Georgia COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2001 Prepared by GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS RUSSELL W. HINTON, State Auditor Drawings - Huey J. Theus is employed as the Marketing Director for the Georgia Department of Labor. He is a member of the South Cobb Art Alliance and served as the head of the Art Department at Mount Carmel Christian Church in Decatur, Georgia. His portfolio contains color-lithographed prints, pen and ink drawings and paintings, which have won various awards, including a Georgia State Senate resolution honoring his work. The St. Simons Lighthouse - The current lighthouse, completed in 1872, was built by one of Georgia's most renowned architects - Charles Cluskey. The small house was once the light keeper's cottage. However, in 1953, a Fresnel lens (French, hand-made) and timers replaced the oil lamps and chains, thereby, eliminating the need for a keeper. The current tower stands 106 feet high and 104 feet above water. This structure was built to replace the original lighthouse built by James Gould in 1807, completed in 1808 and destroyed in 1862 by the Confederate Army. Ropes mark the original site twenty-five feet from the current structure. The St. Simons Lighthouse was placed under the jurisdiction of the U.S. Coast Guard in 1939. (This page intentionally left blank) Georgia Table of Contents June 30, 2001 INTRODUCTORY SECTION Letter of Transmittal................................................................................................................................................................i Organizational Chart ............................................................................................................................................................ xv Principal State Officials......................................................................................................................................................xvii 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 Funds and Discretely Presented Component Units ............................................ 22 Statements of Changes in Plan Net Assets Pension Trust Funds, Investment Trust Funds and Discretely Presented Component Units ............................................. 24 Combined Statement of Changes in Fund Balances - College and University Funds .......................................................... 26 Combined Statement of Current Funds Revenues, Expenditures and Other Changes College and University Funds........................................................................................................................................... 30 Notes to the Financial Statements......................................................................................................................................... 31 Required Supplementary Information Retirement Systems - Required Supplementary Schedules .................................................................................................. 87 Combining Statements and Schedules Primary Government Capital Projects Funds Capital Projects Funds Descriptions.............................................................................................................................. 93 Combining Balance Sheet ............................................................................................................................................. 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances....................................................... 96 Enterprise Funds Enterprise Funds Descriptions..................................................................................................................................... 101 Combining Balance Sheet ........................................................................................................................................... 102 Combining Statement of Revenues, Expenses and Changes in Fund Equity .............................................................. 103 Combining Statement of Cash Flows .......................................................................................................................... 104 Internal Service Funds Internal Service Funds Descriptions............................................................................................................................ 107 Combining Balance Sheet ........................................................................................................................................... 108 Combining Balance Sheet - Risk Management ........................................................................................................... 110 Combining Statement of Revenues, Expenses and Changes in Fund Equity .............................................................. 112 Combining Statement of Revenues, Expenses and Changes in Equity - Risk Management ....................................... 114 Combining Statement of Cash Flows .......................................................................................................................... 116 Combining Statement of Cash Flows - Risk Management .......................................................................................... 120 Georgia Table of Contents June 30, 2001 Trust and Agency Funds Combining Balance Sheet ........................................................................................................................................... 125 Expendable Trust Funds Expendable Trust Funds Descriptions ..................................................................................................................... 127 Combining Balance Sheet........................................................................................................................................ 128 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................. 130 Nonexpendable Trust Funds Nonexpendable Trust Funds Descriptions ............................................................................................................... 133 Combining Balance Sheet........................................................................................................................................ 135 Combining Statement of Revenues, Expenses and Changes in Fund Balances ....................................................... 136 Combining Statement of Cash Flows....................................................................................................................... 137 Pension Trust Funds Pension Trust Funds Descriptions ........................................................................................................................... 139 Combining Statement of Plan Net Assets ................................................................................................................ 140 Investment Trust Funds Investment Trust Funds Descriptions ...................................................................................................................... 143 Combining Statement of Plan Net Assets ................................................................................................................ 145 Agency Funds Major Agency Funds Descriptions .......................................................................................................................... 147 Combining Statement of Changes in Assets and Liabilities .................................................................................... 149 College and University Funds College and University Funds Descriptions ................................................................................................................ 155 Combining Balance Sheet ........................................................................................................................................... 156 General Fixed Assets Account Group General Fixed Assets Account Group Description...................................................................................................... 161 Schedule of General Fixed Assets by Function ........................................................................................................... 162 Schedule of Changes in General Fixed Assets by Function ........................................................................................ 163 Component Units Governmental Fund Types Governmental Fund Types Descriptions ..................................................................................................................... 167 Combining Balance Sheet ........................................................................................................................................... 168 Combining Statement of Revenues, Expenditures and Changes in Fund Balances..................................................... 169 Proprietary Fund Types Proprietary Fund Types Descriptions .......................................................................................................................... 173 Combining Balance Sheet ........................................................................................................................................... 176 Combining Statement of Revenues, Expenses and Changes in Fund Equity .............................................................. 180 Combining Statement of Cash Flows .......................................................................................................................... 182 Fiduciary Fund Types Fiduciary Fund Types Descriptions............................................................................................................................. 189 Combining Statement of Plan Net Assets.................................................................................................................... 190 STATISTICAL SECTION Index to Statistical Tables................................................................................................................................................... 195 RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 March 15, 2002 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, 2001, 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 The National Setting Economic growth is not smooth, though there is neither a recession nor a boom, those times of exaggerated disruptions of economic activity. The time-path of the Nation's real aggregate output (inflation-adjusted gross domestic product) exhibits considerable variation. With seasonal effects removed, output in a single quarter may surge (or plummet) without altering the pattern of longer-term advances (or declines). During the 1980's, for example, output rose on average 4.3 percent per year. Yet, gross domestic product climbed 7.1 percent in the fourth quarter of 1987. In the preceding and following quarters, the gains were only 3.4 and 2.7 percent, respectively. During the 1990's, output increases averaged 3.7 percent per year. Still, gross domestic product rose only 0.8 percent in the second quarter of 1995, with each of the adjoining quarters growth exceeding 3.0 percent. Across years, variations in the pattern of growth persist, but deviations are not as extreme. In 1987, the gain in gross domestic product was only 2.7 percent, whereas each adjacent year showed a gain around 4.1 percent. Similarly, in 1995, output growth fell to 2.7 percent, decreasing from 4.0 percent in 1994 and 3.6 percent in 1996. Evidently, a yearlong slowing of the growth rate in national output, even if relatively large, need not point toward recession. More troubling for forecasting, the slowdowns that do precede the declines do not appear unique. For example, in the four quarters preceding the onset of the 1980 recession, the gain in output fell to 2.3 percent from a rate of 6.1 percent in the prior four quarters. Although the slippage was then relatively large, the floor level was not exceptionally depressed. In the four recessionary quarters that followed, however, growth in gross domestic product dropped to 0.2 percent. Likewise, in the four quarters preceding the onset of the 1990 recession, the output increment fell to 2.4 percent from 4.1 percent in the prior four-quarter period. The magnitude of this drop was then little different from the one-year interruption to growth that would be endured later in 1995. Nevertheless, in the four quarters of 1990-1991 that followed, the output gain slipped to 0.6 percent. ii During the quarters constituting the State of Georgia's fiscal year 2001, national output rose approximately 2.7 percent. For the four earlier quarters, gross domestic product had risen by 4.5 percent. The question then arises as to whether the latest slowdown is but a bounded "soft landing", such as was experienced in the Nation in 1987 and again in 1995, or whether it signals a "hard landing", such as was experienced in 1980 and 1990. Of course, similar paths of output do not necessarily mirror similar underlying circumstances. Consequently, inspection of the time-patterns of aggregate output alone, even with sophisticated statistical methods, is unlikely to provide the answer. The composition of growth probably has to be considered. Furthermore, patterns of growth in states, while obviously conditioned by the same national free-trade single-currency area of which they are a part, exhibit peculiarities of growth of their own, Accordingly, to assess the slowdown during fiscal year 2001, behavior in the private and government sectors of the State of Georgia, as well as in the Nation, deserve review. Evolution of Slowdown Sharply rising levels of investment drove much of the expansion in national economic activity in the 1990's. Fixed investment rose from 13.8 percent of gross domestic product in 1989, just before the onset of the 1990 recession, to 18.6 percent in 2000, the end of a nine-year expansion. Residential investment climbed moderately in the period, approximately 2.7 percent per year, but was outpaced by non-residential investment, which rose approximately 7.1 percent per year. Within the non-residential category, investment in equipment and software grew far more rapidly than investment in structures (roughly 9.2 percent compared to 1.5 percent per year). Equipment and software purchases rose rapidly after the two-year recessionary dip ended. The average growth from 1992 through 2000 was 11.0 percent, with a rate of 14.6 percent being achieved during 1998. The exceptional gains in investment were pushed by an anticipation of extraordinary returns. Corporate profits from 1992 to 2000 rose at an annual rate of 8.3 percent per year. Per dollar of sales, profits rose from 2.8 cents in 1992 to 6.1 cents in 2000. Much of this increase was linked to the increases in productivity, which investments embodying information technology in a variety of forms helped to generate. Except for a surge to 2.8 percent in years of unusually rapid output expansion (4.7 percent per year from 1982 to 1986), productivity gains during the 1980's had risen barely 1 percent per year. In contrast, from 1992 through 2000, nonfarm output per labor hour climbed at an annual rate just under 2 percent. From 1995 to 2000, the average rate climbed to 2.6 percent. In 2000, in the ninth year of expansion, productivity advanced by 3.3 percent. This was close to the 1990's peak rate of 3.7 percent achieved early in the recovery (1992), a time when gains typically accelerate. Both of the 1992 and 2000 gains were well below the peak reported in the 1982 recovery of 4.5 percent. Because of dependence on expected returns and financing by funds not flowing from current outputgenerating activity, fixed investment is commonly viewed as an "autonomous" force driving economic advance. But, there are other "independent" influences. Instead of being a residual from sales disappointments, as when expansion slows, inventory investment can be an "outside" influence responding to business hopes for expansion. Also, government purchases and net exports can be "exogenous" forces. In this set, non-residential investment dominated the other "exogenous" components during the 1990's and regularly accounted for the largest fraction of the percentage growth in gross domestic product coming from investment. As the media repeatedly emphasizes, personal consumption expenditure is the largest of the spending components involved in the sale of final outputs. These outlays constituted 66.7 percent of gross domestic product in 1989; by 2000, they had increased to 67.8 percent. They were roughly 4.8 times as iii large as total fixed investment in 1989, but only 3.6 times as large in 2000. Although consumption rose more slowly than investment, its rate of increase during 1992-2000 averaged 3.9 percent per year. This rate was only slightly over the 3.7 percent rate exhibited by aggregate output. There is reason why consumption and gross domestic product should move together. In the main, spending by consumers depends upon the income flow generated by the production activities involving capital, management, and labor. Except for purchases (mostly of household durables) financed by borrowing from "outside" or by saving from earlier periods, consumption grows as gross domestic product grows. During the nineties, "exogenous" consumption (as of automobiles, home furnishings and appliances) rose and gave consumption an "independent" growth contribution paralleling that from investment. Motor vehicle sales climbed by 8.1 percent per year on average (after adjustment for inflation) from 1992 to 2000; consumer outlays for furniture and household appliances rose at the higher rate of 11.2 percent. This was partly a response to the 4.7 percent annual gain registered in residential investment. Throughout the 1992-2000 period, exogenous and endogenous increases in personal consumption together regularly accounted for most of the gain in gross domestic product. However, their joint contribution fell far short of that which the dominance of consumption in total output would suggest. For fixed investment, on the other hand, the contribution to output growth, though smaller than for consumption, was far larger than its share of total output would have indicated. Measures of the income-product accounts used to describe the Nation's economic advance are not available for a single state. Gross state product, the counterpart to gross domestic product, is the measure available for individual states and is reported (with a time lag) annually. For 1992-1999, the latest coverage, Georgia's gross product rose more rapidly than the Nation's, an annual average rate of 5.8 percent compared to 3.7 percent, respectively. Moreover, Georgia's product showed far less yearly variation. The min-max range of growth for Georgia was 4.3 to 6.4 percent; for the U.S., it was 2.7 to 4.4 percent. Certainly, part of Georgia's growth advantage was linked to its population gain, an increase roughly double the rate for the Nation. But, even on a product-per-capita basis, Georgia maintained an advantage. From 1992 to 1999, Georgia's gross state product per capita climbed at an average annual rate of 3.7 percent; the corresponding U.S. rate was only 2.7 percent. For measures of recent economic activity in Georgia, personal income, rather than gross state product, has to be used. Although personal income is a measure of money income (including transfers) rather than of output, it is reported quarterly and with a much shorter time lag than is gross state product. Growth-wise, real personal income has followed the pattern of gross output. From 1992 to 2000, personal income climbed at 4.6 percent. Similar to the behavior of gross domestic product, Georgia's personal income did reflect a slowdown that did not turn into a recession. In 1997, growth dropped to 3.9 percent from 5.1 percent in 1996. However, the 1997 rise was followed by a gain of 6.1 percent in 1998, the strongest annual gain in the nineties. In 1999 and 2000, growth eased to 4.3 and 4.0 percent, respectively. With a focus on seasonally adjusted quarterly levels, the pattern of easing growth rates seen in annual levels of real personal income reappears. Taking four-quarter spans corresponding to the fiscal years of the State of Georgia, the growth rates in personal income in fiscal years 1999, 2000, and 2001 were 4.6, 3.4, and 2.3 percent, respectively. In the three fiscal years preceding the 1980 recession, the growth rates were 4.0, 5.9, and 1.2 percent, respectively. Despite the middle-year recovery, decline nonetheless set in. Preceding the 1990 recession, the increases in personal income for the prior three fiscal years eased regularly with advances of 4.7, 2.3, and 2.2 percent, respectively. Given the regular slippage of the past three fiscal years, the question arises as to whether the intensifying weakness seen in fiscal years 1999 iv through 2001 is a harbinger of recession for fiscal year 2002 as similar weakenings have been before or whether the slowdown is merely a dip between two periods of strength. Lacking spending measures for Georgia, reference to the behavior of employment can perhaps help to explain patterns of growth in real personal income. During the quarters of fiscal years 1998 and 1999, gains in Georgia's non-agricultural employment averaged 3.5 and 3.8 percent, respectively. The rate of advance slowed in fiscal year 2000 to 2.9 percent. In the year's first quarter, the increase was 3.4 percent; in the last quarter, it had fallen to 2.4 percent. The slowing continued in the quarters of fiscal year 2001. The initial quarter registered a gain of 2.0 percent, whereas the final quarter showed a gain of 1.7 percent. The three-year weakening could be explainable by the gradual retreat of growth rates in employment toward the growth rate of population. The weakening would then be a continuation of the easing from the peak rate of gain of 5.0 percent in 1994 to a rate of 3.8 percent five years later. But, in combination with the slowing of growth in personal income highlighted above, the easing in employment growth could also be a preamble to economic recession in fiscal year 2002. State government reaches into the State's private sector with taxes and fees to gain purchasing power for its programs and services. The structure of taxes and fees is adjusted by legislative action whenever it seems politically misaligned with the calls for expenditures. Although major tax changes are infrequent, incremental changes occur annually. Some are increases; some are decreases. The changes are responsive to variations in the bases to which taxes and fees apply and to the politically perceived role the state government is uniquely suited to fulfill. Being tied to the private sector, expansion and decline in personal income tend to be mirrored, though perhaps shifted, in the State's revenue collections. While the State may attempt to "smooth" collections and outlays budgetarily, the linkage of the tax and fee system to selected segments (typically narrow) of private activity gives the potential for accentuation of variations in private incomes within the total collections. Accordingly, during recessions, revenues typically grow more slowly than personal income and during booms they tend to rise more strongly. During both expansions