expenditures out of earnings enough to elevate growth. However, with productivity gains highly volatile and with savings levels at no more than 2 percent of income, neither influence is likely to intervene.
Within the State, a persistent regional imbalance in growth has contributed to Georgia's overall economic advance. At the same time, it has undermined the distribution of improved wellbeing. In fiscal year 1999, the twenty-county Atlanta area, accounting for 55 percent of the State's jobs, was responsible for 71 percent of the State's increase in employment. Only during the preparations for the Olympic Games in 1996 had Atlanta's growth proportion been any higher. Since Atlanta's average weekly earnings stand roughly 5 to 10 percent above those for the rest of the State, any loss of the Atlanta share of growth not offset by stronger growth elsewhere would reduce the State's overall rate of earnings gain. Recognizing the growth problem being faced, the State has put in place a regional policy of tax incentives intended to give a "high-tech boost" to all of Georgia while favoring the non-Atlanta region with special and stronger supports. The power of these differentiated incentives to improve both growth and its distribution in fiscal year 2000 remains to be tested.
iv

In the State sector, revenue flows in fiscal year 2000 will rise strongly, but will be bounded by the constraints on spending and earnings, which have been set forth. Individual income and sales taxes appear likely to rise by roughly 9 and 6 percent, respectively. The relative weakness in sales tax growth will reflect a slowing in growth of business purchases, an expected response to an easing in the rate of advance of corporate profits and so of cash flow. Overall, the State's revenue gain will be close to, but slightly, under the rate of gain in fiscal year 1999 (once the "noise" in tax-paying and tax-collecting has been removed). That is, revenues in fiscal year 2000 will probably climb by between 6 and 7 percent. With the State's budget already scheduled to grow by 5 to 6 percent, collections will once again allow the State to maintain a slight hedge against the risk of a private-sector recession which, while expected, is not yet in sight.
MAJOR INITIATIVES
Economic Development State funds will assist in restructuring and expanding the Jobs for Georgia Graduates (JGG) program. JGG, extended from a 2-year to a 5-year program, is a school-to-work transition program designed to help "at risk" youth, ranging from 9th grade through 1 year after high school graduation, enter the workplace, the military, or continue their education after high school. By extending the program to students in grades 9 through 11, JGG will more effectively reach "at risk" youth who might otherwise drop out of high school before their senior year.
Education The Teacher Preparation Initiative was created as a result of continuing efforts to increase both the academic standards of the University System and the quality of instruction. The goals of this initiative are (1) to strengthen the preparation of early childhood and middle school teachers in reading and mathematics; (2) to give added emphasis to the "hands-on" experience of teacher candidates through stronger partnerships between universities and the public schools; (3) to raise significantly the quality of preparation programs for school leaders; and (4) to contribute toward bringing an end to out-of-field (teaching a subject with less than an academic minor) teaching in Georgia.
Environment The Georgia Regional Transportation Authority (GRTA) was created in 1999 to combat traffic congestion, air pollution and poorly planned development in the 13-county Atlanta region that is currently a "non-attainment" area under the federal Clean Air Act. GRTA's main role will be to review, approve, and help implement transportation plans for the 13-county region that will bring the region into compliance with air quality standards. If other regions of the state are designated as "non-attainment" areas, they would then fall under GRTA's purview. In conjunction with GRTA, the proposed Georgia State Agency Rideshare Office will provide effective coordination of all programs relating to alternative transportation for state employees. This office will work closely with state agencies to encourage their adoption of policies and programs to promote carpooling, vanpooling, mass transit, telecommuting, and alternative work schedules. The Rideshare Office will also monitor state employees' transportation attitudes and habits, and propose statewide programs and policies to accomplish the goal of reducing single-passenger trips to work by state employees in metro-Atlanta.
Human Resources Funds will assist in implementing population-based community cardiovascular prevention programs that will focus on modifying behaviors and eliminating conditions that put individuals at risk of illness
v

and/or disability. The introduction of community-based initiatives focusing primarily on prevention, such as smoking cessation, nutrition education, weight management and exercise promotion, could reach a greater number of Georgians than the traditional and more costly clinic-based programs and have a significant impact on deaths attributable to chronic diseases.
Medicaid The PeachCare for Kids Act was developed to take advantage of the Children's Health Insurance Program created under the federal Balanced Budget Act of 1997. Eligibility for the program is limited to uninsured children, birth to age 18, in families with incomes up to 200% of the Federal Poverty Level.
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 1999 and 1998 are compared in the following table:
vi

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

________FY 1999________

________FY 1998________

Amount

Percent of Total

$ 12,021,751,940 59.4%

397,962,567

2.0%

5,923,606,145 581,123,782

29.3% 2.87%

41,657,448 0.20%

300,699,674 1.48%

16,872,007 0.08%

187,061,598

0.9%

5,991,314 0.02%

26,104,874 0.12%

720,607,460

3.6%

7,209,322 0.03%

$20,230,648,131 100.0%

Amount

Percent of Total

$ 11,439,170,422

61.0%

346,081,148

1.8%

5,617,029,811

29.9%

536,827,964

2.9%

49,204,317

0.26%

275,999,300

1.5%

13,920,492

0.07%

192,209,388

1.0%

9,485,653

0.05%

20,690,958

0.1%

257,123,411

1.4%

5,409,857

0.02%

$18,763,152,721

100.0%

Increase (Decrease)
From FY 1998

Percent of Increase (Decrease)

$ 582,581,518

5.1 %

51,881,419

15.0 %

306,576,334 44,295,818

5.5 % 8.3 %

(7,546,869)

(15.3)%

24,700,374

8.9 %

2,951,515

21.2 %

(5,147,790)

(2.7)%

(3,494,339)

(36.8)%

5,413,916

26.2 %

463,484,049

180.3 %

1,799,465

33.3 %

$1,467,495,410

7.8 %

1999 Revenues and Other Sources

Tax es

Licenses an d Permits

Intergo vernm en tal

vii

Other Revenue General Obligation
Bond Proceeds
Unclaimed Property
Penalties & Interest On Taxes Contributions & Donations Rents & Royalties Interest & Other Investment Income Fines and Forfeits Sales and Services

Expenditures by governmental fund type function for fiscal years 1999 and 1998 are compared in the following table:

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

__ FY 1999 _ _

_________FY 1998

_

Amount $ 744,530,087
6,531,830,567 6,786,022,660 1,638,089,933 1,333,092,110
347,537,124 192,199,439 51,118,994 392,319,581 681,973,633 $18,698,714,128

Percent of Total
3.98% 34.93%
36.3% 8.8% 7.12% 1.9% 1.0% 0.27% 2.1% 3.6% 100.0%

Amount $ 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

Percent of Total
3.8% 35.5% 37.3% 7.9% 6.9% 1.53% 1.11% 6.9% 1.53% 3.7% 100.0%

Increase (Decrease)
From FY 1998

Percent of Increase (Decrease)

$ 91,227,395

13.9%

376,609,659

6.1%

306,299,483

4.7%

252,838,937

18.3%

139,343,194

11.7%

82,623,159

31.2%

6,577,314

3.5%

5,253,609

11.5%

46,023,194

13.3%

36,182,235

5.6%

$1,342,978,179

7.7%

1999 Expenditures by Function

E d u catio n H ea lth a nd W elfar e
Transportat ion
viii

General Governm en t
Deb t Service
Capital Ou tlay Con servatio n Culture and Recreation Econom ic Dev elo pmen t and Assistance Pub lic Safety

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

Pension Trust Funds The State maintains fourteen pension plans, seven 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, 1999, outstanding general obligation debt issues of the State of Georgia totaled $4,779,730,000. Outstanding revenue bonds of certain blended and discretely presented component units totaled $1,207,723,493, of which $170,387,350 are guaranteed by the State of Georgia.

During fiscal year 1999, general obligation bonds in the amount of $588,075,000 were retired. General obligation debt issued during fiscal year 1999 totaled $862,030,000.

At June 30, 1999, 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.

ix

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

accompanying financial statements for the State of Georgia have been prepared from the results of those examinations. The State Auditor's opinion thereon appears at the beginning of the Financial Section of this report. Compilation of Transmittal Letter This transmittal letter has been compiled utilizing information contributed by various State management sources.
Respectfully submitted, Russell W. Hinton State Auditor
xi

(This page intentionally left blank)

GEORGIA ELECTORATE

xiii

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

1999 GEORGIA GOVERNMENT ORGANIZATION CHART
ELECTED APPOINTED

(This page intentionally left blank)

State of Georgia Principal State Officials June 30, 1999
Executive: Roy Barnes Governor Cathy Cox Secretary of State Thurbert E. Baker Attorney General Michael Thurmond Commissioner of Labor Linda C. Schrenko State Superintendent of Schools John W. Oxendine Commissioner of Insurance Thomas T. Irvin Commissioner of Agriculture Stan Wise, Chairman Robert "Bobby" Baker, Jr. David L. Burgess Bob Durden Lauren "Bubba" McDonald, Jr. Public Service Commission
Legislative: Mark Taylor Lieutenant Governor/President of the Senate Thomas B. Murphy Speaker of the House of Representatives
Judicial: Robert Benham Chief Justice of the Supreme Court
xv

(This page intentionally left blank)

Financial Section

RUSSELL W. HINTON
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, 1999. 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, 64% of the assets and 24% of the revenues of the internal service funds, 70% of the assets of the fiduciary funds and 100% of the pension trust funds revenues, and 5% 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 100% of the assets and revenues of the component unit governmental fund types, 84% of the assets and 95% of the revenues of the component unit proprietary fund types and 98% of the assets and 98% 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, 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 expenditure-driven programs were accrued based on the unexecuted portion of contracts for goods and services. These accruals primarily affected the Intergovernmental and Sales and Services revenue categories. We were unable to determine the effect of this departure from generally accepted accounting principles on the general purpose financial statements.
As discussed in Notes 9 and 10 to the general purpose financial statements, the State of Georgia did not maintain adequate systems to identify, classify, and report leases as operating or capital leases in conformity with generally accepted accounting principles. We were unable to determine the effect of these limitations on the general purpose financial statements.
As discussed in Note 1 to the general purpose financial statements, the State of Georgia maintained certain pension trust funds on essentially the cash basis of accounting. This basis of accounting is not in conformity with generally accepted accounting principles. We were unable to determine the effect of this departure from generally accepted accounting principles on the general purpose financial statements.
As discussed in Note 1 to the general purpose financial statements, the State's accounting system has limitations in identifying transactions between organizations whose financial activity is included within an individual fund. State accounting policies and procedures allow the recording of revenues, receivables, expenses and payables for such transactions. All such intrafund transactions have not been eliminated as required by generally accepted accounting principles. We were unable to determine the effect of these overstatements on the general purpose financial statements.
2

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, 1999, and the results of its operations, the cash flows of its proprietary fund types and its nonexpendable trust funds, the changes in net assets of its pension trust funds and investment trust fund, and the changes in fund balances and current funds revenues, expenditures, and other changes of the college and university funds, for the year then ended in conformity with generally accepted accounting principles.
As discussed in Note 2 to the general purpose financial statements, the State of Georgia implemented Statement No. 32 of the Governmental Accounting Standards Board, Accounting and Financial Reporting for Internal Code Section 457, Deferred Compensation Plans, in fiscal year 1999.
In accordance with Government Auditing Standards, we have also issued a report dated February 29, 2000, on our consideration of the State of Georgia's internal control over financial reporting and on our tests of its compliance with certain provisions of 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 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.
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,

February 29, 2000

Russell W. Hinton, CPA, CGFM State Auditor

3

(This page intentionally left blank)

General Purpose Financial Statements

State of Georgia
Combined Balance Sheet All Fund Types, Account Groups and Discretely Presented Component Units
June 30, 1999

Primary Government

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 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

General

Governmental Fund Types

Special Revenue

Debt Service

Capital Projects

Proprietary Fund Types

Enterprise

Internal Service

$

618,282,151 $

3,490,783,335

2,162,483,774 40,133,037

1,074,450,798 216,603,605

711,326
49,290,958 49,002,128

721,916 $ 2,113,196

212,076,717 $

$

1,075,524,082

28,691,341 $

56,412,790

149,835,759

1,100,954,308

15,277,924

892,070

1,798,500

138,850 1,984,169

6,950,661

7,641,212 17,165,433
269,350
14,546,984 752,860

6,925 53,750
33,092,225

12,647,162

359,988

417,376,675

Total Assets and Other Debits

$ 7,734,894,012 $

4,633,612 $

212,076,717 $ 1,105,572,187 $

186,729,819 $ 1,615,119,612

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 Interfund Payables 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

$

$

994,674,450

1,923,397,586 671,252,247 369,348,188 14,296,095
2,053,033

56,741,145 199,795,948

108,033,388 727,039

$ 23,906
72,131
3,151

$ 4,340,319,119 $

99,188 $

$

17,657,757 $

$

30,003,622

1,767,563

25,984,980

93,444

8,523,540

431,717,753

20,610,420

213,217

15,116,341

13,724

218,520,779

515

247,993

5

86,457

15,490,609

8,871,215

25,875,668

969,978

850,000

0 $

94,481,917 $

236,085,612 $

492,048,051

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

Discretely Presented Component Units

Governmental Fund Types

Proprietary Fund Types

Fiduciary Fund Types

Totals (Memorandum
Only)
Reporting Entity

$ 2,892,966,021 $

467,182,908 $

$

$ 4,276,333,844 $

14,786

14,786

15,425,303,504

176,383,460

21,420,897,644

742,670 84,564,664
3,861,269 34,820,564 48,246,673
515

40,520,973 43,804
48,329,791
183,804,046

27,252

27,419,946 12,991,212

2,203,747,417 140,911,499 52,191,060
1,109,271,362 465,183,547 17,165,948 0 980,676 1,984,169 91,257,888 62,773,452

0 0

37,540

5,058,038,763

3,081,380,737

0 0 6,925 12,700,912 8,557,156,163 0 33,129,765

212,076,717

212,076,717

4,797,623,414

4,797,623,414

671,743 $ 785,080
747,391 178,990 149,189
88,820,882
11,645,754

173,265,128 $ 304,748,198

2,999,299 $ 40,059,079,126

4,453,270,014 14,786
61,785,510,048

110,637,913 15,854,884 895,488,483
71,788,050
2,301,031
3,798,947 3,643,696

233,871,742 180,456,495
50,093

2,314,385,330 390,638,125 947,679,543
1,109,271,362 718,175,483 17,165,948 2,301,031 980,676 1,984,169 95,235,825 66,616,430

139,970,653 411,128,817

139,970,653 411,128,817

5,850,155 614,319,550
823,464,442 18,609,856 76,273,105

858,115

5,850,155 614,319,550
6,925 12,700,912 9,470,299,602 18,609,856 109,402,870

212,076,717

4,809,269,168

$ 18,490,585,458 $ 6,014,714,903 $ 3,081,380,737 $ 5,009,700,131 $ 43,455,407,188 $

102,999,029 $ 3,671,142,908 $ 40,477,314,870 $ 87,706,863,995

$

$

$

7,387,643

269,268,439

108,029,420

85,201 27,707
1,146,000

7,268,253 25,300,000
1,651,207

86,088,036 21,667,956

350,777,700 6,925

20,637,488 167,441
2,701,562

326,274

$

359,431,176 $

543,106,076 $

$

$

17,657,757 $

1,329,110,603

219,453,524

336,099,928

697,979

432,415,732

1,959,422,765

678,561,931

613,168,967

17,165,948

0

2,301,031

0

0

56,741,145

301,464,201

7,005,857

37,545,028

0

479,448,576

26,770,148

3,671,540

6,925

0

4,782,542,771

4,783,719,045

0 $ 5,009,700,131 $ 11,075,271,270 $

$ 4,788,092
957,023
483,695

$ 84,870,023
3,104,217
2,160,258 599,887

144,725

835,951

94,239

3,078,687 17,816,746

497,958 10,688,731

39,591,047 485,983
12,601,840 279,558,607 12,250,429 15,192,915

12,700,912 1,533,055,245

17,654,463 $ 2,017,902,747 $

$ 2,368,643
77,257
11,392

17,657,757 1,421,137,361
340,161,168 432,415,732 1,961,583,023 679,722,770 613,168,967
17,165,948 980,676
2,301,031 3,078,687 17,910,985 56,741,145 341,553,206 48,731,134 12,601,840 759,007,183 39,020,577 18,864,455
6,925 12,700,912 6,316,774,290

2,457,292 $ 13,113,285,772

(continued)
7

State of Georgia
Combined Balance Sheet All Fund Types, Account Groups and Discretely Presented Component Units (continued)
June 30, 1999

Primary Government

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 Reserved for Advances Reserved for Inventories Reserved for Debt Service Reserved for Disaster Assistance Reserved for Distance Learning and Telemedicine Reserved for Pension Benefits Reserved for Guaranteed Revenue Debt Common Reserve Fund Reserved for Hazardous Waste Trust Fund Reserved for Pool Participants Reserved for Lottery for Education Reserved for Midyear Adjustment Reserved for Motor Fuel Tax Funds Reserved for Revenue Shortfall Reserved for Underground Storage Trust Fund Reserved for Year 2000 Project Reserved for Other Specific Purposes Unreserved, Designated Designated for Liability Trust Fund Designated for Property Tax Relief Designated for Future Capital Outlay Designated for Other Specific Purposes Unreserved, Undesignated Total Equity
Total Equity and Other Credits

General

Governmental Fund Types

Special Revenue

Debt Service

Capital Projects

Proprietary Fund Types

Enterprise

Internal Service

$

$

$

$

3,099,338 60,675
46,664,328
11,448,935 18,757,926
17,921,100 19,497,245
318,056,709 126,961,098 790,455,844 380,883,294 55,227,408 98,439,885 251,282,884
10,793,647 83,000,000
70,000 1,161,954,577 $ 3,394,574,893 $
$ 3,394,574,893 $

$

$

$

$

$

$

$

$

274,766,141

7,500,000 (56,855,793)

814,226,933 34,078,487

212,076,717

12,647,162

1,399,268

4,534,424 4,534,424 $
4,534,424 $

990,700,680

212,076,717 $

6,343,160 1,011,090,270 $

212,076,717 $ 1,011,090,270 $

(49,355,793) $ 1,123,071,561 (49,355,793) $ 1,123,071,561

Total Liabilities, Equity and Other Credits

$ 7,734,894,012 $

4,633,612 $

212,076,717 $ 1,105,572,187 $

186,729,819 $ 1,615,119,612

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

Discretely Presented Component Units

Governmental Fund Types

Proprietary Fund Types

Fiduciary Fund Types

Totals (Memorandum
Only)
Reporting Entity

$

$

$ 3,081,380,737 $

$ 3,081,380,737 $

88,820,882 $

295,942 $

$ 3,170,497,561

$

$ 5,036,044,533 $

$

435,564,294

12,861,330,461 3,210,462,987

2,030,053,810

29,307,024

$ 18,131,154,282 $ 5,471,608,827 $

0$

$ 18,131,154,282 $ 5,471,608,827 $ 3,081,380,737 $

$ 5,036,044,533 $ 435,564,294 274,766,141
821,726,933 (22,777,306)
3,099,338 12,707,837 46,664,328 212,076,717 11,448,935 18,757,926 12,861,330,461 17,921,100 19,497,245 3,210,462,987 318,056,709 126,961,098 790,455,844 380,883,294 55,227,408 98,439,885 2,282,735,962
10,793,647 83,000,000 990,700,680
70,000 1,202,139,185 0 $ 29,298,755,181 $
0 $ 32,380,135,918 $

$

$

1,045,315,463

$ 5,036,044,533 435,564,294
1,320,081,604

88,508,579 503,519,935

910,235,512 480,742,629

378,096

13,182,579

40,474,857,578

3,099,338 12,707,837 46,664,328 212,076,717 11,448,935 18,757,926 53,336,188,039 17,921,100 19,497,245 3,210,462,987 318,056,709 126,961,098 790,455,844 380,883,294 55,227,408 98,439,885 2,296,296,637

90,000
(3,944,412) (3,476,316) $

2,417,663 1,652,944,219 $

40,474,857,578 $

10,793,647 83,000,000 990,790,680
70,000 1,200,612,436 71,423,080,662

85,344,566 $ 1,653,240,161 $ 40,474,857,578 $ 74,593,578,223

$ 18,490,585,458 $ 6,014,714,903 $ 3,081,380,737 $ 5,009,700,131 $ 43,455,407,188 $

102,999,029 $ 3,671,142,908 $ 40,477,314,870 $ 87,706,863,995

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, 1999

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 Accrued Interest on Bonds Retired in Advance Discount on Bonds Retired in Advance Other Debt Service Charges
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures

General

Primary Government

Governmental Fund Types

Special

Debt

Revenue

Service

$ 12,021,751,940 $

$

397,962,567

5,887,105,616 36,500,529
560,643,597 41,657,448
217,727,473 16,822,584
187,061,598 5,991,314
26,104,874 6,967,921

20,480,185 432,551

$ 19,406,297,461 $

20,912,736 $

0

$

740,349,327 $

6,531,830,567

6,786,022,660

1,638,089,933

1,333,092,110

347,537,124

192,199,439

51,118,994

4,144,510 $

$ 17,620,240,154 $

4,144,510 $

448,960,000 273,874,752
499,606 (44,223,171)
621,652
679,732,839

$ 1,786,057,307 $

16,768,226 $ (679,732,839)

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

$

$

218,942,856 $ 12,240,694,796 $

$ 12,240,694,796

397,962,567

397,962,567

82,539,650 49,423
241,401

16,529,498 121,422
132,614,451
607,593

5,903,635,114 36,500,529
581,245,204 41,657,448
433,314,125 16,872,007
187,061,598 5,991,314
26,104,874 7,816,915

3,428,339
51,404 106,217 9,891,064

5,903,635,114 36,500,529
584,673,543 41,657,448
433,365,529 16,978,224
196,952,662 5,991,314
26,104,874 7,816,915

$

82,830,474 $

368,815,820 $ 19,878,856,491 $

13,477,024 $ 19,892,333,515

$

36,250 $

$ 744,530,087 $

120,836

6,531,951,403

72,166,259

6,858,188,919

1,638,089,933

1,333,092,110

284,493,930

632,031,054

192,199,439

51,118,994

392,319,581

392,319,581

49,423 155,898
2,035,473

449,009,423 274,030,650
499,606 (44,223,171)
2,657,125

$

394,596,625 $

356,781,025 $ 19,055,495,153 $

$ 31,998,361

744,530,087 6,531,951,403 6,858,188,919 1,638,089,933 1,333,092,110
632,031,054 224,197,800
51,118,994 392,319,581

449,009,423 274,030,650
499,606 (44,223,171)
2,657,125

31,998,361 $ 19,087,493,514

$ (311,766,151) $

12,034,795 $ 823,361,338 $ 11

(18,521,337) $

804,840,001 (continued)

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, 1999

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 Proceeds of Refunding Bonds Payment to Refunded Bond Escrow Agent
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses
Fund Balances, July 1 Residual Equity Transfers from Component Units Residual Equity Transfers Out Residual Equity Transfers to Component Units Transfer of Equity from Component Units Increase in Inventories