and contractions, the variation in the rate of growth in collections tends to be considerably greater than that in personal income. During the period from fiscal year 1992 through fiscal year 2000, revenue collections climbed at an average yearly rate of 9.3 percent. This exceeded the average gain in personal income (unadjusted for inflation) by 8.3 percent. The increased importance of the individual income tax (whose revenues rose at an average rate of 10.9 percent) gave the structure of taxes and fees this characteristic of "progressivity". In inflation-adjusted terms, the State revenues increased by 6.7 percent per year compared to 5.3 percent for personal income. The min-max range of growth for revenues in the 19922000 interval was 5.3 to 11.5 percent (current dollars) and 3.3 to 8.8 percent (real dollars). Significantly, the one-year slippage from 6.6 to 5.3 percent (fiscal year 1998) was followed by two years of gain of 8.3 and 8.6 percent, respectively. No recession was signaled. In fiscal year 2001, the rate of increase in revenues has again dropped to 6.6 from 8.6 percent in fiscal year 2000. When the private sector experiences recession, State revenues exaggerate the extent of decline. During the 1990-1991 recession, revenues rose only 0.9 percent (FY 1991) and 1.4 percent (FY 1992), respectively. After adjustment for inflation, the purchasing power acquired by the State actually declined for fiscal years 1990, 1991, and 1992 by 1.5, 2.2, and 0.3 percent, respectively. Whether the three-year pattern of decline in revenues (adjusted for inflation) from 6.2, to 4.3 and to 3.0 percent over the fiscal years 1999 to 2001 points toward negative change in fiscal year 2002 is obviously the pressing budgetary question facing the State. v Current Condition and Prospects In the national economy, gross private domestic investment has been declining throughout the State's fiscal year 2001. The growth rate in the quarter at the beginning of the year was 8.0 percent; in the last quarter, a decrease of 7.5 percent was reported. This slippage was more than enough to overwhelm the contribution of consumption to growth coming mainly from the continued advance (about 6.0 percent) in purchases of durables. Although 10-year interest rates were below year-ago levels, by about 60 basispoints, investment was not bouncing back. This was no doubt because capital capacity was already excessive and because profits were declining at roughly a 10 percent quarterly rate. In Georgia, growth in personal income also slipped throughout fiscal year 2001, dropping from 7.3 to 5.3 percent (or 3.6 to 2.3 percent in real units) from the first quarter to the last. At the same time, employment growth dropped from 2.0 to 1.7 percent. For the State, the revenue gain of 6.6 percent (3.0 percent in real measure), though well below the 5.4 percent average of the past two fiscal years, was not below the rate experienced in fiscal year 1998, when no recession was signaled. Weakness marks the private economies of the Nation and of Georgia. The driving forces from investment and from employment have been fading. Although revenue gains are not weak enough to be disturbing by themselves, the dependency of revenues upon the private sector suggests that the weakness in the private economy will soon be transmitted. Patterns of growth as set forth in the foregoing are not conclusive indicators of conditions to be expected. However, to the extent they can be trusted, the review of patterns suggests that a recession in fiscal year 2002 is forthcoming and that the State will not escape the impact. MAJOR INITIATIVES Children's Protective Services The Division of Family and Children Services (DFCS) in the Department of Human Resources investigate over 78,000 allegations of child abuse and neglect annually. Children are one of the more vulnerable groups of citizens in Georgia; thus, major reforms in the service and oversight of the State's child protective and welfare services have been the focus of the Georgia Child Protective Services Task Force, appointed by the Department of Human Resources in January 2000. Programs have been redesigned in order to generate substantial new amounts of federal monies through the Title IV-E (child welfare) part of the federal Social Security Act and through major expansions in the scope of services funded through Georgia's Medicaid program. Historically, the number of child welfare clients eligible for residential and child protective service funded through federal entitlement programs has been one of the lowest in the country. However, the Department of Human Resources estimates that its intensive Title IV-E eligibility project will increase the number of children eligible for funding between 20 and 25 percent. Business Plan for the Uninsured The Department of Community Health developed the "Business Plan for the Uninsured" as a direct result of the Department's investigation of the 1.2 million Georgians without health insurance. The investigation found the uninsured to (1) earn less than 200% of the federal poverty level, or for a family of four, less than $34,100 per year, (2) live in families where the main wage earner works for a business with less than 100 employees, (3) work in agriculture, construction or service industries, and (4) be adults over 25 years of age. The initial focus of this plan concentrates on public sector initiatives, one of vi the three primary areas of focus; these initiatives can be categorized into four areas: (1) access to ensure citizens receive the healthcare coverage they purchase from insurance companies; (2) special populations to allow the working disabled to maintain their Medicaid coverage by contributing toward the cost of their care: (3) children to expand Medicaid to cover children in families with incomes up to 150% of the federal poverty level; and (4) indigent provider to increase Medicaid reimbursement to hospitals and Home Health agencies providing a certain level of indigent care. Medicaid In a plan to increase contributions from governmental entities participating in the Medicaid program, the Department of Community Health has been allowed to utilize upper payment limit (UPL) credits to obtain federal matching funds. A UPL credit is created when the State pays a care provider an amount different than the upper payment limit (UPL), the amount Medicaid would have paid for the same service. Historically, Medicaid payments to certain care providers, such as hospitals and nursing homes, have been lower than the UPL, thus creating UPL credits. The State must provide state matching funds in order to receive federal Title XIX (Medicaid) funds. Such matching funds can be generated by either directly appropriating the funds from state general revenues or by soliciting intergovernmental transfers (IGT) from public Medicaid providers, such as public hospitals and nursing homes. The Department may use either source of state matching funds to obtain UPL credits. Upon receipt of a UPL credit, the State must reimburse any IGT contributor the amount of their contribution in a combination of state and federal funds. After reimbursement to the contributor has occurred, the State may use any remaining funds to reinvest in new healthcare initiatives. If the new initiative is related to Medicaid-eligible services, the State may receive federal matching funds. A portion of the IGTs have been dedicated for use in the area of implementing Georgia's Business Plan for the Uninsured, the plan created to help make affordable healthcare accessible to the State's uninsured. Tobacco Settlement Funds As a participating state in the master settlement agreement with five cigarette manufacturers, Georgia received its' first payment in December 1999. One-third of this funding was dedicated to assist the State's most economically challenged areas. To aid rural communities in the areas of business development and infrastructure projects, the EDGE (Economic Development, Growth and Expansion) Fund and the Equity Fund were established. EDGE Fund Eligible uses of these funds are the development of public infrastructure, land acquisition and site development. Financial assistance is provided only in instances where a project would not come about in the absence of the assistance. Equity Fund This fund is centered on the principle that Georgia's communities must be empowered to help themselves. Eligible projects include traditional economic development projects, such as water and sewer projects, road, rail and airport improvements and industrial parks, as well as workforce development projects, technology development or tourism development proposals. Environment The Georgia Regional Transportation Authority (GRTA), in its' second year of operations, is continuing in the challenging task of bringing the 13-county Atlanta region into compliance with air quality standards, as defined under the federal Clean Air Act. Current issues include matching federal funds in order to conduct Phase II of circulation studies of the Cumberland/Galleria and Perimeter Center areas, vii continuing studies on the implementation of a regional bus system, and providing funds for in-plant inspections of buses, as required by federal law, for the Clayton County Bus System. Additional state funds will allow GRTA to further aid their tasks as a regional agency with regional goals measurement and implementation studies, non-attainment area and Transportation Management Association (TMAs) activities and transportation planning activities. GRTA continues to contract planning, engineering and program management functions related to the initiation of passenger rail service in Georgia. In conjunction with GRTA, the Department of Transportation and the Georgia Rail Passenger Authority will work together, through an inter-agency Program Management Team, to bring the goal of passenger rail service into reality for metropolitan Atlanta. 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 2001 and 2000 are compared in the following table: viii Revenues and Other Sources FY 2001 Amount Percent of Total FY 2000 Amount Percent of Total Increase (Decrease) From FY 2000 Percent of Increase (Decrease) Taxes $ 13,695,968,855 58.12% $ 12,966,453,323 58.27% $ 729,515,532 5.63% Licenses and Permits 440,808,678 1.87% 410,024,861 1.84% 30,783,817 7.51% Intergovernmental 7,279,299,131 30.89% 6,499,451,114 29.21% 779,848,017 12.00% Sales and Services 565,762,607 2.40% 629,416,207 2.83% (63,653,600) -10.11% Fines and Forfeits 214,379,855 0.91% 246,188,571 1.11% (31,808,716) -12.92% Interest & Other Investment Income 502,015,939 2.13% 348,716,046 1.57% 153,299,893 43.96% Rents and Royalties 17,355,972 0.07% 15,555,365 0.07% 1,800,607 11.58% Contributions and Donations 206,596,674 0.88% 274,246,976 1.23% (67,650,302) -24.67% Penalties and Interest on Taxes 9,684,355 0.04% 8,045,497 0.04% 1,638,858 20.37% Unclaimed Property 41,157,538 0.17% 45,530,760 0.20% (4,373,222) -9.60% General Obligation Bond Proceeds 567,363,080 2.41% 794,815,522 3.57% (227,452,442) -28.62% Other Revenue 26,408,330 0.11% 14,876,905 0.07% 11,531,425 77.51% $ 23,566,801,014 100.00% $ 22,253,321,147 100.00% $ 1,313,479,867 5.90% 2001 Revenues and Other Sources Licenses and Permits Intergovernment Taxes ix Sales and Services Fines and Forfeits Interest & Other Investment Income Rents & Royalties Contributions & Donations Penalties and Interest Unclaimed Property GO Bond Proceeds Other Revenue Expenditures by governmental fund type function for fiscal years 2001 and 2000 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 2001 Amount Percent of Total FY 2000 Amount Percent of Total Increase (Decrease) From FY 2000 Percent of Increase (Decrease) $ 788,458,919 3.58% $ 822,268,403 4.10% $ (33,809,484) -4.11% 7,752,818,250 35.20% 6,957,849,312 34.70% 794,968,938 11.43% 8,300,962,838 37.68% 7,498,521,721 37.40% 802,441,117 10.70% 1,626,360,119 7.38% 1,581,318,460 7.89% 45,041,659 2.85% 1,587,054,229 7.20% 1,443,073,761 7.20% 143,980,468 9.98% 455,033,691 205,578,201 84,148,200 522,931,260 704,233,985 $ 22,027,579,692 2.07% 0.93% 0.38% 2.37% 3.20% 100.00% $ 453,860,928 203,220,402 49,256,757 337,817,613 702,751,701 20,049,939,058 2.26% 1.01% 0.25% 1.68% 3.51% 100.00% $ 1,172,763 2,357,799 34,891,443 185,113,647 1,482,284 1,977,640,634 0.26% 1.16% 70.84% 54.80% 0.21% 9.86% The increase in Conservation expenditures is a result of the Georgia Greenspace Program, which establishes a framework for counties to develop and implement plans to permanently protect at least 20 percent of the county's geographic area as natural, undeveloped greenspace. 2001 Expenditures by Function Health and Welfare Transportation Education x Public Safety Economic Development Culture and Recreation Conservation Capital Outlay Debt Service General Government 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 fifteen 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, 2001, outstanding general obligation debt issues of the State of Georgia totaled $5,311,335,000. Outstanding revenue bonds of certain blended and discretely presented component units totaled $1,160,254,518, of which $149,555,255 are guaranteed by the State of Georgia. During fiscal year 2001, general obligation bonds in the amount of $395,515,000 were retired. General obligation debt issued during fiscal year 2001 totaled $567,280,000. At June 30, 2001, 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. xi 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 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. xii Compilation of Transmittal Letter This transmittal letter has been compiled utilizing information contributed by various State management sources. xiii (This page intentionally left blank) GEORGIA ELECTORATE xv 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 COMMUNITY HEALTH 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 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 2001 GEORGIA GOVERNMENT ORGANIZATION CHART ELECTED APPOINTED (This page intentionally left blank) Georgia Principal State Officials June 30, 2001 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 Lauren "Bubba" McDonald, Jr., Chairman Robert "Bobby" Baker, Jr. David L. Burgess Bob Durden Stan Wise 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 xvii (This page intentionally left blank) 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, 2001. 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 7% of the assets and 15% of the revenues of the general fund, 100% of the assets and revenues of the capital projects funds, 90% of the assets and 98% of the revenues of the enterprise fund, 64% of the assets and 21% of the revenues of the internal service funds, 67% of the assets of the fiduciary funds and 100% of the pension trust funds revenues, and 4% 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 88% of the assets and 95% of the revenues of the component unit governmental fund types, 83% of the assets and 95% of the revenues of the component unit proprietary fund types and 98% of the assets and 99% of the revenues of the component unit fiduciary fund types. The financial statements of these organizations and component units were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for those financial statements, is based solely upon the reports of the other auditors. Except as discussed in the following paragraphs, we conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Phoenix System, is utilized, in whole or in part, by 78 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 for Colleges and Universities in conformity with generally accepted accounting principles. Contractual obligations for services not performed and for goods that have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying College and University 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 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. 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, 2001, 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 funds, 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. 2 The financial statements of the general fund reflect accounts payable in the amount of $872,548,818 which represents the State of Georgia's liability for teachers salaries earned before June 30, 2001, but not paid until July and August, 2001. State appropriations for the subsequent fiscal year were available for obligation even though the period to which the appropriation applied had not begun. The recognition of this liability at June 30, 2001, however, is not in accordance with generally accepted accounting principles as promulgated by Governmental Accounting Standards Board (GASB) Statement 33 because the subsequent fiscal year had not begun. We believe, however, the omission of this liability would cause the financial statements of the State of Georgia to be misleading. As discussed in Note 2 to the general purpose financial statements, except for the matter discussed in the preceding paragraph, the State of Georgia implemented GASB Statement Number 33, Accounting and Financial Reporting for Nonexchange Transactions, in fiscal year 2001. In addition, the State has elected not to early implement GASB Statement Number 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments, and Statement Number 35, Basic Financial Statements -and Management's Discussion and Analysis- for Public Colleges and Universities. Those statements will be implemented for the fiscal year ended June 30, 2002, and will have a significant impact on the State's revenue and expenditure recognition and assets, liabilities, and fund equity reporting. In accordance with Government Auditing Standards, we have also issued a report dated March 15, 2002, 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 combining financial statements identified in the Table of Contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the State of Georgia. 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. 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. March 15, 2002 3 (This page intentionally left blank) GENERAL PURPOSE FINANCIAL STATEMENTS Georgia Combined Balance Sheet All Fund Types, Account Groups And Component Units June 30, 2001 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 Total Assets and Other Debits Liabilities, Equity and Other Credits Liabilities: 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 General Governmental Fund Types Special Revenue Debt Service Capital Projects Primary Government Proprietary Fund Types Enterprise Internal Service $ 2,227,951,922 $ 2,592,011,468 1,321,745,911 52,608,100 901,927,664 325,752,746 51,993 49,200,899 30,470,190 $ 135,253,964 $ 473,989,500 $ 480,353,640 $ 122,468,171 1,247,296,886 101,340,117 1,151,315,307 16,482,594 123,506 3,513,927 26,382,720 4,669,187 11,442,902 10,751,840 146,032 10,913,318 614,169 6,925 9,605,340 6,280,271 12,668,463 333,574,141 $ 7,511,333,158 $ 0 $ 135,253,964 $ 1,747,686,684 $ 625,414,127 $ 1,641,225,880 $ 1,329,866,600 $ $ $ 30,311,298 $ 6,093,634 $ 4,233,441 786,931 8,442,069 351,780,322 5,870,113 28,776,103 27,673 14,490,209 4,740 118,166 625,626,872 169,759,350 7,209,950 35,396 3,137,000 3,048,918 455,528 61,000,000 195,384,590 57,657 38,733,891 11,146,776 5,605 3,210,489 73,137,189 5,074,364 36,272,017 5,015,053 678,863 $ 2,320,708,805 $ 0 $ 0 $ 95,814,946 $ 231,633,428 $ 371,633,628 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 $ 5,482,585,347 $ 696,238,309 $ $ $ 9,618,840,853 $ 16,112 16,112 13,386,970,331 115,187,148 18,594,121,257 358,482 93,956,000 4,654,226 6,266,820 28,330,544 3,137,000 45,953,578 24,094 48,282,206 126,887,035 23,042,221 55,952,833 1,368,057,971 163,070,788 52,936,432 908,194,484 518,919,453 13,888,840 0 198,025 3,513,927 83,156,438 91,706,379 0 0 8,391 5,573,196,362 3,531,963,532 0 0 6,925 6,280,271 9,451,402,498 0 9,613,731 135,253,964 135,253,964 5,430,077,852 5,430,077,852 25,440,091 $ 2,284,234 419,042,269 $ 187,145,606 6,858,318 $ 40,845,965,674 10,070,181,531 16,112 59,629,516,771 916,732 20,542 7,236,368 22,486,539 1,050,003,819 108,633,142 3,483,904 18,209 4,295,298 4,134,745 271,937,486 168,021,222 1,375,294,339 457,494,813 1,102,940,251 908,194,484 796,490,549 13,888,840 3,504,446 198,025 3,513,927 87,469,945 95,841,124 126,097,736 313,774,559 126,097,736 313,774,559 85,094,607 6,264,006 675,434,788 841,297,438 16,226,829 59,681,236 932,515 6,264,006 675,434,788 6,925 6,280,271 10,378,727,058 16,226,829 69,294,967 135,253,964 6,915,323 5,436,993,175 $ 19,006,283,253 $ 6,684,763,786 $ 3,531,963,532 $ 5,565,331,816 $ 46,449,256,200 $ 120,689,738 $ 3,845,238,282 $ 41,293,715,215 $ 91,708,899,435 $ 11,383,704 $ 222,925,337 $ 113,158,366 163,175 27,357 10,419 3,496,343 8,483,303 35,179,138 3,496,075 109,657,219 7,475,116 381,690,186 6,925 35,177,488 175,106 1,883,134 266,918 $ 393,281,766 $ 541,373,543 $ $ $ 1,604,814,014 $ 244,805,523 367,192,889 351,780,322 38,333,407 23,123,775 830,565,360 13,888,840 0 3,504,446 0 57,657 61,000,000 343,781,305 6,485,787 28,318,168 0 490,004,863 46,536,540 2,561,997 6,925 0 5,314,040,506 5,314,307,424 0 $ 5,565,331,816 $ 9,519,777,932 $ 634,144 $ 1,043,175 625 126,603,926 $ 3,368,874 5,836,839 1,018,106 52,014 142,866 3,380,130 12,754,756 553,194 5,920,593 44,810,299 53,603 7,901,152 315,448,901 12,148,642 11,405,545 6,041,143 1,411,935,345 8,203,745 $ 1,962,850,127 $ 3,759,507 $ 109,229 3,145 17,349 1,735,811,591 371,604,938 351,780,322 44,170,246 24,251,735 830,565,360 13,888,840 198,025 3,504,446 3,380,130 12,812,413 61,000,000 389,144,798 34,309,713 7,901,152 805,453,764 58,685,182 13,967,542 6,925 6,041,143 6,726,242,769 3,889,230 $ 11,494,721,034 (continued) 7 Georgia Combined Balance Sheet All Fund Types, Account Groups And Component Units (continued) June 30, 2001 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 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 Tobacco Settlement Funds Reserved for Underground Storage Trust Fund 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 Total Liabilities, Equity and Other Credits General Governmental Fund Types Special Revenue Debt Service Capital Projects Primary Government Proprietary Fund Types Enterprise Internal Service $ $ $ $ 902,837,537 6,925 46,860,294 9,845,980 17,824,925 32,274,815 334,335,922 146,889,878 886,343,705 734,449,390 172,906,919 70,722,165 232,092,249 12,108,069 166,000,000 110,000 1,425,015,580 $ 5,190,624,353 $ $ 5,190,624,353 $ $ 7,511,333,158 $ $ $ $ $ $ $ $ $ 273,630,483 372,018,582 21,762,117 805,116,745 190,845,024 135,253,964 6,280,271 1,571,701 1,220,951,175 423,068,591 0 $ 135,253,964 $ 1,651,871,738 $ 393,780,699 $ 1,269,592,252 0 $ 135,253,964 $ 1,651,871,738 $ 393,780,699 $ 1,269,592,252 0 $ 135,253,964 $ 1,747,686,684 $ 625,414,127 $ 1,641,225,880 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 $ $ $ 3,531,963,532 $ $ 3,531,963,532 $ 85,094,607 $ 278,438 $ $ 3,617,336,577 $ $ 5,565,454,328 $ $ 577,935,915 12,639,145,602 4,115,898,377 1,808,984,721 48,972,787 $ 18,613,001,487 $ 6,143,390,243 $ 0$ $ 18,613,001,487 $ 6,143,390,243 $ 3,531,963,532 $ $ 5,565,454,328 $ 577,935,915 273,630,483 1,177,135,327 212,607,141 902,837,537 6,287,196 46,860,294 135,253,964 9,845,980 12,639,145,602 17,824,925 32,274,815 4,115,898,377 334,335,922 146,889,878 886,343,705 734,449,390 172,906,919 70,722,165 2,042,648,671 12,108,069 