General

Primary Government

Governmental Fund Types

Special

Debt

Revenue

Service

$

219,950,173 $

647,234,426 (2,295,427,596)
(51,484,717) 764,395 12,675

$ (1,478,950,644) $

$

657,972,884

(16,500,000)

(16,500,000) $

150,022,153 (149,400,502)
658,594,535

$

307,106,663 $

3,071,938,914 13,877,077

(850,611) 633,268 1,869,582

268,226 $ 4,266,198

(21,138,304) 233,215,021

Fund Balances, June 30

$ 3,394,574,893 $

4,534,424 $

212,076,717

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

$

$

(280,866,607) 2,900,000
720,607,460

$

442,640,853 $

3,281,250 $

881,204,307 $ 0
647,234,426 (2,592,794,203)
(51,484,717) 3,664,395 12,675
720,607,460 150,022,153 (149,400,502)

3,281,250 $ (390,934,006) $

$ 18,766,640
17,330

881,204,307 18,766,640
647,234,426 (2,592,794,203)
(51,484,717) 3,664,395 30,005
720,607,460 150,022,153 (149,400,502)

18,783,970 $ (372,150,036)

$

130,874,702 $

15,316,045 $ 432,427,332 $

912,156,139 516,575 (175,983)
(32,281,163)

2,043,819,407

6,265,395,679 14,393,652 (175,983) (33,131,774) 633,268 1,869,582

$ 1,011,090,270 $ 2,059,135,452 $ 6,681,411,756 $

262,633 $

432,689,965

(3,738,949)

6,261,656,730 14,393,652 (175,983) (33,131,774) 633,268 1,869,582

(3,476,316) $ 6,677,935,440

13

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)

Funds Available

Revenues: State Appropriation Lottery Proceeds Federal Revenues Other Revenues Retained

$ 11,998,603,880 $ 12,672,750,172 $ 12,668,519,468 $

526,700,000

593,433,340

591,983,340

4,729,955,956

5,908,184,582

5,486,157,759

3,157,328,090

5,024,713,115

4,403,298,696

(4,230,704) (1,450,000) (422,026,823) (621,414,419)

Total Revenues

$ 20,412,587,926 $ 24,199,081,209 $ 23,149,959,263 $ (1,049,121,946)

Carry-Over from Prior Year: Transfer from Fund Balance

2,027,338,871

1,510,179,417

(517,159,454)

Total Funds Available

$ 20,412,587,926 $ 26,226,420,080 $ 24,660,138,680 $ (1,566,281,400)

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

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

174,311,537 $ 5,892,155
50,274,692 1,567,745
23,148,583 9,846,715
38,640,591 62,787,779 768,030,469 21,956,332 5,474,737,381
5,256,499 40,649,878 27,801,978 412,050,710 48,074,098
0 2,417,340,849
23,006,380 17,241,858 51,299,927 102,001,900 222,244,354 153,334,941 31,690,201 3,848,556,617 134,731,938 46,794,963
1,253,474,383 124,582,210 17,642,000 11,403,969 29,477,361
2,767,167,445

342,023,344 $ 6,635,677
61,977,060 1,649,309
24,756,063 9,864,435
44,406,256 188,707,804 834,810,608 27,508,433 6,022,915,540
10,141,475 47,456,981 30,546,669 562,616,689 361,883,219
0 2,695,740,766
36,480,439 18,160,447 73,836,740 106,318,361 234,071,625 225,296,328 37,016,611 4,348,339,526 219,829,643 48,287,161
1,363,517,646 138,492,493 17,642,000 13,951,618 35,502,001
3,842,375,632

303,954,207 $ 6,635,906
56,684,085 1,309,002
23,725,147 9,709,234
42,322,432 186,064,698 818,498,685 24,667,151 5,910,609,202
9,884,191 46,355,671 24,153,344 562,616,689 245,001,750
0 2,587,282,797
25,448,565 17,810,333 72,279,866 109,002,169 225,526,345 175,017,330 35,964,003 3,844,201,855 211,431,097 47,890,920
1,224,864,732 133,950,581 17,642,000 12,987,099 35,264,617
3,633,845,228

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

38,069,137 (229)
5,292,975 340,307
1,030,916 155,201
2,083,824 2,643,106 16,311,923 2,841,282 112,306,338
257,284 1,101,310 6,393,325
0 116,881,469
0 108,457,969
11,031,874 350,114
1,556,874 (2,683,808) 8,545,280 50,278,998 1,052,608 504,137,671 8,398,546
396,241
138,652,914 4,541,912 0 964,519 237,384
208,530,404

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)

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

$

101,526,968 $

176,814,396 $

152,134,714 $

24,679,682

32,526,981

35,212,659

33,835,619

1,377,040

2,385,717

2,663,179

2,626,592

36,587

251,026,535

248,658,622

223,500,545

25,158,077

11,501,170

13,339,001

12,225,778

1,113,223

342,014,134

467,512,478

403,929,900

63,582,578

1,214,776,428

3,208,113,964

1,677,945,517

1,530,168,447

28,117,135

29,431,122

28,784,898

646,224

11,694,420

11,916,060

11,724,635

191,425

Total Expenditures

$ 20,412,587,926 $ 26,226,420,080 $ 23,229,309,129 $ 2,997,110,951

Excess of Funds Available over Expenditures

$ 1,430,829,551 $ 1,430,829,551

The notes to 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, 1999

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

Primary

Proprietary Fund Types

Internal

Enterprise

Service

$ 1,106,814,868 $ 11,565,944 3,811
$ 1,118,384,623 $

122,400,893 9,102,782
97,215,751
30,481,660 311,881,726
1,613,159
572,695,971

$ 276,923,642 $ 165,597,954 184,288,317

993,414,951

15,357,000 158,694,809

1,310,915

$ 1,270,338,593 $ $ (151,953,970) $

525,248,995 47,446,976

$

$

893,734

(47,934)

(11,073)

(30,332,038)

$

(11,073) $ (29,486,238)

Government
Fiduciary Fund Type
Nonexpendable Trust

Totals -
(Memorandum Only)
Primary Government

Component Units
Proprietary Fund Types

Totals -
(Memorandum Only)
Reporting Entity

$

$ 1,229,215,761 $

50,170 $ 1,229,265,931

9,102,782

9,102,782

11,955

108,793,650

78,291,922

187,085,572

0

25,644,011

25,644,011

30,481,660

56,966,844

87,448,504

311,885,537

2,126,692,948

2,438,578,485

0

1,650,694

1,650,694

1,613,159

22,397,677

24,010,836

$

11,955 $ 1,691,092,549 $ 2,311,694,266 $ 4,002,786,815

$

$ 442,521,596 $

132,492,416 $

575,014,012

184,288,317

345,223,864

529,512,181

0

49,377,470

49,377,470

1,008,771,951

1,008,771,951

158,694,809

158,694,809

0

1,059,585,000

1,059,585,000

2,495

2,495

2,495

1,310,915

33,850,952

35,161,867

5,174

5,174

47,817,629

47,822,803

$

7,669 $ 1,795,595,257 $ 1,668,347,331 $ 3,463,942,588

$

4,286 $ (104,502,708) $

643,346,935 $

538,844,227

$

$

0 $

1,275,905 $

1,275,905

893,734

25,397,875

26,291,609

0

970,920

970,920

0

22,533,763

22,533,763

(47,934)

(38,995,211)

(39,043,145)

0

(2,065,318)

(2,065,318)

(30,343,111)

515,037

(29,828,074)

$

0 $ (29,497,311) $

9,632,971 $

(19,864,340)

(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, 1999

Net Income (Loss) Before Operating Transfers
Operating Transfers: Transfers In Transfers from Primary Government Transfers Out Transfers to Primary Government
Net Operating Transfers
Net Income (Loss)
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 to Primary Government Transfer of Equity to Primary Government Increase (Decrease) in Inventories

Primary

Proprietary Fund Types

Internal

Enterprise

Service

$ (151,965,043) $

17,960,738

$

32,500,000 $

66,426,569

(19,173,717)

$

32,500,000 $

$ (119,465,043) $

47,252,852 65,213,590

70,109,250

1,057,731,238 175,983

(49,250)

Fund Equity/Fund Balances, June 30

$ (49,355,793) $ 1,123,071,561

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

Government
Fiduciary Fund Type
Nonexpendable Trust

Totals -
(Memorandum Only)
Primary Government

Component Units
Proprietary Fund Types

Totals -
(Memorandum Only)
Reporting Entity

$

4,286 $ (134,000,019) $

652,979,906 $

518,979,887

$

$

98,926,569 $

$

98,926,569

0

47,834,717

47,834,717

(19,173,717)

(19,173,717)

0

(646,905,000)

(646,905,000)

$

0 $

79,752,852 $

(599,070,283) $ (519,317,431)

$

4,286 $ (54,247,167) $

53,909,623 $

(337,544)

221,096

0
1,128,061,584 0
175,983 0 0 0 0 0
(49,250)

(1,843,763)
1,568,044,912 (2,406,603)
33,131,774 35,476,425
23,800 (32,903,352)
(633,268) 144,671

(1,843,763)
2,696,106,496 (2,406,603) 175,983 33,131,774 35,476,425 23,800
(32,903,352) (633,268) 95,421

$

225,382 $ 1,073,941,150 $ 1,652,944,219 $ 2,726,885,369

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, 1999

Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Required Contributions Cash Received from Insurance Proceeds Cash Received from Lease Agreements 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 Principal Paid on Bonds/Loans/Notes Interest Paid on Bonds/Loans/Notes Return of Contributed Capital Other Debt Service Payments Other Noncapital Items (Net)
Net Cash Provided by (Used in) Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities: Issuance 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
Net Cash Provided by (Used in) Investing Activities
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1

Primary Government

Proprietary Fund Types

Internal

Enterprise

Service

Fiduciary Fund Type
Nonexpendable Trust

Totals -
(Memorandum Only)
Primary Government

Component Units
Proprietary Fund Types

Totals -
(Memorandum Only)
Reporting Entity

$

3,811 $

1,117,071,441

346,232,366 $ 123,046,468
9,102,782

(273,530,177) (2,811,523)
(934,652,490)

(262,219,804) (87,270,378) (15,357,000) (84,270,758)

$ (93,918,938) $

29,263,676 $

$ (5,174) (2,495)

346,236,177 $ 1,240,117,909
9,102,782 0 0 0
(535,755,155) (90,081,901)
(950,009,490) (84,270,758) 0 (2,495) 0 0 0

2,260,385,237 $
12,604,654 111,432,151
76,151,683 (470,535,647) (101,112,270)
(1,076,140,000)
(165,582,534) 1,243,912 868,110

2,606,621,414 1,240,117,909
9,102,782 12,604,654 111,432,151 76,151,683 (1,006,290,802) (191,194,171) (950,009,490) (84,270,758) (1,076,140,000)
(2,495) (165,582,534)
1,243,912 868,110

(7,669) $ (64,662,931) $ 649,315,296 $ 584,652,365

$

32,500,000 $

66,426,569 $

(19,173,717) 990,757

$

98,926,569 $

$

98,926,569

0

47,834,717

47,834,717

0 0 0 0 (19,173,717) 0 0 0 0 0 990,757

333,935 150,223,731
58,591,332 6,621,407
(646,905,000) (156,095,154)
(51,676,631) (16,711,044)
(2,436,014) 3,715,265

333,935 150,223,731
58,591,332 6,621,407
(19,173,717) (646,905,000) (156,095,154)
(51,676,631) (16,711,044)
(2,436,014) 4,706,022

$

32,500,000 $

48,243,609 $

0 $

80,743,609 $ (606,503,456) $ (525,759,847)

$

$

$

175,983

(57,441)

(40,325,223) (242,857) (47,934)

$

(57,441) $ (40,440,031) $

$

0 $

3,000,000 $

3,000,000

0

15,521,237

15,521,237

175,983

9,967,106

10,143,089

0

200,000

200,000

(40,382,664)

(45,385,782)

(85,768,446)

(242,857)

(10,766,000)

(11,008,857)

(47,934)

(25,165,757)

(25,213,691)

0

(28,091)

(28,091)

0

3,975,000

3,975,000

0 $ (40,497,472) $ (48,682,287) $ (89,179,759)

$

73,005,845 $ (30,417,290) $

13,012,709

42,479,139

$

86,018,554 $

12,061,849 $

$

24,542,175 $

49,129,103 $

4,149,166

7,283,687

(168,780) $ 5,537
(163,243) $
(170,912) $
185,698

42,419,775 $ 55,497,385
97,917,160 $
73,500,366 $
11,618,551

36,599,220 $ 41,898,552
78,497,772 $
72,627,325 $
240,608,456

79,018,995 97,395,937
176,414,932
146,127,691
252,227,007

Cash and Cash Equivalents, June 30

$

28,691,341 $

56,412,790 $

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

14,786 $

85,118,917 $ 313,235,781 $ 398,354,698

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, 1999

Operating Income (Loss)
Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities: Depreciation/Amortization Interest Other Changes in Assets and Liabilities:
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 Decrease in Due from Component Units Increase in Inventories Increase in Prepaid Items Increase in Other Assets Increase in Accounts Payable and Other Accruals Increase (Decrease) in Compensated Absences Payable Increase in Claims and Judgments Payable Increase (Decrease) in Contracts Payable Increase (Decrease) in Salaries/Withholdings Payable Increase in Benefits Payable Increase in Due to Other Funds Increase in Due to Primary Government Decrease in Due to Component Units Increase (Decrease) in Deferred Revenue Decrease in Other Liabilities Increase (Decrease) in Deposits and Overpayments Increase in Grand Prizes Payable
Total Adjustments

Primary Government

Proprietary Fund Types

Internal

Enterprise

Service

Fiduciary Fund Type
Nonexpendable Trust

Totals -
(Memorandum Only)
Primary Government

Component Units
Proprietary Fund Types

Totals -
(Memorandum Only)
Reporting Entity

$ (151,953,970) $

47,446,976 $

4,286 $ (104,502,708) $ 643,346,935 $ 538,844,227

$

$

1,310,915 $

(11,565,944)

(97,215,751)

9,279,773
767,136 (142,756)
(42,438) 58,762,461
976,800

3,196,035 724,626
150,480 (2,333,242)
(61,989)
5,449,211 558,802
74,424,051 (3,793,932)
(26,757)
302,250
(138) (73,701)
(794,160)

$

58,035,032 $ (18,183,300) $

$ (11,955)

1,310,915 $ (108,793,650)
0

0 0 0 12,475,808 724,626 0 150,480 (2,333,242) (61,989) 0 6,216,347 416,046 74,424,051 (3,836,370) (26,757) 58,762,461 302,250 0 (138) 903,099 0 (794,160) 0

(11,955) $

39,839,777 $

34,161,967 $ 49,377,470 (17,755,886)
(1,185,661) (248,485)
(54,099,312) (9,109,404)
(384,320)
(127,083) (859,967) (889,409) 1,882,957
85,632
34,844 12,016
88,828
(1,070,739) (654,937) 541,850 6,168,000
5,968,361 $

35,472,882 (59,416,180) (17,755,886)
(1,185,661) (248,485)
(54,099,312) 3,366,404 724,626 (384,320) 150,480 (2,460,325) (921,956) (889,409) 8,099,304 501,678
74,424,051 (3,801,526)
(14,741) 58,762,461
302,250 88,828 (138)
(167,640) (654,937) (252,310) 6,168,000
45,808,138

Net Cash Provided by (Used in) Operating Activities

$ (93,918,938) $

29,263,676 $

(7,669) $ (64,662,931) $ 649,315,296 $ 584,652,365

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 Gain on Privatization Agreement

$

$

2,460,250 $

(11,073)

(31,322,795)

$

2,460,250 $

(31,333,868)

0

0 0

$ (818,191) 2,188,930
22,235,000 952,697

2,460,250 (32,152,059)
2,188,930
22,235,000 952,697

$

(11,073) $ (28,862,545) $

0 $ (28,873,618) $

24,558,436 $

(4,315,182)

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, 1999

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

Defined
Contribution Plan

District Attorneys Retirement
Fund

District Attorneys Retirement System

Employees'
Retirement System

Primary Government

Georgia

Judicial

Legislative

Retirement System

Retirement System

Superior Court Judges Retirement
Fund

Superior Court Judges Retirement
System

Trial Judges and Solicitors
Retirement Fund

$

137,000 $

1,000 $

$

3,275,696 $

41,087 $

75,338 $

47,000 $

$

30,173,000

12,483,929,204

225,765,329

29,319,662

1,720,000

206,000 994,000

84,352,000 5,845,232
515 18,261

298,584

1,000

$

31,510,000 $

1,000 $

0 $ 12,577,420,908 $

226,105,000 $

29,395,000 $

1,768,000 $

0 $

0

$

$

1,000 $

$

3,654,740 $

21,000 $

11,000 $

8,000 $

$

27,707

1,120,000

26,000

$

0 $

1,000 $

0 $

4,802,447 $

21,000 $

37,000 $

8,000 $

0 $

0

Fund Balances Reserved for

Pension Benefits and Pool Participants

$

31,510,000 $

0 $

0 $ 12,572,618,461 $

226,084,000 $

29,358,000 $

1,760,000 $

0 $

0

(Schedules of funding progress are presented on pages 87 and 89)

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 Type

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

$

800,840,617 $

804,417,738 $

2,409,622,370

15,180,529,565

5,280 $ 349,286,020

6,587 $ 38,307,433

1,394,281 $ 277,213,080

215,000 $ 770,366,000

20,858 $ 44,546,835

86,483 $

1,270,810 $

2,999,299

38,299,758

38,541,060,000

40,059,079,126

84,558,000 7,138,816 515 18,261
0
$ 3,210,462,987 $ 16,076,662,895 $

2,634,273
323,226 352,248,799 $

328,310

1,768,071

3,000

606 38,642,936 $

493,924 280,869,356 $

770,584,000 $

377,088
20,620 44,965,401 $

228,764,000 180,453,495
50,093

233,871,742 180,456,495
0 50,093

19,739

858,115

38,405,980 $ 38,951,598,398 $ 40,477,314,870

$

$

3,695,740 $

$

$

$

304,000 $

$

35,625 $

2,029,018 $

2,368,643

27,707

85

885

76,287

77,257

1,146,000

0

0

11,392

11,392

$

0 $

4,869,447 $

0 $

85 $

12,277 $

304,000 $

0 $

35,625 $

2,105,305 $

2,457,292

$ 3,210,462,987 $ 16,071,793,448 $

352,248,799 $

38,642,851 $

280,857,079 $

770,280,000 $

44,965,401 $

38,370,355 $ 38,949,493,093 $ 40,474,857,578

23

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 In Transfers from Primary Government Transfers to Primary Government
Net Operating Transfers
Net Increase
Fund Balances Reserved for Pension Benefits and Pool Participants, July 1
Transfer of Equity
Fund Balances Reserved for Pension Benefits and Pool Participants, June 30

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, 1999

Defined Contribution
Plan

District Attorneys Retirement
Fund

District Attorneys Retirement System

Employees' Retirement
System

Primary Government

Georgia

Judicial

Legislative

Retirement

Retirement

System

System

Superior Court Judges Retirement
Fund

Superior Court Judges Retirement
System

$ 10,420,000 $

161,000 $

$

359,405,575 $

5,134,000 $

290,000 $

1,852,000 $

1,115,444 1,058,272
(10,716)

395,337,580 876,286,040
(9,196,620)

7,225,918 16,021,684
(161,602)

1,155,596 2,562,248
(25,844)

54,149 120,062
(1,211)

$ 12,583,000 $

161,000 $

0 $ 1,621,832,575 $ 28,220,000 $

3,982,000 $

2,025,000 $

0

$

245,000 $

$

161,000

$

8,079,645 $

$

$

$

398,391,000

3,951,000

1,023,000

1,837,000

7,993,000

8,810,000

65,000

32,000

$

8,238,000 $

161,000 $

0 $

415,280,645 $

4,016,000 $

1,055,000 $

1,837,000 $

0

$

4,345,000 $

0 $

0 $ 1,206,551,930 $ 24,204,000 $

2,927,000 $

188,000 $

0

$

$

$

$

673,425 $

$

$

$

$

0 $

$

4,345,000 $

27,165,000

$ 31,510,000 $

0 $

0 $

673,425 $

0 $

0 $

0 $

0

0 $

0 $ 1,207,225,355 $ 24,204,000 $

2,927,000 $

188,000 $

0

0

31,059,000

11,365,393,106

0

(31,059,000)

201,880,000

26,431,000

1,572,000

114,690,000 (114,690,000)

0$

0 $ 12,572,618,461 $ 226,084,000 $ 29,358,000 $

1,760,000 $

0

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

Trial Judges and Solicitors
Retirement Fund

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

$

$

$

377,262,575 $

1,620,477 $

189,250 $

1,201,471 $ 18,822,000 $

69,390 $

78,112 $ 1,103,374,426 $ 1,125,355,126

0

467,426

13,119,175

2,124,778

668,310

16,379,689

160,099,235 (1,374,632)
5,244,530,362

564,987,922 896,048,306 (10,770,625)
0 5,244,530,362

14,042,223 27,215,246

1,866,978 1,442,534

12,065,925 17,964,573

24,147,637 53,541,406
(540,043)

1,741,672 4,653,122

3,694,784 (19,875)

1,217,663,000 2,700,878,000
(28,614,000)

1,275,222,219 2,754,419,406
(29,173,918) 51,275,475
0

0

0

130,128

0

290,797 1,546,122

290,797 130,128 1,546,122

0

12,030,840

12,030,840

0

157,589

7,488

138,571

70

303,718

$

0 $ 5,403,254,965 $ 7,072,058,540 $ 55,066,375 $

4,103,804 $ 44,489,715 $ 95,971,000 $

8,589,032 $

6,258,250 $ 4,993,301,426 $ 5,207,779,602

$

$

$

8,324,645 $

1,719,814 $

208,457 $

1,349,220 $

575,000 $

455,312 $

84,089 $

7,802,082 $

12,193,974

405,363,000

11,814,344

1,149,348

10,335,898

26,620,000

2,285,080

2,294,791

865,191,000

919,690,461

4,852,238,070

4,852,238,070

0

16,900,000

203,390

112,787

346,000

2,634

42,911,000

43,575,811

$

0 $ 4,852,238,070 $ 5,282,825,715 $ 13,737,548 $

1,357,805 $ 11,797,905 $ 27,541,000 $

2,740,392 $

2,381,514 $

915,904,082 $

975,460,246

$

0 $

551,016,895 $ 1,789,232,825 $ 41,328,827 $

2,745,999 $ 32,691,810 $ 68,430,000 $

5,848,640 $

3,876,736 $ 4,077,397,344 $ 4,232,319,356

$

$

$

673,425 $

$

$

$

$

$

$

$

0

0

3,650,000

3,650,000

0

(329,426)

(329,426)

$

0 $

0 $

673,425 $

0 $

0 $

0 $

0 $

0 $

0 $

3,320,574 $

3,320,574

$

0 $

551,016,895 $ 1,789,906,250 $ 41,328,827 $

2,745,999 $ 32,691,810 $ 68,430,000 $

5,848,640 $

3,876,736 $ 4,080,717,918 $ 4,235,639,930

56,131,000 (56,131,000)

2,659,446,092

14,281,887,198 0

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 0

$

0 $ 3,210,462,987 $ 16,071,793,448 $ 352,248,799 $ 38,642,851 $ 280,857,079 $ 770,280,000 $ 44,965,401 $ 38,370,355 $ 38,949,493,093 $ 40,474,857,578

25

State of Georgia
Combined Statement of Changes in Fund Balances College and University Funds
For the Fiscal Year Ended June 30, 1999

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 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

$ 1,242,793,536 $

$ 659,936,364 277,337,671
5,691,832 190,493,820
9,279,896 131,407
5,132,484

3,304,691

80,083

$ 1,246,098,227 $ 1,148,083,557 $

$ 2,368,499,142 $ 1,058,898,649 $

184,438,105

193,373,350

83,706

71,468,417

97,880

$ 2,746,310,597 $ 1,130,548,652 $

Loan Funds
(125,584) 2,624 3,193
287,822 749,151 980,478
367,456 2,265,140
14,999 671,332 284,912
717,703 1,688,946

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)

$

$

$

1,564,841

37,072

2,230,042

36,796,631

$ 301,276

$ 3,199,630

1,242,793,536 661,375,621 277,377,367 5,996,301 233,007,945

994,967

149,000 14,753,214

720,082

10,423,863 16,353,854
5,132,484 980,478

187,150,126

187,150,126

136,784,250 10,447,880
143,548,924

136,784,250 10,447,880
143,548,924

7,709,317 1,144,783

142,208

7,709,317 4,671,765

367,456

$

3,225,009 $

62,154,858 $

1,163,566 $ 481,130,810 $ 2,944,121,167

$

$

$

$

$ 3,427,397,791

184,438,105

193,457,056

71,468,417

14,999

671,332

13,140

395,932

95,297

136,784,250 15,139,638

10,447,880 2,670,578

61,700,028

147,232,130 17,810,216 813,000 61,700,028

$

95,297 $ 151,937,028 $

13,118,458 $

61,700,028 $ 4,105,399,006

(continued)

27

State of Georgia
Combined Statement of Changes in Fund Balances College and University Funds (continued) For the Fiscal Year Ended June 30, 1999

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

Current Funds

Unrestricted

Restricted

Loan Funds

$

(2,214,722) $

(27,291,756)

$ (29,506,478) $

(603,216) $ (1,715,901)
(2,319,117) $

60,797 25,370
86,167

$ 1,559,963,697 $ (4,458,712)
(18,766,640)

$ 1,536,738,345 $

$

7,019,497 $

100,748,775

$
0 $ 15,215,788 $ 72,074,823

0 662,361 60,931,674

$ 107,768,272 $

87,290,611 $

61,594,035

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)

$

2,757,141 $

$

$

(2,091,224)

16,318,305

14,755,206

$

0

0

$

665,917 $

16,318,305 $

14,755,206 $

0 $

0

$

$

$

0 $

$

3,795,629 $

118,961,026

72,766,966 $ 2,109,668
74,876,634 $ 1,412,769 $
17,016,512

782,000 $

$ 1,633,512,663 (2,349,044)
(18,766,640)

782,000 $

0 $ 1,612,396,979

3,582,314 $ 419,430,782 $ 451,119,140

34,143,126

4,616,613,751

5,020,489,687

$ 122,756,655 $

18,429,281 $

37,725,440 $ 5,036,044,533 $ 5,471,608,827

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, 1999

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
Total Revenues
Expenditures and Mandatory Transfers: Education and General Instruction Research Public Service Academic Support Student Services Institutional Support Plant Operations and Maintenance Scholarships and Fellowships Auxiliary Enterprises Student Housing Faculty and 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
Total Expenditures and Mandatory Transfers
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
Total Other Transfers and Additions (Deductions)

$ 554,990,642 $

$ 554,990,642

67,047,358

605,722,266

672,769,624

5,489,012

273,224,574

278,713,586

339,063

5,541,462

5,880,525

12,151,148

165,803,159

177,954,307

117,056

3,046,685

3,163,741

63,217,957

5,080,096

68,298,053

185,517,251

185,517,251

222,256,904

222,256,904

131,667,145

131,667,145

$ 1,242,793,536 $ 1,058,418,242 $ 2,301,211,778

$ 907,963,785 $

92,829,259 $ 1,000,793,044

256,669,215

240,467,417

497,136,632

152,017,459

67,171,315

219,188,774

233,726,955

8,151,887

241,878,842

119,804,088

4,475,132

124,279,220

398,302,723

34,473,539

432,776,262

209,113,722

61,528

209,175,250

90,901,195

520,874,688

611,775,883

57,146,724 185,063
37,415,178 15,328,411 30,572,927 43,789,802

57,146,724 185,063
37,415,178 15,328,411 30,572,927 43,789,802

193,373,350 2,214,722

83,021,766 7,455,824 603,216

193,373,350 83,021,766 7,455,824 2,817,938

$ 2,748,525,319 $ 1,059,585,571 $ 3,808,110,890

$

$

(27,291,756)

3,304,691

1,559,963,697 (4,458,712)
(18,766,640)
$ 1,512,751,280 $

18,116,815 $ (1,715,901)
(17,797)

18,116,815 (29,007,657)
3,286,894

1,559,963,697 (4,458,712)
(18,766,640)
16,383,117 $ 1,529,134,397

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

$

7,019,497 $

15,215,788 $

22,235,285

State of Georgia
Notes to the Financial Statements
Index
Page
Note 1 Summary of Significant Accounting Policies ....................................................................................... 33 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................................................................................................................................ 67 Note 13 Contributed Capital .............................................................................................................................. 69 Note 14 Contingencies ....................................................................................................................................... 70 Note 15 Subsequent Events................................................................................................................................ 71 Note 16 Retirement Systems .............................................................................................................................. 72 Note 17 Nonmonetary Transactions ................................................................................................................... 78 Note 18 Postemployment Benefits ..................................................................................................................... 79 Note 19 Fund Deficits ........................................................................................................................................ 79 Note 20 Major Discretely Presented Component Unit Condensed Financial Statements................................... 80
31

(This page intentionally left blank)

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies

government. In addition, organizations which are fiscally dependent upon the primary government were considered as potential component units.

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

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. Complete financial statements for each of the individual component units may be obtained from the Georgia Department of Audits and Accounts. 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.
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,

33

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
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 five blended defined benefit pension plans: the Employees' Retirement System Fund, the District Attorneys' Retirement Fund, the Georgia Judicial Retirement System, the Legislative Retirement System, and the Superior Court Judges 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 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.

34

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
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 sixteen 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 (Proprietary 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 fifteen members of the Board are appointed by the Governor.
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 fifteen members of the Board are appointed by State officials. The issuance of bonds must be approved by the Georgia State Financing and Investment Commission.

35

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
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.
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.
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.
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 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

36

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)

Special Revenue Funds - Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for specified purposes.

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.

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.

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.

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.
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.

Governmental Fund Types are used to account for all or most of a state's general activities. Governmental fund types include:

Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by

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.

37

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)

Loan Funds - Loan Funds are used to account for transactions of related resources obtained and used for loans to students.

one department or agency to other State departments or agencies, or to other governmental entities, on a cost-reimbursement basis.

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.

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.

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 fundsponsored 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.
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.

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.

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.

38

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
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 expenditure-driven 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.
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.

39

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
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, 1999, 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 expenditures (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 pooled investment funds to maximize interest earnings. The pooled investment fund "Georgia Fund 1" is also available on a voluntary basis to organizations outside of the State reporting entity.

Authorized pool investments are limited to the following in accordance with State statutes:
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; 7) Obligations of other political subdivisions of the State; and 8) Commercial paper issued by domestic corporations.
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 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. Investments are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements.
The Secondary Liquidity Portfolio consists of certificates of deposit with an average investment duration of three (3) months.
The Extended Term Portfolios consist generally 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). Certain investments in these portfolios are transacted by an external investment management firm under direction of an investment advisory agreement executed between the Office of Treasury and

40

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)

at $202,545,315 were held by the Department of Insurance. These securities are not recorded on the Combined Balance Sheet.

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. The agreement also places limitations on individual security purchases and holdings. As of June 30, 1999, the State had $52,114,189 invested in U. S. agency mortgage-backed 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, 1999.
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, 1999, the Department held surety bonds in the amount of $34,089,426, and cash bonds in the amount of $10,887,042. 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, 1999, securities valued

Construction contracts awarded by the Department of Transportation 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, 1999, $47,341,881 in escrow deposits were administered by the Department of Transportation.
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.
G. Interfund Receivables/Payables
The short-term portion of balances arising in connection with interfund loans are recorded as interfund receivables/payables.
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.
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.

41

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
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 assets. The fund balance reserve is based on values established by the U. S. Department of Agriculture.
K. Prepaid Items
Payments made to vendors and local government organizations for services that will benefit periods beyond June 30, 1999, 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.

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 funded by governmental fund types and college and university funds. Interest costs during construction for proprietary fund types are not capitalized with the exception of construction projects funded through the Stone Mountain Memorial Association (discretely presented component unit).
With the exception of the college and university funds, public domain ("infrastructure") fixed assets consisting of such assets as roads, bridges, curbs, streets and sidewalks, drainage systems and lighting systems are not generally reported, as these assets are immovable and of value only to the State of Georgia.
Assets in the general fixed assets account group and the college and university funds are not depreciated. The majority of proprietary funds do not record depreciation on fixed assets as required by GAAP.

M. 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

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

42

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
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 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.

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.

R. Fund Equity
Contributed capital is recorded in proprietary funds that have received capital or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources.
S. Bond Discounts/Premiums/Issuance Costs

P. Mortgage Loans Under Repurchase Agreements
At June 30, 1999, mortgage loans totaling $12,601,840 have been transferred and assigned to lenders under repurchase agreements by the Georgia Development Authority (discretely presented component unit). The agreements give the lenders the option to have the Authority repurchase

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.

43

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
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.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all other interfund transactions.
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

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, 1998 through June 30, 1999). The applicable fiscal reporting period for the Stone Mountain Memorial Association is based on a fifty-two/fifty-three week period ending on the last Sunday of each calendar year. Financial activity is reported for the period January 3, 1998, through December 31, 1998.
Note 2. Other Accounting Disclosures
Change in Accounting Policy and Restatements
In fiscal year 1999, the State implemented GASB Statement 32, "Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans." Based on revisions to the law, this statement rescinded the requirement to account for Internal Revenue Code Section 457 deferred compensation plans in an agency fund of the employer. The effect of this change is to eliminate the deferred compensation agency fund.
In prior years, the World Congress Center Authority did not record depreciation on certain fixed assets (equipment) acquired through contractual agreements with other parties. In fiscal year 1999, the Authority began recording depreciation on these fixed assets. This change is in accordance with generally accepted accounting principles. The beginning fund equity of the discretely presented component units - proprietary fund types has been decreased by $2,406,603, and accumulated depreciation has been restated.
Fund equity at July 1, 1998, has been adjusted as follows:

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.

Discretely Presented Component Units

Proprietary Fund Types

Change in Application of Accounting Principle

$ (2,406,603)

44

State of Georgia
Notes to the Financial Statements
June 30, 1999

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.

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.

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

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, 1999
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

$ 1,430,829,551 $

-

$

-

$

-

$

-

$

-

$

-

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

(1,430,829,551) -

1,368,817,070 964,761,088 -

268,226
-

(21,138,304)
-

130,874,702
-

9,215,155 -

37,918,037 40,405,725
-

-

(2,130,898,676)

-

-

-

98,559,332

-

-

-

5,867,849

-

-

-

-

-

-

-

(70,031,831)

(23,339,728)

-

(58,648,367)

13,566,673

-

-

-

-

-

(3,337,117)

$

-

$ 307,106,663 $ 268,226 $ (21,138,304) $ 130,874,702 $(119,465,043) $ 65,213,590

46

State of Georgia
Notes to the Financial Statements
June 30, 1999

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

Discretely Presented Component Units

Nonexpendable Trust

Pension/ Investment
Trust

College and University

Governmental

Proprietary

Fiduciary

$

-

$

-

$

-

$

-

$

-

$

-

$

-

15,316,045
-

4,286
-

200 1,789,906,250
-

15,948,371 (10,014,327)
457,764

(1,786,945) 133,244 -

386,237 51,926,526
-

331,426 4,235,639,930
-

-

-

(200)

14,336,082

(1,259,922)

(306,119)

(2,000)

-

-

-

(3,685,694)

3,176,256

59,216

-

-

-

-

6,311,449

-

-

-

-

-

-

(1,118,360)

-

-

(329,426)

$ 15,316,045 $

4,286 $ 1,789,906,250 $ 22,235,285 $

262,633 $ 52,065,860 $ 4,235,639,930

47

State of Georgia
Notes to the Financial Statements
June 30, 1999

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.

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 $740,916,375, and the bank balances were $1,185,587,499. 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, 1999:

4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.

5) Bonds, bills, certificates of indebtedness, notes or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association and the Federal National Mortgage Association.

Risk Category 1 2 3

Bank Balance $ 357,695,095
279,892,848 547,999,556 $ 1,185,587,499

48

State of Georgia
Notes to the Financial Statements
June 30, 1999
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
Superior Court Clerks' Cooperative Authority
All Other Component Units
Fiduciary Fund Types
Peace Officers' Annuity and Benefit Fund
Teachers Retirement System of Georgia
All Other Component Units

Risk Categories

1

2

Funds Held by (for)

3

Bank Balance

Primary Government

Carrying Amount

$

61 $

$

280,646 $

-

$

-

$

-

$

61 $

879,705 $

1,160,351 $

632,595 $ 2,010 $

$ 26,990,543 $

-

$

-

$

26,990,543 $

$ 28,980,732 $

-

$ 113,122,540 $ 142,103,272 $

$

160,731 $

2,018,870 $

-

$

2,179,601 $

$

100,000 $

$ 18,157,731 $

-

$

11,635,262 $

16,936,695 $ 18,896,058 $

17,036,695 $ 48,689,051 $

239,100,342 $

6,195,688 $

17,740 $

-

$

61,666,557 $

61 513,382
16,120,873 143,652,002
13,847 16,285,400 17,531,779

$

155,773 $

$

4,070,418 $

$

471,245 $

-

$

-

$

205,247 $

1,265,925 $

1,421,698 $

-

$

4,070,418 $

-

$

676,492 $

20,007,834 $
(329,426) $ 783,429,334 $

1,394,081
1,600,236 119,183

Investments - Investments are stated at fair value, and are summarized and classified as to risk in the following three categories: (1) insured or registered, or securities held by the State or its agent in the State's name, (2) uninsured or

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

49

State of Georgia
Notes to the Financial Statements
June 30, 1999
Note 4. Deposits and Investments (continued)
The carrying amounts and risk categories applicable to the State's investments are listed below:
Primary Government

Type of Investment Commercial Paper Corporate Bonds 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

$

1,769,028 $

417,253,486 $

3.975,303

15,447,500

10,100

-

2,503,380,971

19,191,000

8,733,877,752

54,607,744

12,214,624,115

$

23,457,637,269 $

68,520,683 575,020,413 $

3 -
119,593

Carrying Amount

$

419,022,514

19,422,803

10,100

2,522,571,971

8,788,605,089

119,593 $

12,283,144,798 24,032,777,275

4,651,877 2,742,621
6,481

1,983,406,133

$

26,023,584,387

Signi ficant Discretely Presented Component Units

Governmental Fund Types
Georgia Public Telecommunications Commission

Type of Investment
Commercial Paper Stocks

Unclassified Mortgages

Risk Categories

1

2

3

Carrying Amount

$

47,850

$

161,230

$

209,080

$

-

$

-

-

$

-

$

-

-

$

$

47,850 161,230 209,080
99,695 308,775

50

State of Georgia
Notes to the Financial Statements
June 30, 1999
Note 4. Deposits and Investments (continued)

Proprietary Fund Types
Georgia Housing and Finance Authority

Type of Investment

Commercial Paper

$

Corporate Bonds

U.S. Government Securities and Corporate Obligations

$

Unclassified

Mortgages

Lottery Corporation Geo. L. Smith II Georgia World Congress Center Authority
All Other Component Units

U.S. Government Securities and

Corporate Obligations

$

Repurchase Agreements

$

U.S. Government Securities and Corporate Obligations

$

Corporate Bonds

$

Repurchase Agreements

U.S. Government Securities and Corporate Obligations

$

Unclassified

Mutual Funds

Risk Categories

1

2

3

Carrying Amount

2,857,487 $ 3,413,403
32,640,298 38,911,188 $

203,926,000 $

-

$

-

-

$

1,000,000 $ 3,812,452

59,972,868 64,785,320 $

-

$

-

-

-

$

-

$

35,051,636 $

50,406,728 85,458,364 $

-

$

-

-

-

$

-

$

-

-

-

$

$

96,346,000 $

-

$

-

-

$

-

$

-

-

-

$

$

2,857,487 3,413,403 32,640,298 38,911,188
38,588,250 77,499,438 300,272,000 35,051,636 50,406,728 85,458,364
1,000,000 3,812,452 59,972,868 64,785,320
379,347 65,164,667

51

State of Georgia
Notes to the Financial Statements
June 30, 1999
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 Stocks U.S. Government
Securities and Corporate Obligations
Unclassified Mutual Funds Real Estate

Risk Categories

1

2

3

Carrying Amount

$

635,893,000

$

23,093,979,000

14,807,428,000

$ 38,537,300,000

$

$

30,535,344

$

213,343

51,651,360

307,600,478

275,783,691

$

665,784,216

$

-

$

-

-

-

$

-

$

-

-

-

-

-

$

-

$

635,893,000

-

23,093,979,000

-

14,807,428,000

-

$ 38,537,300,000

3,760,000

$ 38,541,060,000

-

$

30,535,344

-

213,343

-

51,651,360

-

307,600,478

-

275,783,691

-

$

665,784,216

48,162,246

850,496

$

714,796,958

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 $20,913,417,000 at June 30, 1999, 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 Statement of Net Plan Assets since the State maintains ownership. The related collateral securities are not recorded as assets on the Statement of Net Plan Assets, 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, 1999
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, 1999, and related risk categorization of investments are as follows:

Assets

Georgia Fund 1 Statement of Net Assets
June 30, 1999

Cash and Cash Equivalents Investments

$ 1,660,221,810 4,967,904,502

Net Assets

$ 6,628,126,312

Distribution of Net Assets

External Participant Account Balances Internal Participant Account Balances

$ 3,210,462,987 3,417,663,325

$ 6,628,126,312

Georgia Fund 1 Statement of Changes in Net Assets For the Fiscal Year Ended June 30, 1999

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

$ 17,176,264,218 354,051,930 (1,835,217)
$17,528,480,931

Deductions Pool Participant Withdrawals Net Increase
Net Assets July 1 Adjustments Restatement of Prior Year Balance

16,703,938,937 $ 824,541,994
4,042,413,731
1,761,170,587

June 30

$ 6,628,126,312

Because the State does not maintain separate bank accounts for Georgia Fund 1, a separate risk categorization for the Fund's deposits cannot be presented. The carrying amount of Georgia Fund 1 deposits as of June 30, 1999, was $9,133,339. This amount is included in the categorization of deposits of the Primary Government. Investments of Georgia Fund 1 are categorized below. These amounts are included in the categorization of investments of the Primary Government.

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

Risk Categories

1

2

$

-

$

356,956,981 $

1,877,117,609

-

4,384,918,383

$

6,262,035,992 $

356,956,981 $

3

Carrying Amount

-

$

356,956,981

-

1,877,117,609

-

-

$

4,384,918,383 6,618,992,973

53

State of Georgia
Notes to the Financial Statements
June 30, 1999
Note 4. Deposits and Investments (continued)

Assets

Regents Investment Pool Statement of Net Assets
June 30, 1999

Cash and Cash Equivalents Investments Interest Receivable

$ 5,570,824 106,000,398 728,290

Net Assets

$ 112,299,512

Distribution of Net Assets

External Participant Account Balances Internal Participant Account Balances

$ 8,429,045 103,870,467

$ 112,299,512

Regents Investment Pool Statement of Changes in Net Assets For the Fiscal Year Ended June 30, 1999

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

$ 3,713,266 (803,459) (358,262)
$ 2,551,545
$ 21,473,132 (31,613,845)
$ (10,140,713) $ 12,692,258
99,607,254

June 30

$ 112,299,512

Because the State does not maintain separate bank accounts for Regents Investment Pool, a separate risk categorization for the Pool's deposits cannot be presented. The carrying amount of Pool deposits as of June 30, 1999, was $6,299,114. This amount is included in the categorization of deposits of the Primary Government. Investments of Regents Investment Pool are categorized below. These amounts are included in the categorization of investments of the Primary Government.