166,000,000 1,220,951,175 110,000 1,897,056,958 0 $ 33,397,514,736 $ 0 $ 36,929,478,268 $ $ $ 1,035,092,339 $ 5,565,454,328 577,935,915 1,308,722,822 81,499,323 746,007,503 1,258,634,650 958,614,644 1,812,343 397,479 13,212,559 41,289,825,985 904,649,880 6,287,196 46,860,294 135,253,964 9,845,980 53,928,971,587 17,824,925 32,274,815 4,115,898,377 334,335,922 146,889,878 886,343,705 734,449,390 172,906,919 70,722,165 2,056,258,709 428,019 13,978,242 10,775,303 27,391,386 $ 6,297,993 1,882,109,717 $ 41,289,825,985 $ 12,108,069 166,000,000 1,221,379,194 14,088,242 1,914,130,254 76,596,841,824 112,485,993 $ 1,882,388,155 $ 41,289,825,985 $ 80,214,178,401 $ 19,006,283,253 $ 6,684,763,786 $ 3,531,963,532 $ 5,565,331,816 $ 46,449,256,200 $ 120,689,738 $ 3,845,238,282 $ 41,293,715,215 $ 91,708,899,435 9 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 Fiscal Year Ended June 30, 2001 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 $ 13,695,968,855 $ 440,808,678 6,863,055,935 416,243,196 565,762,607 214,379,855 376,101,864 17,300,885 206,596,674 9,684,355 41,157,538 24,463,001 $ 22,871,523,443 $ $ 788,374,895 $ 7,752,818,250 8,300,962,838 1,626,360,119 1,587,054,229 455,033,691 205,578,201 84,148,200 $ 20,800,330,423 $ $ 2,071,193,020 $ Primary Government Governmental Fund Types Special Revenue Debt Service $ 0 $ 0 $ 395,515,000 306,898,165 696,474 (14,773,287) 0 $ 688,336,352 0 $ (688,336,352) The notes to 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 $ $ 183,886,712 $ 13,879,855,567 $ 440,808,678 125,914,075 55,087 1,945,329 22,553,143 201,784 127,429,673 2,235,493 6,885,609,078 416,243,196 565,964,391 214,379,855 629,445,612 17,355,972 206,596,674 9,684,355 41,157,538 28,643,823 $ 127,914,491 $ 336,306,805 $ 23,335,744,739 $ $ 13,879,855,567 440,808,678 142,114 1,795,304 1,005,379 82,254 11,302,057 6,885,609,078 416,385,310 567,759,695 214,379,855 630,450,991 17,438,226 217,898,731 9,684,355 41,157,538 28,643,823 14,327,108 $ 23,350,071,847 $ 84,024 $ $ 788,458,919 $ 8,741 7,752,826,991 72,305,057 8,373,267,895 1,626,360,119 1,587,054,229 434,902,392 889,936,083 205,578,201 84,148,200 522,931,260 522,931,260 55,087 150,233 15,692,313 395,570,087 307,048,398 696,474 (14,773,287) 15,692,313 $ 538,912,917 $ 507,216,190 $ 22,534,795,882 $ $ 4,254,113 33,820,547 788,458,919 7,752,826,991 8,373,267,895 1,630,614,232 1,587,054,229 889,936,083 239,398,748 84,148,200 522,931,260 395,570,087 307,048,398 696,474 (14,773,287) 15,692,313 38,074,660 $ 22,572,870,542 $ (410,998,426) $ (170,909,385) $ 800,948,857 $ 11 (23,747,552) $ 777,201,305 (continued) 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 Fiscal Year Ended June 30, 2001 General Primary Government Governmental Fund Types Special Revenue Debt Service Other Financing Sources (Uses): Operating Transfers In Operating Transfers from Primary Government Operating Transfers from Component Units Operating Transfers Out Operating Transfers to Component Units Proceeds of General Fixed Asset Dispositions Capital Leases General Obligation Bond Proceeds Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses Fund Balances, July 1 Adjustments (Net) Transfer of Equity Transfer of Equity to Agency Funds Increase in Inventories $ 169,427,495 $ 708,355,202 (3,024,002,981) (152,547,062) 590,075 56,026 $ (2,298,121,245) $ $ (226,928,225) $ 3,863,915,552 1,576,086,728 (25,251,069) (1,150,121) 3,951,488 $ 705,576,331 0 $ 705,576,331 0 $ 4,818,304 (4,818,304) 17,239,979 118,013,985 Fund Balances, June 30 $ 5,190,624,353 $ 0 $ 135,253,964 The notes to 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 $ 468,000,000 $ (228,462,109) 567,363,080 $ 806,900,971 $ 3,281,250 $ 1,346,285,076 $ 0 708,355,202 (3,252,465,090) (152,547,062) 590,075 56,026 567,363,080 3,281,250 $ (782,362,693) $ $ 35,062,525 1,346,285,076 35,062,525 708,355,202 (3,252,465,090) (152,547,062) 590,075 56,026 567,363,080 35,062,525 $ (747,300,168) $ 395,902,545 $ (167,628,135) $ 18,586,164 $ 1,255,969,193 2,025,533,562 7,268,250,596 1,576,086,728 (30,069,373) (1,150,121) 3,951,488 11,314,973 $ 29,901,137 16,076,413 7,284,327,009 1,576,086,728 (30,069,373) (1,150,121) 3,951,488 $ 1,651,871,738 $ 1,857,905,427 $ 8,835,655,482 $ 27,391,386 $ 8,863,046,868 13 Georgia Statement of Funds Available and Expenditures Compared to Budget Budget Fund For the Fiscal Year Ended June 30, 2001 Funds Available Revenues: State Appropriation Lottery Proceeds Tobacco Settlement Funds Federal Revenues Other Revenues Retained Total Revenues Carry-Over from Prior Year: Transfer from Fund Balance Original Appropriation Final Budget Actual Variance Positive (Negative) $ 13,770,328,880 $ 14,857,110,790 $ 14,856,469,948 $ 548,250,000 723,743,295 723,743,295 150,000,000 205,626,311 205,626,311 5,432,401,298 7,424,152,670 6,547,819,203 3,843,252,402 5,306,384,186 5,098,183,428 (640,842) 0 0 (876,333,467) (208,200,758) $ 23,744,232,580 $ 28,517,017,252 $ 27,431,842,185 $ (1,085,175,067) 2,213,428,059 1,200,365,216 (1,013,062,843) Total Funds Available $ 23,744,232,580 $ 30,730,445,311 $ 28,632,207,401 $ (2,098,237,910) 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 Community Health, Department of Corrections, Department of Defense, Department of Education, Department of Employees' Retirement System - Administrative Expense Fund Financing and Investment Commission, Georgia State 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 Natural Resources, Department of Pardons and Paroles, State Board of $ 186,593,380 $ 301,198,596 $ 257,730,198 $ 6,215,409 6,985,892 6,990,243 53,819,997 59,214,791 58,626,086 1,716,718 1,732,898 1,635,339 27,645,099 28,039,352 27,489,914 11,171,827 10,871,827 10,670,406 37,051,312 47,964,784 42,484,562 169,581,368 297,784,728 279,183,747 5,307,581,492 6,749,786,265 6,324,683,746 916,078,271 986,223,902 917,560,882 25,475,381 44,008,525 43,011,393 6,195,217,919 6,748,442,506 6,652,093,291 10,344,178 0 42,793,746 33,849,106 526,706,729 55,499,705 0 2,508,061,664 92,559,632 17,229,017 61,790,274 122,944,039 278,216,742 163,885,129 36,591,536 177,267,329 49,808,029 12,213,959 468,000,000 47,119,140 36,899,220 629,869,819 154,898,610 0 3,044,259,169 111,366,858 18,020,547 137,401,580 132,862,602 316,724,616 235,576,690 43,888,630 276,462,357 51,181,926 11,416,522 0 46,718,129 28,553,320 629,869,819 89,010,652 0 2,902,784,212 109,581,010 16,703,530 134,265,703 133,398,703 289,638,421 223,176,658 43,585,767 266,807,230 50,839,386 43,468,398 (4,351) 588,705 97,559 549,438 201,421 5,480,222 18,600,981 425,102,519 68,663,020 997,132 96,349,215 797,437 468,000,000 401,011 8,345,900 0 65,887,958 0 141,474,957 1,785,848 1,317,017 3,135,877 (536,101) 27,086,195 12,400,032 302,863 9,655,127 342,540 The notes to the financial statements are an integral part of this statement. 14 Georgia Statement of Funds Available and Expenditures Compared to Budget Budget Fund For the Fiscal Year Ended June 30, 2001 Original Appropriation Final Budget Actual Variance Positive (Negative) Personnel Board, State - Merit System of Personnel Administration $ Public Safety, Department of Public School Employees' Retirement System-Expense Fund Public Service Commission Public Telecommunications Commission Regents of the University System of Georgia, Board of Revenue, Department of School Readiness, Office 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 12,925,663 $ 134,318,435 17,642,000 12,071,488 34,433,944 3,602,611,086 273,319,282 368,188,939 35,004,392 3,071,492 260,924,603 13,077,335 339,842,111 1,478,944,897 29,952,240 12,209,645 15,911,852 $ 155,138,450 17,642,000 13,871,394 40,386,648 4,144,555,296 351,075,125 364,582,844 38,033,880 3,169,004 305,407,715 16,556,715 451,867,684 3,769,238,584 31,664,686 12,343,645 13,925,510 $ 148,596,642 17,642,000 13,365,337 34,253,356 3,869,700,899 315,581,365 297,718,676 33,959,526 3,156,398 302,978,667 14,912,722 419,640,971 1,723,444,315 31,399,980 12,341,165 1,986,342 6,541,808 0 506,057 6,133,292 274,854,397 35,493,760 66,864,168 4,074,354 12,606 2,429,048 1,643,993 32,226,713 2,045,794,269 264,706 2,480 Total Expenditures $ 23,744,232,580 $ 30,730,445,311 $ 26,851,126,398 $ 3,879,318,913 Excess of Funds Available over Expenditures $ 1,781,081,003 $ 1,781,081,003 The notes to the financial statements are an integral part of this statement. 15 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, 2001 Primary Government Proprietary Fund Types Enterprise Internal Service Fiduciary Fund Type Nonexpendable Trust Operating Revenues: Contributions Interest and Other Investment Income Intergovernmental Rents and Royalties Sales and Services Taxes Other $ 1,464,228,424 $ 23,895,012 23,619,905 114,225,784 $ (14,040,871) 31,303,241 271,174,724 296,882 250 3,924 Total Operating Revenues $ 1,511,743,341 $ 402,959,760 $ 4,174 Operating Expenses: General and Administrative Goods and Services Interest Benefits Claims and Judgments Prizes Scholarships Depreciation Other $ 408,840,219 $ 166,234,637 $ 164,965,273 902,398,771 18,017,000 40,708,467 740 565,690 1,727,967 869 Total Operating Expenses $ 1,311,804,680 $ 391,653,344 $ 1,609 Operating Income $ 199,938,661 $ 11,306,416 $ 2,565 Nonoperating Revenues (Expenses): Contributions and Intergovernmental Revenue Interest and Other Investment Income Hotel/Motel Tax (Net) Interest Expense Other Debt Service Charges Other $ $ $ 1,356,533 1,715,614 (57,657) (14,980) (63,521) (53,581,478) Total Nonoperating Revenues (Expenses) $ 1,235,355 $ (51,880,844) $ 0 Net Income (Loss) Before Capital Contributions and Operating Transfers $ 201,174,016 $ (40,574,428) $ 2,565 The notes to the financial statements are an integral part of this statement. 16 Totals (Memorandum Only) Primary Government Component Units Proprietary Fund Types Totals (Memorandum Only) Reporting Entity $ 1,578,454,458 $ 9,858,065 0 31,303,241 294,794,629 0 296,882 $ 1,914,707,275 $ 50,680 $ 86,141,687 3,692,066 58,912,274 2,284,657,707 1,613,503 4,119,197 1,578,505,138 95,999,752 3,692,066 90,215,515 2,579,452,336 1,613,503 4,416,079 2,439,187,114 $ 4,353,894,389 $ 575,074,856 $ 164,965,273 0 920,415,771 40,708,467 0 740 2,293,657 869 $ 1,703,459,633 $ $ 211,247,642 $ 154,116,083 $ 350,594,165 47,820,884 1,141,483,000 36,889,063 40,638,031 729,190,939 515,559,438 47,820,884 920,415,771 40,708,467 1,141,483,000 740 39,182,720 40,638,900 1,771,541,226 $ 3,475,000,859 667,645,888 $ 878,893,530 $ 0 $ 3,072,147 0 (72,637) 0 (53,644,999) $ (50,645,489) $ 980,241 $ 61,373,024 22,659,025 (33,770,481) (14,877) (7,656,014) 43,570,918 $ 980,241 64,445,171 22,659,025 (33,843,118) (14,877) (61,301,013) (7,074,571) $ 160,602,153 $ 711,216,806 $ 871,818,959 (continued) 17 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, 2001 Primary Government Proprietary Fund Types Enterprise Internal Service Fiduciary Fund Type Nonexpendable Trust Capital Contributions $ $ 52,601 $ Operating Transfers: Transfers In Transfers from Primary Government Transfers Out Transfers to Primary Government $ 41,783,527 $ 46,506,923 $ (25,300,671) Net Operating Transfers $ 41,783,527 $ 21,206,252 $ 0 Net Income (Loss) $ 242,957,543 $ (19,315,575) $ 2,565 Excess of Revenues Over Expenditures from Governmental Operations and Expendable Trust Funds Fund Equity/Fund Balances, July 1 Adjustments (Net) Transfer of Equity Decrease in Inventories 124,042,547 $ 924,323 25,856,286 1,242,021,659 $ 47,714,650 (828,482) 49,516 Fund Equity/Fund Balances, June 30 $ 393,780,699 $ 1,269,592,252 $ 52,081 The notes to the financial statements are an integral part of this statement. 18 Totals (Memorandum Only) Primary Government Component Units Proprietary Fund Types Totals (Memorandum Only) Reporting Entity $ 52,601 $ 85,569,429 $ 85,622,030 $ 88,290,450 $ 0 (25,300,671) 0 $ 62,989,779 $ $ 223,644,533 $ $ 140,926,965 (707,980,508) (567,053,543) $ 229,732,692 $ 88,290,450 140,926,965 (25,300,671) (707,980,508) (504,063,764) 453,377,225 0 1,366,113,722 48,638,973 25,856,286 (828,482) (14,776,085) 1,753,659,936 (86,478,800) (28,026) (14,776,085) 3,119,773,658 (37,839,827) 25,856,286 (856,508) $ 1,663,425,032 $ 1,882,109,717 $ 3,545,534,749 19 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, 2001 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 Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Required Contributions 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 Grants and Scholarships Cash Paid for Lottery Prizes Origination of Program Loans Governmental and Fiduciary Fund Type Activity (Net) Other Operating Items (Net) $ 17,855,565 $ 1,478,048,690 328,083,195 $ 117,556,911 (393,309,034) (9,659,458) (925,796,197) (243,366,707) (92,068,614) (14,880,000) (78,647,796) 375 $ (869) (740) 250 345,938,760 $ 1,595,605,601 0 0 0 (636,676,610) (101,728,072) (940,676,197) (78,647,796) (740) 0 0 0 625 2,384,533,955 $ 14,131,841 116,532,578 84,000,567 (445,624,169) (108,372,177) (35,182,702) (1,167,105,000) (200,867,146) (18,960,942) (3,875,510) 2,730,472,715 1,595,605,601 14,131,841 116,532,578 84,000,567 (1,082,300,779) (210,100,249) (940,676,197) (78,647,796) (35,183,442) (1,167,105,000) (200,867,146) (18,960,942) (3,874,885) Net Cash Provided by (Used in) Operating Activities $ 167,139,566 $ 16,677,364 $ (1,359) $ 183,815,571 $ 619,211,295 $ 803,026,866 Cash Flows from Noncapital Financing Activities: Operating Transfers In Operating Transfers from Primary Government Issuance of Bonds/Loans/Notes Capital Contributions Hotel/Motel Tax (Net) Operating Transfers Out Operating Transfers to Primary Government Repayment of Advances Principal Paid on Bonds/Loans/Notes Interest Paid on Bonds/Loans/Notes Transfer of Equity Other Debt Service Payments Other Noncapital Items (Net) $ 41,783,527 $ 47,755,807 $ (26,549,555) 25,856,286 104,318 $ 89,539,334 $ $ 89,539,334 0 140,922,243 140,922,243 0 179,819,885 179,819,885 0 57,344,622 57,344,622 0 5,545,170 5,545,170 (26,549,555) (26,549,555) 0 (707,980,508) (707,980,508) 0 (3,225,889) (3,225,889) 0 (172,641,099) (172,641,099) 0 (49,967,111) (49,967,111) 25,856,286 25,856,286 0 (3,921,445) (3,921,445) 104,318 (6,490,950) (6,386,632) Net Cash Provided by (Used in) Noncapital Financing Activities $ 67,639,813 $ 21,310,570 $ 0 $ 88,950,383 $ (560,595,082) $ (471,644,699) Cash Flows from Capital and Related Financing Activities: Hotel/Motel Tax Received Capital Contributions 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) $ $ $ 52,601 181,811 (1,094,565) (20,591,857) (607,143) (14,980) $ 0 $ 16,812,673 $ 16,812,673 52,601 26,397,115 26,449,716 181,811 110,466 292,277 (21,686,422) (51,345,360) (73,031,782) (607,143) (12,019,011) (12,626,154) (14,980) (27,116,652) (27,131,632) 0 (14,877) (14,877) 0 (164,576) (164,576) Net Cash Used in Capital and Related Financing Activities $ (1,094,565) $ (20,979,568) $ 0 $ (22,074,133) $ (47,340,222) $ (69,414,355) Cash Flows from Investing Activities: Purchase of Investments (Net) Interest on Investments $ (81,714,032) $ (118,104,811) $ 24,779,027 57,180,935 $ (199,818,843) $ 2,861 81,962,823 (14,977,361) $ (214,796,204) 49,745,725 131,708,548 Net Cash Provided by (Used in) Investing Activities $ (56,935,005) $ (60,923,876) $ 2,861 $ (117,856,020) $ 34,768,364 $ (83,087,656) Net Increase (Decrease) in Cash and Cash Equivalents $ 176,749,809 $ (43,915,510) $ 1,502 $ 132,835,801 $ 46,044,355 $ 178,880,156 Cash and Cash Equivalents, July 1 303,603,831 $ 166,383,681 $ 14,610 470,002,122 499,095,650 969,097,772 Cash and Cash Equivalents, June 30 $ 480,353,640 $ 122,468,171 $ 16,112 $ 602,837,923 $ 545,140,005 $ 1,147,977,928 The notes to the financial statements are an integral part of this statement 20 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, 2001 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 Operating Income $ 199,938,661 $ 11,306,416 $ 2,565 $ 211,247,642 $ 667,645,888 $ 878,893,530 Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities: Depreciation/Amortization Interest Other Changes in Assets and Liabilities: Decrease in Intergovernmental Receivables Increase in Interest and Dividends Receivable Increase in Notes and Loans Receivable Decrease (Increase) in Other Receivables Decrease in Due from Other Funds Increase in Due from Primary Government Decrease in Due from Component Units Decrease (Increase) in Inventories Decrease (Increase) in Prepaid Items Decrease in Deferred Charges Increase in Other Assets Increase (Decrease) in Accounts Payable and Other Accruals Increase (Decrease) in Compensated Absences Payable Decrease in Claims and Judgments Payable Increase (Decrease) in Contracts Payable Increase (Decrease) in Salaries/Withholdings Payable Decrease in Benefits Payable Increase in Due to Other Funds Decrease in Due to Primary Government Increase in Deferred Revenue Increase in Other Liabilities Decrease in Deposits and Overpayments Decrease in Grand Prizes Payable $ 565,690 $ (23,895,012) (92,763) 1,727,967 $ 14,040,871 (589,023) (4,669,187) 5,819,018 22,789,620 207,610 618,747 156,885 5,757,206 640,469 (84,760) (23,397,426) 35,396 8,644,949 4,285,366 (5,129,807) (141,294) (37,939,329) (16,789) 102,298 3,393,110 2,643 (260,602) $ (3,924) 2,293,657 $ (9,858,065) (92,763) 0 0 0 5,229,995 22,789,620 0 207,610 618,747 (4,512,302) 0 0 627,399 499,175 (37,939,329) (16,789) 17,538 (23,397,426) 3,428,506 0 8,647,592 4,285,366 (260,602) 0 40,124,584 $ 47,820,884 (33,283,047) 1,288,698 (2,560,570) (85,090,143) (13,081,817) (7,008) (357,994) (738,262) 268,214 (1,380,546) 21,693,459 170,916 785,082 (910,160) (454,895) 1,971,692 240,000 (4,151,680) (20,782,000) 42,418,241 37,962,819 (33,375,810) 1,288,698 (2,560,570) (85,090,143) (7,851,822) 22,789,620 (7,008) 207,610 260,753 (5,250,564) 268,214 (1,380,546) 22,320,858 670,091 (37,939,329) 768,293 (892,622) (23,397,426) 3,428,506 (454,895) 10,619,284 4,525,366 (4,412,282) (20,782,000) Total Adjustments $ (32,799,095) $ 5,370,948 $ (3,924) $ (27,432,071) $ (48,434,593) $ (75,866,664) Net Cash Provided by (Used in) Operating Activities $ 167,139,566 $ 16,677,364 $ (1,359) $ 183,815,571 $ 619,211,295 $ 803,026,866 Noncash Investing, Capital, and Financing Activities: Acquisition of Fixed Assets through Installment Purchase Disposal of Fixed Assets Donation/Transfer of Fixed Assets Interest Earned on Grand Prize Investments and Grand Prizes Payable Interest Expense Related to Grand Prizes Payable Net Increase (Decrease) in Fair Value of Investments $ 11,146,776 $ $ (63,521) (54,281,968) 3,462,006 12,248 472,518 (69,506,192) $ 1,063 11,146,776 $ (54,345,489) 3,474,254 0 0 (69,032,611) $ (2,413,277) 2,055,323 14,398,000 (14,398,000) 11,546,673 11,146,776 (56,758,766) 5,529,577 14,398,000 (14,398,000) (57,485,938) $ 15,017,779 $ (123,775,912) $ 1,063 $ (108,757,070) $ 11,188,719 $ (97,568,351) The notes to the financial statements are an integral part of this statement. 21 Georgia Statement of Plan Net Assets Pension Trust Funds, Investment Trust Funds and Discretely Presented Component Units June 30, 2001 Assets Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Interest and Dividends Other Due From Other Funds Fixed Assets (Net, Where Applicable, of Accumulated Depreciation) Total Assets Liabilities Cash Overdraft Accounts Payable and Other Accruals Salaries/Withholdings Payable Due to Other Funds Due to Primary Government Capital Leases Payable Total Liabilities Defined Contribution Plan District Attorneys Retirement Fund Primary Government Pension Trust Funds Georgia Employees' Judicial Legislative Retirement System Retirement System Retirement System Superior Court Judges Retirement Fund Investment Trust Funds Georgia Extended Asset Pool Georgia Fund 1 $ 222,997 $ 39,181,435 131,000 892,242 3,000 $ 3,868,602 $ 12,239,503,592 179,163 $ 224,979,334 121,999 $ 27,702,092 93,825,000 13,578,293 3,167,000 120,784 56,000 $ 1,725,000 1,000 273,338 $ 3,479,558,981 8,772,321 627,293,737 $ 40,427,674 $ 3,000 $ 12,353,942,487 $ 225,279,281 $ 27,824,091 $ 1,782,000 $ 9,045,659 $ 4,106,852,718 $ $ $ $ $ $ $ $ 16,000 3,000 9,864,155 103,000 16,000 43,000 27,357 10,419 30,000 $ 16,000 $ 3,000 $ 9,901,931 $ 103,000 $ 46,000 $ 43,000 $ 0 $ 0 Fund Balances Reserved for Pension Benefits and Pool Participants $ 40,411,674 $ 0 $ 12,344,040,556 $ 225,176,281 $ 27,778,091 $ 1,739,000 $ 9,045,659 $ 4,106,852,718 The notes to the financial statements are an integral part of this statement. 22 Total Primary Government Class Nine Fire Department Pension Fund Firefighters' Pension Fund Judges of the Probate Courts Retirement Fund Component Units - Fiduciary Fund Types Peace Officers' Annuity and Benefit Fund Public School Employees Retirement System Sheriffs' Retirement Fund Superior Court Clerks' Retirement Fund Teachers' Retirement System Total Component Units $ 3,484,284,080 $ 13,169,157,511 93,956,000 14,592,319 3,167,000 0 $ 16,765,156,910 $ 16,485 $ $ 415,491,645 7,577 $ 44,467,932 5,187,764 $ 310,429,241 127,000 $ 748,852,000 14,547 $ 52,885,781 527,304 $ 977,659 $ 6,858,336 43,082,075 39,230,757,000 40,845,965,674 489,938 506,423 $ 3,208,063 339,171 419,038,879 $ 458,165 1,555,076 8,000 606 44,934,280 $ 543,855 317,715,936 $ 748,987,000 $ 383,182 27,771 53,311,281 $ 266,333,000 168,013,222 271,937,486 168,021,222 489,938 21,112 932,515 43,630,491 $ 39,666,080,881 $ 41,294,205,171 $ 0 $ $ 18 $ $ $ $ $ $ $ 18 10,045,155 416,000 3,343,507 3,759,507 27,357 109,229 109,229 40,419 489,938 489,938 0 3,145 3,145 0 17,349 17,349 $ 10,112,931 $ 0 $ 489,956 $ 0 $ 17,349 $ 416,000 $ 0 $ 0 $ 3,455,881 $ 4,379,186 $ 16,755,043,979 $ 506,423 $ 418,548,923 $ 44,934,280 $ 317,698,587 $ 748,571,000 $ 53,311,281 $ 43,630,491 $ 39,662,625,000 $ 41,289,825,985 23 Georgia Statement ofChanges in Plan Net Assets Pension Trust Funds, Investment Trust Funds and Discretely Presented Component Units For the Fiscal Year Ended June 30, 2001 Additions: Contributions Employer and Employee Fines and Forfeits Fines and Bond Forfeitures Interest and Other Investment Income Dividends and Interest Net Depreciation in Fair Value of Investments Less: Investment Expense Net Gain (Loss) 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 (Decrease) Before Operating Transfers Operating Transfers: Transfers In Transfers from Primary Government Transfers to Primary Government Net Operating Transfers Net Increase (Decrease) Fund Balances Reserved for Pension Benefits and Pool Participants, July 1 Fund Balances Reserved for Pension Benefits and Pool Participants, June 30 Defined Contribution Plan District Attorneys Retirement Fund Primary Government Pension Trust Funds Georgia Employees' Judicial Legislative Retirement Retirement Retirement System System System Superior Court Judges Retirement Fund Investment Trust Funds Georgia Extended Asset Pool Georgia Fund 1 $ 11,725,000 $ 141,000 $ 368,400,000 $ 4,616,000 $ 347,383 $ 1,958,000 $ $ 1,739,277 (1,535,591) (15,644) 417,419,030 (1,202,603,079) (9,929,631) 7,290,373 (21,006,225) (163,855) 514,829 (1,483,332) (11,576) 58,253 (167,943) (1,310) 77,154 10,783,050 199,969,124 (998,482) 5,424,876,866 $ 11,913,042 $ $ 310,000 $ 7,064,000 $ 7,374,000 $ $ 4,539,042 $ $ $ 141,000 $ (426,713,680) $ (9,263,707) $ (632,696) $ 1,847,000 $ 10,860,204 $ 5,623,847,508 $ 141,000 141,000 $ 0 $ 6,973,732 $ 518,734,000 $ 5,150,000 7,563,000 54,000 533,270,732 $ 5,204,000 $ (959,984,412) $ (14,467,707) $ $ 1,079,000 35,000 1,114,000 $ (1,746,696) $ $ 2,004,000 2,004,000 $ (157,000) $ $ 1,814,545 4,376,277,527 1,814,545 $ 4,376,277,527 9,045,659 $ 1,247,569,981 $ 2,992,000 $ $ $ $ $ $ 0 $ $ 4,539,042 $ 35,872,632 $ 40,411,674 $ 0 $ 2,992,000 $ 0 $ 0 $ 0 $ (956,992,412) $ (14,467,707) $ (1,746,696) $ 0 $ (157,000) $ 0 13,301,032,968 239,643,988 29,524,787 1,896,000 0 $ 12,344,040,556 $ 225,176,281 $ 27,778,091 $ 1,739,000 $ 0 $ 0 9,045,659 $ 1,247,569,981 0 2,859,282,737 9,045,659 $ 4,106,852,718 The notes to the financial statements are an integral part of this statement. 