Risk Categories

Type of Investment

1

2

3

Carrying Amount

Corporate Bonds

$

-

$

9,342,402 $

-

$

9,342,402

Repurchase Agreements

-

19,191,000

-

19,191,000

Stocks

-

41,155,249

-

41,155,249

U.S. Government Securities and Corporate Obligations

-

36,311,747

-

36,311,747

$

-

$

106,000,398 $

-

$

106,000,398

54

Note 5. Receivables

State of Georgia
Notes to the Financial Statements
June 30, 1999

Primary Government
Receivables by fund type as of June 30, 1999, consist of the following:

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

Gross Receivables

Allowance For
Uncollectibles

Net Total Receivables

$ 3,493,671,214

$

1,798,500

15,416,774

-

$ 3,493,671,214

-

1,798,500

-

15,416,774

10,146,003 7,641,212

(2,303,272) -

7,842,731 7,641,212

65,367,762 6,664
91,696,816 30,176,583 344,772,294

(15,011,985) -
(72,073,680)

50,355,777 6,664
91,696,816 30,176,583 272,698,614

$ 4,060,693,822

$ (89,388,937)

$ 3,971,304,885

55

State of Georgia
Notes to the Financial Statements
June 30, 1999
Note 5. Receivables (continued)
Significant Discretely Presented Component Units
Receivables of the significant discretely presented component units as of June 30, 1999, 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

$ 1,025,278 $ (277,887) $

-

$

-

$ 747,391

577,395,692
625,018,846 385,220,012 165,100,786

-
(265,063) (4,073,682) (4,120,617)

-
(30,108,951)
-

-
(227,988)

577,395,692
624,753,783 351,037,379 160,752,181

409,217,495

-

5,110,742

-

-

-

409,217,495

-

-

5,110,742

$ 2,168,088,851 $ (8,737,249) $ (30,108,951) $ (227,988) $ 2,129,014,663

56

Note 6. Fixed Assets

State of Georgia
Notes to the Financial Statements
June 30, 1999

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, 1998

Retroactive Restatement
of Prior Year Balance

$ 1,987,966,927 $

-

448,632

-

926,121,955

198,508

350,787

-

Additions $ 123,531,661
166,286 144,953,506
-

Retirements $ (40,057,186)
(61,949,552)
(350,787)

Balance June 30, 1999 $ 2,071,441,402
614,918 1,009,324,417
-

$ 2,914,888,301 $

198,508 $ 268,651,453 $ (102,357,525) $ 3,081,380,737

The following is a summary of the proprietary fund types and college and university funds fixed assets at June 30, 1999:

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

Proprietary Fund Types

Enterprise Funds

Internal Service Funds

$

-

$ 239,334,788

-

-

359,988

191,146,723

-

(13,104,836)

-

-

$

359,988

$ 417,376,675

College and University Funds $ 2,924,907,407
206,918,526 1,700,455,524
225,757,306 $ 5,058,038,763

57

State of Georgia
Notes to the Financial Statements
June 30, 1999
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, 1999:

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

$

27,360,330 $

-

61,460,552

-

-

$

88,820,882 $

Georgia Ports
Authority 198,834,000
221,768,000
134,051,000
(218,830,000)
23,139,000
358,962,000

Stone Mountain Memorial Association

$

80,875,545

19,374,604

27,827,648

(37,742,396)

2,022,146

$

92,357,547

Geo. L. Smith II Georgia World Congress Center
Authority

$

209,402,736

-

12,863,659

(54,936,233)

71,907,608

$

239,237,770

All Other Component
Units

$

113,845,884

2,723,138

38,190,048

(23,048,677)

1,196,732

$

132,907,125

Land and Buildings Machinery and Equipment
Net Fixed Assets

Fiduciary Fund Types

Firefighters' Pension Fund
$ 138,054
185,172

Peace Officers' Annuity and Benefit Fund

$

310,296

183,628

All Other Component
Units

$

-

40,965

$ 323,226 $

493,924 $ 40,965

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, 1999

Note 7. Risk Management
A. Public Entity Risk Pool
The State Personnel Board, Merit System of Personnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia, units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations by the General Assembly of Georgia. The State Personnel Board, Merit System of Personnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.
A reconciliation of total claims liabilities for fiscal years ended June 30, 1999, and 1998, is shown below:

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, 1999, and 1998, is shown below:

Fiscal Year Ended June 30, 1999

Fiscal Year Ended June 30, 1998

Unpaid Claims and Claim Adjustments July 1

Fiscal Year Ended June 30, 1999

Fiscal Year Ended June 30, 1998

$159,758,318

$

148,196,779

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

993,414,951

863,085,931

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

(934,652,490)

(851,524,392)

Unpaid Claims and Claim Adjustments June 30

$218,520,779 $159,758,318

Unpaid Claims and Claim Adjustments July 1

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

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

159,756,073

140,916,616

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

(156,256,073)

(140,016,616)

Unpaid Claims and Claim Adjustments June 30

$ 25,300,000 $ 21,800,000

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, 1999

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.
A reconciliation of total claims liabilities for fiscal years ended June 30, 1999, and 1998, is shown below:

Fiscal Year Ended June 30, 1999

Fiscal Year Ended June 30, 1998

Unpaid Claims and Claim Adjustments July 1

$ 357,293,702 $ 258,497,047

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

158,694,809

183,454,774

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

(84,270,758)

(84,658,119)

Unpaid Claims and Claim Adjustments June 30

$ 431,717,753 $ 357,293,702

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, 1999, the undisbursed balance remaining on these agreements approximates $901,000,000.

Significant Discretely Presented Component Units
Proprietary Fund Types
At June 30, 1999, the Georgia Ports Authority had commitments for construction projects of approximately $13,500,000.
Note 9. Operating Leases
A. Lessee
The State leases land, office facilities, office and computer equipment, and other assets. These leases are considered for accounting purposes to be operating leases. Although lease terms vary, many leases are subject to appropriation from the General Assembly to continue the obligation. Other leases generally contain provisions that, at the expiration date of the original term of the lease, the State has the option 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, 1999, are listed below. Amounts are included for renewable leases for which the option to renew for the subsequent fiscal year has been exercised.
Primary Government

Fiscal Year Ended June 30 2000 2001 2002 2003 2004 2005 and Subsequent
Total Minimum Commitments

$ 77,603,346 16,129,024 15,775,338 15,240,670 14,781,293 18,679,314
$158,208,985

Expenditures for rental of real property and equipment for the year ended June 30, 1999, totaled $78,979,549.

60

State of Georgia
Notes to the Financial Statements
June 30, 1999

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

Georgia Lottery Corporation

Fiscal Year Ended June 30

2000

$ 1,963,000

2001

1,963,000

2002

1,963,000

2003

1,963,000

2004

14,000

2005 and Subsequent

-

$ 7,866,000

Less: Sublease Revenues

(1,476,000)

Total

$ 6,390,000

B. Lessor
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, 1999, are as follows:
Primary Government

Fiscal Year Ended June 30 2000 2001 2002 2003 2004 2005 and Subsequent
Total

$ 8,291,532 8,407,857 8,531,267 8,658,139 8,779,599
163,497,496 $ 206,165,890

Expenditures for rental of real property and equipment for the year ended June 30, 1999, totaled $1,579,000.

North Georgia Mountains Authority

Fiscal Year Ended June 30

2000

$ 1,432,064

2001

1,434,982

2002

1,438,486

2003

1,448,954

2004

1,467,011

2005 and Subsequent

15,391,903

Total Minimum Commitments

$ 22,613,400

Expenditures for rental of real property and equipment for the year ended June 30, 1999, totaled $1,429,219.

Revenues from rental of facilities for the year ended June 30, 1999, totaled $8,244,572.
Significant Discretely Presented Component Units
Proprietary Fund Types

Lake Lanier Islands Development Authority

Fiscal Year Ended June 30

2000

$ 3,100,000

2001

3,100,000

2002

3,200,000

2003

3,200,000

2004

3,200,000

2005 and Subsequent

137,866,667

Total

$ 153,666,667

61

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 9. Operating Leases (continued)
Revenues from rental of facilities for the year ended June 30, 1999, totaled $3,155,729.

expenditures and other financing sources in the governmental fund types when capitalized leases are entered into as required by GAAP. At June 30, 1999, future commitments under installment purchases and capital leases were as follows:

Georgia Ports Authority

Fiscal Year Ended June 30

2000

$

2001

2002

2003

2004

2005 and Subsequent

Total

$

5,154,000 3,836,000 3,165,000 2,462,000 2,048,000 22,172,000 38,837,000

Revenues from rental of facilities for the year ended June 30, 1999, totaled $22,172,000.
Note 10. Capital Leases and Installment Purchases

Primary Government

Fiscal Year Ended June 30 2000 2001 2002 2003 2004 2005 and Subsequent
Total Capital Lease and Installment Purchase Payments Less: Interest Present Value of Capital Lease and Installment Purchase
Payments

$ 18,200,517 14,483,493 5,699,598 1,318,401 995,464 9,709
$ 40,707,182 (3,162,154)
$ 37,545,028

Installment Purchases Capital Leases

$ 7,714,944 29,830,084
$ 37,545,028

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

Significant Discretely Presented Component Units
Governmental Fund Types

Georgia Public Telecommunications Commission

Fiscal Year Ended June 30

2000

$ 2,809,146

2001

2,775,628

2002

2,086,580

2003

2,083,804

2004

1,651,626

2005 and Subsequent

658,293

Total Installment Purchase Payments

$ 12,065,077

Less: Interest

(1,376,346)

Present Value of Installment Purchase Payments

$ 10,688,731

62

State of Georgia
Notes to the Financial Statements
June 30, 1999

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 2000 2001 2002 2003 2004 2005 and Subsequent Total Capital Lease and Installment Purchase Payments Less: Interest Present Value of Capital Leases and Installment Purchases

$ 332,168 164,384 -
$ 496,552 (68,509)
$ 428,043

Installment Purchases Capital Leases

$ 428,043 -
$ 428,043

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
1.25% 8.40%
2.00% 6.75%

Amount $ 4,051,270,000
728,460,000 $ 4,779,730,000

63

State of Georgia
Notes to the Financial Statements
June 30, 1999
Note 11. Long-Term Debt (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:

Fiscal Year Ended June 30 2000 2001 2002 2003 2004
Thereafter

Principal $ 333,305,000
276,640,000 286,260,000 288,310,000 317,670,000 3,277,545,000 $ 4,779,730,000

Interest $ 273,580,728
255,368,897 238,493,753 221,796,945 203,873,974 973,479,576 $ 2,166,593,873

Total $ 606,885,728
532,008,897 524,753,753 510,106,945 521,543,974 4,251,024,576 $ 6,946,323,873

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, 1999, were $15,505 with accumulated interest of $11,475.
Revenue Bonds. At June 30, 1999, $209,645,000 of outstanding general obligation bonds (including prior years'

refundings), and $1,557,000 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, 1999, 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

$

212,076,813 $

-

$

-

$

7,376,711 $

219,453,524

697,979

-

-

-

697,979

4,344,386

4,670,386

(2,008,915)

-

7,005,857

4,505,775,000

862,030,000

(588,075,000)

-

4,779,730,000

15,505

-

-

-

15,505

2,846,689

-

(49,423)

-

2,797,266

$

4,725,756,372 $

866,700,386 $

(590,133,338) $

7,376,711 $

5,009,700,131

64

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 11. Long-Term Debt (continued)
Significant Discretely Presented Component Units
Governmental Fund Types
Defeased Debt. At June 30, 1999, $460,000 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, 1999, of $31,500,000.

Purpose
Georgia Student Finance Authority

Interest Rates
Varies Based on Market Rates

Amount $ 31,500,000

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

Fiscal Year Ended June 30

Georgia Student Finance Authority

Principal Interest

Total

2000

$ 31,500,000 $ -

$ 31,500,000

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 $769,765,901 and $191,650,732 at the Georgia Housing and Finance Authority and the Geo. L. Smith II Georgia World Congress Center Authority, respectively, at June 30, 1999, are as follows:

65

State of Georgia
Notes to the Financial Statements
June 30, 1999
Note 11. Long-Term Debt (continued)

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

Interest Rates
2.95% -11.25% -
6.950% - 7.875%

Amount

$ 767,807,901

$

1,958,000

$ 191,650,732

Georgia Housing and Finance Authority

Fiscal Year Ended June 30

Principal

Interest

Total

2000

$ 10,529,278

$ 43,911,884

$

54,441,162

2001

12,625,000

43,120,414

55,745,414

2002

15,075,000

42,455,638

57,530,638

2003

16,480,000

41,668,728

58,148,728

2004

18,005,000

40,784,505

58,789,505

Thereafter

750,068,865

511,985,320

1,262,054,185

Unamortized Discount

(323,313)

323,313

-

Future Accretion of Capital Appreciation Bonds

(54,651,929)

54,651,929

-

$ 767,807,901

$ 778,901,731

$ 1,546,709,632

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%.

66

State of Georgia
Notes to the Financial Statements
June 30, 1999

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, 1999, was $1,958,000. 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.

Geo. L. Smith II Georgia World Congress Center Authority

Fiscal Year Ended June 30

Principal

Interest

2000

$

3,485,000

$

7,346,172

$

2001

3,745,000

14,559,398

2002

4,025,000

14,281,550

2003

4,330,000

13,977,522

2004

4,665,000

13,644,624

Thereafter

171,850,000

139,743,180

Unamortized Discount

(449,268)

449,268

$

191,650,732

$ 204,001,714

$

Total 10,831,172 18,304,398 18,306,550 18,307,522 18,309,624
311,593,180
395,652,446

Defeased Debt. At June 30, 1999, $81,630,000 of outstanding Tollway Authority revenue bonds and $76,400,000 of Environmental Facilities Authority revenue bonds (including prior years' defeasances) are considered defeased.
Note 12. Interfund Balances
Interfund assets and liabilities at June 30, 1999, consist of the following:
Interfund Receivables:

Receivable Fund Capital Projects Funds

Payable Fund
Proprietary Fund Types - Discretely Presented Component Units

Interfund Receivable

Interfund Payable

$ 1,984,169 $ 3,078,687

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).

67

State of Georgia
Notes to the Financial Statements
June 30, 1999
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
Pension Trust Funds Proprietary Fund Types - Discretely
Presented Component Units 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 Internal Service Funds
Internal Service Funds
Capital Projects Funds
General Fund

Due From
$ 711,326 14,296,095 72,131 1,651,207 1,146,000
144,725
124,625 515
5
247,993
2,053,033 $ 20,447,655

Due To
$ 711,326 14,296,095 72,131 1,651,207 1,146,000
144,725
124,625 515
5
247,993
2,053,033 $ 20,447,655

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

53,750

53,750

12,647,162 $ 12,707,837

12,647,162 $ 12,707,837

68

State of Georgia
Notes to the Financial Statements
June 30, 1999
Note 13. Contributed Capital
During the year, contributed capital increased by the following amounts:
Primary Government

Source
General Obligation Bond Proceeds/ Fixed Assets Contributed by Primary Government
Contributed Capital July 1, 1998
Contributed Capital June 30, 1999

Internal Service Funds

Department of Administrative
Services

Georgia Building Authority (Regular)

Georgia Correctional Industries Administration

Total

$

-

$

175,983 $

53,384,666

220,059,544

$ 53,384,666 $ 220,235,527 $

1,145,948 1,145,948

$ 175,983 274,590,158
$ 274,766,141

Significant Discretely Presented Component Units
Proprietary Fund Types

Source General Obligation Bond Proceeds/Capital Outlay Contributed by Primary Government Contributions from Federal Government Contributions from Other Sources General Obligation Bond Proceeds/Capital Outlay Returned to Primary Government Net Additions (Deductions) Contributed Capital July 1, 1998 Restatement of Prior Year Balance Contributed Capital June 30, 1999

Georgia Environmental
Facilities Authority

$

21,503,796

35,476,425

-

-

$ 56,980,221

526,845,283

-

$ 583,825,504

Georgia Ports
Authority

$

8,446,000

-

-

(11,566,000)

$ (3,120,000)

249,696,794

-

$ 246,576,794

Geo. L. Smith Georgia World Congress Center
Authority

$

-

-

-

-

$

-

63,703,860

7,650,000

$

71,353,860

All Other Component
Units $ 3,181,978
23,800 (21,337,352) $ (18,131,574) 161,690,879
$ 143,559,305

69

State of Georgia
Notes to the Financial Statements
June 30, 1999
Note 13. Contributed Capital (continued)
Contributed Capital / Residual Equity Transfers for the fiscal year ended June 30, 1999, are as follows:

General Fund

Receiving Fund

Capital Projects Funds

Contributing Fund
Proprietary Fund Types - Discretely Presented Component Units
Proprietary Fund Types - Discretely Presented Component Units

Received

Contributed

$ 13,877,077 $ 13,877,077

516,575

19,026,275

Internal Service Funds

Capital Projects Funds

175,983

175,983

Proprietary Fund Types - Discretely Presented Component Units
Proprietary Fund Types - Discretely Presented Component Units

General Fund Capital Projects Funds

850,611

850,611

32,281,163 $ 47,701,409 $

32,281,163 66,211,109

Proprietary Fund Types - Discretely Presented Component Units

Other Sources

35,500,225

-

$ 83,201,634 $ 66,211,109

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 two cases seek $153,000,000 (including interest), in refunds of alcohol import taxes imposed under OCGA Section 3-4-60. These claims constitute 99% of all such taxes paid during the three years preceding these claims. 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 conclusively resolved in favor of the State by virtue of the trial court's judgment, now appears to be approximately $54,000,000.

70

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 14. Contingencies (continued)
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 48-867 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 case is in discovery in the trial court.
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 19911999) is approximately $36,000,000. After the filing of cross-motions for summary judgment in the original case, the Superior Court ruled in favor of the Defendant State Revenue Commissioner. An appeal of the decision has not yet been docketed in the Georgia Court of Appeals.

manufacturers and 46 states (plus other jurisdictions) and the validity of subsequent legislation related thereto. Couched largely as an antitrust suit, the plaintiffs seek, among other things, disgorgement of funds paid pursuant to the agreement. Under the agreement, Georgia is to receive over $4,800,000,000 between the years 2000 and 2025. The defendant states have collectively filed a motion to dismiss. The State believes it has good and valid defenses on jurisdictional and other grounds.
Construction on the Animal Health Research Center at the University of Georgia has generated an $8,200,000 delay, equitable adjustment, and design claim from the contractor. The State believes it has significant counterclaims to assert against the contractor. The case is now entering the discovery phase.
Significant Discretely Presented Component Units
Proprietary Fund Types
The Federal Government, through the Guaranteed Student Loan Programs of the U.S. Department of Education, fully reinsured loans guaranteed through September 30, 1993, until the 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.

Contract claims in the amount of approximately $11,000,000 have been made against the Board of Regents of the University System of Georgia in connection with construction at the Children's Medical Center in Augusta, Georgia. The delay, equitable adjustment, and design claims were made by 30 subcontractors and the construction manager. The total project cost is $44,000,000. Several subcontractors have filed suits against the Construction Manager, with the Construction Manager filing corresponding third-party complaints against the Board of Regents. The total amount of claims by subcontractors against the Construction Manager is approximately $6,640,000. Discovery proceedings in the filed lawsuits and settlement negotiations for all claims are continuing.
A suit was filed on August 13, 1999, that challenges the master settlement agreement between most of the tobacco

Note 15. Subsequent Events
Primary Government
General Obligation Bonds Issued
The State issued General Obligation Bonds in the amount of $358,585,000 on August 1, 1999 (Series 1999A and 1999 B); in the amount of $327,615,000 on November 1, 1999 (Series 1999C and 1999D); and in the amount of $108,515,000 on March 1, 2000 (Series 2000A).
Proceeds from these bonds will be used for the purpose of financing various capital outlay projects.

71

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 16. 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, 1999, participation in GDCP is as follows:

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

67,928
71,215 139,143

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 annual 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, 1999, DARF had ten (10) 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 annual salary plus an additional two and one-half percent (2.5%) for the spousal coverage benefit if elected. The State paid member contributions of five percent (5.0%) of the member's annual salary. Additional employer contributions are not actuarially determined but are provided on an asneeded basis to fund current benefits.
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.

72

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 16. Retirement Systems (continued)
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 limitation on benefits imposed by IRC Section 415.
Membership As of June 30, 1999, 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

23,195 71,711 66,952 161,858

(10) years of creditable service and attainment of age sixtyfive (65). Additionally, there are certain provisions allowing for retirement after twenty-five (25) years of creditable 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 months multiplied by the number of years of creditable service. Post-retirement cost - of - living adjustments are also made to members' benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
Contributions and Vesting Member contributions under the old plan are four percent (4.0%) 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.

As of June 30, 1999, one hundred seventy-nine (179) 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 provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.
Under both the old and new plans, a member may retire and receive normal retirement benefits after completion of ten

Under the SRBP, employer contributions of $1,828,000 and retirement payments of $1,637,000 are included in the Statement of Changes in Plan Net Assets for the year ended June 30, 1999. Cash of $162,000 and employer receivable of $175,000 are included in the Statement of Plan Net Assets at June 30, 1999.
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 nine (9) years based upon the actuarial valuation at June 30, 1998.

73

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 16. Retirement Systems (continued)
Georgia Judicial Retirement System
Plan Description
Organization and Purpose The Georgia Judicial Retirement System ("GJRS") is a newly created system serving the members and beneficiaries of the Trial Judges and Solicitors Retirement Fund, the Superior Court Judges Retirement System and the District Attorneys' Retirement System (collectively the "Predecessor Retirement Systems"). As of June 30, 1998, any person who was an active, inactive or retired member or beneficiary of the Predecessor Retirement Systems was transferred to GJRS in the same status effective July 1, 1998. All assets of the Predecessor Retirement Systems were transferred to GJRS as of July 1, 1998.
GJRS is a multiple-employer cost-sharing defined benefit pension plan established by the Georgia General Assembly for the purpose of providing retirement allowances for trial judges and solicitors of certain courts in Georgia, and their survivors and other beneficiaries, superior court judges of the State of Georgia, and district attorneys of the State of Georgia. GJRS is administered by the ERS Board of Trustees and three (3) other trustees not on the ERS Board.
Membership As of June 30, 1999, participation in GJRS is as follows:

Benefits The normal retirement for GJRS 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.
Retirement benefits paid to members are computed as sixtysix and two-thirds percent (66 2/3%) of annual salary plus one percent (1%) for each year of credited service over sixteen (16) years, not to exceed twenty-four (24) years. Early retirement benefits paid to members are computed as the pro rata portion of the normal retirement benefit, based on service not to exceed sixteen (16) years. 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 annual salary plus and additional two and one-half percent (2.5%) if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the GJRS Board of Trustees.
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 actuarial accrued funding excess within fourteen (14) years based upon the actuarial valuation at July 1, 1998.

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

Legislative Retirement System

113

Plan Description

431

Organization and Purpose

163

Legislative Retirement System ("LRS") is a single-employer,

defined benefit plan established by the Georgia General

707

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.

74

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 16. Retirement Systems (continued)

The employer contributions are projected to liquidate the actuarial accrued funding excess within forty (40) years based upon the actuarial valuation at June 30, 1998.

Membership As of June 30, 1999, participation in LRS is as follows:

Superior Court Judges Retirement Fund

Retirees and Beneficiaries

Currently Receiving Benefits

190

Active Plan Members

210

Terminated Employees Entitled to

Benefits but not yet Receiving Benefits

390

790

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.
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 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.

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, 1999, participation in SCJRF is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

34

Active Plan Members

2

Terminated Employees Entitled to

Benefits but not yet Receiving Benefits

4

40

Benefits The normal retirement for SCJRF is age sixty-eight (68) with nineteen (19) years of creditable service with a benefit of twothirds the salary paid to superior court judges. A member may also retire at age sixty-five (65) with a minimum of ten (10) years of creditable service with a benefit of one-half the salary paid to superior court judges. Death, disability, and spousal benefits are also available.
Contributions and Vesting Member contributions are five percent (5.0%) 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.

75

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 16. Retirement Systems (continued)
Regents Retirement Plan
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 contributions are five percent (5.0%) of the earnable compensation, as established by the Board of Trustees of the Teachers' Retirement System. Employer contributions are 8.34% of the participating employee's earnable compensation. Employer contributions are established by statute and may be amended only by the General Assembly of the State of Georgia.
Amounts attributable to all plan contributions are fully vested and non-forfeitable.
Significant Discretely Presented Component Units
Teachers' Retirement System of Georgia
Plan Description
Organization and Purpose The Teachers' Retirement System of Georgia ("TRS") is a cost-sharing multiple-employer plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS.
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 educationalrelated work are eligible for membership.
As of June 30, 1999, participation in TRS is as follows:

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

43,732 186,822
30,081 260,635

As of June 30, 1999, 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 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.

76

State of Georgia
Notes to the Financial Statements
June 30, 1999
Note 16. Retirement Systems (continued)
Contributions and Vesting TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees.
Contributions required by the annual actuarial valuation are as follows:

Member
Employer: Normal Unfunded Accrued Liability Expenses

5.00%
8.34% 3.46% .15% 11.95%

Under the SRBP, employer contributions of $93,000 and retirement payments of $93,000 are reflected in the Statement of Changes in Plan Net Assets for the year ended June 30, 1999.
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 at a rate of 2.35% are expected to liquidate the unfunded accrued liability over approximately eight (8) years on the assumption that the aggregate amount of unfunded accrued liability contribution will increase by three and one-quarter percent (3.25%) each year.