24 Total Primary Government Class Nine Fire Department Pension Fund Firefighters' Pension Fund Component Units - Fiduciary Fund Types Judges of the Probate Courts Retirement Fund Peace Officers' Annuity and Benefit Fund Public School Employees Retirement System Sheriffs' Retirement Fund Superior Court Clerks' Retirement Fund Teachers' Retirement System Total Component Units $ 387,187,383 $ 0 627,068,040 (1,226,796,170) (11,120,498) 0 5,435,659,916 0 0 0 0 0 $ 5,211,998,671 $ $ 7,283,732 $ 527,108,000 4,378,092,072 14,716,000 $ 4,927,199,804 $ $ 284,798,867 $ $ 2,992,000 $ 0 0 $ 2,992,000 $ $ 287,790,867 $ 16,467,253,112 $ 16,755,043,979 $ 17,235 $ 1,815,962 $ 33 14,317,653 (8,943,917) 489,938 38 507,244 $ 13,003,155 272,142 20,464,995 $ 179,402 $ 460,993 2,212,434 708,120 1,498,743 $ 18,882,000 $ 13,756,483 11,432,462 (4,713,941) 25,839,053 (74,494,068) (580,985) 141,132 $ 2,179,022 2,089,203 (1,342,493) 140,546 3,701,495 $ 172,543 22,146,290 $ (30,354,000) $ 3,066,864 $ 150,983 $ 1,174,590,694 $ 1,197,276,151 646,677 17,043,175 2,753,658 (15,000) 1,325,955,000 (3,394,901,000) (31,026,000) 1,384,599,496 (3,469,395,068) (31,621,985) (14,292,231) 0 297,108 1,279,744 297,108 140,546 1,279,744 13,493,093 444,723 5,113,170 $ (925,381,306) $ (900,735,248) 26 $ 795 821 $ 506,423 $ 1,846,389 $ 15,309,689 180,901 17,336,979 $ 3,128,016 $ 253,621 $ 1,599,884 27,219 1,880,724 $ 1,820,771 $ 1,578,773 $ 12,850,690 625,000 $ 33,464,000 128,143 282,000 14,557,606 $ 34,371,000 $ 7,588,684 $ (64,725,000) $ 519,068 $ 2,805,063 9,865 3,333,996 $ (267,132) $ 103,830 $ 2,681,266 10,562,909 $ 1,153,376,000 58,831,000 15,489,616 1,222,086,592 0 59,459,923 2,785,096 $ 1,222,769,909 $ 1,297,036,131 2,328,074 $ (2,148,151,215) $ (2,197,771,379) $ $ $ $ $ 0 $ 506,423 $ 0 $ 3,128,016 $ 0 $ 1,820,771 $ 0 $ 0 $ 7,588,684 $ (64,725,000) $ $ 0 $ (267,132) $ $ $ 0 3,270,000 3,270,000 (374,694) (374,694) 0 $ 2,895,306 $ 2,895,306 2,328,074 $ (2,145,255,909) $ (2,194,876,073) 0 415,420,907 43,113,509 310,109,903 813,296,000 53,578,413 41,302,417 41,807,880,909 43,484,702,058 506,423 $ 418,548,923 $ 44,934,280 $ 317,698,587 $ 748,571,000 $ 53,311,281 $ 43,630,491 $ 39,662,625,000 $ 41,289,825,985 25 Georgia Combined Statement of Changes in Fund Balances College and University Funds For the Fiscal Year Ended June 30, 2001 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 Loan Funds $ 1,188,709,503 $ $ 706,469,882 358,528,632 7,707,305 296,585,816 5,633,257 33,626 5,931,796 (78,772) 3,673 230,643 940,998 1,193,855 1,617,101 $ 1,190,326,604 $ 1,380,890,314 $ 511,201 2,801,598 $ 2,556,896,097 $ 1,279,667,371 $ 208,583,484 38,136,029 78,556 94,140,737 105,818 74,433 1,170,695 234,956 287,854 341,534 $ 2,803,615,610 $ 1,374,280,336 $ 1,821,618 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) $ $ $ 365,234 274,166 3,000,000 1,117,193 11,661,175 $ $ 1,188,709,503 706,756,344 358,802,798 10,710,978 6,033,995 315,628,822 (701,223) 23,670,732 1,645,896 4,932,034 26,291,252 5,931,796 1,193,855 174,433,317 174,433,317 97,716,009 10,303,885 152,369,329 97,716,009 10,303,885 152,369,329 560,212 1,771,044 188,064 3,513,931 560,212 7,090,140 511,201 $ 415,970 $ 41,302,563 $ 1,833,960 $ 444,370,466 $ 3,061,941,475 $ $ $ $ $ 3,836,563,468 208,583,484 38,214,585 94,140,737 74,433 1,170,695 7,669 348,443 97,716,009 19,533,526 10,303,885 4,364,812 231,190,542 108,019,894 23,898,338 629,388 231,190,542 $ 0 $ 117,257,204 $ 14,668,697 $ 231,190,542 $ 4,542,834,007 (continued) 27 Georgia Combined Statement of Changes in Fund Balances College and University Funds (continued) For the Fiscal Year Ended June 30, 2001 Transfers Between Funds, Net In (Out) Mandatory Nonmandatory Total Transfers Between Funds Operating Transfers: Transfers In Transfers Out Transfers to Component Units Total Operating Transfers Net Increase (Decrease) in Fund Balances Fund Balances, July 1 Adjustments (Net) Transfer of Equity Current Funds Unrestricted Restricted Loan Funds $ (1,381,432) $ (25,010,047) $ (26,391,479) $ (902,180) $ (5,612,370) (6,514,550) $ 90,708 (18,248) 72,460 $ 1,760,677,362 $ (2,621,688) (26,712,428) $ 1,731,343,246 $ $ 91,662,761 $ 176,670,468 (105,461,875) 4,213,087 $ 0 $ 95,428 $ 98,517,408 0 1,052,440 62,489,246 Fund Balances, June 30 $ 167,084,441 $ 98,612,836 $ 63,541,686 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) $ 2,192,904 $ $ $ (511,325) 15,624,418 15,527,572 $ 0 0 $ 1,681,579 $ 15,624,418 $ 15,527,572 $ 0 $ 0 $ $ $ 0 $ $ 2,097,549 $ 129,346,025 81,115,954 $ (116,066) 80,999,888 $ 20,669,665 $ 53,098,863 1,142,673 $ $ 1,842,935,989 (2,737,754) (26,712,428) 1,142,673 $ 0 $ 1,813,485,807 3,835,508 $ 213,179,924 $ 332,593,275 39,649,342 5,352,274,404 5,912,045,756 (105,461,875) 4,213,087 $ 131,443,574 $ 73,768,528 $ 43,484,850 $ 5,565,454,328 $ 6,143,390,243 29 Georgia Combined Statement of Current Funds Revenues, Expenditures and Other Changes College and University Funds For the Fiscal Year Ended June 30, 2001 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) Net Increase in Fund Balances The notes to the financial statements are an integral part of this statement. 30 Current Funds Unrestricted Restricted Total (Memorandum Only) $ 639,775,680 $ $ 639,775,680 84,871,881 637,163,058 722,034,939 8,371,599 355,943,992 364,315,591 724,798 7,487,658 8,212,456 15,549,503 268,044,912 283,594,415 122,856 4,258,576 4,381,432 61,883,797 6,235,375 68,119,172 212,205,767 212,205,767 1,912,925 1,912,925 163,290,697 163,290,697 $ 1,188,709,503 $ 1,279,133,571 $ 2,467,843,074 $ 944,227,368 $ 170,117,550 $ 1,114,344,918 289,001,261 289,972,237 578,973,498 163,781,531 85,744,248 249,525,779 274,652,096 9,282,318 283,934,414 136,048,018 4,358,521 140,406,539 397,951,525 36,399,939 434,351,464 231,903,390 146,443 232,049,833 119,330,908 572,214,378 691,545,286 63,875,286 168,755 42,528,289 16,673,564 37,195,438 48,142,152 63,875,286 168,755 42,528,289 16,673,564 37,195,438 48,142,152 38,136,029 1,381,432 103,611,715 7,898,578 902,180 38,136,029 103,611,715 7,898,578 2,283,612 $ 2,804,997,042 $ 1,280,648,107 $ 4,085,645,149 $ $ (25,010,047) 1,617,101 1,760,677,362 (2,621,688) (26,712,428) $ 1,707,950,300 $ 7,616,006 $ (5,612,370) (393,672) 7,616,006 (30,622,417) 1,223,429 1,760,677,362 (2,621,688) (26,712,428) 1,609,964 $ 1,709,560,264 $ 91,662,761 $ 95,428 $ 91,758,189 Georgia Notes to the Financial Statements Index Note 1 Note 2 Note 3 Note 4 Note 5 Note 6 Note 7 Note 8 Note 9 Note 10 Note 11 Note 12 Note 13 Note 14 Note 15 Note 16 Note 17 Note 18 Note 19 Note 20 Page Summary of Significant Accounting Policies.......................................................................................33 Other Accounting Disclosures ..............................................................................................................45 Budgetary Accounting ..........................................................................................................................47 Deposits and Investments .....................................................................................................................50 Receivables ...........................................................................................................................................58 Fixed Assets ..........................................................................................................................................60 Risk Management .................................................................................................................................62 Construction and Other Significant Commitments ...............................................................................63 Operating Leases...................................................................................................................................63 Capital Leases and Installment Purchases.............................................................................................65 Long-Term Debt ...................................................................................................................................66 Interfund Balances ................................................................................................................................70 Contributed Capital...............................................................................................................................72 Contingencies........................................................................................................................................72 Subsequent Events ................................................................................................................................73 Retirement Systems ..............................................................................................................................74 Nonmonetary Transactions ...................................................................................................................79 Postemployment Benefits .....................................................................................................................80 Fund Deficits.........................................................................................................................................80 Major Discretely Presented Component Unit Condensed Financial Statements ..................................80 31 (This page intentionally left blank) Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies With the exception of the departures from generally accepted accounting principles (GAAP) disclosed in the following paragraphs, the financial statements of the State of Georgia have been prepared in conformity with GAAP as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The financial statements of the College and University Funds have been prepared in conformity with GAAP as promulgated by the provisions of the American Institute of Certified Public Accountants' "Industry Audit Guide - Audits of Colleges and Universities." The more significant of the State's accounting policies are described below: A. Reporting Entity In evaluating how to define the government for financial reporting purposes, management has considered both the organizations that comprise the primary government and potential component units. The primary government consists of all the organizations that compose the legal entity of the State of Georgia. All agencies, departments, authorities, commissions, courts, councils, boards, universities, colleges, retirement funds, associations and other funds that are not legally separate are, for financial reporting purposes, considered part of the primary government. In addition, included within the primary government are organizations which are legally separate but so intertwined with the primary government that they are, in substance, part of the primary government. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in Section 2100 of the GASB Codification of Governmental Accounting and Financial Reporting Standards. This Section defines a component unit as a legally separate organization for which the primary government is financially accountable and other organizations for which the primary government is not accountable, but for which the nature and the significance of the relationship with the primary government are such that exclusion would cause the financial statements to be misleading or incomplete. Financial accountability is the ability to appoint a voting majority of an organization's governing board and to impose will upon the organization or to have exist the potential for the organization to provide specific financial benefits or impose specific financial burdens on the primary government. In addition, organizations that are fiscally dependent upon the primary government were considered as potential component units. As required by GAAP, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the government's operations and therefore data from these units are combined with that of the primary government. The blended component units are as follows: 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, 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 Technology Authority (Enterprise Fund) is an instrumentality of the State of Georgia and a public corporation. The authority is responsible for the procurement of technology resources, technology enterprise management and technology portfolio management, as well as the centralized marketing, provision, sale and leasing, or 33 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) execution of license agreements, for access on line or in volume, of certain public information maintained in electronic format to the public. State officials appoint the eleven members of the authority. 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 (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 who 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 Regional Transportation Authority (Governmental Fund Type) is a body corporate and politic. The purpose of the authority is to manage land transportation and air quality within certain areas of the State. The Governor appoints the fifteen members of the authority. 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 Governor appoints the nine Board members. 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 the Governor appoints seven members. 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. 34 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) 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. Georgia Golf Hall of Fame Authority (Proprietary Fund Type) is a body corporate and politic. The authority was created to construct, operate and manage a facility and related attractions to house the Georgia Golf Hall of Fame. The authority is governed by the fifteen members appointed by State officials to the Golf Hall of Fame Board. 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 four 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 three members of the Authority are 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 Governor appoints the sixteen members of the Board. 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. State officials appoint eight of the twelve members of the Board. 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. The Governor appoints the sixteen members of the Board. 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 twelve members, all of which are appointed by the Governor. Georgia Rail Passenger Authority (Proprietary Fund Type) is a body corporate and politic. This authority is responsible for construction, financing, operation and development of rail passenger service and other public transportation projects. The Board includes one member appointed by the Governor from each congressional district, as well as two appointed members from the State at large. Georgia Seed Development Commission (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State whose purpose is to purchase, process, and resell breeders' and foundation seeds. The commission consists of ten members who are accountable as trustees. Of the ten members serving on the Board, six members are State officials or are appointed by State officials. Georgia Student Finance Authority (Governmental Fund Type) is a body corporate and politic. This authority was created for the purpose of improving higher educational opportunities by providing educational scholarship, grant and loan assistance. A substantial amount of funding is provided to the authority by the State. State officials comprise four of the fifteen members of the Board, and the Governor appoints the remaining eleven. 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 35 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) The three members serving on the Board are State officials. The State has assumed the obligation to provide financial support for real property acquisition. World Congress Center to promote trade shows, conventions and political, musical, educational, entertainment, recreational, athletic or other events. The Governor appoints the fifteen members of the Board. 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. State officials appoint the eighteen members of the Board. The Georgia State Financing and Investment Commission must approve the issuance of bonds. 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 Governor appoints the nine members of the Board. OneGeorgia 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 promote the health, welfare, safety and economic society of the rural citizens of the State through the development and retention of employment opportunities in rural areas and the enhancement of the infrastructures that accomplish that goal. The six members of the Authority are State officials designated by statute. Sapelo Island Heritage Authority (Proprietary Fund Type) is a body corporate and politic. The purpose of the authority is the preservation of the cultural and historic values of Hog Hammock Community located on Greater Sapelo Island. State Road and 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, the Governor appoints three. The nature of this organization is such that it would be misleading to exclude it from the reporting entity. Georgia Class Nine Fire Department Pension Fund (Fiduciary Fund Type) is a multiple-employer, defined benefit pension plan established for the purpose of paying retirement and death benefits to volunteer firefighters of the State of Georgia. The Board of Trustees of the Georgia Firefighters' Pension Fund also serves as the Board of Trustees of this pension fund. Benefit provisions and vesting requirements are established by State statute. 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. 36 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) 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. The Employees' Retirement System Board of Trustees and two other Governor's appointees not on the Employees' Retirement System Board administer this retirement fund. Sheriffs' Retirement Fund of Georgia (Fiduciary Fund Type) is a multiple-employer, defined benefit pension plan established for the purpose of paying retirement, death and disability benefits to the sheriffs of the State of Georgia. The Board consists of one State official designated by statute and five members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute. Superior Court Clerks' Retirement Fund of Georgia (Fiduciary Fund Type) is a multiple-employer, defined benefit pension plan established for the purpose of paying retirement, death and disability benefits to the Superior Court Clerks of the State of Georgia. The Board consists of one State official designated by statute and six members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute. Teachers Retirement System of Georgia (Fiduciary Fund Type) is a cost-sharing multiple-employer plan created by an act of the Georgia General Assembly to provide retirement, service, disability and survivors' benefits for qualifying teachers. The Board of Trustees is comprised of ten members, eight of which are State officials or are appointed by State officials. The State provides a substantial amount of funding to this retirement system in the form of employer contributions. B. Fund Accounting The State of Georgia uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. Primary Government - The financial statements of the primary government are divided into four fund categories (further divided by fund type) and two account groups, all of which are described below. The four fund categories include governmental, proprietary, fiduciary and college and university funds. The two account groups presented are the general fixed assets account group and the general long-term debt account group. Governmental Fund Types are used to account for all or most of a state's general activities. Governmental fund types include: General Fund The General Fund is used to account for all financial transactions not required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a state government. Special Revenue Funds Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for specified purposes. The primary government special revenue fund is the GeorgiaNet Authority. The assets of the Authority were transferred to the Georgia Technology Authority (Enterprise Fund) effective July 1, 2000. 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. 37 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) Capital Projects Funds - Capital Projects Funds are used to account for the acquisition or construction of capital facilities. Proprietary Fund Types are used to account for activities similar to those found in the private sector, where cost recovery and the determination of net income is necessary or useful for sound financial administration. 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. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other State departments or agencies, or to other governmental entities, on a costreimbursement basis. Fiduciary Fund Types are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the State. These fund types include: Expendable Trust Funds - Expendable Trust Funds are used to account for the activities of trusts in which both principal and income may be used for the purposes of the trust. Nonexpendable Trust Funds - Nonexpendable Trust Funds are used to account for the activities of trusts when the government is under an obligation to maintain the trust principal. Pension Trust Funds - Pension Trust Funds are used to account for State-administered retirement systems. Investment Trust Funds - Investment Trust Funds are used to account for the external portion of a governmentsponsored investment pool. Agency Funds - Agency Funds are used to account for assets that the State holds on behalf of others as their agent. College and University Funds are used to account for the operations of State colleges and universities in accordance with existing authoritative accounting and reporting principles applicable to government-operated colleges and universities. Accordingly, college and university funds are an aggregation of the following funds. Current Funds - Current Funds are used to account for current operating expenditures and related resources and include (1) unrestricted funds over which the college or university retains full control in achieving the institutions' purposes, and (2) restricted funds, which may be utilized only in accordance with externally restricted purposes. Loan Funds - Loan Funds are used to account for transactions of related resources obtained and used for loans to students. Endowment and Similar Funds - Endowment and Similar Funds are used to account for resources held by the institutions that must be administered in accordance with trust agreements. Plant Funds - Plant Funds are used to account for institutional property acquisition, renewal and replacement, debt retirement and investment. Agency Funds - Agency Funds are used to account for amounts held in custody for students, university-related organizations and others. Agency Funds are also used to account for the external portion of college and university fund-sponsored investment pools. The General Fixed Assets Account Group is used to account for all fixed assets acquired or constructed for use by the State, other than those accounted for in the proprietary, fiduciary, and college and university funds. The General Long-Term Debt Account Group is used to account for general obligation bonds outstanding, accrued annual and compensatory leave, capital lease obligations and other long-term liabilities not otherwise recorded in proprietary, fiduciary, and college and university funds. 