77

State of Georgia
Notes to the Financial Statements
June 30, 1999
Note 17. 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, 1999

$

28,681,655 $

$

2,369,543 $

56,286 2,078,290

$

7,844,136 $

-

$

22,000 $

-

$

284,659 $

-

$

632,615 $

-

$

125,804 $

-

/
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, 1999, is not reported on the combined balance

sheet. The changes in Federal surplus personal property inventory during the fiscal year ended June 30, 1999, were as follows:

Balance July 1, 1998 Additions
Property Received
Deductions Property Donated and Other Distributions
Balance June 30, 1999

$ 9,758,530 10,505,036
$ 20,263,566
15,490,430 $ 4,773,136

78

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 17. 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 $525,493,938.
Significant Discretely Presented Component Units
Governmental Fund Types
Donated support of volunteer services and other sources totaling $444,835 was provided to the Georgia Public Telecommunications Commission during the year ended June 30, 1999. 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.

of June 30, 1999, there were 58,770 employees who had retired and were receiving postretirement health care benefits through the State Health Benefit Plan. For the fiscal year ended June 30, 1999, the State recognized expenditures of $219,364,544, which was net of retiree contributions of $52,077,988.
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, 1999, the University System recognized expenditures of $19,663,719, which was net of participant contributions of $5,412,097.

Note 18. Postemployment Benefits
In addition to the pension benefits described in Note 16, 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

Note 19. Fund Deficits
The following organizations had deficit balances at June 30, 1999.
Primary Government
Enterprise Fund
At June 30, 1999, the Fund had an unreserved retained earnings deficit of $56,855,793.
Internal Service Funds
Liability Self-Insurance Reserve Fund - At June 30, 1999, the Fund had an unreserved retained earnings deficit of $15,256,396.
Unemployment Compensation Fund - At June 30, 1999, the Fund had an unreserved retained earnings deficit of $776,738.
Workers' Compensation Fund - At June 30, 1999, the Fund had an unreserved retained earnings deficit of $125,319,548.

79

State of Georgia
Notes to the Financial Statements
June 30, 1999

Note 19. Fund Deficits (continued)
Significant Discretely Presented Component Units
Governmental Fund Types
Georgia Public Telecommunications Commission - At June 30, 1999, the Commission had an unreserved, undesignated fund balance deficit of $4,577,068.
Proprietary Fund Types
Lake Lanier Islands Development Authority - At June 30, 1999, the Authority had an unreserved retained earnings deficit of $17,333,670.
Lottery Corporation - At June 30, 1999, the Authority had a reserved retained earnings deficit of $2,361,000.

North Georgia Mountains Authority - At June 30, 1999, the Authority had an unreserved retained earnings deficit of $504,832.
Note 20. Major Discretely Presented Component Unit Condensed Financial Statements
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.

80

State of Georgia
Notes to the Financial Statements June 30, 1999
Note 20. 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 Reserved 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

$

632,656 $

1,899,737 $

2,532,393

88,820,882

88,820,882

11,645,754

11,645,754

$

632,656 $ 102,366,373 $ 102,999,029

$

$

144,725 $

144,725

5,863,984

5,863,984

11,645,754

11,645,754

$

0$

17,654,463 $

17,654,463

$

$

88,820,882 $

88,820,882

378,096

378,096

632,656

(4,487,068)

(3,854,412)

$

632,656 $

84,711,910 $

85,344,566

$

632,656 $ 102,366,373 $ 102,999,029

REVENUES

$

31,475 $

13,445,549 $

13,477,024

EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES Operating Transfers from Primary Government/Capital Leases EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES FUND BALANCES, JULY 1 FUND BALANCES, JUNE 30

$

0$

31,998,361 $

31,998,361

$

31,475 $

(18,552,812) $

(18,521,337)

18,783,970

18,783,970

$

31,475 $

231,158 $

262,633

601,181

(4,340,130)

(3,738,949)

$

632,656 $

(4,108,972) $

(3,476,316)

81

State of Georgia
Notes to the Financial Statements June 30, 1999

Note 20. Major Discretely Presented Component Unit Condensed Financial Statements (continued)

Proprietary Fund Types

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

Environmental Facilities Authority

Housing and Finance Authority

Lottery Corporation

Ports Authority

$

1,668,657 $

856,274,304

295,942 $ 858,238,903 $

$ 77,017,537 792,951,280
5,410,078
875,378,895 $

$ 41,109,489 300,741,000
2,686,000
344,536,489 $

42,707,831 1,868,832
358,962,000
403,538,663

LIABILITIES Due to Primary Government Other Liabilities Bonds and Other Long-Term Liabilities Total Liabilities
EQUITY AND OTHER CREDITS Investment in Fixed Assets Contributed Capital Retained Earnings Reserved Unreserved Fund Balances Reserved Unreserved Total Equity and Other Credits
Total Liabilities, Equity and Other Credits

$

2,666 $

21,894,985

82,766,845

$ 104,664,496 $

1,468 $ 24,051,981 769,765,901 793,819,350 $

24,129 $ 42,467,360 303,017,000 345,508,489 $

61,577 15,162,423 28,559,000 43,783,000

$

295,942 $

583,825,504

9,670,745 146,114,295

13,182,579 485,342
$ 753,574,407 $
$ 858,238,903 $

$
30,518,174 49,109,050

$
(2,361,000) 1,389,000

246,576,794 113,178,869

1,932,321 81,559,545 $
875,378,895 $

(972,000) $ 344,536,489 $

359,755,663 403,538,663

OPERATING REVENUES Sales and Services Operating Grants Taxes Other Total Operating Revenues
OPERATING EXPENSES Depreciation Other Total Operating Expenses
OPERATING INCOME (LOSS)

$

$

5,067,287 $ 1,952,989,000 $

89,180,000

19,829,602

$

19,829,602 $

48,143,247 53,210,534 $ 1,952,989,000 $

89,180,000

$

$

767,282

$

767,282 $

$

19,062,320 $

573,790 $ 61,349,612 61,923,402 $

1,338,000 $ 1,308,336,000 1,309,674,000 $

(8,712,868) $ 643,315,000 $

15,479,000 63,267,000 78,746,000
10,434,000

Nonoperating Revenues/Expenses (Net)

Operating Transfers to/from Primary Government

NET INCOME (LOSS)

$

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

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

FUND EQUITY, JUNE 30

$

7,730,067 2,808,227 29,600,614 $
(2,234,323) 668,931,953
56,980,221
753,278,465 $
82

10,806,243 2,093,375 $

(9,913,000) (646,905,000)
(13,503,000) $

(5,844,904) 4,589,096

382,984 79,716,454
(633,268)

12,531,000

358,286,567 (3,120,000)

81,559,545 $

(972,000) $ 359,755,663

State of Georgia
Notes to the Financial Statements June 30, 1999

Student Finance Authority

Geo L. Smith II Georgia World Congress Center
Authority

All Other Discretely Presented
Proprietary Fund Types

Total

$

384,376 $

$

360,917,595

44,583,684

51,168,418

2,803,484

239,237,770

$ 364,105,455 $ 334,989,872 $

247,998 $ 252,658,309
24,539,645 214,069,168

2,301,031 1,675,268,749 1,171,269,175
823,464,442

491,515,120 $ 3,672,303,397

$

$

23,905 $

284,785,360

49,761,852

31,500,000

191,650,732

$ 316,285,360 $ 241,436,489 $

722,206 $ 47,048,079 125,795,767 173,566,052 $

835,951 485,172,040 1,533,055,245 2,019,063,236

$

$

$

71,353,860

26,470,501 21,349,594

206,867 21,992,656

$

47,820,095 $

93,553,383 $

$ 364,105,455 $ 334,989,872 $

$

295,942

143,559,305

1,045,315,463

24,003,292 150,386,471

88,508,579 503,519,935

317,949,068 $

13,182,579 2,417,663
1,653,240,161

491,515,120 $ 3,672,303,397

$

2,029,368 $

22,853,389 $

54,573,904 $ 2,126,692,948

25,644,011

25,644,011

1,650,694

1,650,694

6,127,488

37,140,044

46,466,232

157,706,613

$

8,156,856 $

59,993,433 $

128,334,841 $ 2,311,694,266

$

301,581 $

47,396,293

$

47,697,874 $

$

(39,541,018) $

278,099

39,804,450

$

541,531 $

8,785,709 $ 49,976,709 58,762,418 $
1,231,015 $
7,694,425
8,925,440 $

7,372,872 $ 103,403,483 110,776,355 $

33,850,952 1,634,496,379 1,668,347,331

17,558,486 $

643,346,935

(1,117,959) 5,222,040 21,662,567 $

9,632,971 (599,070,283)
53,909,623

7,576

(1,843,763)

47,278,564

87,048,133 (2,406,603)
(13,587)

314,252,241 (18,131,574)
158,258

1,568,044,912 (2,406,603) 35,728,647 (633,268) 144,671

$

47,820,095 $

93,553,383 $

317,949,068 $ 1,652,944,219

83

(This page intentionally left blank)

Required Supplementary Information

(This page intentionally left blank)

State of Georgia
Required Supplementary Information
June 30, 1999
Retirement Systems - Required Supplementary Schedules
Primary Government
Schedule of Funding Progress
(Thousands of Dollars)

ERS
GJRS LRS (1)

Actuarial Valuation
Date
6/30/96 6/30/97 6/30/98
7/1/98
6/30/95 6/30/97 6/30/98

Actuarial Value of Plan Assets
(a)

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

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

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

7,432,306

8,159,345

727,039

8,613,575

9,093,758

480,183

$ 160,171 $ 117,771 $ (42,400)

$

13,137 $

13,860 $

723

18,197

18,086

(111)

20,375

19,272

(1,103)

Funded Ratio (a/b)

Annual Covered Payroll
(c)

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

84.8% $ 91.1% 94.7%

1,968,714 1,977,928 2,055,966

56.0 % 36.8 % 23.4 %

136.0% $

26,226

(161.7)%

94.8% $ 100.6% 105.7%

2,186 2,340 2,363

33.1 % (4.7)% (46.7)%

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 were performed biennially prior to July 1, 1998

Schedule of Employer Contributions
(Thousands of Dollars)

Year Ended June 30

State Annual Required Contribution

Percentage Contributed

ERS

1996

$

271,342

100.0%

1997

282,249

100.0%

1998

286,794

100.0%

LRS

1996

$

164

100.0%

1997

159

100.0%

1998

164

126.0%

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.

87

State of Georgia
Required Supplementary Information
June 30, 1999
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 fair 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 fair value and expected actuarial value.
Schedule of Employer Contributions The required employer contributions and percent of those contributions actually made are presented in the schedule. As the GJRS was created beginning July 1, 1998, no employer contribution trend information is available.
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 Post-Retirement Cost-of-Living Adjustment
(1) Includes inflation rate of 3.50%

ERS June 30, 1998 Entry Age Level percentage of pay, open 9 years 5-year smoothed market

GJRS July 1, 1998 Entry Age Level percentage of pay, open 14 years 5-year smoothed market

LRS June 30, 1998 Unit Credit Level dollar, open 40 years 5-year smoothed market

7.0% (1) 5.2% - 9.0% (1) None

7.0% (1) 5.5% (1) None

7.0% (1) n/a 3% annually

88

State of Georgia
Required Supplementary Information
June 30, 1999
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%

6/30/98

27,894,985

28,798,984

903,999

96.9%

5,951,898

15.2%

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

556,522

100.0%

1996

600,766

100.0%

1997

652,928

100.0%

1998

710,409

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.

89

State of Georgia
Required Supplementary Information
June 30, 1999
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, 1998 Entry Age Level percentage of pay, open 8 years 5-year smoothed market
7.00% 3.25% - 6.00% 3.25%
3% annually

90

Combining Statements and Schedules

(This page intentionally left blank)

Primary Government Capital Projects Funds

(This page intentionally left blank)

State of Georgia
Primary Government - Capital Projects Funds
For the Fiscal Year Ended June 30, 1999
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.
95

State of Georgia
Primary Government - Capital Projects Funds
Combining Balance Sheet June 30, 1999

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles)
Interest and Dividends Other Interfund Receivables Advances to Component Units

Georgia Building Authority (Hospital)

Georgia Building Authority (Markets)

$

828,420 $

2,478,558

65,956 182,632

Total Assets

$

3,306,978 $

248,588

Liabilities and Fund Balances
Liabilities: Cash Overdraft Accounts Payable and Other Accruals Contracts Payable Due to Component Units Deferred Revenue Other Liabilities
Total Liabilities
Fund Balances: Reserved for Advances Reserved for Other Specific Purposes Unreserved, Designated Designated for Future Capital Outlay Unreserved, Undesignated
Total Fund Balances

$

$

$

0 $

0

$

$

3,306,978

$

3,306,978 $

248,588 248,588

Total Liabilities and Fund Balances

$
96

3,306,978 $

248,588

Georgia Building Authority (Penal)

Georgia Education Authority (University)

Georgia State Financing and
Investment Commission

Total

$

395,683 $

669,033 $

$

1,959,092

1,183,045

1,886,708

1,069,793,139

1,075,524,082

138,850

15,277,924
1,984,169 12,647,162

15,277,924 138,850
1,984,169 12,647,162

$

1,578,728 $

2,694,591 $ 1,099,702,394 $ 1,107,531,279

$

$

$

19,616,849 $

19,616,849

30,003,622

30,003,622

20,610,420

20,610,420

247,993

247,993

86,457

86,457

25,875,668

25,875,668

$

0 $

86,457 $

96,354,552 $

96,441,009

$

$

1,399,268

$

12,647,162 $

12,647,162

1,399,268

179,460

2,608,134

990,700,680

990,700,680 6,343,160

$

1,578,728 $

2,608,134 $ 1,003,347,842 $ 1,011,090,270

$

1,578,728 $

2,694,591 $ 1,099,702,394 $ 1,107,531,279

97

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, 1999

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 Out Proceeds of General Fixed Asset Dispositions General Obligation Bond Proceeds
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses
Fund Balances, July 1 Residual Equity Transfers from Component Units Residual Equity Transfers Out Residual Equity Transfers to Component Units

Georgia Building Authority (Hospital)

Georgia Building Authority (Markets)

$

131,874 $

12,519

$

131,874 $

$

4,132 $

12,519
1,790 30,763

$

4,132 $

$

127,742 $

$

$

2,900,000

$

2,900,000 $

32,553 (20,034)
0

$

3,027,742 $

279,236

(20,034) 268,622

Fund Balances, June 30

$
98

3,306,978 $

248,588

Georgia Building Authority (Penal)

Georgia Education Authority (University)

Georgia State Financing and
Investment Commission

Total

$

79,646 $

275,739 $

82,039,872 $

82,539,650

49,423

49,423

91,677

149,724

241,401

$

79,646 $

416,839 $

82,189,596 $

82,830,474

$

4,784 $

25,544 $

$

36,250

52,996

392,235,822

392,319,581

49,423 155,898

2,035,473

49,423 155,898 2,035,473

$

57,780 $

230,865 $

394,271,295 $

394,596,625

$

21,866 $

185,974 $ (312,081,699) $ (311,766,151)

$

$

$ (280,866,607) $ (280,866,607)

2,900,000

720,607,460

720,607,460

$

0 $

0 $

439,740,853 $

442,640,853

$

21,866 $

185,974 $

127,659,154 $

130,874,702

1,556,862

2,422,160

907,629,259 516,575 (175,983)
(32,281,163)

912,156,139 516,575 (175,983)
(32,281,163)

$

1,578,728 $

2,608,134 $ 1,003,347,842 $ 1,011,090,270

99

(This page intentionally left blank)

Primary Government Internal Service Funds

(This page intentionally left blank)

State of Georgia
Primary Government - Internal Service Funds
For the Fiscal Year Ended June 30, 1999
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.
103

State of Georgia
Primary Government - Internal Service Funds
For the Fiscal Year Ended June 30, 1999 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.
104

(This page intentionally left blank)

State of Georgia
Primary Government - Internal Service Funds Combining Balance Sheet June 30, 1999

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: 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 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 Industries
Administration

Merit System of Personnel Administration

$

35,580,926 $

3,169,035 $

1,873,861 $

913,701
17,263,848 269,350
4,356,021 461,304
1,393,454
9,060,426 162,917,464

2,453,479
316,472 145,032 7,269,435 221,077,050 11,590,953

2,236,150 2,013
9,852,885 66,600
5,297,490
9,197,312 13,877,540 (13,104,836)

$

232,216,494 $

246,021,456 $

29,299,015 $

1,472,427 235,345 7,798 79,924
1,648,708 3,444,202

$

23,234,252 $

5,340,245

13,474,369 1,034 8,313 5

8,673,964

$

50,732,182 $

648,060 $ 1,840,029
594,800 12,268
330,127
969,978
4,395,262 $

1,115,022 $ 712,657
259 17,275
174,569
850,000 2,869,782 $

623,179 630,609 1,047,172
163
22,682
2,323,805

$

53,384,666 $

198,398,103 $

21,837,424

$

53,384,666 $

220,235,527 $

1,145,948 $ 1,145,948 $

$

23,733,525 $

104,366,121

$ 21,390,667

$

128,099,646 $

21,390,667 $

$

181,484,312 $

241,626,194 $

$ 25,283,285
25,283,285 $
26,429,233 $

$

232,216,494 $

246,021,456 $

106

29,299,015 $

0
6,802 1,113,595 1,120,397 1,120,397
3,444,202

Removal of Hazardous Materials, Agency for

Risk Management

Total Before Eliminations

Eliminations

Total

$

78,262 $

14,238,279 $

56,412,790 $

$

56,412,790

287,925 9,687
21,606
1,112,058

1,502,912 1,146,000
1,086,993,929

6,126,600 1,514,612 18,417,646
269,350 14,546,984
752,860
1,100,954,308
239,334,788 191,146,723 (13,104,836)

(1,252,213)

6,126,600 1,514,612 17,165,433
269,350 14,546,984
752,860
1,100,954,308
239,334,788 191,146,723 (13,104,836)

$

1,509,538 $ 1,103,881,120 $ 1,616,371,825 $

(1,252,213) $ 1,615,119,612

$

364,467 $

$

25,984,980 $

$

25,984,980

8,523,540

8,523,540

431,717,753

431,717,753

431,717,753

15,116,341

15,116,341

13,724

13,724

897,013

1,252,728

(1,252,213)

515

5

5

8,871,215 969,978

8,871,215 969,978

850,000

850,000

$

364,467 $

432,614,766 $

493,300,264 $

(1,252,213) $

492,048,051

$

$

$

252,928,717 $

$

252,928,717

21,837,424

21,837,424

$

0 $

0$

274,766,141 $

0 $

274,766,141

$

21,606 $

790,465,000 $

814,226,933 $

1,123,465

(119,198,646)

34,078,487

$

1,145,071 $

671,266,354 $

848,305,420 $

$

1,145,071 $

671,266,354 $ 1,123,071,561 $

$

814,226,933

34,078,487

0 $

848,305,420

0 $ 1,123,071,561

$

1,509,538 $ 1,103,881,120 $ 1,616,371,825 $

(1,252,213) $ 1,615,119,612

107

State of Georgia
Primary Government - Internal Service Funds Risk Management
Combining Balance Sheet June 30, 1999

Assets
Current Assets: Cash and Cash Equivalents Receivables (Net of Allowances for Uncollectibles) Other
Miscellaneous Due from Other Funds Long-Term Assets: Investments
Total Assets
Liabilities and Equity
Liabilities Current Liabilities: 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

$

52,103 $

1,048,786

11,314

1,089,314

21,926,622

$

1,141,417 $

22,986,722

$

307,083 $

1,571,684

95,336

$

307,083 $

1,667,020

$

$

834,334

21,319,702

$

834,334 $

21,319,702

$

1,141,417 $

22,986,722

108

Liability Self-Insurance Reserve Fund

State Employees' Assurance Department

Unemployment Compensation
Fund

Workers' Compensation
Fund

Total

$

9,347,684 $

$

133,376 $

3,656,330 $

14,238,279

141,596 195,428,868

1,146,000 789,319,000

2,788,473

1,350,002 76,441,652

1,502,912 1,146,000
1,086,993,929

$ 204,918,148 $ 790,465,000 $

2,921,849 $

81,447,984 $ 1,103,881,120

$ 220,003,986 $ 170,558
$ 220,174,544 $

$

3,587,000 $ 206,248,000 $ 431,717,753

111,587

519,532

897,013

0 $

3,698,587 $ 206,767,532 $ 432,614,766

$

$ 790,465,000 $

(15,256,396)

$ (15,256,396) $ 790,465,000 $

$ 204,918,148 $ 790,465,000 $

$ (776,738)

$ (125,319,548)

790,465,000 (119,198,646)

(776,738) $ (125,319,548) $ 671,266,354

2,921,849 $

81,447,984 $ 1,103,881,120

109

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, 1999

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 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 Contributed Capital Decrease in Inventories
Fund Equity, June 30

Administrative Services,
Department of

Building Authority, Georgia

Correctional Industries
Administration

$

$

$

255,297,521 1,523,629
$ 256,821,150 $

30,481,660 11,114,208
41,595,868 $

30,513,587 30,513,587

$ 106,129,264 $ 145,006,980

30,788,788 $ 9,365,286

10,705,722 17,042,514

$ 251,136,244 $

$

5,684,906 $

40,154,074 $ 1,441,794 $

1,310,915 29,059,151 1,454,436

$

537 $

(29,320,525)

$ (29,319,988) $

$ (23,635,082) $

513,363 $ (1,183,071)
(669,708) $ 772,086 $

379,834 (47,934) 279,412
611,312
2,065,748

$

66,426,569 $

$

(19,173,717)

$

47,252,852 $

0 $

$

23,617,770 $

772,086 $

157,915,792 (49,250)

240,678,125 175,983

$ 181,484,312 $ 241,626,194 $

110

0 2,065,748 24,363,485
26,429,233

Merit System of Personnel Administration

Removal of Hazardous Materials, Agency for

Risk Management

Total Before Eliminations

Eliminations

Total

$

$

13,080,157 89,530

$

13,169,687 $

$ 1,876,253 1,876,253 $

122,586,375 $ 9,102,782
97,215,751
228,904,908 $

122,586,375 $ 9,102,782
97,215,751 30,481,660 311,881,726
1,613,159
572,881,453 $

(185,482) $ (185,482) $

122,400,893 9,102,782
97,215,751 30,481,660 311,881,726
1,613,159
572,695,971

$

12,643,824 $

$

12,643,824 $

$

525,863 $

356,147 $ 1,512,555
1,868,702 $ 7,551 $

5,159,691 $ 11,360,982 15,357,000 158,694,809
190,572,482 $
38,332,426 $

165,783,436 $ 184,288,317 15,357,000 158,694,809
1,310,915
525,434,477 $
47,446,976 $

(185,482) $
(185,482) $ 0 $

165,597,954 184,288,317 15,357,000 158,694,809
1,310,915
525,248,995
47,446,976

$

$

(107,854)

$

(107,854) $

$

418,009 $

$
0 $ 7,551 $

$
0 $ 38,332,426 $

893,734 $ (47,934) (30,332,038)
(29,486,238) $
17,960,738 $

$

893,734

(47,934)

(30,332,038)

0 $ (29,486,238)

0 $

17,960,738

$

$

$

$

66,426,569 $

(19,173,717)

$

0 $

0 $

0 $

47,252,852 $

$

418,009 $

7,551 $

38,332,426 $

65,213,590 $

702,388

1,137,520

632,933,928

1,057,731,238 175,983 (49,250)

$

1,120,397 $

1,145,071 $ 671,266,354 $ 1,123,071,561 $

111

$

66,426,569

(19,173,717)

0 $

47,252,852

0 $

65,213,590

1,057,731,238 175,983 (49,250)

0 $ 1,123,071,561

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, 1999

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
Equity, June 30

Georgia State
Indemnification Commission

Hazard and
Insurance Reserve Fund

Liability
Self-Insurance Reserve Fund

$

550,000 $

13,737,171 $

34,616,929

9,102,782

52,868

1,193,453

10,947,498

$

602,868 $

24,033,406 $

45,564,427

$

$

$

1,442,669

2,546,567

6,188,748

522,397

(434,751)

47,295,350

$

522,397 $

2,111,816 $

54,926,767

$

80,471 $

21,921,590 $

(9,362,340)

753,863

(601,888)

(5,894,056)

$

834,334 $

21,319,702 $ (15,256,396)

112

State Employees' Assurance Department

Unemployment
Compensation Fund

Workers'
Compensation Fund

Total

$

16,850,000 $

80,159,000

$

97,009,000 $

5,800,888 $ 225,698
6,026,586 $

51,031,387 $ 4,637,234 55,668,621 $

122,586,375 9,102,782
97,215,751
228,904,908

$

147,000 $

15,357,000

$

15,504,000 $

$

81,505,000 $

708,960,000

210,463 $
5,083,548 5,294,011 $
732,575 $ (1,509,313)

3,359,559 $ 2,625,667 106,228,265 112,213,491 $ (56,544,870) $ (68,774,678)

5,159,691 11,360,982 15,357,000 158,694,809
190,572,482
38,332,426
632,933,928

$ 790,465,000 $

(776,738) $ (125,319,548) $ 671,266,354

113

State of Georgia
Primary Government - Internal Service Funds Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 1999

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 Other Noncapital Items (Net)
Net Cash Provided by (Used in) 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 Provided by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1
Cash and Cash Equivalents, June 30
114

Administrative Services,
Department of

Building Authority, Georgia

$ 257,548,343 $

42,221,111

(193,890,285) (52,811,940)

(20,731,216) (20,617,742)

$

10,846,118 $

872,153

$

66,426,569 $

(19,173,717)

$

47,252,852 $

20,187 20,187

$

$

(36,382,460)

175,983 (1,934,875)

$ (36,382,460) $

(1,758,892)

$

486,610 $

537

$

487,147 $

$

22,203,657 $

13,377,269

3,522,224 513,363
4,035,587
3,169,035
0

$

35,580,926 $

3,169,035

Correctional Industries
Administration

Merit System of Personnel Administration

Removal of Hazardous Materials, Agency for

Risk Management

Total

$

31,433,924 $

(22,486,751) (7,501,550)

$

1,445,623 $

13,136,306 $ (6,880,680) (6,339,146)
(83,520) $

1,892,682 $ (2,138,820)
(246,138) $

$ 123,046,468
9,102,782 (16,092,052)
(15,357,000) (84,270,758)

346,232,366 123,046,468
9,102,782 (262,219,804)
(87,270,378) (15,357,000) (84,270,758)

16,429,440 $

29,263,676

$

$

$

$

$

66,426,569

(19,173,717)

131,762

(7,810,318)

(7,658,369)

$

131,762 $

0 $

0 $

(7,810,318) $

39,594,483

$

$

(1,332,691)

(242,857)

(47,934)

$

(1,623,482) $

$ (667,221)
(667,221) $

$ (7,976)
(7,976) $

$

175,983

(40,325,223)

(242,857)

(47,934)

0 $ (40,440,031)

$

1,540,124 $

$

379,834

$

1,919,958 $

0 $

$

1,873,861 $

(750,741) $

0

2,223,168

$
0 $ (254,114) $ 332,376

(35,966,248) $ 41,585,405
5,619,157 $
14,238,279 $
0

(30,417,290) 42,479,139
12,061,849
40,479,977
15,932,813

$

1,873,861 $

1,472,427 $

78,262 $
115

14,238,279 $

56,412,790 (continued)

State of Georgia
Primary Government - Internal Service Funds Combining Statement of Cash Flows (continued)
For the Fiscal Year Ended June 30, 1999

Operating Income
Adjustments to Reconcile Operating Income 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 in Compensated Absences Payable Increase in Claims and Judgments Payable Decrease in Contracts Payable Increase (Decrease) in Salaries/Withholdings Payable Increase (Decrease) in Due to Other Funds Decrease in Due to Component Units Decrease in Deferred Revenue Decrease in Deposits and Overpayments
Total Adjustments
Net Cash Provided by (Used in) Operating Activities
Noncash Investing, Capital, and Financing Activities: Acquisition of Fixed Assets through Capital Leases Disposal of Fixed Assets

Administrative Services,
Department of

Building Authority, Georgia

$

5,684,906 $

1,441,794

$

$

(206,997) 775,535 150,480
(59,550) 6,588,769
429,863

1,493,104
86,350 (5,404) (1,006,818) 29,895

(2,525,039) (24)
8,313 (138)

(585,670) (25,812) 312,575
(73,701) (794,160)

$

5,161,212 $

(569,641)

$

10,846,118 $

872,153

$

2,460,250 $

(29,320,525)

(1,864,349)

$ (26,860,275) $

(1,864,349)

116

Correctional Industries
Administration

Merit System of Personnel Administration

Removal of Hazardous Materials, Agency for

Risk Management

$

1,454,436 $

525,863 $

7,551 $

38,332,426 $

Total 47,446,976

$

1,310,915 $

920,787

(2,421,165) 9,141
148,191 27,787

130 (4,599)

$

(8,813) $

$

1,445,623 $

$
(33,381) 52,431
(6,176) (9,240) 71,257 (683,223) (1,051)
(609,383) $
(83,520) $

$ 16,429
1,573 (271,691)
(253,689) $

$ (97,215,751)
1,006,093 (103,340)
74,424,051 (14,039)
(21,902,986) $

1,310,915 (97,215,751)
3,196,035 724,626 150,480
(2,333,242) (61,989)
5,449,211 558,802
74,424,051 (3,793,932)
(26,757) 302,250
(138) (73,701) (794,160)
(18,183,300)

(246,138) $

16,429,440 $

29,263,676

$

$

$

$

$

2,460,250

(30,067)

(107,854)

(31,322,795)

$

(30,067) $

(107,854) $

0 $

0 $ (28,862,545)

117

State of Georgia
Primary Government - Internal Service Funds
Risk Management Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 1999

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 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 Operating Activities
118

Georgia State
Indemnification Commission

Hazard and
Insurance Reserve Fund

$

550,000 $

13,843,276

9,102,782

(2,725,803)

(328,647)

(14,214,969)

$

221,353 $

6,005,286

$

(24,257) $

(441,292)

$

(197,861) $

(5,708,661)

52,868

1,193,453

$

(144,993) $

(4,515,208)

$

52,103 $

1,048,786

0

0

$

52,103 $

1,048,786

$

80,471 $

21,921,590

$

(52,868) $

(1,193,453)

106,105

193,750

(14,649,720) (179,236)

$

140,882 $ (15,916,304)

$

221,353 $

6,005,286

Liability
Self-Insurance Reserve Fund

State Employees' Assurance Department

Unemployment
Compensation Fund

Workers'
Compensation Fund

Total

$

35,327,045 $

16,304,000 $

(7,018,261) (20,925,790)

(147,000) (15,357,000)

$

7,382,994 $

800,000 $

5,816,574 $ (98,814)
(4,469,087) 1,248,673 $

51,205,573 $ (6,102,174) (44,332,265)
771,134 $

123,046,468 9,102,782
(16,092,052) (15,357,000) (84,270,758)
16,429,440

$

(5,215,122) $

$

(40,487) $

(2,089,160) $

(7,810,318)

$

(3,767,686) $ (25,328,654) $

(1,300,508) $

10,947,498

24,528,654

225,698

$

7,179,812 $

(800,000) $

(1,074,810) $

$

9,347,684 $

0 $

133,376 $

0

0

0

337,122 $ 4,637,234
4,974,356 $
3,656,330 $
0

(35,966,248) 41,585,405
5,619,157
14,238,279
0

$

9,347,684 $

0 $

133,376 $

3,656,330 $

14,238,279

$

(9,362,340) $

81,505,000 $

732,575 $ (56,544,870) $

38,332,426

$ (10,947,498) $ (80,159,000) $

710,116 442,598 26,369,560 170,558

(546,000)

$

16,745,334 $ (80,705,000) $

$

7,382,994 $

800,000 $

(225,698) $
15,686 62
614,461 111,587
516,098 $

(4,637,234) $
174,186
61,896,000 (116,948)
57,316,004 $

(97,215,751)
1,006,093 (103,340) 74,424,051
(14,039)
(21,902,986)

1,248,673 $
119

771,134 $

16,429,440

(This page intentionally left blank)

Primary Government Trust and Agency Funds

(This page intentionally left blank)

State of Georgia
Primary Government - Trust and Agency Funds Combining Balance Sheet June 30, 1999

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Intergovernmental - Federal Interest and Dividends Notes and Loans Taxes Other Due from Other Funds Prepaid Items Other Assets

Expendable Trust

Nonexpendable Trust

Pension Trust

$ 1,992,267,471 $ 20,280,317
225,937
3,861,269 34,820,564 11,448,007
8,991

14,786 $

3,577,121 $

203,932

12,770,907,195

6,664

84,558,000

7,138,816 515
18,261

Investment Trust
800,840,617 $ 2,409,622,370

Agency

Total

96,280,812 $ 2,892,980,807

224,289,690

15,425,303,504

516,733 29,659,850
37,540

742,670 84,564,664 3,861,269 34,820,564 48,246,673
515 27,252 37,540

Total Assets

$ 2,062,912,556 $

225,382 $ 12,866,199,908 $ 3,210,462,987 $

350,784,625 $ 18,490,585,458

Liabilities and Fund Balances
Liabilities: Accounts Payable and Other Accruals Contracts Payable 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 Pool Participants Reserved for Other Specific Purposes Unreserved, Undesignated
Total Fund Balances
Total Liabilities and Fund Balances

$

3,691,903 $

85,201

$

3,777,104 $

$

$

2,029,905,310 29,230,142

$ 2,059,135,452 $

$ 2,062,912,556 $

$

3,695,740 $

27,707 1,146,000

0 $

4,869,447 $

$

$

7,387,643

85,201

27,707

1,146,000

350,777,700

350,777,700

6,925

6,925

0 $

350,784,625 $

359,431,176

$ 12,861,330,461 $
148,500 76,882
225,382 $ 12,861,330,461 $

$ 3,210,462,987
3,210,462,987 $

$ 12,861,330,461 3,210,462,987 2,030,053,810 29,307,024
0 $ 18,131,154,282

225,382 $ 12,866,199,908 $ 3,210,462,987 $

350,784,625 $ 18,490,585,458

123

(This page intentionally left blank)

State of Georgia
Primary Government - Expendable Trust Funds
For the Fiscal Year Ended June 30, 1999
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 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.
125

State of Georgia
Primary Government - Expendable Trust Funds Combining Balance Sheet June 30, 1999

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: Accounts Payable and Other Accruals Contracts Payable
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

$

262,894 $

2,757,344

8,653,903

3,861,269

$

262,894 $

15,272,516

$

$

3,670,315

85,201

$

0 $

3,755,516

$

$

262,894

11,517,000

$

262,894 $

11,517,000

$

262,894 $

15,272,516

126

Keds Corporation Settlement Fund

Real Estate Recovery Fund

Subsequent Injury
Trust Fund

Unemployment Compensation Contributions and Benefits
Fund

Total

$

64,999 $

420,811 $

5,330,145 $ 1,983,431,278 $ 1,992,267,471

1,186,762

10,439,652

20,280,317

8,991

225,937
34,820,564 11,448,007

225,937 3,861,269 34,820,564 11,448,007
8,991

$

64,999 $

1,607,573 $

15,778,788 $ 2,029,925,786 $ 2,062,912,556

$

$

86 $

1,026 $

20,476 $

3,691,903

85,201

$

0 $

86 $

1,026 $

20,476 $

3,777,104

$

$

$

$ 2,029,905,310 $ 2,029,905,310

64,999

1,607,487

15,777,762

29,230,142

$

64,999 $

1,607,487 $

15,777,762 $ 2,029,905,310 $ 2,059,135,452

$

64,999 $

1,607,573 $

15,778,788 $ 2,029,925,786 $ 2,062,912,556

127

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, 1999

Revenues: Taxes Intergovernmental Federal Sales and Services Interest and Other Investment Income Other
Total Revenues
Expenditures: Education Health and Welfare Economic Development and Assistance
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources: Operating Transfers In
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures
Fund Balances, July 1
Fund Balances, June 30

Auctioneers Recovery Fund

Housing Trust
Fund for the Homeless

$

$

13,950

581,478

$

13,950 $

581,478

$

$

8,671,559

$

0 $

8,671,559

$

13,950 $

(8,090,081)

3,281,250

$

13,950 $

(4,808,831)

248,944

16,325,831

$

262,894 $

11,517,000

128

Keds
Corporation Settlement Fund

Real Estate Recovery Fund

Subsequent
Injury Trust Fund

Unemployment Compensation Contributions and Benefits
Fund

Total

$

$

$

51,721,639 $

167,221,217 $

218,942,856

107,463 78,673

9 2,343,810

16,529,498
129,610,490 607,593

16,529,498 121,422
132,614,451 607,593

$

0 $

186,136 $

54,065,458 $

313,968,798 $

368,815,820

$

$

120,836 $

$

$

120,836

72,166,259

72,166,259

275,822,371

284,493,930

$

0 $

120,836 $

72,166,259 $

275,822,371 $

356,781,025

$

0 $

65,300 $

(18,100,801) $

38,146,427 $

12,034,795

3,281,250

$

0 $

65,300 $

(18,100,801) $

38,146,427 $

15,316,045

64,999

1,542,187

33,878,563

1,991,758,883

2,043,819,407

$

64,999 $

1,607,487 $

15,777,762 $ 2,029,905,310 $ 2,059,135,452

129

(This page intentionally left blank)

State of Georgia
Primary Government - Nonexpendable Trust Funds
For the Fiscal Year Ended June 30, 1999
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 StateZs nonexpendable trust funds are described below: The PupilsZ 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.
131

(This page intentionally left blank)

State of Georgia
Primary Government - Nonexpendable Trust Funds Combining Balance Sheet June 30, 1999

Assets
Cash and Cash Equivalents Investments Receivables
Interest and Dividends

Pupils' Trust Fund -
Georgia Academy for the Blind

Lenora M. Sarling
Scholarship Fund

Carl Patrick Chair

Total

$

13,500 $

307 $

979 $

14,786

35,152

168,780

203,932

6,664

6,664

Total Assets

$

13,500 $

35,459 $

176,423 $

225,382

Fund Balances
Reserved for Other Specific Purposes $ Unreserved, Undesignated

13,500 $

35,000 $ 459

100,000 $ 76,423

148,500 76,882

Total Fund Balances

$

13,500 $

35,459 $

176,423 $

225,382

133

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, 1999

Operating Revenues: Interest and Other Investment Income
Operating Expenses: Scholarships Other
Total Operating Expenses
Net Income
Fund Balances, July 1

Pupils' Trust Fund -
Georgia Academy for the Blind

Lenora M. Sarling
Scholarship Fund

Carl Patrick Chair

Total

$

845 $

1,964 $

9,146 $

11,955

$

$

2,495 $

$

2,495

845

4,329

5,174

$

845 $

2,495 $

4,329 $

7,669

$

0 $

(531) $

4,817 $

4,286

13,500

35,990

171,606

221,096

Fund Balances, June 30

$

13,500 $

35,459 $

176,423 $

225,382

134

State of Georgia
Primary Government - Nonexpendable Trust Funds Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 1999

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 (Used In) Investing Activities

Pupils' Trust Fund -
Georgia Academy for the Blind

Lenora M. Sarling
Scholarship Fund

Carl Patrick Chair

$

(845) $

$

(4,329) $

(2,495)

$

(845) $

(2,495) $

(4,329) $

$

$

$

(168,780) $

845

2,210

2,482

$

845 $

2,210 $

(166,298) $

Total
(5,174) (2,495) (7,669)
(168,780) 5,537
(163,243)

Net Increase (Decrease) in Cash and Cash Equivalents

$

Cash and Cash Equivalents, July 1

0 $ 13,500

(285) $ 592

(170,627) $ 171,606

(170,912) 185,698

Cash and Cash Equivalents, June 30

$

13,500 $

307 $

979 $

14,786

Operating Income
Adjustments to Reconcile Operating Income to Net Cash Used in Operating Activities:
Interest and Other Investment Income

$

0 $

(531) $

4,817 $

4,286

(845)

(1,964)

(9,146)

(11,955)

Net Cash Used in Operating Activities

$

(845) $

(2,495) $

(4,329) $

(7,669)

135

(This page intentionally left blank)

State of Georgia
Primary Government - Pension Trust Funds
For the Fiscal Year Ended June 30, 1999
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. All employer and employee contributions, plus the earnings on such amounts, were transferred to the Georgia Judicial Retirement System on July 1, 1998. 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 Georgia Judicial Retirement System is used to account for the accumulation of resources for the purpose of providing retirement allowances for trial judges and solicitors of certain courts in Georgia, and their survivors and beneficiaries, superior court judges of the State of Georgia, and district attorneys of the State of Georgia. 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. All employer and employee contributions, plus the earnings on such amounts, were transferred to the Georgia Judicial Retirement System on July 1, 1998. 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. All employer and employee contributions, plus the earnings on such amounts, were transferred to the Georgia Judicial Retirement System on July 1, 1998.
137

State of Georgia
Primary Government - Pension Trust Funds
Combining Statement of Plan Net Assets June 30, 1999

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles)
Interest and Dividends Other Miscellaneous Due from Other Funds Prepaid Items

Defined Contribution
Plan

District Attorneys Retirement
Fund

District Attorneys Retirement
System

Employees' Retirement
System

$

137,000 $

30,173,000

206,000 994,000

1,000 $

$

3,275,696

12,483,929,204

84,352,000
5,845,232 515
18,261

Total Assets
Liabilities
Accounts Payable and Other Accruals Salaries/Withholdings Payable Due to Other Funds
Total Liabilities

$

31,510,000 $

$

$

$

0 $

1,000 $ 1,000 $ 1,000 $

0 $ 12,577,420,908

$

3,654,740

27,707

1,120,000

0 $

4,802,447

Fund Balances Reserved for Pension Benefits

$

31,510,000 $

0$

0 $ 12,572,618,461

138

Georgia Judicial Retirement System

Legislative Retirement
System

Superior Court Judges Retirement
Fund

Superior Court Judges Retirement
System

Trial Judges and Solicitors
Retirement Fund

Total

$

41,087 $

75,338 $

47,000 $

$

$

3,577,121

225,765,329

29,319,662

1,720,000

12,770,907,195

298,584

1,000

84,558,000
7,138,816 515
18,261

$ 226,105,000 $

29,395,000 $

1,768,000 $

0 $

0 $ 12,866,199,908

$

21,000 $

11,000 $

8,000 $

$

$

3,695,740

27,707

26,000

1,146,000

$

21,000 $

37,000 $

8,000 $

0 $

0 $

4,869,447

$ 226,084,000 $

29,358,000 $

1,760,000 $

0$

0 $ 12,861,330,461

139

(This page intentionally left blank)

State of Georgia
Primary Government - Agency Funds
For the Fiscal Year Ended June 30, 1999
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. GASB Statement 32, "Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans", rescinded the requirement to account for such plans in an agency fund of the employer. In fiscal year 1999, the Deferred Compensation Program agency fund was eliminated.
141

State of Georgia
Primary Government - Agency Funds
For the Fiscal Year Ended June 30, 1999
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. The Telecommunications Relay Service Fund was established to provide telecommunication services to hearing/speech impaired Georgians. All local exchange telephone companies in the State impose a monthly maintenance surcharge on all residential and business local exchange access facilities, which are deposited into this fund solely for the provisions of the Dual Party Relay System.
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 Education Local Option Sales Tax Collections, Homestead Option Sales Tax Collections, Local Option Sales Tax Collections and Special Purpose Tax Collections account for the collection and disbursement of local option sales taxes on behalf of county and municipal governments.
142

State of Georgia
Primary Government - Agency Funds
Combining Statement of Changes in Assets and Liabilities For the Fiscal Year Ended June 30, 1999

Balance July 1, 1998

Additions

Deletions

Balance June 30, 1999

Agriculture, Department of
Agricultural Commodity Commissions Assets Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others

$

535,347 $

7,562,445 $

6,564,249 $

1,533,543

4,569,267

2,289,349

3,139,267

3,719,349

$

5,104,614 $

9,851,794 $

9,703,516 $

5,252,892

$

5,104,614 $

4,423,178 $

4,274,900 $

5,252,892

Corrections, Department of
Detainees' Accounts Assets Cash and Cash Equivalents
Liabilities Funds Held for Others

$

28,426,196 $

115,705,497 $

114,793,600 $

29,338,093

$

28,426,196 $

115,705,497 $

114,793,600 $

29,338,093

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

$

3,234,198 $

427,659,097 $

423,576,991 $

7,316,304

$

3,234,198 $

427,659,097 $

423,576,991 $

7,316,304

$

4,292,174 $

3,165,185 $

2,982,367 $

4,474,992

3,684,976

479,176

1,004,727

3,159,425

0

100,000

100,000

0

$

7,977,150 $

3,744,361 $

4,087,094 $

7,634,417

$

7,977,150 $

2,677,430 $

3,020,163 $

7,634,417

(continued)

143

State of Georgia
Primary Government - Agency Funds
Combining Statement of Changes in Assets and Liabilities (continued) For the Fiscal Year Ended June 30, 1999

Balance July 1, 1998

Additions

Deletions

Balance June 30, 1999

Insurance, Department of
Receiverships Assets Cash and Cash Equivalents
Liabilities Funds Held for Others

$

1,397,347 $

$

1,397,347 $

19,443 $ 19,443 $

363,317 $ 363,317 $

1,053,473 1,053,473

Medical Assistance, Department of
Medicaid Special Holding Account Assets Cash and Cash Equivalents Receivables Other Total Assets
Liabilities Funds Held for Others

$

15,442,874 $ 1,020,865,362 $ 1,030,421,968 $

5,886,268

22,565,299

4,425,414

26,990,713

$

38,008,173 $ 1,025,290,776 $ 1,030,421,968 $

32,876,981

$

38,008,173 $ 1,025,290,776 $ 1,030,421,968 $

32,876,981

Merit System of Personnel Administration, State Personnel Board
Deferred Compensation Program Assets Cash and Cash Equivalents 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