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. 38 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) Proprietary Fund Types are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial management. Fiduciary Fund Types are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the State. The financial data presented in these columns are discretely presented with the balances and transactions for each component unit being aggregated within the component unit's predominant fund type. C. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. All proprietary funds, nonexpendable trust funds, pension trust funds and investment trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. The modified accrual basis of accounting is used by all governmental fund types, expendable trust funds and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Principal revenue sources which are susceptible to accrual include income taxes, sales and use taxes, federal grants and shared revenues. Expenditures are recorded when the related fund liability is incurred. 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 Class Nine Fire Department Pension Fund 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 State has elected to follow generally accepted accounting principles prescribed by the GASB and all Financial Accounting Standards Board (FASB) standards issued on or before November 30, 1989. 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 revenues and expenditures. The budget represents departmental appropriations recommended by the Governor and adopted by the General Assembly prior to the beginning 39 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) of the fiscal year. Annual appropriated budgets are adopted at the departmental level. The appropriated budget covers most governmental funds included in the State reporting entity but excludes the special revenue fund, capital projects funds and certain debt service funds which are not subject to appropriation. The budget includes certain proprietary funds, the college and university funds, and the administrative costs of operating certain public employee retirement systems. All unencumbered annual appropriations lapse at fiscal year end unless otherwise specified by constitutional or statutory provisions. Supplementary and amended appropriations may be enacted during the next legislative session by the same process used for original appropriations. Encumbrances are used to indicate the intent to purchase goods or services. Liabilities and expenditures are recorded upon issuance of completed purchase orders. Goods or services need not have been received for liabilities and expenditures to be recorded. Because the budgetary basis differs from GAAP, budget and actual amounts in the accompanying Statement of Funds Available and Expenditures Compared to Budget - Budget Fund are presented on the budgetary basis. A reconciliation of the excess of funds available over expenditures on the budgetary basis at June 30, 2001, to the excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses/net income (loss)/net increase (decrease) in plan net assets/net increase in fund balances - current funds presented in conformity with GAAP is set forth in Note 3. E. Deposits and Investments Cash and Cash Equivalents Cash and cash equivalents include currency on hand and demand deposits with banks and other financial institutions. Cash and cash equivalents also include short-term, highly liquid investments with maturity dates within three months of the date acquired, with the exception of the college and university funds, which report all time deposits as cash. Investments Investments are defined as those financial instruments with terms in excess of three months from the date of purchase and certain other securities held for the production of revenue. The investment policy of the State of Georgia is to maximize the protection of State funds on deposit while accruing an advantageous yield on those funds in excess of those required for current operating expenses (Official Code of Georgia Annotated [OCGA] 50-17-51). The State Depository Board may permit any department, board, bureau or other agency to invest funds collected directly by such organization in short term time deposit agreements, provided that the interest income of those funds is remitted to the Director of the Office of Treasury and Fiscal Services as revenues of the State of Georgia. As a matter of general practice, however, demand funds of any department, board, bureau or other agency in excess of current operating expenses are required to be deposited with the Director of the Office of Treasury and Fiscal Services for the purpose of pooled investment (OCGA 50-17-63). Such cash is managed in a pooled investment fund to maximize interest earnings. The pooled investment funds "Georgia Fund 1" and "Georgia Extended Asset Pool" are 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. Authorized investments are subject to certain restrictions. 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 40 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) 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, corporate obligations and repurchase agreements. The Secondary Liquidity Portfolio consists of certificates of deposit with average investment duration of .16 years. The Georgia Extended Asset Pool is part of the Extended Term Portfolios. It is a variable net asset value investment pool which follows Standard and Poor's criteria for AAAf rated funds. The pool is not registered with the SEC as an investment company. The pool's primary objective is the prudent management of public funds on behalf of the State of Georgia and local governments seeking income higher than money market rates. Net Asset Value (NAV) is calculated daily to determine current share price. NAV is calculated by taking the closing fair value of securities owned plus other assets and subtracting liabilities. The remainder is then divided by the total number of shares outstanding to compute NAV per share (current share price). The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on the current share price, which at June 30, 2001, was $2.01 per share. Investments consist generally of securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, bankers' acceptances and repurchase agreements. The average investment duration at June 30, 2001, was 1.25 years. The Extended Term Portfolios include three other funds: two consisting generally of repurchase agreements and certain U. S. Government Securities with average investment durations at June 30, 2001, of 1.98 and 2.12 years; and a third fund consisting 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). Investments in this third fund are transacted by an external investment management firm under direction of an investment advisory agreement executed between the Office of Treasury and Fiscal Services and the investment management firm. The agreement directs the investment firm to utilize the Merrill Lynch 1-3 year Treasury Index in managing the average duration of the overall portfolio, excluding cash, to within plus or minus six months of the duration of the Index. The average investment duration for this fund on June 30, 2001, was 1.85 years. The agreement also places limitations on individual security purchases and holdings. As of June 30, 2001, the State had $73,492,711 invested in U. S. agency mortgagebacked 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, 2001. 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, 2001, the Department held surety bonds in the amount of $37,731,426, and cash bonds in the amount of $14,284,126. 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, 2001, securities valued at $229,098,716 were held by the Department of Insurance. These securities are not recorded on the Combined Balance Sheet. Construction contracts awarded by the Department of Transportation usually include provisions to withhold a percentage of the payments until the project reaches a specified state of completion. Georgia law requires that 41 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) 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, 2001, $36,002,224 in escrow deposits was 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 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. J. Inventories Inventories of supplies and materials are determined by physical count and/or perpetual inventory records and are valued at cost, weighted average cost, moving average cost, or lower of weighted average cost or market, using the firstin/first-out (FIFO) method, depending on the individual organization's preference. The costs of governmental fundtype 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, 2001, 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. M. Fixed Assets General fixed assets of governmental fund types are reflected as expenditures in the funds used to acquire or construct them and the related assets are reported in the general fixed assets account group. Proprietary and trust 42 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) 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. N. Compensated Absences The State's liability for accumulated unpaid annual leave is reported in the accompanying general long-term debt account group for governmental fund types. These amounts are not shown as a liability in the funds but are recorded as expenditures when paid. In the proprietary fund types and the college and university funds this obligation is reported as a liability in the respective funds. Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employee's length of continuous State service with a maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. Funds are provided in the appropriation of funds each fiscal year to cover the cost of annual leave of terminated employees. Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Sick leave does not vest with the employee. Unused accumulated sick leave is forfeited upon retirement or termination of employment. However, certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. O. Deferred Revenue The State reports deferred revenue on the combined balance sheet. Deferred revenues arise when 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. 43 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) P. Mortgage Loans Under Repurchase Agreements At June 30, 2001, mortgage loans totaling $7,901,152 have been transferred and assigned to lenders under repurchase agreements by the Georgia Development Authority (Discretely Presented Component Units). The agreements give the lenders the option to have the Authority repurchase the mortgage loans for an amount equal to the then outstanding balance of principal and interest due during a specified period of time. In addition, the Authority guarantees the principal and interest payment by the borrower to the lender within thirty (30) days of the due date. Any payment not received within thirty (30) days is considered advanced to the borrower and paid to the lender by the Authority. The Authority then charges the borrower interest on these advances for the period outstanding at a penalty rate agreed upon at the loan origination date. Fund balance in the amount of fifteen percent (15%) of the principal balances outstanding of mortgage loans under repurchase agreements is reserved. Q. Long-Term Obligations Long-term debt and other long-term obligations are recognized as a liability of a governmental fund when due, or when resources have been accumulated in the debt service fund for payment early in the subsequent fiscal year. Other long-term obligations, with the exception of the long-term portion of some capital leases, are reported in the general long-term debt account group. Long-term debt expected to be financed from proprietary fund operations are accounted for in those funds. 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 In governmental fund types, bond discounts, premiums and issuance costs are recognized in the current period. Bond discounts, premiums and issuance costs for proprietary fund types are deferred and amortized over the term of the bonds using a method which approximates the effective interest method or the straight-line method. Bond premiums (discounts) are presented as increases (reductions) in the face amount of bonds payable whereas issuance costs are recorded as deferred charges. T. Interfund Transactions The State has the following types of interfund transactions: Quasi-external transactions for services rendered by one fund to another are accounted for as revenues by the recipient fund and expenditures or expenses by the disbursing fund. Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. 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. 44 Georgia Notes to the Financial Statements June 30, 2001 Note 1. Summary of Significant Accounting Policies (continued) V. Memorandum Only - Total Columns Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with GAAP. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. W. Fiscal Reporting Periods The financial statements include financial activity for the Stone Mountain Memorial Association whose fiscal reporting period differs from that of the State of Georgia (July 1, 2000 through June 30, 2001). The applicable fiscal reporting period for the Stone Mountain Memorial Association is based on a fifty-two/fifty-three week period ending on the last Sunday of each calendar year. Financial activity is reported for the period January 1, 2000, through December 31, 2000. Note 2. Other Accounting Disclosures Change in Accounting Policy and Restatements In fiscal year 2001, the State implemented GASB Statement 33, "Accounting and Financial Reporting for Nonexchange Transactions." This statement requires that capital contributions, including governmental grants, be reported in the statement of revenues, expenses and changes in fund equity as a revenue item, rather than as direct additions to contributed capital, as under previous standards. This change is reflected as an adjustment to fund equity in the applicable funds. In fiscal year 2001, the State discontinued the practice of recording encumbrances as expenditures and accruing revenues based on the unexecuted portion of contracts for goods and services, in accordance with GAAP. These changes are reflected as an adjustment to fund balances/fund equity in the applicable funds. Prior to fiscal year 2001, stock certificates held by the unclaimed property unit were not reported in the financial statements. The fund balance of the general fund has been adjusted by $25,349,277 to correct this error. Effective July 1, 2000, the operations of the special revenue fund (GeorgiaNet Authority) were transferred to the Georgia Technology Authority (Enterprise Fund). The beginning fund equity of the enterprise fund has been increased by $924,323 to reflect the change from the modified accrual basis of accounting utilized by the special revenue fund to the accrual basis utilized by the enterprise fund. In fiscal year 2001, an error was discovered in the amount reported for certain liabilities of the Liability Self-Insurance Reserve risk management fund, which is included in the internal service funds. The beginning fund equity of the internal service funds has been increased by $46,393,559 to reflect the correction of this error. On July 1, 2000, the operations of the Medical College of Georgia Hospitals and Clinics were transferred to a private corporation. The beginning fund balance of the college and university funds has been decreased by $119,004,774 to reflect the removal of these operations from the reporting entity. During fiscal year 2000, the Medical College of Georgia recorded pension expense in excess of the required pension contribution. The beginning fund balance of the college and university funds has been increased by $13,542,899 to reflect this prepaid expense. In fiscal year 2001, the Higher Education Assistance Corporation changed its basis of accounting from the statutory basis of accounting, an other comprehensive basis of accounting, to the basis of accounting which complies with accounting principles generally accepted in the United States. The beginning fund equity of the discretely presented component units - proprietary fund types has been decreased by $21,357,873 for this change in accounting principle. In fiscal year 2001, the Music Hall of Fame Authority began depreciating fixed assets in accordance with GAAP. The beginning fund equity of the discretely presented component units - proprietary fund types has been decreased by $63,108 for this change in accounting principle. Fund balances/fund equity at July 1, 2000, have been adjusted as follows: 45 Georgia Notes to the Financial Statements June 30, 2001 Note 2. Other Accounting Disclosures (continued) Primary Government General Fund Encumbrances $ Revenues Based on Encumbrances Stock Held by Unclaimed Property Unit 2,776,247,423 (1,225,509,972) 25,349,277 $ 1,576,086,728 Enterprise Fund Operations Transferred from Modified Accrual Basis Fund $ 924,323 Internal Service Funds Encumbrances Correction of Liabilities $ 1,321,091 46,393,559 $ 47,714,650 College and University Funds Transfer of Hospital/Clinic Operations Correction of Prepaid Expenses $ (119,004,774) 13,542,899 $ (105,461,875) Discretely Presented Component Units Proprietary Fund Types GASB 33 Implementation $ (65,057,819) Change in Basis of Accounting (21,357,873) Accumulated Depreciation (63,108) $ (86,478,800) 46 Georgia Notes to the Financial Statements June 30, 2001 Note 3. Budgetary Accounting The Official Code of Georgia Annotated (OCGA), Title 45, Chapter 12, Article 4 sets forth the process for the development and monitoring of an appropriated budget for the State of Georgia. Not later than September 1 of each year, the head of each executive branch budget unit must submit estimates of the financial requirements for the subsequent fiscal year to the Office of Planning and Budget, which operates under the direction of the Governor. Budget estimates relative to the legislative and judicial branches of State government are provided to the Office of Planning and Budget for the purpose of estimating the total financial needs of the State, but are not subject to revision or review by the Office of Planning and Budget. The Governor, through the Office of Planning and Budget, examines the estimates and may investigate and revise executive branch submissions as necessary. Upon the completion and revisions of the estimates, the Governor must prepare and submit a budget report to the General Assembly within five days of the date on which the General Assembly convenes. The Governor possesses the responsibility and authority to establish the revenue estimate for the corresponding fiscal year. The General Assembly, after adopting such modifications to the Governor's budget report, as it deems necessary, enacts the General Appropriations Act for the subsequent fiscal year. Each General Appropriations Act enacted, along with amendments as are adopted, continues in force and effect for the next fiscal year after adoption. In accordance with the Constitution of the State of Georgia, Article III, Section IX, Paragraph 4, the General Assembly is prohibited from appropriating funds for any given fiscal year which, in the aggregate, exceeds the amount of unappropriated surplus funds expected to have accrued at the beginning of the subsequent fiscal year together with the total estimated amount of receipts from existing revenue sources, less refunds, anticipated to be collected in the subsequent fiscal year. The Constitution further authorizes the passage of additional Supplementary Appropriation Acts for specific purposes, provided sufficient unappropriated funds are available or additional revenue measures have been enacted. Federal funds received by the State are continually appropriated in the exact amounts and for the purposes authorized and directed by the awarding federal agency. Internal transfers within a budget unit and between objects of functional or activity budget units are subject to the condition that no State funds shall be transferred for the purpose of initiating a new program area not currently having a State funds appropriation. The Governor, through the Office of Planning and Budget, requires each budget unit, other than those of the legislative and judicial branches, to submit an annual operating budget based on the activities and functions set forth in the Appropriations Act. Budget units submit quarterly allotment requests, which must be approved in conjunction with quarterly work programs prior to release of appropriated funds. Further monitoring of budget unit activities is accomplished by review of expenditure reports, which are submitted quarterly to the Office of Planning and Budget. Budget units (i.e., agencies, commissions) of the State are responsible for budgetary control of their respective portion of the total State appropriated budget. The legal level of budgetary control is at the departmental level. Due to the complex nature of the State appropriated budget, a separate budgetary report entitled, "Report of the State Auditor of Georgia," is published each year. This report includes a listing of State organizations (appropriation units) which incurred expenditures in excess of amounts budgeted by object class. The appropriated budget covers the majority of the governmental funds included within the State of Georgia reporting entity, but excludes the special revenue fund, debt service fund and capital projects funds, which are not subject to appropriation. The budget does include certain proprietary funds, the college and university funds, and the administrative costs of operating various public employee retirement systems. The accompanying Statement of Funds Available and Expenditures Compared to Budget - Budget Fund presents comparisons of the legally adopted budget with actual data prepared on the budgetary basis of accounting utilized by the State. Because the budgetary and GAAP presentations for actual data differ, a reconciliation of "Excess of Funds Available Over Expenditures - Budget Fund (Budgetary Method)" and "Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses/Net Income (Loss)/Net Increase (Decrease) in Plan Net Assets/Net Increase in Fund Balances - Current Funds - GAAP Fund Types" appears below. 