$

(106,447) $

394,622,648

$

394,516,201 $

$

394,516,201 $

$

3,543,351 $

7,904,214

137,984

$

11,585,549 $

$

11,585,549 $

144

106,447 $ 106,447 $

$ 394,622,648 394,622,648 $

$

394,516,201 $

60,744,335 $ 6,776,434
312,613 67,833,382 $

58,908,103 $ 7,904,214
134,406 66,946,723 $

2,143,290 $

1,256,631 $

0 0 0
0
5,379,583 6,776,434
316,191 12,472,208
12,472,208 (continued)

State of Georgia
Primary Government - Agency Funds
Combining Statement of Changes in Assets and Liabilities (continued) For the Fiscal Year Ended June 30, 1999

Balance July 1, 1998

Additions

Deletions

Balance June 30, 1999

Public Service Commission
Universal Access Fund Assets Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others
Telecommunications Relay Service Fund Assets Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others

$

124,699 $

39,736,645 $

35,234,959 $

4,626,385

1,319,613

7,708,442

1,319,613

7,708,442

$

1,444,312 $

47,445,087 $

36,554,572 $

12,334,827

$

1,444,312 $

38,417,032 $

27,526,517 $

12,334,827

$

0 $

7,865,847 $

5,917,001 $

1,948,846

0

5,218,010

5,218,010

$

0$

13,083,857 $

5,917,001 $

7,166,856

$

0$

7,865,847 $

698,991 $

7,166,856

Revenue, Department of
Real Estate Transfer Tax Assets Cash and Cash Equivalents Investments Total Assets
Liabilities Funds Held for Others

$

2,190,467 $

52,530,586 $

53,156,992 $

1,564,061

12,266,962

14,323,524

12,266,962

14,323,524

$

14,457,429 $

66,854,110 $

65,423,954 $

15,887,585

$

14,457,429 $

40,263,624 $

38,833,468 $

15,887,585

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

$

(3,319,753) $ 53,864,985 50,545,232 $

969,829,212 $ 60,183,292
1,030,012,504 $

962,578,906 $ 53,864,985
1,016,443,891 $

50,545,232 $

915,964,227 $

902,395,614 $

145

3,930,553 60,183,292 64,113,845
64,113,845
(continued)

State of Georgia
Primary Government - Agency Funds
Combining Statement of Changes in Assets and Liabilities (continued) For the Fiscal Year Ended June 30, 1999

Balance July 1, 1998

Additions

Deletions

Balance June 30, 1999

Treasury and Fiscal Services, Office of
Homestead Option Sales Tax Collections 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

$

(307,555) $

86,534,690 $

85,905,201 $

321,934

4,990,263

4,929,340

4,990,263

4,929,340

$

4,682,708 $

91,464,030 $

90,895,464 $

5,251,274

$

4,682,708 $

81,544,427 $

80,975,861 $

5,251,274

$

(3,279,129) $

902,175,119 $

895,666,839 $

3,229,151

53,205,830

49,443,670

53,205,830

49,443,670

$

49,926,701 $

951,618,789 $

948,872,669 $

52,672,821

$

49,926,701 $

848,969,289 $

846,223,169 $

52,672,821

$

(2,795,478) $

827,860,290 $

822,357,411 $

2,707,401

45,358,311

41,454,804

45,358,311

41,454,804

$

42,562,833 $

869,315,094 $

867,715,722 $

44,162,205

$

42,562,833 $

782,501,979 $

780,902,607 $

44,162,205

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

$

14,553,255 $

806,011,369 $

797,594,399 $

22,970,225

42,510,218

27,033,269

42,170,087

27,373,400

743,988

516,703

743,958

516,733

2,925,961

10,886,589

11,459,604

2,352,946

37,733

38,340

38,533

37,540

$

60,771,155 $

844,486,270 $

852,006,581 $

53,250,844

$

60,764,230 $

783,572,251 $

791,092,562 $

53,243,919

6,925

6,925

$

60,771,155 $

783,572,251 $

791,092,562 $

53,250,844

146

Primary Government College and University Funds

(This page intentionally left blank)

State of Georgia
Primary Government - College and University Funds
For the Fiscal Year Ended June 30, 1999
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.
149

State of Georgia
Primary Government - College and University Funds
Combining Balance Sheet June 30, 1999

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

Current Funds

Unrestricted

Restricted

Loan Funds

Endowment and Similar
Funds

$ 227,117,126 $ 98,523,688
1,935,199
117,253,330 13,349,501 27,419,946 11,470,841

22,110,274 $ 11,977,487 37,523,823
52,381,058 33,860 703,592

11,428,009 $ 42,900
43,804 48,329,791
25,160 1,843,803

68,652,374 54,060,893
62,989 75,083

Total Assets

$ 497,069,631 $ 124,730,094 $

61,713,467 $ 122,851,339

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 Notes 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

$ 167,004,806 $ 91,903,055 7,268,253 25,300,000 8,869,493 86,088,036

674,244 $ 16,104,051
20,661,188

166,154 2,701,562

30,571 $ 88,861

94,684

$ 389,301,359 $

37,439,483 $

119,432 $

94,684

$

$

107,768,272 $ 107,768,272 $

$
87,290,611 87,290,611 $

47,745,528 $ 13,830,503
18,004

101,503,301 2,867,760 7,686,726
10,698,868

61,594,035 $ 122,756,655

$ 497,069,631 $ 124,730,094 $

61,713,467 $ 122,851,339

150

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Agency Funds

Total Before Eliminations

Eliminations

Total (Memorandum
Only)

$

65,324,464 $

32,595,803 $

7,545,777

2,685,295

$

39,954,858 $ 467,182,908 $

1,547,420

176,383,460

$

467,182,908

176,383,460

168,524
11,855,864 5,474,729 709,281

23,162 11,391,040

893,427
2,202,483 1,386,833
107,498

40,520,973 43,804
48,329,791 183,804,046
33,554,849 27,419,946 12,991,212

(33,554,849)

40,520,973 43,804
48,329,791 183,804,046
0 27,419,946 12,991,212

104,652,837 2,820,254,570
206,918,526 1,700,455,524
225,757,306

104,652,837 2,820,254,570
206,918,526 1,700,455,524
225,757,306

104,652,837 2,820,254,570
206,918,526 1,700,455,524
225,757,306

$

91,078,639 $

46,695,300 $ 5,058,038,763 $

46,092,519 $ 6,048,269,752 $ (33,554,849) $ 6,014,714,903

$

69,031,106 $

22,314

3,594,651

1,287

$

72,649,358 $

8,318,648 $ 651,212
8,969,860 $

$
21,667,956 326,274
21,994,230 $

24,209,064 $ 1,245,967
20,637,488
46,092,519 $

269,268,439 $ 108,029,420
7,268,253 25,300,000 35,206,056 86,088,036 21,667,956 20,637,488
167,441 2,701,562
326,274
576,660,925 $

$ (33,554,849)
(33,554,849) $

269,268,439 108,029,420
7,268,253 25,300,000 1,651,207 86,088,036 21,667,956 20,637,488
167,441 2,701,562
326,274
543,106,076

$

$

$

$

7,892,217 10,537,064

37,725,440

5,036,044,533

$

18,429,281 $

37,725,440 $ 5,036,044,533 $

$

47,745,528 $

13,830,503

18,004

101,503,301

2,867,760

7,686,726

10,698,868

5,036,044,533

95,182,828

156,030,776

0 $ 5,471,608,827 $

$

47,745,528

13,830,503

18,004

101,503,301

2,867,760

7,686,726

10,698,868

5,036,044,533

95,182,828

156,030,776

0 $ 5,471,608,827

$

91,078,639 $

46,695,300 $ 5,058,038,763 $

46,092,519 $ 6,048,269,752 $ (33,554,849) $ 6,014,714,903

151

(This page intentionally left blank)

Primary Government General Fixed Assets Account Group

(This page intentionally left blank)

State of Georgia
Primary Government - General Fixed Assets Account Group
For the Fiscal Year Ended June 30, 1999 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.
155

State of Georgia
Schedule of General Fixed Assets By Function
June 30, 1999

Function
General Government Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay
Total General Fixed Assets

Land and Buildings

Improvements
Other Than Buildings

Equipment

Total

$ 348,259,515 $ 323,204,893 169,430,223
794,587,591 81,040,824
202,666,621 7,455,655
144,796,080
$ 2,071,441,402 $

$ 614,918

66,738,703 $ 213,345,920 164,668,672 205,731,554 177,743,326
41,898,076 72,648,169 66,549,997

414,998,218 536,550,813 334,098,895 205,731,554 972,330,917 122,938,900 275,929,708
74,005,652 144,796,080

614,918 $ 1,009,324,417 $ 3,081,380,737

156

State of Georgia
Schedule of Changes in General Fixed Assets
By Function For the Fiscal Year Ended June 30, 1999

General
Fixed Assets July 1, 1998

Function

General Government

$

Education

Health and Welfare

Transportation

Public Safety

Economic Development and Assistance

Culture and Recreation

Conservation

Capital Outlay

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

Additions
22,506,628 $ 76,986,197 34,333,944 22,821,288 62,521,408 11,854,428 33,685,103 3,911,694
30,763

Deletions

Retroactive Restatement of Prior Year
Balance

General
Fixed Assets June 30, 1999

3,143,941 $ 13,126,460 15,745,841 6,114,560 19,148,227
967,212 4,698,450 1,148,113 38,264,721

$ 247,522 764,685
1,319,847 (1,822,161)
(311,385)

414,998,218 536,550,813 334,098,895 205,731,554 972,330,917 122,938,900 275,929,708 74,005,652 144,796,080

$

2,914,888,301 $

268,651,453 $

102,357,525 $

198,508 $

3,081,380,737

157

(This page intentionally left blank)

Component Units Governmental Fund Types

(This page intentionally left blank)

State of Georgia
Component Units - Governmental Fund Types
For the Fiscal Year Ended June 30, 1999 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.
161

State of Georgia
Component Units - Governmental Fund Types Combining Balance Sheet June 30, 1999

Assets and Other Debits
Assets: Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Other Inventories Prepaid Items Fixed Assets Land and Buildings Equipment
Other Debits: Amounts to be Provided for Retirement of General Long-Term Debt

Georgia Education Authority (Schools)

Georgia Public Telecommunications Commission

Total

$

157,860 $

513,883 $

671,743

474,796

310,284

785,080

747,391 178,990 149,189

747,391 178,990 149,189

27,360,330 61,460,552

27,360,330 61,460,552

11,645,754

11,645,754

Total Assets and Other Debits

$

632,656 $

102,366,373 $

102,999,029

Liabilities, Fund Balances and Other Credits
Liabilities: Accounts Payable and Other Accruals Compensated Absences Payable Salaries/Withholdings Payable Due to Primary Government Accrued Interest Payable 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 Designated for Future Capital Outlay Undesignated
Total Fund Balances
Total Fund Balances and Other Credits

$

$

4,788,092 $

4,788,092

957,023

957,023

483,695

483,695

144,725

144,725

94,239

94,239

497,958

497,958

10,688,731

10,688,731

$

0 $

17,654,463 $

17,654,463

$

$

88,820,882 $

88,820,882

$

$

378,096 $

378,096

632,656

90,000 (4,577,068)

90,000 (3,944,412)

$

632,656 $

(4,108,972) $

(3,476,316)

$

632,656 $

84,711,910 $

85,344,566

Total Liabilities, Fund Balances and Other Credits

$

632,656 $

102,366,373 $

102,999,029

162

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, 1999

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 Capital Lease
Operating Transfers from Primary Government
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures
Fund Balances, July 1

Georgia Education Authority (Schools)

Georgia Public Telecommunications Commission

Total

$

$

3,428,339 $

3,428,339

31,475

19,929

51,404

106,217

106,217

9,891,064

9,891,064

$

31,475 $

13,445,549 $

13,477,024

$

0 $

31,998,361 $

31,998,361

$

31,475 $

(18,552,812) $

(18,521,337)

$

$

18,766,640 $

18,766,640

17,330

17,330

$

0 $

18,783,970 $

18,783,970

$

31,475 $

231,158 $

262,633

601,181

(4,340,130)

(3,738,949)

Fund Balances, June 30

$

632,656 $

(4,108,972) $

(3,476,316)

163

(This page intentionally left blank)

Component Units Proprietary Fund Types

(This page intentionally left blank)

State of Georgia
Component Units - Proprietary Fund Types
For the Fiscal Year Ended June 30, 1999
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.
167

State of Georgia
Component Units - Proprietary Fund Types
For the Fiscal Year Ended June 30, 1999
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.
168

(This page intentionally left blank)

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

State of Georgia
Component Units - Proprietary Fund Types Combining Balance Sheet June 30, 1999

Development Authority

Environmental
Facilities Authority

Housing and
Finance Authority

Jekyll Island
State Park Authority

Lake Lanier Islands
Development Authority

$

453,735 $

75,763,755 $

9,411,427 $

3,033,913 $

2,206,651

104,370,992 4,304,251

651,320

1,160,262

3,871

1,668,657 10,699

247,993 205,235
46,701

940,481

199,741,488

45,154,126

2,691,229

80,554,254

468,720,449

3,932,758

135,786,071 36,995,504

3,352,670

5,850,155 614,319,550
12,271,622

6,472,882

32,166,129

295,942

1,552,877 (2,615,681)

3,736,278

10,000

5,596,284

667,861 1,309
4,612,329
13,456

Total Assets

$

84,158,992 $ 858,238,903 $ 875,378,895 $

43,287,740 $

5,294,955

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 Interfund Payables 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

$

$

$

$

1,113,078

5,665,076

17,871,328

73 12,601,840

2,666
3,750,000 12,479,909

1,468 3,941,981
238,672
2,000,000

41,452,842

82,766,845

769,765,901

$

55,167,833 $ 104,664,496 $ 793,819,350 $

$ 446,830 453,901 244,376 529,864 370,861 342,704
471
53,750
2,442,757 $

20,102 20,102

170

Lottery Corporation

Ports Authority

Stone Mountain Memorial Association

Student
Finance Authority

Tollway Authority

World Congress
Center Authority

Other Entities

Total

$

$

7,412,852 $

49,116,000
2,567,000 (10,573,511)

12,795,000 174,000
2,849,000 599,000
7,558,979

469,000 300,272,000

466,175 1,402,657

8,431,339 $
5 3,910 61,852

4,270,952 $ 36,249
8,417,225 302,883 384,376
5,609,264 342,281,022

1,965,000
12,093,000 (11,372,000)

198,834,000 221,768,000 134,051,000 (218,830,000)
23,139,000 11,319,000

80,875,545 19,374,604 27,827,648 (37,742,396)
2,022,146 171,403

4,067,835
1,448,372 (2,712,723)

12,016,514 $

17,627,501 $

237,767 107,367
119,495 14,372,612

6,692,780 100,000
270,515 201,842
16,705,482

3,116,409 21,423,236

132,998 51,035,420

4,950,883 2,723,138 5,925,492 (5,926,108) 1,196,732 59,162,845

2,985,564
209,402,736
12,863,659 (54,936,233) 71,907,608

35,335,768 $ 6,230,672 37,670 1,200,562 139,196 470,287 31,927
17,935,719
64,223,155 13,124,631
(422,165) 13,573

174,425,617
110,637,913 15,854,884
71,374,854 413,196
2,301,031 3,798,947 3,643,696
304,748,198
895,488,483
139,970,653 411,128,817
5,850,155 614,319,550
18,609,856
602,958,165 243,865,742 212,932,355 (334,557,306)
98,265,486 76,273,105

$ 344,536,489 $ 403,538,663 $ 101,026,056 $ 364,105,455 $ 119,426,382 $ 334,989,872 $ 138,320,995 $ 3,672,303,397

$

1,160,489 $

40,949,871

24,129

357,000 303,017,000 $ 345,508,489 $

$ 4,791,474 1,138,232 1,023,000
314,717 61,577
506,000
7,389,000
8,159,000 20,400,000 43,783,000 $

$ 837,490

$ 413,645

3,078,687 349,851

2,541,467

12,647,162

279,498,208 2,332,040

31,500,000

16,913,190 $ 316,285,360 $

$ 551,995 445,650
1,936,104 2,328,381
152,385

$ 4,579,594 1,260,822
23,905
7,467,276 20,805,980
428,043
7,218 172,389 15,040,530

84,247,925 89,662,440 $

191,650,732 241,436,489 $

$ 7,649,642
231,160 691,608
40,794 192,269
673 347,934

1,160,489 84,870,023
3,104,217 2,160,258
599,887 835,951 3,078,687 17,816,746 39,591,047

57,940 52,710

485,983 12,601,840 279,558,607 12,250,429 15,192,915 12,700,912

95,000

303,017,000 81,111,842
1,148,926,403

9,359,730 $ 2,019,063,236

(continued)

171

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

State of Georgia
Component Units - Proprietary Fund Types Combining Balance Sheet (continued) June 30, 1999

Development Authority

Environmental
Facilities Authority

Housing and
Finance Authority

Jekyll Island
State Park Authority

Lake Lanier Islands
Development Authority

$

$

295,942 $

$

$

$

$ 229,644,304 $

$

14,021,036 $

20,560,485

354,181,200

$

0 $ 583,825,504 $

0 $

14,021,036 $

20,560,485

$

1,890,276 $

9,670,745 $

30,518,174 $

$

2,048,038

27,100,883

146,114,295

49,109,050

26,823,947

(17,333,670)

$

28,991,159 $ 155,785,040 $

79,627,224 $

26,823,947 $

(15,285,632)

$

$

13,182,579 $

$

$

485,342

1,932,321

$

0 $

13,667,921 $

1,932,321 $

0 $

$

28,991,159 $ 753,278,465 $

81,559,545 $

40,844,983 $

$

28,991,159 $ 753,574,407 $

81,559,545 $

40,844,983 $

0 5,274,853 5,274,853

$

84,158,992 $ 858,238,903 $ 875,378,895 $

43,287,740 $

5,294,955

172

Lottery Corporation

Ports Authority

Stone Mountain Memorial Association

Student
Finance Authority

Tollway Authority

World Congress
Center Authority

Other Entities

Total

$

$

$

$

$

$

$

$

295,942

$

$ 236,607,849 $

24,510,066 $

$

$

7,650,000 $

68,275,693 $ 601,269,433

9,676,882

363,858,082

292,063

15,126,652

63,703,860

1,065,373

80,187,948

$

0 $ 246,576,794 $

39,636,718 $

0 $

0 $

71,353,860 $

69,341,066 $ 1,045,315,463

$

(2,361,000) $

$

$

26,470,501 $

$

206,867 $

20,064,978 $

88,508,579

1,389,000

113,178,869

44,476,148

21,349,594

29,763,942

21,992,656

39,555,221

503,519,935

$

(972,000) $ 113,178,869 $

44,476,148 $

47,820,095 $

29,763,942 $

22,199,523 $

59,620,199 $ 592,028,514

$

$

$

$

$

$

$

$

13,182,579

2,417,663

$

0 $

0 $

0 $

0 $

0 $

0 $

0 $

15,600,242

$

(972,000) $ 359,755,663 $

84,112,866 $

47,820,095 $

29,763,942 $

93,553,383 $ 128,961,265 $ 1,652,944,219

$

(972,000) $ 359,755,663 $

84,112,866 $

47,820,095 $

29,763,942 $

93,553,383 $ 128,961,265 $ 1,653,240,161

$ 344,536,489 $ 403,538,663 $ 101,026,056 $ 364,105,455 $ 119,426,382 $ 334,989,872 $ 138,320,995 $ 3,672,303,397

173

State of Georgia
Component Units - Proprietary Fund Types
Combining Statement of Revenues, Expenses and Changes in Fund Equity
For the Fiscal Year Ended June 30, 1999

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 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 to 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

$

$

$

$

$

5,543,703

19,829,602

46,911,538

5,779

1,150,980 5,067,287
80,729

4,329,548 9,843,022 1,250,838
14,367

3,155,729 36,000
399,856 18,474

$

5,549,482 $

19,829,602 $

53,210,534 $

15,437,775 $

3,610,059

$

618,337 $

767,282 $

8,568,421 $

11,771,193 $

590,136

3,067,874

1,232,545

49,377,470

107,588

573,790 335,847

231,408

$

725,925 $

767,282 $

61,923,402 $

13,003,738 $

821,544

$

4,823,557 $

19,062,320 $

(8,712,868) $

2,434,037 $

2,788,515

$

$

$

$

1,149 $

67,008

11,335,394

12,624,259

228,506

244,702

(2,598,210)

(3,881,403) 276,076

(1,895,051) 77,035

$

(2,531,202) $

7,730,067 $

10,806,243 $

$

2,292,355 $

26,792,387 $

2,093,375 $

(370,861) (120,820) (262,026) $ 2,172,011 $

(1,402,154)
(1,157,452) 1,631,063

$

$

2,808,227 $

$

$

$

0$

2,808,227 $

0$

0$

0

$

2,292,355 $

29,600,614 $

2,093,375 $

2,172,011 $

1,631,063

26,698,804

(2,234,323) 668,931,953

382,984 79,716,454

37,621,711

4,905,566

21,503,796 35,476,425

(633,268)

1,517,719 (466,458)

(1,261,776)

$

28,991,159 $ 753,278,465 $

81,559,545 $

40,844,983 $

5,274,853

174

Lottery Corporation

Ports Authority

Stone Mountain Memorial Association

Student
Finance Authority

Tollway Authority

World Congress
Center Authority

Other Entities

Total

$

$

$

1,952,989,000

89,180,000

$ 1,952,989,000 $

89,180,000 $

$ 9,448,925
310,815 9,759,740 $

$ 6,007,079
2,029,368 120,409
8,156,856 $

$ 46,754 22,368,463
22,415,217 $

$ 37,140,044 22,853,389
59,993,433 $

50,170 $
25,644,011 1,694,864
22,326,419
21,847,104

50,170 78,291,922 25,644,011 56,966,844 2,126,692,948
1,650,694 22,397,677

71,562,568 $ 2,311,694,266

$

20,674,000 $

226,875,000

1,059,585,000 1,338,000 1,202,000

$ 1,309,674,000 $

$ 643,315,000 $

19,103,000 $ 44,164,000
15,479,000
78,746,000 $ 10,434,000 $

4,176,534 $

4,899,816 $ 33,395,063

5,829,857
10,006,391 $ (246,651) $

301,581 9,101,414
47,697,874 $
(39,541,018) $

3,568,698 $ 3,819,327
1,133,179 955,601
9,476,805 $ 12,938,412 $

21,873,593 $ 28,103,116
8,785,709
58,762,418 $ 1,231,015 $

35,881,406 $ 4,566,939
409,836 35,883,771

132,492,416 345,223,864
49,377,470 1,059,585,000
33,850,952 47,817,629

76,741,952 $ 1,668,347,331

(5,179,384) $ 643,346,935

$

$

(10,090,000)

$ 1,581,096

177,000

$

(9,913,000) $

$ 633,402,000 $

(7,980,000) 554,000
(5,844,904) $ 4,589,096 $

406,990 $ 510,671
(818,011) (247,303) (147,653) $ (394,304) $

$ 866,341 970,920
(1,931,497)
372,335
278,099 $
(39,262,919) $

$ 2,225,945
(4,159,957) (3,000)
(417,145)
(2,354,157) $
10,584,255 $

$ 3,496,088
19,448,228 (15,000,004)
(166,766) (83,121)
7,694,425 $
8,925,440 $

867,766 $ 2,307,865
3,085,535 (853,114)
(501) (73,020)
5,334,531 $
155,147 $

1,275,905 25,397,875
970,920 22,533,763 (38,995,211) (2,065,318)
515,037
9,632,971
652,979,906

$

$

(646,905,000)

$ (646,905,000) $

$

(13,503,000) $

$
0$ 4,589,096 $

$

39,804,450 $

$

0$ (394,304) $

39,804,450 $ 541,531 $

0$ 10,584,255 $

$
0$ 8,925,440 $

5,222,040 $
5,222,040 $ 5,377,187 $

47,834,717 (646,905,000)
(599,070,283)
53,909,623

12,531,000

358,286,567 8,446,000
(11,566,000)

103,533,445 (19,026,275)

47,278,564

19,179,687

87,048,133 (2,406,603)
(13,587)

7,576 122,313,028
1,664,259 23,800
(582,843) 158,258

(1,843,763)
1,568,044,912
(2,406,603) 33,131,774 35,476,425
23,800 (32,903,352)
(633,268) 144,671

$

(972,000) $ 359,755,663 $

84,112,866 $

47,820,095 $

29,763,942 $

93,553,383 $ 128,961,265 $ 1,652,944,219

175

State of Georgia
Component Units - Proprietary Fund Types
Combining Statement of Cash Flows For the Fiscal Yea r Ended June 30, 1999

Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Lease Agreements 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 Principal Paid on Bonds/Loans/Notes Interest Paid on Bonds/Loans/Notes Return of Contributed Capital Other Debt Service Payments Other Noncapital Items (Net)
Net Cash Provided by (Used in) Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities: Issuance 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
Net Cash Provided by (Used in) Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1

Development Authority

Environmental
Facilities Authority

Housing and
Finance Authority

Jekyll Island
State Park Authority

Lake Lanier Islands
Development Authority

$

$

$

5,371,545 $

19,317,595 5,580,507 (428,455) (431,909)

18,792,420 372,979 (695,669)

92,114,556 46,266,952 (3,777,087) (5,232,144)

(24,697,000)

(22,127,892) 4,435,832

(106,674,990) (4,209,657)

15,321,910 $
(5,698,674) (7,303,765)
(460)

454,330 3,155,729
(565,171) (172,582)

$

(659,262) $

777,670 $

23,859,175 $

2,319,011 $

2,872,306

$

$

2,808,227 $

$

$

333,935 10,602,975

58,591,332

87,034,603

(6,745,055) (2,807,717)

(98,950,099) (46,937,417)

(2,020,169)

(2,436,014)

$

1,384,138 $

59,379,390 $ (61,288,927) $

15,806 15,806 $

(1,261,776) (1,261,776)

$

$

$

$

$

1,269,726

(5,870,000) (2,499,100)

(142,888)

(1,744,235)

(1,402,154)

$

0$

(8,369,100) $

(142,888) $

(474,509) $

(1,402,154)

$

(375,196) $

12,640,401 $

9,284,520 $

67,008

11,335,394

14,627,088

939,809 $ 228,506

(1,367,673) 300,046

$

(308,188) $

23,975,795 $

23,911,608 $

1,168,315 $

(1,067,627)

$

416,688 $

75,763,755 $ (13,661,032) $

3,028,623 $

(859,251)

37,047

0

158,858,530

5,290

1,527,112

Cash and Cash Equivalents, June 30

$

453,735 $

75,763,755 $ 145,197,498 $

3,033,913 $

667,861

176

Lottery Corporation

Ports Authority

Stone Mountain Memorial Association

Student
Finance Authority

Tollway Authority

World Congress
Center Authority

Other Entities

Total

$ 1,942,433,207 $

88,561,000 $

(229,582,000) (15,361,000) (1,076,140,000)

(25,014,000) (42,974,000)

$ 621,350,207 $

20,573,000 $

483,620 $ 9,448,925
(3,988,389) (3,000,448)

4,195,604 $
5,511,804 (46,384,501)
(12,082,652) 1,006,983

2,943,708 $ (47,752,762) $

22,684,160 $ (7,321,397)
15,362,763 $

110,895,030 $
(77,310,310) (21,250,844)
1,015 868,110 13,203,001 $

69,984,831 $
(70,838,642) (4,689,909) 10,199

2,260,385,237 12,604,654 111,432,151 76,151,683
(470,535,647) (101,112,270) (1,076,140,000) (165,582,534)
1,243,912 868,110

(5,533,521) $ 649,315,296

$

$

$

$

39,804,450 $

52,586,153

(646,905,000)

(5,887,441) $ (652,792,441) $

(11,566,000) 506,000
(11,060,000) $

(3,300,425) 1,213,393 (2,087,032) $

(50,400,000) (1,931,497)
372,335 40,431,441 $

$

$

5,222,040 $

47,834,717

3,627,624 237,195

2,993,783
(582,843) 732,794

333,935 150,223,731 58,591,332
6,621,407 (646,905,000) (156,095,154)
(51,676,631) (16,711,044)
(2,436,014) (4,830,087)

0$

3,864,819 $

8,365,774 $ (615,048,808)

$

$

3,000,000 $

$

93,000 (1,068,000)

8,446,000 107,000
(24,491,000) (286,000)
(1,283,000)

(1,806,227) (516,575)

140,000

$

(975,000) $

(14,367,000) $

(2,322,802) $

$ (455,191) (455,191) $

$

$

15,521,237

(2,375,713) (1,415,000) (3,570,159)
(3,000)
(7,363,872) $

(8,220,194) (3,150,000) (15,042,443)
(24,590) 3,835,000
(7,080,990) $

$
251,380
(5,082,334) (45,000)
(852,326) (501)
(5,728,781) $

3,000,000 15,521,237 9,967,106
200,000 (45,385,782) (10,766,000) (25,165,757)
(28,091) 3,975,000
(48,682,287)

$

27,615,234 $

4,924,000

(109,097) $ 1,574,000

$

32,539,234 $

1,464,903 $

$

122,000 $

(3,389,097) $

347,000

11,268,124

$ 510,671
510,671 $
(955,455) $
9,386,794

8,077,511 $ 808,094
8,885,605 $
1,109,093 $
3,161,859

(7,379,064) $ 2,045,674
(5,333,390) $
2,665,501 $
12,467,422

(20,784,509) $ 3,165,178
(17,619,331) $
(7,632,501) $
25,393,000

8,057,284 $ 2,312,893
10,370,177 $
7,473,649 $
27,862,119

36,599,220 41,898,552
78,497,772
64,081,973
250,314,297

$

469,000 $

7,879,027 $

8,431,339 $

4,270,952 $

15,132,923 $

17,760,499 $

35,335,768 $ 314,396,270

(continued)

177

State of Georgia
Component Units - Proprietary Fund Types
Combining Statement of Cash Flows (continued) For the Fiscal Yea r Ended June 30, 1999

Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities:
Depreciation/Amortization Interest Other Changes in Assets and Liabilities:
Decrease (Increase) in Intergovernmental Receivables Decrease (Increase) in Interest and Dividends Receivable Increase in Notes and Loans Receivable Decrease (Increase) in Other Receivables Decrease (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 Decrease in Other Liabilities Increase 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 Gain on Privatization Agreement

Development Authority

Environmental
Facilities Authority

Housing and
Finance Authority

Jekyll Island
State Park Authority

Lake Lanier Islands
Development Authority

$

4,823,557 $

19,062,320 $

(8,712,868) $

2,434,037 $

2,788,515

$

$

$

(70,796) $

49,377,470

4,435,832

(3,873,810)

31,025 (5,238,334)

215,765 (22,217,892)

(14,560,434)

(3,871) 228,288

90,000 444,592

(927,451) 2,627,448

73 (500,000)

(1,252,947)

(384)

$ (460)
(139,741) (4,237) 40,860 (72,086) 40,185
(13,079) 9,656
23,876

112,463
(156) (30,672)
2,156

$

(5,482,819) $ (18,284,650) $

32,572,043 $

$

(659,262) $

777,670 $

23,859,175 $

(115,026) $ 2,319,011 $

83,791 2,872,306

$

$

$

$

(135,478) $

$

0$

0$

0$

(135,478) $

0

178

Lottery Corporation
$ 643,315,000 $

Ports Authority

Stone Mountain Memorial Association

10,434,000 $

(246,651) $

Student Finance Authority
(39,541,018) $

Tollway Authority
12,938,412 $

World Congress
Center Authority
1,231,015 $

Other Entities
(5,179,384) $

Total 643,346,935

$

1,338,000 $

(22,235,000)

(10,555,793)
(681,000) 4,085,014
7,986 (92,000) 6,168,000 $ (21,964,793) $

15,479,000 $
224,000 (103,000) (435,000) (341,000) (3,774,918) (419,000)
10,918 (502,000)
10,139,000 $

5,829,857 $
108,336 20,800 382,688 64,469 (3,215,791)

301,581 $
2,843,500
170,214 (495,275) (12,082,652) 1,362,975 (384,376)
87,690

(135,316) 682,852 (562,937)

3,190,359 $

(8,211,744) $

2,088,780 $
(18,962) (117,607) (96,728) 280,963 268,765
19,140 2,424,351 $

8,785,709 $ 1,063,853
6,286 (40,861) (42,209) 1,161,502 64,691
4,123 446,182 522,710
11,971,986 $

409,836 $
10,199
(1,355,875)
(208,968) 56
215 (3,672) 224,573 438,618 (21,400) 172,881 25,095 191,772 (237,467)
(354,137) $

34,161,967 49,377,470 (17,755,886)
(1,185,661) (248,485)
(54,099,312) (9,109,404)
(384,320) (127,083) (859,967) (889,409) 1,882,957
85,632 34,844 12,016 88,828 (1,070,739) (654,937) 541,850 6,168,000
5,968,361

$ 621,350,207 $

20,573,000 $

2,943,708 $ (47,752,762) $

15,362,763 $

13,203,001 $

(5,533,521) $ 649,315,296

$

(38,000) $

22,235,000

$

22,197,000 $

$

$

406,990

952,697

0$

1,359,687 $

$

(422,274) $

(119,548) $

(113,984) $

(829,284)

98,598

1,683,342

2,188,930

22,235,000 952,697

0$

(422,274) $

(20,950) $

1,569,358 $

24,547,343

179

(This page intentionally left blank)

Component Units Fiduciary Fund Types

(This page intentionally left blank)

State of Georgia
Component Units - Fiduciary Fund Types
For the Fiscal Yea r Ended June 30, 1999
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.
183

State of Georgia
Component Units - Fiduciary Fund Types Combining Statement of Plan Net Assets June 30, 1999

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles)
Interest and Dividends Other Miscellaneous Prepaid Items Fixed Assets Land and Buildings Equipment
Total Assets
Liabilities
Accounts Payable and Other Accruals Salaries/Withholdings Payable Capital Leases Payable
Total Liabilities
Fund Balances Reserved for Pension Benefits

Firefighters' Pension Fund

Judges of the Probate Courts
Retirement Fund

Peace Officers' Annuity and Benefit Fund

$

5,280 $

349,286,020

6,587 $ 38,307,433

1,394,281 277,213,080

2,634,273

328,310

1,768,071

138,054 185,172

$

352,248,799 $

606 38,642,936 $

310,296 183,628
280,869,356

$

$

$

85

885

11,392

$

0 $

85 $

12,277

$

352,248,799 $

38,642,851 $

280,857,079

184

Public School Employees Retirement System

Sheriffs' Retirement
Fund

Superior Court Clerks' Retirement
Fund

Teachers' Retirement
System

Total

$

215,000 $

770,366,000

20,858 $ 44,546,835

86,483 $

1,270,810 $

2,999,299

38,299,758

38,541,060,000

40,059,079,126

3,000

$

770,584,000 $

377,088
20,620 44,965,401 $

228,764,000

233,871,742

180,453,495 50,093

180,456,495 50,093

19,739

448,350 409,765

38,405,980 $ 38,951,598,398 $ 40,477,314,870

$

304,000 $

$

304,000 $

$

35,625 $

2,029,018 $

2,368,643

76,287

77,257

11,392

0 $

35,625 $

2,105,305 $

2,457,292

$

770,280,000 $

44,965,401 $

38,370,355 $ 38,949,493,093 $ 40,474,857,578

185

(This page intentionally left blank)

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.............................................................. 190 General Governmental Revenues by Source ...................................................................... 192 State Tax Revenues by Source All Governmental Fund Types....................................... 194 Principal Nongovernmental Employers.............................................................................. 196 Computation of Legal Debt Margin ................................................................................... 197 Ratio of Annual Debt Service Expenditures for General Obligation Debt
to Total General Governmental Expenditures.............................................................. 197 Demographic Statistics....................................................................................................... 198 Schedule of Bank Deposits................................................................................................. 198 Miscellaneous Statistics ....................................................................................................................199

189

State of Georgia
General Governmental Expenditures by Function (1) For the Last Nine 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

1999

1998

1997

1996

$

744,530,087 $

653,302,692 $

637,247,287 $

471,240,748

6,531,830,567

6,155,220,908

5,700,389,994

4,998,994,142

6,786,022,660

6,479,723,177

6,796,847,561

6,558,077,298

1,638,089,933

1,385,250,996

1,113,788,591

1,287,172,005

1,333,092,110

1,193,748,916

1,124,542,047

1,104,443,315

347,537,124

264,913,965

263,090,507

294,112,317

192,199,439

185,622,125

170,667,100

169,961,642

51,118,994

45,865,385

48,769,799

46,557,857

392,319,581

346,296,387

373,677,146

391,876,879

681,973,633

645,791,398

629,588,332

571,524,445

(3)

(3)

(3)

(3)

Total General Governmental Expenditures $ 18,698,714,128 $ 17,355,735,949 $ 16,858,608,364 $ 15,893,960,648

(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.

190

1995

1994

1993

1992

1991

$

539,762,518 $

409,630,033 $

380,920,519 $

297,671,885 $

307,358,275

4,625,591,699

4,168,677,500

3,738,241,752

3,356,647,585

3,429,066,240

5,693,088,331

5,257,989,665

4,684,027,431

4,159,170,527

3,589,402,101

1,401,010,780

975,771,056

1,088,108,187

898,101,022

1,056,209,827

1,030,957,652

891,894,168

798,451,763

702,543,743

706,878,373

190,029,084

175,159,029

184,179,867

186,742,307

173,618,821

156,234,675

121,413,898

116,370,238

103,007,704

97,930,563

45,875,856

45,299,326

42,923,710

40,267,999

43,968,291

493,326,267

325,340,789

347,403,119

249,777,992

242,582,555

537,800,975

427,689,905

451,136,869

409,267,811

417,490,455

(3)

(3)

(3)

325,890,492

330,633,230

$ 14,713,677,837 $ 12,798,865,369 $ 11,831,763,455 $ 10,729,089,067 $ 10,395,138,731

191

State of Georgia
General Governmental Revenues by Source (1) For the Last Nine 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)

1999

1998

1997

1996

$ 12,021,751,940 $ 11,439,170,422 $ 10,483,497,704 $

397,962,567

346,081,148

351,181,927

5,923,606,145

5,617,029,811

5,549,805,877

581,123,782

536,827,964

513,909,314

41,657,448

49,204,317

50,426,165

300,699,674

275,999,300

239,306,741

16,872,007

13,920,492

9,992,943

187,061,598

192,209,388

190,841,985

5,991,314

9,485,653

6,699,639

26,104,874

20,690,958

20,118,021

720,607,460

257,123,411

373,248,075

7,209,322

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

Total General Governmental Revenues

$ 20,230,648,131 $ 18,763,152,721 $ 17,821,550,902 $ 17,518,080,982

(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.

192

1995

1994

1993

1992

1991

$ 9,068,979,799 $ 8,337,801,318 $ 7,761,536,952 $ 7,014,576,028 $ 6,913,824,337

335,061,015

323,679,549

273,530,522

156,555,971

142,682,174

4,837,628,972

4,163,447,196

4,024,383,231

3,481,785,992

3,059,490,557

339,380,452

304,600,443

273,321,290

284,191,405

254,698,693

34,043,976

32,570,070

27,968,839

26,684,051

23,819,450

184,686,971

131,238,703

122,575,976

113,224,780

138,668,503

17,733,647

9,285,637

22,275,341

25,757,175

18,912,013

170,464,588

149,621,154

103,743,601

95,966,335

39,881,852

8,282,630

16,110,883

18,888,188

17,936,355

19,715,782

19,815,272

19,935,473

34,611,896

11,798,133

10,972,108

727,775,339

977,957,328

356,333,042

667,655,288

612,441,613

24,833,072

121,670,497

6,437,851

9,936,790

19,964,620

$ 15,768,685,733 $ 14,587,918,251 $ 13,025,606,729 $ 11,906,068,303 $ 11,255,071,702

193

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

1999

1998

1997

1996

$ 6,667,051,445 $ 6,133,784,892 $ 5,488,547,143 $ 4,964,393,724

4,323,189,194

4,238,397,531

4,062,494,318

3,954,442,920

428,150,221 132,903,384
87,355,714 211,908,338 111,192,262
40,727,315 4,512,621
14,761,446

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

Total Tax Revenues - All Governmental Fund Types

$ 12,021,751,940 $ 11,439,170,422 $ 10,483,497,704 $ 9,891,126,837

(1) In Fiscal Year 1995, the state began accounting for certain tax revenues on the modified accrual basis.
Sources: Fiscal Year 1990 - Annual Audit Reports: Georgia Departments of Revenue and Insurance Fiscal Years 1991-1999 - Georgia Comprehensive Annual Financial Report
Note: Governmental Fund Types are described in the Notes to the Financial Statements.

194

1995

1994

1993

1992

1991

1990

$ 4,498,902,508 $ 4,102,592,850 $ 3,850,571,615 $ 3,452,551,939 $ 3,355,808,517 $ 3,342,947,428

3,651,583,790

3,361,513,613

3,072,269,685

2,777,595,357

2,754,539,969

2,724,130,258

379,119,386 114,681,538
86,176,720 187,190,136
73,607,282 31,106,689 25,338,172 21,273,578

365,243,573 110,633,761
83,186,371 162,867,502
87,808,192 29,969,838 18,830,421 15,155,197

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

(1) $ 9,068,979,799 $ 8,337,801,318 $ 7,761,536,952 $ 7,014,576,028 $ 6,913,824,337 $ 6,837,006,794

195

State of Georgia
Principal Nongovernmental Employers June 30, 1999 Table 4
Company
Wal-Mart Stores, Incorporated Delta Air Lines, Incorporated * BellSouth Corporation * Promina Health System * Shaw Industries, Incorporated * Publix Super Markets, Incorporated The Southern Company/Georgia Power Company * Columbia Healthcare Corporation Mohawk Industries Incorportated * Emory System of Health Care* AT&T Company K-Mart Corporation The Kroger Company CVS Corporation Winn Dixie Stores, Incorporated Bank of America Lockheed Georgia Corporation Georgia-Pacific Corporation * United Parcel Service * Beaulieu of America, LLC* Dayton Hudson/Target Stores Cox Enterprises* Lucent Technologies IBM Incorporated Springs Industries, Incorportated SunTrust Banks, Incorporated* Home Depot, Incorporated * Marriott International Incorporated General Motors Corporation Morris Communications* 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 Queen Carpet Corporation* Gold Kist Corporation*
* Indicates Georgia Headquarters
Source: Georgia Department of Industry, Trade and Tourism, January, 2000
196

Number of Employees
32,515 27,552 21,651 18,000 17,350 17,000 13,603 12,000 11,750 10,800 10,550 10,500 10,500 10,000 10,000 10,000
9,759 9,600 9,500 9,000 8,600 7,720 7,300 7,200 6,310 6,118 6,091 5,700 5,641 5,600 5,340 5,306 5,300 5,250 5,200 5,150 5,100 5,100 5,000 5,000

State of Georgia
Computation of Legal Debt Margin June 30, 1999 Table 5

Treasury Receipts - Fiscal Year Ended June 30, 1998 (1)

$ 12,478,602,944

Legal Debt Margin: Highest Annual Commitments Permitted Under Constitutional Limitation (10% of above)

$ 1,247,860,294

Highest Total Annual Commitments in any Fiscal Year (Highest FY 2000) As a Percentage of FY 1998 State Treasury Receipts As a Percentage of FY 1999 State Treasury Receipts

$ 634,072,712 5.08% 4.68%

(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 Nine Fiscal Years (2) Table 6

Fiscal Year

Principal

General Bonded Debt

Interest and Other

Total

Fiscal Charges

Debt Service

General Governmental Expenditures (1)

1999 1998 1997 1996 1995 1994 1993 1992 1991

$ 448,960,000 $ 387,030,000 392,165,000 352,300,000 350,385,000 246,840,000 258,548,346 243,921,646 274,980,000

230,772,839 $ 258,317,069 236,835,498 218,523,118 186,826,275 179,738,306 191,022,895 164,291,856 135,960,182

679,732,839 $ 645,347,069 629,000,498 570,823,118 537,211,275 426,578,306 449,571,241 408,213,502 410,940,182

18,698,714,128 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

(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

197

Ratio of Debt Service to General
Governmental Expenditures
3.64% 3.72% 3.73% 3.59% 3.65% 3.33% 3.80% 3.80% 3.95%

State of Georgia
Demographic Statistics For the Last Ten Calendar Years
Table 7

Calendar Year
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990

Population
7,788,240 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

Per Capita Personal Income
25,106 * 25,020 24,061 22,709 21,278 20,251 19,278 18,549 17,364 17,045

Public School Enrollment
1,422,941 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

Unemployment Rate
4.00% 4.20% 4.50% 4.60% 4.90% 5.20% 5.80% 6.90% 5.00% 5.40%

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 1999 Per Capita Income not available. Amount reported is Revised 1998 Preliminary Per Capita Income for the State of Georgia.
Schedule of Bank Deposits For the Last Ten Years (Dollars in Thousands) Table 8

Fiscal Year
1999* 1998 1997 1996 1995 1994 1993 1992 1991 1990
Source:
*

Commercial Banks

Savings and Loan
Associations

$

84,455,298

$

5,035,513 $

77,505,212

4,191,658

42,235,312

4,798,940

91,933,990

4,640,878

66,895,898

5,107,013

62,065,439

5,285,489

60,063,284

5,180,763

55,066,858

10,659,544

52,295,306

13,140,105

49,912,986

13,406,430

Federal Reserve Bank of Atlanta
Deposits reported for Fiscal Year 1999 are preliminary deposits for the State of Georgia. 198

Total Deposits
89,490,811 81,696,870 47,034,252 96,574,868 72,002,911 67,350,928 65,244,047 65,726,402 65,435,411 63,319,416

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
17,983 59,441 Square Miles

State Police Protection:

Number of Stations

47

Number of State Troopers

821

State Colleges and Universities: Number of Separate Institutions Number of Active Educators Number of Students

34 7,729 200,102

Recreation: Number of State Parks Number of Historic Sites Area of State Parks and Historic Sites

48 15 73,143 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

199