47 Georgia Notes to the Financial Statements June 30, 2001 Note 3. Budgetary Accounting (continued) 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 (Decrease) in Plan Net Assets/Net Increase in Fund Balances - Current Funds - GAAP Fund Types Budgetary Fund Budget General Special Revenue Debt Service Capital Projects Primary Enterprise $ 1,781,081,003 $ $ $ $ $ (1,781,081,003) 955,282,623 1,282,296,212 17,239,979 468,000,000 259,074,874 (72,097,455) 14,952,592 (2,608,656,757) 140,029,357 4,120,340 497,532 (31,567,455) $ 0 $ (226,928,225) $ 0 $ 17,239,979 $ 395,902,545 $ 242,957,543 48 Government Internal Service Financial Statement Fund Types Expendable Trust Nonexpendable Trust Pension/Investment Trust College and University Discretely Presented Component Units Governmental Fund Types Proprietary Fund Types Fiduciary Fund Types $ $ $ $ $ $ $ $ 26,175,400 23,021,953 (167,628,135) 2,565 200 287,245,279 65,783,444 (12,783,012) (3,591,866) 5,972,232 4,819,674 415,536 213,447,940 376,694 (2,194,815,164) (25,550,488) (42,216,896) (745,544) 569,120 (10,457,140) (23,732) 50,869,579 6,681 1,930,503 90,000 433,067 798,151 294,980 (2,000) (60,909) (374,694) $ (19,315,575) $ (167,628,135) $ 2,565 $ 287,790,867 $ 91,758,189 $ 11,314,973 $ 214,956,607 $ (2,194,876,073) 49 Georgia Notes to the Financial Statements June 30, 2001 Note 4. Deposits and Investments Deposits - Funds belonging to the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more of the following securities as enumerated in OCGA 50-17-59: 1) Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United States or of the State of Georgia. 2) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia. 3) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. 4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. 5) Bonds, bills, certificates of indebtedness, notes or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association and the Federal National Mortgage Association. 6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. As authorized in OCGA 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia the option of exempting demand deposits from the collateral requirements. Primary Government At year-end, the carrying amounts of the State's deposits were $753,829,983, and the bank balances were $1,488,357,774. 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, 2001: Risk Category 1 $ 2 3 $ Bank Balance 379,867,372 179,589,609 928,900,793 1,488,357,774 50 Georgia Notes to the Financial Statements June 30, 2001 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 Public Telecommunications Commission $ All Other Component Units $ Proprietary Fund Types Environmental Facilities Authority $ Georgia Housing and Finance Authority $ Lottery Corporation $ 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 3 Bank Balance Funds Held by (for) Primary Government Carrying Amount 300,000 $ 100,061 $ $ 14,970,024 $ 15,270,024 $ 4,060,593 $ $ 205,897 $ 305,958 $ 13,853,414 $ 9,761,688 43,439 8,429,923 $ $ $ 8,429,923 $ 279,932,239 $ 8,467,945 20,719,256 $ 2,845,000 $ 3,271,097 $ $ $ 33,497,171 $ 107,400,761 $ $ 24,439,087 $ 128,120,017 $ 2,845,000 $ 61,207,355 $ 13,864,612 $ 4,300,519 $ 103,737,590 $ 129,299,827 (12,585,519) 49,950,033 200,000 $ 3,693,485 $ 266,756 $ $ 5,006,589 $ 5,206,589 $ 33,567,876 $ 5,187,564 $ $ 3,693,485 $ (374,694) $ 1,352,353 $ 29,314 $ 296,070 $ 763,821,445 $ 565,870 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. 51 Georgia Notes to the Financial Statements June 30, 2001 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 $ 20,000 $ 1,534,659 2,364,113 2,989,442,941 8,055,642,388 724,703,926 $ 19,290,214 16,346,000 61,411,295 14,910,257,348 $ 25,959,261,449 $ 80,183,344 901,934,779 $ 3 $ 0$ $ Carrying Amount 724,723,926 20,824,873 2,364,113 3,005,788,941 8,117,053,683 14,990,440,692 26,861,196,228 4,605,064 2,466,307 6,946 1,792,319,738 28,660,594,283 Significant Discretely Presented Component Units Governmental Fund Types Type of Investment Georgia Public Telecommunications Commission Stocks $ Risk Categories 1 2 5,091 $ $ Carrying 3 Amount $ 5,091 52 Georgia Notes to the Financial Statements June 30, 2001 Note 4. Deposits and Investments (continued) Proprietary Fund Types Georgia Housing and Finance Authority Type of Investment Risk Categories 1 2 3 Commercial Paper $ Corporate Bonds Mortgage-Backed Securities U.S. Government Securities and Corporate Obligations $ 17,517,465 $ 4,914,571 28,977,279 25,756,199 77,165,514 $ $ $ 0$ 0$ Lottery Corporation U.S. Government Securities and Corporate Obligations $ 157,110,000 $ $ 52,067,000 $ Geo. L. Smith II Georgia World Congress Center Authority Repurchase Agreements $ U.S. Government Securities and Corporate Obligations $ $ 51,369,742 $ $ 54,446,947 0 $ 105,816,689 $ 0$ Carrying Amount 17,517,465 4,914,571 28,977,279 25,756,199 77,165,514 209,177,000 51,369,742 54,446,947 105,816,689 All Other Component Units Corporate Bonds $ Repurchase Agreements U.S. Government Securities and Corporate Obligations $ Unclassified Mutual Funds Other $ 9,906,667 45,158,213 55,064,880 $ 108,000 $ $ 108,000 9,906,667 16,410,272 108,000 $ 16,410,272 $ 61,568,485 71,583,152 1,988,774 3,002,000 $ 76,573,926 53 Georgia Notes to the Financial Statements June 30, 2001 Note 4. Deposits and Investments (continued) Fiduciary Fund Types Teachers Retirement System of Georgia Type of Investment Risk Categories 1 2 Repurchase Agreements $ 537,554,000 $ $ Stocks 22,309,783,000 U.S. Government Securities and Corporate Obligations 16,379,674,000 $ 39,227,011,000 $ 0$ Unclassified Real Estate All Other Component Units Corporate Bonds $ 132,167,193 $ $ Investment Accounts 59,910,542 Notes 7,926,207 Stocks 368,218,162 U.S. Government Securities and Corporate Obligations 220,543,698 $ 788,765,802 $ 0$ Unclassified Mutual Funds Real Estate Other Carrying 3 Amount $ 537,554,000 22,309,783,000 16,379,674,000 0 $ 39,227,011,000 3,746,000 $ 39,230,757,000 $ 132,167,193 59,910,542 7,926,207 368,218,162 220,543,698 0$ 788,765,802 4,164,245 11,525 25,004,781 $ 817,946,353 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 $22,871,514,597 at June 30, 2001, and the collateral value was equal to 104.2%. 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. 54 Georgia Notes to the Financial Statements June 30, 2001 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, 2001, and related categorization of investments are as follows: Georgia Fund 1 Statement of Net Assets June 30, 2001 Georgia Fund 1 Statement of Changes in Net Assets For the Fiscal Year Ended June 30, 2001 Assets Cash and Cash Equivalents Investments $ 7,354,019,058 1,323,129,999 Additions Pool Participant Deposits Investment Income Less: Investment Expense $ 20,212,209,774 453,404,762 (1,483,301) Net Assets $ 8,677,149,057 Total Additions $ 20,664,131,235 Deductions Pool Participant Withdrawals 18,899,422,538 Distribution of Net Assets Net Increase $ 1,764,708,697 External Participant Account Balances $ 4,106,852,718 Net Assets Internal Participant Account Balances 4,570,296,339 July 1, 2000 6,912,440,360 $ 8,677,149,057 June 30, 2001 $ 8,677,149,057 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, 2001, was $56,709,617. 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 Risk Categories 1 2 Commercial Paper $ $ 320,341,826 $ Repurchase Agreements 2,179,306,246 U.S. Government Securities and Corporate Obligations 5,847,484,729 273,306,639 $ 8,026,790,975 $ 593,648,465 $ Carrying 3 Amount $ 320,341,826 2,179,306,246 6,120,791,368 0 $ 8,620,439,440 55 Georgia Notes to the Financial Statements June 30, 2001 Note 4. Deposits and Investments (continued) Assets Georgia Extended Asset Pool Statement of Net Assets June 30, 2001 Cash and Cash Equivalents Investments $ 26,653,276 855,389,628 Net Assets $ 882,042,904 Distribution of Net Assets External Participant Account Balances $ Internal Participant Account Balances $ 9,045,659 872,997,245 882,042,904 Georgia Extended Asset Pool Statement of Changes in Net Assets For the Fiscal Year Ended June 30, 2001 Additions Pool Participant Deposits $ 821,545,966 Investment Income 62,311,483 Total Additions $ 883,857,449 Deductions Pool Participant Withdrawals 1,814,545 Net Increase $ 882,042,904 Net Assets July 1, 2000 0 June 30, 2001 $ 882,042,904 Investments of Georgia Extended Asset Pool are categorized below. These amounts are included in the categorization of investments of the Primary Government. Type of Investment Risk Categories 1 2 Repurchase Agreements $ $ 26,653,276 $ U.S. Government Securities and Corporate Obligations 855,389,628 $ 855,389,628 $ 26,653,276 $ Carrying 3 Amount $ 26,653,276 855,389,628 0$ 882,042,904 56 Georgia Notes to the Financial Statements June 30, 2001 Note 4. Deposits and Investments (continued) Assets Regents Investment Pool Statement of Net Assets June 30, 2001 Cash and Cash Equivalents $ Interest Receivable Net Assets $ 153,716,274 1,014,567 154,730,841 Distribution of Net Assets External Participant Account Balances Internal Participant Account Balances $ 15,045,930 139,684,911 $ 154,730,841 Regents Investment Pool Statement of Changes in Net Assets For the Fiscal Year Ended June 30, 2001 Additions Investment Income Interest $ 5,142,058 Fair Value Increases Less: Investment Expense 653,243 (435,124) Total Additions $ 5,360,177 Deductions Pool Participant Withdrawals $ 46,637,284 Capital Transactions (84,426,995) Total Deductions $ (37,789,711) Net Increase $ 43,149,888 Net Assets July 1, 2000 June 30, 2001 111,580,953 $ 154,730,841 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, 2001, was $7,698,385. 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. Type of Investment Corporate Bonds Repurchase Agreements Stocks U.S. Government Securities and Corporate Obligations Risk Categories 1 2 3 Carrying Amount $ $ 13,147,568 $ $ 13,147,568 16,346,000 16,346,000 53,545,708 53,545,708 63,993,180 63,993,180 $ 0 $ 147,032,456 $ 0$ 147,032,456 57 Georgia Notes to the Financial Statements June 30, 2001 Note 5. Receivables Primary Government Receivables by fund type as of June 30, 2001, consist of the following: Governmental Fund Types General Capital Projects Proprietary Fund Types Enterprise Internal Service Fiduciary Fund Types Expendable Trust Pension Trust Agency College and University Funds Gross Receivables Allowance For Uncollectibles Net Total Receivables $ 2,627,034,421 $ 16,606,100 30,540,276 11,742,902 34,638,938 108,548,319 5,915,035 226,385,521 $ 3,061,411,512 $ (25,000,000) $ 2,602,034,421 16,606,100 (4,157,556) (300,000) 26,382,720 11,442,902 (15,536,220) (5,238,608) 19,102,718 108,548,319 5,915,035 221,146,913 (50,232,384) $ 3,011,179,128 58 Georgia Notes to the Financial Statements June 30, 2001 Note 5. Receivables (continued) Significant Discretely Presented Component Units Receivables of the significant discretely presented component units as of June 30, 2001, consist of the following: Gross Receivables Allowance For Uncollectibles Allowance For Service Repayments Deferred Loan Fees Net Total Receivables Governmental Fund Types Georgia Public Telecommunications Commission $ Georgia Regional Transportation Authority 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 995,663 $ 448 636,097,821 689,811,364 382,839,975 197,094,222 434,346,222 5,612,486 (79,379) $ $ (216,921) (4,673,169) (5,811,390) (24,890,967) $ 916,284 448 636,097,821 (192,273) 689,594,443 353,275,839 191,090,559 434,346,222 5,612,486 $ 2,346,798,201 $ (10,780,859) $ (24,890,967) $ (192,273) $ 2,310,934,102 59 Georgia Notes to the Financial Statements June 30, 2001 Note 6. Fixed Assets 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 Balance July 1, 2000 Retroactive Restatement of Prior Year Balance $ 2,201,853,300 $ 569,134 $ 620,768 1,068,018,104 1,112,195 Additions Retirements Balance June 30, 2001 206,041,944 $ $ 2,408,464,378 1,989 622,757 171,368,858 (117,630,201) 1,122,868,956 7,441 7,441 Total General Fixed Assets $ 3,270,492,172 $ 1,681,329 $ 377,420,232 $ (117,630,201) $ 3,531,963,532 The following is a summary of the proprietary fund types and college and university funds fixed assets at June 30, 2001: Land and Buildings Improvements Other Than Buildings Machinery and Equipment Less: Accumulated Depreciation Construction in Progress Net Fixed Assets Proprietary Fund Types Internal Enterprise Funds Service Funds College and University Funds $ $ 241,052,762 $ 3,392,452,297 256,340,280 15,699,911 108,750,801 1,787,825,138 (3,031,448) (16,229,422) 136,578,647 $ 12,668,463 $ 333,574,141 $ 5,573,196,362 60 Georgia Notes to the Financial Statements June 30, 2001 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, 2001: Governmental Fund Types Georgia Public Georgia Telecom- Regional munications Transportation Commission Authority Georgia Ports Authority Proprietary Fund Types Stone Geo. L. Smith II Mountain Georgia World Memorial Congress Center Association Authority All Other Component Units Land and Buildings $ Improvements Other Than Buildings 27,406,110 $ $ 215,454,000 $ 79,360,541 $ 226,505,000 21,753,253 246,685,622 $ 117,741,428 35,797,675 4,142,099 Machinery and Equipment Less: Accumulated Depreciation 57,487,552 200,945 150,272,000 (251,017,000) 26,628,531 (44,122,529) 15,636,307 (72,811,697) 47,098,766 (33,642,195) Construction in Progress 55,615,000 200,637 Net Fixed Assets $ 84,893,662 $ 200,945 $ 396,829,000 $ 83,820,433 $ 225,307,907 $ 135,340,098 Land and Buildings Machinery and Equipment Net Fixed Assets Firefighters' Pension Fund Fiduciary Fund Types Peace Officers' Annuity and Benefit Fund $ 152,724 $ 310,296 $ 186,447 233,559 $ 339,171 $ 543,855 $ All Other Component Units 49,489 49,489 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. 61 Georgia Notes to the Financial Statements June 30, 2001 Note 7. Risk Management A. Public Entity Risk Pool The Department of Community Health 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 Department of Community Health 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 Department of Community Health. A reconciliation of total claims liabilities for fiscal years ended June 30, 2001, and 2000, is shown below: Unpaid Claims and Claim Adjustments July 1 Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events of the Current Year and of Prior Years Fiscal Year Ended June 30, 2001 Fiscal Year Ended June 30, 2000 $ 193,156,776 $ 218,520,779 902,398,771 1,241,741,930 (925,796,197) (1,267,105,933) Unpaid Claims and Claim Adjustments June 30 $ 169,759,350 $ 193,156,776 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, 2001, and 2000, is shown below: Unpaid Claims and Claim Adjustments July 1 Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events of the Current Year and of Prior Years Fiscal Year Ended June 30, 2001 Fiscal Year Ended June 30, 2000 $ 28,400,000 $ 25,300,000 183,300,197 178,486,808 (176,521,059) (175,386,808) Unpaid Claims and Claim Adjustments June 30 $ 35,179,138 $ 28,400,000 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 62 Georgia Notes to the Financial Statements June 30, 2001 Note 7. Risk Management (continued) assets. 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, 2001, and 2000, is shown below: Unpaid Claims and Claim Adjustments July 1 Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events of the Current Year and of Prior Years Fiscal Year Ended June 30, 2001 Fiscal Year Ended June 30, 2000 $ 436,113,210 $ 431,717,753 40,708,467 80,088,508 (125,041,355) (75,693,051) Unpaid Claims and Claim Adjustments June 30 $ 351,780,322 $ 436,113,210 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, 2001, the undisbursed balance remaining on these agreements approximates $1,373,000,000. At June 30, 2001, the Department of Transportation had contractual commitments of $1,881,928,203 for construction of various highway projects. Funding of these future expenditures is expected to be provided from federal grants, motor fuel tax funds and general obligation bond proceeds. 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, 2001, 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 2002 2003 2004 2005 2006 2007 and Subsequent Total Minimum Commitments $ 80,338,071 40,989,873 22,371,361 22,122,259 20,470,609 84,617,821 $ 270,909,994 Expenditures for rental of real property and equipment for the year ended June 30, 2001, totaled $95,961,917. 63 Georgia Notes to the Financial Statements June 30, 2001 Note 9. Operating Leases (continued) Significant Discretely Presented Component Units Proprietary Fund Types Environmental Facilities Authority Fiscal Year Ended June 30 2002 2003 2004 2005 2006 2007 and Subsequent $ 257,794 264,600 289,754 317,790 327,293 Total Minimum Commitments $ 1,457,231 Expenditures for rental of real property and equipment for the year ended June 30, 2001, totaled $147,086. Georgia Lottery Corporation Fiscal Year Ended June 30 2002 $ 2003 2004 2005 2006 2007 and Subsequent $ Less: Sublease Revenues Total Minimum Commitments $ 1,963,000 1,963,000 14,000 3,940,000 (820,000) 3,120,000 Expenditures for rental of real property and equipment for the year ended June 30, 2001, totaled $1,661,000. North Georgia Mountains Authority Fiscal Year Ended June 30 2002 2003 2004 2005 2006 2007 and Subsequent Total Minimum Commitments $ 1,438,486 1,448,954 1,467,011 1,478,380 1,482,666 12,430,858 $ 19,746,355 Expenditures for rental of real property and equipment for the year ended June 30, 2001, totaled $1,434,982. 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, 2001, are as follows: Primary Government Fiscal Year Ended June 30 2002 2003 2004 2005 2006 2007 and Subsequent Total Minimum Commitments $ 13,204,040 13,906,276 14,157,051 14,417,815 14,666,041 175,492,860 $ 245,844,083 Revenues from rental of facilities for the year ended June 30, 2001, totaled $9,480,646. 64 Georgia Notes to the Financial Statements June 30, 2001 Note 9. Operating Leases (continued) Significant Discretely Presented Component Units Proprietary Fund Types Lake Lanier Islands Development Authority Fiscal Year Ended June 30 2002 2003 2004 2005 2006 2007 and Subsequent Total Minimum Commitments $ 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 131,466,667 $ 147,466,667 Revenues from rental of facilities for the year ended June 30, 2001, totaled $3,240,213. Georgia Ports Authority Fiscal Year Ended June 30 2002 2003 2004 2005 2006 2007 and Subsequent Total Minimum Commitments $ 7,080,000 5,872,000 5,200,000 4,480,000 3,575,000 30,316,000 $ 56,523,000 Revenues from rental of facilities for the year ended June 30, 2001, totaled $6,467,680. Note 10. Capital Leases and Installment Purchases The State acquires certain property and equipment through multi-year installment purchases or capital leases with varying terms and options. The majority of these agreements contain fiscal funding clauses in accordance with OCGA 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly are considered noncancellable for financial reporting purposes. Capital leases for the proprietary funds and the college and university funds are reported as a long-term obligation in those funds along with the related assets. Capital leases for the governmental funds are reported in the general long-term debt account group and the related assets are reported in the general fixed assets account group. As noted in the Summary of Significant Accounting Policies (Note 1), capital lease transactions have not been consistently recorded in conformity with GAAP. Fixed assets in prior years have not been recorded in the general fixed assets account group at the net present value of the minimum payments nor has the long-term liability applicable to capital leases been consistently recorded in the general long-term debt account group. Also, the State does not record expenditures and other financing sources in the governmental fund types when capitalized leases are entered into as required by GAAP. At June 30, 2001, future commitments under installment purchases and capital leases were as follows: Primary Government Fiscal Year Ended June 30 2002 2003 2004 2005 2006 2007 and Subsequent $ 12,268,025 8,169,323 4,917,166 3,289,634 2,560,749 Total Capital Lease and Installment Purchase Payments $ 31,204,897 Less: Interest (2,886,729) Present Value of Capital Lease and Installment Purchase Payments $ 28,318,168 Installment Purchases Capital Leases $ 16,425,191 11,892,977 $ 28,318,168 65 Georgia Notes to the Financial Statements June 30, 2001 Note 10. Capital Leases and Installment Purchases (continued) Significant Discretely Presented Component Units Governmental Fund Types Georgia Public Telecommunications Commission Fiscal Year Ended June 30 2002 $ 2003 2004 2005 2006 2007 and Subsequent Total Installment Purchase Payments $ Less: Interest Present Value of Installment Purchase Payments $ 2,086,580 2,083,804 1,651,616 658,293 6,480,293 (559,700) 5,920,593 Proprietary Fund Types Agrirama Development Authority Fiscal Year Ended June 30 2002 $ 2003 2004 2005 2006 2007 and Subsequent Total Installment Purchase Payments $ Less: Interest Present Value of Installment Purchase Payments $ 41,058 6,059 6,059 3,534 56,710 (3,107) 53,603 Fiduciary Fund Types Peace Officers' Annuity and Benefit Fund Fiscal Year Ended June 30 2002 $ 2003 2004 2005 2006 2007 and Subsequent Total Installment Purchase Payments $ Less: Interest Present Value of Installment Purchase Payments $ 7,575 7,575 3,787 18,937 (1,588) 17,349 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 Interest Rates Amount General Government 1.25% - 7.70% $ 4,769,970,000 General Government - Refunding 4.25% - 6.30% 541,365,000 $ 5,311,335,000 66 Georgia Notes to the Financial Statements June 30, 2001 Note 11. Long-Term Debt (continued) Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ended June 30 Principal 2002 2003 2004 2005 2006 Thereafter $ 329,510,000 $ 336,595,000 370,610,000 381,510,000 397,310,000 3,495,800,000 $ 5,311,335,000 $ Interest 303,327,434 $ 284,146,166 263,424,820 240,674,384 217,270,233 1,017,243,574 2,326,086,611 $ Total 632,837,434 620,741,166 634,034,820 622,184,384 614,580,233 4,513,043,574 7,637,421,611 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, 2001, were $15,505 with accumulated interest of $11,475. Revenue Bonds. At June 30, 2001, $271,000 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, 2001, the following changes occurred in liabilities reported in the general long-term debt account group: Compensated Absences Capital Leases and Installment Purchases General Obligation Debt General State Bond Debt Long-Term Notes Balance July 1 Retroactive Restatement of Prior Year Balance $ 231,563,694 $ (199,198) $ 4,947,999 2,808 5,139,570,000 15,505 2,745,088 Additions Reductions Earned and Utilized (Net) Balance June 30 $ $ 13,441,027 $ 244,805,523 4,042,177 (2,507,197) 6,485,787 567,280,000 (395,515,000) 5,311,335,000 15,505 (55,087) 2,690,001 $ 5,378,842,286 $ (196,390) $ 571,322,177 $ (398,077,284) $ 13,441,027 $ 5,565,331,816 67 Georgia Notes to the Financial Statements June 30, 2001 Note 11. Long-Term Debt (continued) Significant Discretely Presented Component Units 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, 2001, of $5,500,000. Long-term operating debt requirements to maturity are as follows: Fiscal Year Ended June 30 Georgia Student Finance Authority Principal Interest Total 2001 $ 5,500,000 $ $ 5,500,000 Interest varies based on market rates and therefore is not available for this schedule. Purpose Georgia Student Finance Authority Interest Rates Varies Based on Market Rates $ Amount 5,500,000 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 $800,708,277 and $188,615,000 at the Georgia Housing and Finance Authority and the Geo. L. Smith II Georgia World Congress Center Authority, respectively, at June 30, 2001, are as follows: 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 Geo. L. Smith II Georgia World Congress Center Authority Construction of the Georgia Dome Stadium Interest Rates 2.95% - 9.25% 5.50% - 6.00% Amount $ 800,708,277 $ 188,615,000 68 Georgia Notes to the Financial Statements June 30, 2001 Note 11. Long-Term Debt (continued) Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ended June 30 Georgia Housing and Finance Authority Principal Interest Total 2002 2003 2004 2005 2006 Thereafter Unamortized Discount Future Accretion of Capital Appreciation Bonds $ 15,770,000 $ 17,355,000 19,025,000 21,163,000 23,051,000 728,121,120 52,157 (23,829,000) $ 800,708,277 $ 44,722,000 $ 43,837,000 42,916,000 41,899,000 40,797,000 499,375,000 (52,157) 23,829,000 737,322,843 $ 60,492,000 61,192,000 61,941,000 63,062,000 63,848,000 1,227,496,120 1,538,031,120 Various series of bonds 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%. Geo. L. Smith II Georgia World Congress Center Authority Fiscal Year Ended June 30 Principal Interest 2002 2003 2004 2005 2006 Thereafter $ 5,005,000 $ 5,310,000 5,645,000 6,000,000 6,380,000 160,275,000 $ 188,615,000 $ 5,271,659 $ 10,384,019 10,055,369 9,706,019 9,334,618 77,254,697 122,006,381 $ Total 10,276,659 15,694,019 15,700,369 15,706,019 15,714,618 237,529,697 310,621,381 69 Georgia Notes to the Financial Statements June 30, 2001 Note 11. Long-Term Debt (continued) Defeased Debt. At June 30, 2001, $72,965,000 of outstanding Tollway Authority revenue bonds (including prior years' defeasances) are considered defeased. Note 12. Interfund Balances Interfund assets and liabilities at June 30, 2001, consist of the following: Interfund Receivables: Receivable Fund Capital Projects Funds Payable Fund Proprietary Fund Types Discretely Presented Component Units Interfund Receivable Interfund Payable $ 3,513,927 $ 3,380,130 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). 70 Georgia Notes to the Financial Statements June 30, 2001 Note 12. Interfund Balances (continued) Due From/To Other Funds: Receivable Fund General Fund Internal Service Funds Internal Service Funds Internal Service Funds Internal Service Funds Internal Service Funds Internal Service Funds Internal Service Funds Pension Trust Funds Governmental Fund Types Discretely Presented Component Units Proprietary Fund Types Discretely Presented Component Units Proprietary Fund Types Discretely Presented Component Units Payable Fund Governmental Fund Types Discretely Presented Component Units General Fund Enterprise Funds Pension Trust Funds College and University Funds Governmental Fund Types Discretely Presented Component Units Proprietary Fund Types Discretely Presented Component Units Fiduciary Fund Types Discretely Presented Component Units Internal Service Funds General Fund General Fund Capital Projects Funds Due From Due To $ 51,993 $ 7,209,950 35,396 10,419 3,496,075 21 142,866 3,145 3,137,000 20,542 3,028,376 455,528 $ 17,591,311 $ 51,993 7,209,950 35,396 10,419 3,496,075 21 142,866 3,145 3,137,000 20,542 3,028,376 455,528 17,591,311 Advances From/To Other Funds: Receivable Fund General Fund Capital Projects Funds Payable Fund Agency Funds Proprietary Fund Types Discretely Presented Component Units Advances To $ 6,925 $ 6,280,271 $ 6,287,196 $ Georgia State Financing and Investment Commission (Capital Projects Funds) advances to Stone Mountain Memorial Association (Proprietary Fund Types - Discretely Presented Component Units) do not reconcile due to the difference in fiscal reporting periods (See Note 1). Advances From 6,925 6,041,143 6,048,068 71 Georgia Notes to the Financial Statements June 30, 2001 Note 13. Contributed Capital During the year, contributed capital was restated by the following amounts: Primary Government SOURCE Contributed Capital July 1, 2000 Restatement of Prior Year Balance Department of Administrative Services Internal Service Funds Georgia Building Authority (Regular) Correctional Industries Administration $ 53,384,666 $ 220,245,817 $ 1,145,948 $ (1,145,948) Contributed Capital June 30, 2001 $ 53,384,666 $ 220,245,817 $ 0$ Total 274,776,431 (1,145,948) 273,630,483 Significant Discretely Presented Component Units Proprietary Fund Types SOURCE Contributed Capital July 1, 2000 Restatement of Prior Year Balance Georgia Environmental Facilities Authority $ 608,531,069 $ Georgia Ports Authority Geo. L. Smith II Georgia World Congress Center Authority All Other Component Units 275,942,794 $ 71,883,860 $ 143,955,972 (163,537) Contributed Capital June 30, 2001 $ 608,531,069 $ 275,942,794 $ 71,720,323 $ 143,955,972 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: 72 Georgia Notes to the Financial Statements June 30, 2001 Note 14. Contingencies (continued) Primary Government Four suits involving contract claims in the amount of approximately $15,000,000 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 costs were $55,000,000. Several subcontractors have filed suits against the Construction Manager, with the Construction Manager filing corresponding third-party complaints against the Board of Regents. The State has reached settlement on three of the four cases. The State expects to reach a favorable settlement with all subcontractors. The only remaining litigation involves disputes with the construction manager. The State has filed fourth party complaints against the architect, who has brought the engineer into the suit. A civil suit has been filed against the Department of Education and the Office of Treasury and Fiscal Services to compel the Defendants to change the calculation and distribution of school transportation funding to the DeKalb County School District. The Plaintiffs allege that the State Board of Education's attendance zone/routing survey system of calculating State financial aid is contrary to the applicable statute and violates a State Board of Education policy directing supplemental flat grants for children attending schools other than that of their geographic assignment pursuant to M-to-M or magnet school programs. Plaintiffs seek an entitlement of $63,000,000. Previous similar federal litigation was resolved in favor of the State. Briefs and proposed findings of fact and conclusions of law have been submitted by both sides. 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 parties are now completing the discovery phase, after being unable to reach settlement through a court-approved mediation. The State has filed a third party complaint against the architect, who has filed a fourth party complaint against the engineer. A financial institution has filed suit for refund of sales taxes based upon alleged bad debts on installment sales contracts purchased from motor vehicle dealers. The suit seeks a refund of approximately $300,000. The total amount of all similar pending administrative claims for refund (for the years 1991-2000) is approximately $53,000,000. 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. On appeal, the Georgia Court of Appeals affirmed and the Georgia Supreme Court denied certiorari. The plaintiffs in three of the stayed cases have now voluntarily dismissed their suits. 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. Note 15. Subsequent Events Primary Government General Obligation Bonds Issued The State issued General Obligation Bonds in the amount of $413,015,000 on July 1, 2001 (Series 2001A and 2001 B); and in the amount of $279,220,000 on November 1, 2001 (Series 2001C and 2001D). Proceeds from these bonds will be used for the purpose of financing various capital outlay projects. 73 Georgia Notes to the Financial Statements June 30, 2001 Note 16. Retirement Systems Primary Government Georgia Defined Contribution Plan Plan Description The Georgia Defined Contribution Plan ("GDCP") is a single-employer, defined contribution plan established by the Georgia General Assembly in July 1992 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. ERS issues a publicly available financial report that includes the financial statements and disclosures applicable to GDCP. The report may be obtained at the ERS offices. Membership As of June 30, 2001, participation in GDCP was as follows: Active Plan Members Terminated Employees Entitled to Benefits but not yet Receiving Benefits 33,839 59,075 92,914 Summary of Significant Accounting Policies The financial statements of GDCP are prepared on the accrual basis of accounting. Contributions from the members are recognized in the period in which the members provide services. Benefit and refund payments are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price. District Attorneys' Retirement Fund Plan Description 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. ERS issues a publicly available financial report that includes the financial statements and disclosures applicable to DARF. The report may be obtained at the ERS offices. 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. Summary of Significant Accounting Policies The financial statements of DARF are prepared on the accrual basis of accounting. Contributions from the employer and members are recognized in the period in which the members provide services. Benefit and refund payments are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price. Funding Policy 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 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. ERS issues a publicly available financial report that includes the applicable financial statements and required supplementary information. The report may be obtained at the ERS offices. 74 Georgia Notes to the Financial Statements June 30, 2001 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. 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 (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 multiplied by the applicable benefit factor. 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. Summary of Significant Accounting Policies The financial statements of ERS are prepared on the accrual basis of accounting. Contributions from the employer and members are recognized in the period in which the members provide services. Benefit and refund payments are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price. Funding Policy 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 and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. 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. Annual Pension Cost The required contribution for 2001 was determined as part of the June 30, 2000, actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) seven percent (7%) investment rate of return, (b) projected salary increases due to inflation of three and onehalf percent (3.5%) per year, and (c) projected salary increases due to seniority/merit raises of one and seventenths percent (1.7%) to five and one-half percent (5.5%) per year. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period. ERS' actuarial funding excess is being amortized as a level percentage of projected payroll on an open basis. The employer contributions are projected to liquidate the actuarial accrued funding excess within forty (40) years based upon the actuarial valuation at June 30, 2000. Three-Year Trend Information for ERS (in thousands) Fiscal Year Ended June 30 1998 $ 1999 2000 Annual Pension Cost (APC) 286,794 304,461 302,332 Percentage Net of APC Pension Contributed Obligation 100% $ 0 100% 0 100% 0 75 Georgia Notes to the Financial Statements June 30, 2001 Note 16. Retirement Systems (continued) Georgia Judicial Retirement System Plan Description The Georgia Judicial Retirement System ("GJRS") is a system created to serve 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. ERS issues a publicly available financial report that includes the financial statements and required supplementary information applicable to GJRS. The report may be obtained at the ERS offices. 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. Summary of Significant Accounting Policies The financial statements of GJRS are prepared on the accrual basis of accounting. Contributions from the employer and members are recognized in the period in which the members provide services. Benefit and refund payments are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price. Funding Policy Members are required to contribute seven and one-half percent (7.5%) of their annual salary plus an additional two and one-half percent (2.5%) if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the GJRS Board of Trustees. The State's contributions to GJRS for the years ending June 30, 2001, and 2000 were (in thousands) $1,113 and $1,666, respectively, and were equal to the required contributions for each year. Legislative Retirement System Plan Description Organization and Purpose Legislative Retirement System ("LRS") is a singleemployer, defined benefit plan established by the Georgia General Assembly in 1979 for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board of Trustees. ERS issues a publicly available financial report that includes the applicable financial statements and required supplementary information. The report may be obtained at the ERS offices. 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. 76 Georgia Notes to the Financial Statements June 30, 2001 Note 16. Retirement Systems (continued) Summary of Significant Accounting Policies The financial statements of LRS are prepared on the accrual basis of accounting. Contributions from the employer and members are recognized in the period in which the members provide services. Benefit and refund payments are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price. Funding Policy Member contributions are eight and one-half percent (8.5%) of annual salary. The State pays member contributions in excess of four and three-fourths percent (4.75%) of annual compensation. Employer contributions are actuarially determined and approved and certified by the Board. Annual Pension Cost The required contribution for 2001 was determined as part of the June 30, 2000, actuarial valuation using the unit credit actuarial cost method. The actuarial assumptions included (a) seven percent (7%) investment rate of return, and (b) three percent (3%) annual post-retirement cost-of-living adjustment. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period. LRS' actuarial funding excess is being amortized using the level dollar method on an open basis. Three-Year Trend Information for LRS (in thousands) Fiscal Year Ended June 30 1998 $ 1999 2000 Annual Pension Cost (APC) 164 84 22 Percentage Net of APC Pension Contributed Obligation 126% $ 0 108% 0 436% 0 Superior Court Judges Retirement Fund Plan Description 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. ERS issues a publicly available financial report that includes the financial statements and disclosures applicable to SCJRF. The report may be obtained at the ERS offices. Benefits The normal retirement for SCJRF is age sixty-eight (68) with nineteen (19) years of creditable service with a benefit of two-thirds the salary paid to superior court judges. A member may also retire at age sixty-five (65) with a minimum of ten (10) years of creditable service with a benefit of one-half the salary paid to superior court judges. Death, disability, and spousal benefits are also available. Summary of Significant Accounting Policies The financial statements of SCJRF are prepared on the accrual basis of accounting. Contributions from the employer and members are recognized in the period in which the members provide services. Benefit and refund payments are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price. Funding Policy 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. 77 Georgia Notes to the Financial Statements June 30, 2001 Note 16. Retirement Systems (continued) Regents Retirement Plan Plan Description 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. Funding Policy 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 8.81% 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. In 2001, employer and employee contributions were (in thousands) $39,648 and $22,340, respectively. Significant Discretely Presented Component Units Teachers' Retirement System of Georgia Plan Description 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. TRS issues a publicly available financial report that includes the applicable financial statements and required supplementary information. The report may be obtained at the TRS offices. 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. 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 twentyfive (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. Summary of Significant Accounting Policies The financial statements of TRS are prepared on the accrual basis of accounting. Contributions from the employers and members are recognized in the period in which the members provide services. Benefit and refund payments are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price. Funding Policy TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Member contributions are five percent (5%) of annual salary, and employer contributions are 11.29%, as required by the annual actuarial valuation. The State's contributions to TRS for the years ending June 30, 2001, and 2000 were (in thousands) $145,705 and $154,053, respectively, and were equal to the required contributions for each year. 78 Georgia Notes to the Financial Statements June 30, 2001 Note 17. Nonmonetary Transactions Primary Government The State of Georgia received donated goods for its use and for distribution to other qualifying organizations outside 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 Preventive Health Services - Sexually Transmitted Disease Control Grants Project Grants and Cooperative Agreements for Tuberculosis Control Programs the State reporting entity under the following programs: Value of Inventory Received Value of Inventory Reported at June 30, 2001 $ 33,496,845 $ 1,468,560 $ 5,262,306 $ 2,060,051 $ 15,985,639 $ $ 152,892 $ $ 231,436 $ 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, 2001, is not reported on the combined balance sheet. The changes in Federal surplus personal property inventory during the fiscal year ended June 30, 2001, were as follows: Balance July 1, 2000 Additions Property Received Deductions Property Donated and Other Distributions Balance June 30, 2001 $ 3,552,733 6,167,674 $ 9,720,407 6,908,210 $ 2,812,197 79 Georgia Notes to the Financial Statements June 30, 2001 Note 17. Nonmonetary Transactions (continued) The Federal government provides food stamps to lowincome 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 $501,825,342. 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 of June 30, 2001, there were 60,935 employees who had retired and were receiving postretirement health care benefits through the State Health Benefit Plan. For the fiscal year ended June 30, 2001, the State recognized expenditures of $200,368,341, which was net of retiree contributions of $77,240,601. 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, 2001, the University System recognized expenditures of $37,246,809, which was net of participant contributions of $9,111,141. Note 19. Fund Deficits The following organizations had deficit balances at June 30, 2001. Primary Government Internal Service Funds Workers' Compensation Fund - At June 30, 2001, the Fund had an unreserved retained earnings deficit of $39,525,451. Significant Discretely Presented Component Units Proprietary Fund Types Lake Lanier Islands Development Authority - At June 30, 2001, the Authority had an unreserved retained earnings deficit of $17,204,063. 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 Georgia Notes to the Financial Statements June 30, 2001 Note 20. Major Discretely Presented Component Unit Condensed Financial Statements (continued) ASSETS AND OTHER DEBITS Due from Primary Government 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 REVENUES EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES Operating Transfers from Primary Government EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES FUND BALANCES, JULY 1 FUND BALANCES, JUNE 30 Georgia Education Authority (Schools) Governmental Fund Types Georgia Georgia Public Regional Telecommunica- Transportation tions Commision Authority Total $ $ $ 20,542 $ 20,542 709,692 14,761,865 13,187,709 28,659,266 84,893,662 200,945 85,094,607 6,884,887 30,436 6,915,323 $ 709,692 $ 106,540,414 $ 13,439,632 $ 120,689,738 $ $ 21 $ 51,993 $ 52,014 1,711,770 519,368 2,231,138 5,920,593 5,920,593 $ 0$ 7,632,384 $ 571,361 $ 8,203,745 $ $ 84,893,662 $ 200,945 $ 85,094,607 1,739,613 470,209 2,209,822 709,692 12,274,755 12,197,117 25,181,564 $ 709,692 $ 98,908,030 $ 12,868,271 $ 112,485,993 $ 709,692 $ 106,540,414 $ 13,439,632 $ 120,689,738 $ 40,290 $ 13,524,062 $ 762,756 $ 14,327,108 $ 0$ 33,820,547 $ 4,254,113 $ 38,074,660 $ 40,290 $ (20,296,485) $ (3,491,357) $ (23,747,552) 26,712,428 8,350,097 35,062,525 $ 40,290 $ 6,415,943 $ 4,858,740 $ 11,314,973 669,402 7,598,425 7,808,586 16,076,413 $ 709,692 $ 14,014,368 $ 12,667,326 $ 27,391,386 81 Georgia Notes to the Financial Statements June 30, 2001 Note 20. Major Discretely Presented Component Unit Condensed Financial Statements (continued) ASSETS Due from Primary Government Other Assets Restricted Assets Property, Plant and Equipment (Net) Total Assets LIABILITIES Due to Primary Government Other Liabilities Bonds and Other Long-Term Liabilities Total Liabilities 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 OPERATING REVENUES Sales and Services Operating Grants Taxes Other Total Operating Revenues OPERATING EXPENSES Depreciation Other Total Operating Expenses OPERATING INCOME (LOSS) Nonoperating Revenues/Expenses (Net) Capital Contributions 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) Increase (Decrease) in Inventories FUND EQUITY, JUNE 30 Proprietary Fund Types Environmental Facilities Authority Housing and Finance Authority Lottery Corporation Ports Authority $ 3,016,646 $ 927,514,248 278,438 $ 930,809,332 $ $ 97,043,465 831,623,848 4,558,411 933,225,724 $ $ 74,723,550 209,677,000 2,898,000 287,298,550 $ 53,270,000 190,000 396,829,000 450,289,000 $ 2,260 $ 1,066 $ 12,786 $ 38,583 22,178,762 27,057,501 76,610,764 7,508,417 72,524,750 807,577,879 205,836,000 26,178,000 $ 94,705,772 $ 834,636,446 $ 282,459,550 $ 33,725,000 $ 278,438 $ 543,473,250 5,114,508 270,756,471 13,212,559 3,268,334 $ 836,103,560 $ $ 930,809,332 $ $ 40,124,146 55,435,473 $ 3,584,000 1,255,000 275,942,794 140,621,206 3,029,659 98,589,278 $ 933,225,724 $ 4,839,000 $ 287,298,550 $ 416,564,000 450,289,000 $ $ 5,966,290 $ 2,093,811,000 $ 97,778,000 24,414,220 $ 24,414,220 $ 51,161,416 57,127,706 $ 2,093,811,000 $ 97,778,000 $ $ 1,139,002 $ 1,139,002 $ $ 23,275,218 $ 9,840,980 57,874,277 17,203,675 $ 108,194,150 $ 538,489 $ 61,150,999 61,689,488 $ 1,317,000 $ 1,407,042,000 1,408,359,000 $ (4,561,782) $ 685,452,000 $ 16,698,345 15,096,000 12,136,563 $ (691,872,000) 8,676,000 $ 16,447,000 69,371,000 85,818,000 11,960,000 (8,486,000) 25,077,000 (605,000) 27,946,000 (15,465,162) 808,153,953 (65,057,819) 689,077 85,763,638 (3,837,000) 388,618,000 $ 835,825,122 $ 98,589,278 $ 4,839,000 $ 416,564,000 82 Student Finance Authority Geo L. Smith II Georgia World Congress Center Authority All Other Discretely Presented Proprietary Fund Types Total $ $ $ 362,976,846 64,341,721 49,990,058 2,979,135 225,307,907 $ 365,955,981 $ 339,639,686 $ 467,258 $ 306,212,571 30,090,183 208,446,547 3,483,904 1,886,082,401 1,121,571,089 841,297,438 545,216,559 $ 3,852,434,832 $ $ 37,929 $ 7,273,384 33,757,921 308,100,967 199,885,446 $ 315,374,351 $ 233,681,296 $ 50,242 $ 30,582,731 144,831,289 175,464,262 $ 142,866 204,969,480 1,764,934,331 1,970,046,677 $ $ $ 71,720,323 24,568,550 26,013,080 739,262 33,498,805 $ 50,581,630 $ 105,958,390 $ $ 365,955,981 $ 339,639,686 $ $ 278,438 143,955,972 1,035,092,339 7,368,857 218,427,468 81,499,323 746,007,503 369,752,297 $ 13,212,559 6,297,993 1,882,388,155 545,216,559 $ 3,852,434,832 $ 1,523,647 $ 25,190,396 $ 60,388,374 $ 2,284,657,707 3,692,066 3,692,066 1,613,503 1,613,503 6,268,218 37,082,636 30,297,348 149,223,838 $ 7,791,865 $ 62,273,032 $ 95,991,291 $ 2,439,187,114 $ 503,168 $ 49,109,845 $ 49,613,013 $ $ (41,821,148) $ 1,056,468 38,854,145 $ (1,910,535) $ 9,339,358 $ 56,172,928 65,512,286 $ (3,239,254) $ 15,273,923 12,034,669 $ 8,744,048 $ 90,666,389 99,410,437 $ 36,889,063 1,734,652,163 1,771,541,226 (3,419,146) $ 667,645,888 (5,908,798) 2,618,152 69,365,637 62,655,845 $ 43,570,918 85,569,429 (567,053,543) 229,732,692 (14,776,085) 52,492,165 93,885,893 37,828 328,583,287 (21,420,981) (65,854) 1,753,659,936 (86,478,800) (28,026) $ 50,581,630 $ 105,958,390 $ 369,752,297 $ 1,652,944,219 83 (This page intentionally left blank) REQUIRED SUPPLEMENTARY INFORMATION (This page intentionally left blank) Georgia Required Supplementary Information June 30, 2001 Employees' Retirement System of Georgia Schedule of Funding Progress (dollars in thousands) Actuarial Valuation Date Actuarial Value of Plan Assets (a) Actuarial Accrued Liability ("AAL") Entry Age (b) 6/30/98 $ 8,613,575 $ 9,093,758 6/30/99 9,848,723 9,695,614 6/30/00 10,999,901 10,573,408 Unfunded AAL/(Funding Excess) (b-a) $ 480,183 (153,109) (426,493) Funded Ratio (a/b) Annual Covered Payroll (c) 94.7% $ 101.6% 104.0% 2,055,966 2,152,072 2,304,289 Unfunded AAL/(Funding Excess) as a Percentage of Covered Payroll [(b-a)/c] 23.4% (7.1%) (18.5%) 87 (This page intentionally left blank) COMBINING STATEMENTS AND SCHEDULES (This page intentionally left blank) PRIMARY GOVERNMENT CAPITAL PROJECTS FUNDS (This page intentionally left blank) Georgia Primary Government Capital Projects Funds For the Fiscal Year Ended June 30, 2001 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. 93 Georgia Primary Government Capital Projects Funds Combining Balance Sheet June 30, 2001 Assets Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Interest and Dividends Other Interfund Receivables Advances to Component Units Total Assets Liabilities and Fund Balances Liabilities: Accounts Payable and Other Accruals Contracts Payable Due to Component Units 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 Total Liabilities and Fund Balances Georgia Building Authority (Hospital) Georgia Building Authority (Markets) $ 3,138,175 $ 565,670 233,419 41,693 $ 3,703,845 $ 275,112 $ $ $ 0 $ 0 $ $ 3,703,845 $ 3,703,845 $ $ 3,703,845 $ 275,112 275,112 275,112 94 Georgia Building Authority (Penal) Georgia Education Authority (University) Georgia State Financing and Investment Commission Total $ 1,493,976 $ 2,351,281 $ 466,772,649 $ 473,989,500 269,249 423,323 1,245,996,951 1,247,296,886 123,506 16,482,594 3,513,927 6,280,271 16,482,594 123,506 3,513,927 6,280,271 $ 1,763,225 $ 2,898,110 $ 1,739,046,392 $ 1,747,686,684 $ $ $ 30,311,298 $ 30,311,298 28,776,103 28,776,103 455,528 455,528 36,272,017 36,272,017 $ 0 $ 0 $ 95,814,946 $ 95,814,946 $ $ 1,571,701 $ 6,280,271 $ 6,280,271 1,571,701 191,524 2,898,110 1,220,951,175 416,000,000 1,220,951,175 423,068,591 $ 1,763,225 $ 2,898,110 $ 1,643,231,446 $ 1,651,871,738 $ 1,763,225 $ 2,898,110 $ 1,739,046,392 $ 1,747,686,684 95 Georgia Primary Government Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2001 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 In Operating Transfers Out General Obligation Bond Proceeds Net Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances, July 1 Fund Balances, June 30 Georgia Building Authority (Hospital) Georgia Building Authority (Markets) $ 211,736 $ 15,605 $ 211,736 $ $ 4,079 $ 15,605 1,668 $ 4,079 $ $ 207,657 $ $ $ 1,668 13,937 $ 0 $ $ 207,657 $ 3,496,188 $ 3,703,845 $ 0 13,937 261,175 275,112 96 Georgia Building Authority (Penal) Georgia Education Authority (University) Georgia State Financing and Investment Commission Total $ 100,799 $ 307,794 $ 125,278,141 $ 125,914,075 55,087 55,087 7,844 1,937,485 1,945,329 $ 100,799 $ 370,725 $ 127,215,626 $ 127,914,491 $ 4,215 $ 74,062 $ $ 84,024 522,931,260 522,931,260 55,087 150,233 15,692,313 55,087 150,233 15,692,313 $ 4,215 $ 279,382 $ 538,623,573 $ 538,912,917 $ 96,584 $ 91,343 $ (411,407,947) $ (410,998,426) $ $ $ 468,000,000 $ 468,000,000 (228,462,109) (228,462,109) 567,363,080 567,363,080 $ 0 $ 0 $ 806,900,971 $ 806,900,971 $ 96,584 $ 91,343 $ 395,493,024 $ 395,902,545 1,666,641 2,806,767 1,247,738,422 1,255,969,193 $ 1,763,225 $ 2,898,110 $ 1,643,231,446 $ 1,651,871,738 97 (This page intentionally left blank) PRIMARY GOVERNMENT ENTERPRISE FUNDS (This page intentionally left blank) Georgia Primary Government Enterprise Funds For the Fiscal Year Ended June 30, 2001 Enterprise Funds 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 State's enterprise funds are described below: Georgia Technology Authority is primarily responsible for the procurement of technology resources, technology enterprise management and technology portfolio management, as well as the centralized marketing, provision, sale and leasing, or execution of license agreements, for access on line or in volume, of certain public information maintained in electronic format to the public. 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. 101 Georgia Primary Government Enterprise Funds Combining Balance Sheet For the Fiscal Year Ended June 30, 2001 Assets Current Assets: Cash and Cash Equivalents Receivables (Net of Allowances for Uncollectibles) Other Accounts Prepaid Items Long-Term Assets: Investments Fixed Assets: Machinery and Equipment Accumulated Depreciation Total Assets Liabilities and Fund Equity Liabilities Current Liabilities: Accounts Payable and Other Accruals Compensated Absences Payable Salaries/Withholdings Payable Benefits Payable Due to Other Funds Accrued Interest Payable Deferred Revenue Long-Term Liabilities: Capital Leases/Installment Purchases Payable Other Liabilities Total Liabilities Fund Equity Retained Earnings Reserved Unreserved Total Fund Equity Total Liabilities and Fund Equity Georgia Technology Authority State Employees' Health Benefit Plan Total $ 32,159,733 $ 448,193,907 $ 480,353,640 8,349,781 4,669,187 5,775,106 15,541,492 (2,992,048) 18,032,939 95,565,011 158,419 (39,400) 26,382,720 4,669,187 101,340,117 15,699,911 (3,031,448) $ 63,503,251 $ 561,910,876 $ 625,414,127 $ 2,358,423 $ 3,735,211 $ 6,093,634 566,564 220,367 786,931 4,740 4,740 169,759,350 169,759,350 35,396 35,396 57,657 57,657 2,585,441 36,148,450 38,733,891 11,146,776 5,015,053 11,146,776 5,015,053 $ 21,770,050 $ 209,863,378 $ 231,633,428 $ 19,971,084 $ 352,047,498 $ 372,018,582 21,762,117 21,762,117 $ 41,733,201 $ 352,047,498 $ 393,780,699 $ 63,503,251 $ 102 561,910,876 $ 625,414,127 Georgia Primary Government Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Fund Equity For the Fiscal Year Ended June 30, 2001 Georgia Technology Authority State Employees' Health Benefit Plan Total Operating Revenues: Contributions Interest and Other Investment Income Sales and Services $ $ 1,464,228,424 $ 1,464,228,424 23,895,012 23,895,012 23,619,905 23,619,905 Total Operating Revenues $ 23,619,905 $ 1,488,123,436 $ 1,511,743,341 Operating Expenses: General and Administrative Benefits Depreciation $ 17,139,067 $ 391,701,152 $ 408,840,219 902,398,771 902,398,771 547,128 18,562 565,690 Total Operating Expenses $ 17,686,195 $ 1,294,118,485 $ 1,311,804,680 Operating Income $ 5,933,710 $ 194,004,951 $ 199,938,661 Nonoperating Revenues (Expenses): Interest and Other Investment Income Interest Expense Other $ 1,356,533 $ (57,657) (63,521) $ 1,356,533 (57,657) (63,521) Total Nonoperating Revenues (Expenses) $ 1,235,355 $ 0 $ 1,235,355 Net Income Before Operating Transfers $ 7,169,065 $ 194,004,951 $ 201,174,016 Operating Transfers: Transfers In 7,783,527 34,000,000 41,783,527 Net Income $ 14,952,592 $ 228,004,951 $ 242,957,543 Fund Equity, July 1 Adjustments Change in Accounting Principle Transfer of Equity 0 924,323 25,856,286 124,042,547 124,042,547 924,323 25,856,286 Fund Equity, June 30 $ 41,733,201 $ 352,047,498 $ 393,780,699 103 Georgia Primary Government Enterprise Funds Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 2001 Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Required Contributions Cash Paid to Vendors Cash Paid to Employees Cash Paid for Benefits Net Cash Provided by Operating Activities Cash Flows from Noncapital Financing Activities: Operating Transfers In Transfer of Equity Net Cash Provided by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and Construction of Capital Assets Cash Flows from Investing Activities: Purchase of Investments (Net) Interest on Investments Net Cash Used In Investing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July 1 Cash and Cash Equivalents, June 30 Operating Income Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation Interest and Other Investment Income Other Changes in Assets and Liabilities: Decrease (Increase) in Other Receivables Increase in Prepaid Items Increase in Accounts Payable and Other Accruals Increase in Compensated Absences Payable Increase (Decrease) in Salaries/Withholdings Payable Decrease in Benefits Payable Increase in Due to Other Funds Increase in Deferred Revenue Increase (Decrease) in Other Liabilities Net Cash Used in Operating Activities Noncash Investing, Capital, and Financing Activities: Acquisition of Fixed Assets through Installment Purchase Disposal of Fixed Assets Donation/Transfer of Fixed Assets Net Increase (Decrease) in Fair Value of Investments 104 Georgia Technology Authority State Employees' Health Benefit Plan Total $ 17,855,565 $ $ 17,855,565 1,478,048,690 1,478,048,690 (7,589,573) (385,719,461) (393,309,034) (6,331,268) (3,328,190) (9,659,458) (925,796,197) (925,796,197) $ 3,934,724 $ 163,204,842 $ 167,139,566 $ 7,783,527 $ 34,000,000 $ 41,783,527 25,856,286 25,856,286 $ 33,639,813 $ 34,000,000 $ 67,639,813 $ (996,231) $ (98,334) $ (1,094,565) $ (5,775,106) $ (75,938,926) $ (81,714,032) 1,356,533 23,422,494 24,779,027 $ (4,418,573) $ (52,516,432) $ (56,935,005) $ 32,159,733 $ 144,590,076 $ 176,749,809 0 303,603,831 303,603,831 $ 32,159,733 $ 448,193,907 $ 480,353,640 $ 5,933,710 $ 194,004,951 $ 199,938,661 547,128 (92,763) (8,349,781) (4,669,187) 2,358,423 566,564 4,740 35,396 2,585,441 5,015,053 18,562 (23,895,012) 7,760,758 3,398,783 73,905 (89,500) (23,397,426) 6,059,508 (729,687) 565,690 (23,895,012) (92,763) (589,023) (4,669,187) 5,757,206 640,469 (84,760) (23,397,426) 35,396 8,644,949 4,285,366 $ 3,934,724 $ 163,204,842 $ 167,139,566 $ 11,146,776 $ (63,521) 3,462,006 $ 14,545,261 $ $ 472,518 11,146,776 (63,521) 3,462,006 472,518 472,518 $ 15,017,779 PRIMARY GOVERNMENT INTERNAL SERVICE FUNDS (This page intentionally left blank) Georgia Primary Government Internal Service Funds For the Fiscal Year Ended June 30, 2001 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. 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. 107 Georgia Primary Government Internal Service Funds Combining Balance Sheet June 30, 2001 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 Deferred Revenue Long-Term Liabilities: Capital Leases/Installment Purchases Payable Deposits and Overpayments 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 $ 6,277,607 $ 11,722,028 $ 8,301,831 $ 1,501,486 4,495,280 11,526,417 146,032 2,255,225 566,217 59,817 9,060,426 79,199,674 2,062,776 328,320 1,988,427 222,210,987 12,096,270 2,131,762 2,461 8,311,000 47,952 1,456,885 9,781,349 14,567,610 (15,074,706) 2,599,346 1,776,189 (1,154,716) $ 113,586,695 $ 250,408,808 $ 29,526,144 $ 4,722,305 $ 1,139,149 $ 1,748,729 $ 5,233,046 1,788,787 337,383 $ 707,601 662,011 712,635 108,500 27,673 9,486 15,140 180 93,957 5,605 3,180,325 678,863 30,164 $ 9,661,020 $ 4,268,678 $ 1,075,148 $ 1,474,388 $ 53,384,666 $ 198,408,393 $ $ 21,837,424 $ 53,384,666 $ 220,245,817 $ 0 $ $ 14,397,972 $ $ 36,143,037 25,894,313 $ 50,541,009 $ 25,894,313 $ $ 103,925,675 $ 246,140,130 $ $ 28,450,996 28,450,996 $ 28,450,996 $ $ 113,586,695 $ 250,408,808 $ 29,526,144 $ 0 3,247,917 3,247,917 3,247,917 4,722,305 108 Removal of Hazardous Materials, Agency for Risk Management Total Before Eliminations Eliminations Total $ 265,628 $ 94,399,591 $ 122,468,171 $ 78,832 1,885 18,773 1,111,058 70,560 1,147,810,178 11,367,996 74,906 11,526,417 146,032 10,913,318 614,169 1,151,315,307 241,052,762 108,750,801 (16,229,422) $ 1,476,176 $ 1,242,280,329 $ 1,642,000,457 $ $ 122,468,171 (774,577) 11,367,996 74,906 10,751,840 146,032 10,913,318 614,169 1,151,315,307 241,052,762 108,750,801 (16,229,422) (774,577) $ 1,641,225,880 $ 346,169 $ $ 4,233,441 $ $ 4,233,441 8,442,069 8,442,069 351,780,322 351,780,322 351,780,322 27,673 27,673 118,166 118,166 3,802,480 3,911,577 (774,577) 3,137,000 5,605 5,605 3,210,489 678,863 3,210,489 678,863 $ 346,169 $ 355,582,802 $ 372,408,205 $ (774,577) $ 371,633,628 $ $ $ 251,793,059 $ 21,837,424 $ 0 $ 0$ 273,630,483 $ $ 18,773 $ 790,700,000 $ 805,116,745 $ 1,111,234 95,997,527 190,845,024 $ 1,130,007 $ 886,697,527 $ 995,961,769 $ $ 1,130,007 $ 886,697,527 $ 1,269,592,252 $ $ 1,476,176 $ 1,242,280,329 $ 1,642,000,457 $ $ 251,793,059 21,837,424 0$ 273,630,483 $ 805,116,745 190,845,024 0$ 995,961,769 0 $ 1,269,592,252 (774,577) $ 1,641,225,880 109 Georgia Primary Government Internal Service Funds Risk Management Combining Balance Sheet June 30, 2001 Assets Current Assets: Cash and Cash Equivalents Receivables (Net of Allowances for Uncollectibles) Other Miscellaneous 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 $ 1,258,104 $ 5,693,960 4,719,387 4,774 21,359,134 $ 5,977,491 $ 27,057,868 $ 684,490 $ 10,047,832 33,274 $ 684,490 $ 10,081,106 $ $ 5,293,001 16,976,762 $ 5,293,001 $ 16,976,762 $ 5,977,491 $ 27,057,868 110 Liability Self-Insurance Reserve Fund State Employees' Assurance Department Unemployment Compensation Fund Workers' Compensation Fund Total $ 51,724,503 $ 29,000 $ 1,061,993 $ 34,632,031 $ 94,399,591 22,220 194,028,528 793,808,000 3,698 3,983,739 39,868 129,911,390 70,560 1,147,810,178 $ 245,775,251 $ 793,837,000 $ 5,049,430 $ 164,583,289 $ 1,242,280,329 $ 134,072,000 $ 299,466 $ 134,371,466 $ $ 3,137,000 3,137,000 $ 3,200,000 $ 3,200,000 $ 203,776,000 $ 332,740 204,108,740 $ 351,780,322 3,802,480 355,582,802 $ $ 790,700,000 $ 111,403,785 $ 111,403,785 $ 790,700,000 $ $ 1,849,430 1,849,430 $ $ (39,525,451) (39,525,451) $ 790,700,000 95,997,527 886,697,527 $ 245,775,251 $ 793,837,000 $ 5,049,430 $ 164,583,289 $ 1,242,280,329 111 Georgia Primary Government Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Equity For the Fiscal Year Ended June 30, 2001 Operating Revenues: Contributions 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 Capital Contributions and Operating Transfers Capital Contributions Operating Transfers: Transfers In Transfers Out Net Operating Transfers Net Income (Loss) Fund Equity, July 1 Adjustments Change in Accounting Principle Correction of Prior Year Error Decrease in Inventories Fund Equity, June 30 Administrative Services, Department of Building Authority, Georgia Correctional Industries Administration $ $ 216,470,202 223,257 $ 216,693,459 $ $ 31,291,741 11,095,849 73,250 42,460,840 $ 28,300,046 28,300,046 $ 106,524,122 $ 124,213,790 28,636,614 $ 13,510,330 10,481,500 14,535,091 $ 230,737,912 $ $ (14,044,453) $ 42,146,944 $ 313,896 $ 1,433,732 26,450,323 1,849,723 $ 324,512 $ (53,455,398) $ (53,130,886) $ 795,593 $ (407,816) 387,777 $ 595,509 (14,980) 282,736 863,265 $ (67,175,339) $ $ $ 701,673 $ 52,601 $ 2,712,988 $ 46,506,923 $ (25,349,555) 1,248,884 $ $ 21,157,368 $ 1,248,884 $ $ (46,017,971) $ 2,003,158 $ 150,772,128 244,136,972 (1,200,000) (1,200,000) 1,512,988 26,938,008 $ 112 (828,482) 103,925,675 $ 246,140,130 $ 28,450,996 Merit System of Personnel Administration Removal of Hazardous Materials, Agency for Risk Management Total Before Eliminations Eliminations Total $ 74,240 $ 11,500 14,832,068 $ 14,917,808 $ $ 476,559 476,559 $ 114,232,192 $ (14,040,871) 375 100,191,696 $ 114,306,432 $ (14,040,871) 31,303,241 271,174,724 296,882 403,040,408 $ (80,648) $ (80,648) $ 114,225,784 (14,040,871) 31,303,241 271,174,724 296,882 402,959,760 $ 12,946,288 $ 294,235 $ 13,240,523 $ $ 1,677,285 $ 256,734 $ 222,307 479,041 $ (2,482) $ 7,470,027 $ 12,483,755 18,017,000 40,708,467 78,679,249 $ 21,512,447 $ 166,315,285 $ 164,965,273 18,017,000 40,708,467 1,727,967 391,733,992 $ 11,306,416 $ (80,648) $ (80,648) $ 0 $ 166,234,637 164,965,273 18,017,000 40,708,467 1,727,967 391,653,344 11,306,416 $ $ $ $ 1,715,614 $ $ 1,715,614 (14,980) (14,980) (1,000) (53,581,478) (53,581,478) $ 0 $ (1,000) $ 0 $ (51,880,844) $ 0 $ (51,880,844) $ 1,677,285 $ $ $ (3,482) $ $ 21,512,447 $ $ (40,574,428) $ 52,601 $ 0 $ (40,574,428) $ 52,601 $ $ $ $ 47,755,807 $ (1,248,884) $ 46,506,923 (26,549,555) 1,248,884 (25,300,671) $ 0 $ 0 $ 0 $ 21,206,252 $ 0 $ 21,206,252 $ 1,677,285 $ (3,482) $ 21,512,447 $ (19,315,575) $ 0 $ (19,315,575) 249,541 1,133,489 818,791,521 1,242,021,659 1,242,021,659 1,321,091 46,393,559 1,321,091 46,393,559 (828,482) 1,321,091 46,393,559 (828,482) $ 3,247,917 $ 1,130,007 $ 886,697,527 $ 1,269,592,252 $ 0 $ 1,269,592,252 113 Georgia Primary Government Internal Service Funds Risk Management Combining Statement of Revenues, Expenses and Changes in Equity For the Fiscal Year Ended June 30, 2001 Operating Revenues: Contributions Interest and Other Investment Income Other Total Operating Revenues Operating Expenses: General and Administrative Goods and Services Benefits Claims and Judgments Total Operating Expenses Net Income (Loss) Equity, July 1 Correction of Prior Year Error Georgia State Indemnification Commission Hazard and Insurance Reserve Fund Liability Self-Insurance Reserve Fund $ 5,496,375 $ 2,475,304 $ 10,656,849 149,784 2,334,016 21,812,015 375 $ 5,646,159 $ 4,809,320 $ 32,469,239 $ $ 382,188 $ 2,534,487 3,260,128 5,285,113 743,650 8,853,371 (16,222,465) $ 743,650 $ 12,495,687 $ (8,402,865) $ 4,902,509 $ (7,686,367) $ 40,872,104 390,492 24,663,129 24,138,122 46,393,559 Equity, June 30 $ 5,293,001 $ 16,976,762 $ 111,403,785 114 State Employees' Assurance Department Unemployment Compensation Fund Workers' Compensation Fund Total $ 13,813,000 $ (50,943,000) $ (37,130,000) $ 3,004,233 $ 466,523 3,470,756 $ 78,786,431 $ 12,139,791 90,926,222 $ 114,232,192 (14,040,871) 375 100,191,696 $ 225,000 $ 18,017,000 $ 18,242,000 $ $ (55,372,000) $ 846,072,000 $ 3,030,885 3,030,885 $ 439,871 $ 1,409,559 4,328,352 $ 3,938,514 44,303,026 52,569,892 $ 38,356,330 $ (77,881,781) 7,470,027 12,483,755 18,017,000 40,708,467 78,679,249 21,512,447 818,791,521 46,393,559 $ 790,700,000 $ 1,849,430 $ (39,525,451) $ 886,697,527 115 Georgia Primary Government Internal Service Funds Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 2001 Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Required Contributions Cash Paid to Vendors Cash Paid to Employees Cash Paid for Benefits Cash Paid for Claims and Judgments Other Operating Items (Net) Net Cash Provided by 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: Capital Contributions Sale of Capital Assets 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 (Used in) Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, July 1 Cash and Cash Equivalents, June 30 Administrative Services, Department of Building Authority, Georgia $ 239,802,649 $ (176,885,192) (58,730,462) 44,604,717 (23,253,995) (18,504,559) $ 4,186,995 $ 2,846,163 $ 46,506,923 $ (25,349,555) (2,307,711) $ 18,849,657 $ 1,248,884 1,248,884 $ $ (17,042,746) 52,601 (1,834,607) $ (17,042,746) $ (1,782,006) $ (40,811) $ (1,460,567) 324,512 795,593 $ 283,701 $ (664,974) $ 6,277,607 $ 1,648,067 0 10,073,961 $ 6,277,607 $ 11,722,028 116 Correctional Industries Administration Merit System of Personnel Administration Removal of Hazardous Materials, Agency for Risk Management Total $ 28,473,784 $ (16,928,780) (7,343,321) 14,514,670 $ (6,397,711) (7,490,272) $ 4,201,683 $ 626,687 $ 687,375 $ (612,727) 74,648 $ $ 117,556,911 (19,288,302) (14,880,000) (78,647,796) 375 328,083,195 117,556,911 (243,366,707) (92,068,614) (14,880,000) (78,647,796) 375 4,741,188 $ 16,677,364 $ $ $ $ $ 47,755,807 (1,200,000) (26,549,555) 103,602 (2,204,109) $ (1,096,398) $ 0 $ 0 $ 0 $ 19,002,143 $ $ $ $ $ 52,601 181,811 181,811 (1,497,747) (216,757) (20,591,857) (607,143) (607,143) (14,980) (14,980) $ (1,938,059) $ (216,757) $ 0 $ 0 $ (20,979,568) $ (1,069,429) $ 595,509 $ (473,920) $ $ 693,306 $ 7,608,525 $ 0 $ 409,930 $ 1,091,556 $ 8,301,831 $ 1,501,486 $ $ (115,534,004) $ (118,104,811) 55,465,321 57,180,935 0 $ (60,068,683) $ (60,923,876) 74,648 $ (55,327,495) $ (46,223,937) 190,980 149,727,086 168,692,108 265,628 $ 94,399,591 $ 122,468,171 (continued) 117 Georgia Primary Government Internal Service Funds Combining Statement of Cash Flows (continued) For the Fiscal Year Ended June 30, 2001 Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Depreciation Interest and Other Investment Income Changes in Assets and Liabilities: Decrease (Increase) in Other Receivables Decrease in Due from Other Funds Decrease in Due from Component Units Decrease in Inventories Decrease (Increase) in Prepaid Items Increase (Decrease) in Accounts Payable and Other Accruals Increase (Decrease) in Compensated Absences Payable Decrease in Claims and Judgments Payable Decrease in Contracts Payable Increase (Decrease) in Salaries/Withholdings Payable Increase (Decrease) in Due to Other Funds Increase in Deferred Revenue Decrease in Deposits and Overpayments Total Adjustments Net Cash Provided by Operating Activities Noncash Investing, Capital, and Financing Activities: Disposal of Fixed Assets Donation of Fixed Assets Net Decrease in Fair Value of Investments Administrative Services, Department of Building Authority, Georgia $ (14,044,453) $ 313,896 $ $ 1,403,960 21,497,620 207,610 (61,649) (4,635,489) (287,170) 106,566 $ 18,231,448 $ 2,404,479 22,147 151,611 517,845 78,257 (16,789) (4,145) (360,536) (260,602) 2,532,267 $ 4,186,995 $ 2,846,163 $ (53,468,362) $ 12,248 (407,816) $ (53,456,114) $ (407,816) 118 Correctional Industries Administration Merit System of Personnel Administration Removal of Hazardous Materials, Agency for Risk Management $ 1,849,723 $ 1,677,285 $ (2,482) $ 21,512,447 $ Total 11,306,416 $ 1,433,732 $ 294,235 $ 172,825 (405,781) 594,960 10,812 157,207 11,416 56,111 (1,034,044) 56,203 (11) (28,981) (112) (19,853) 2,643 $ 2,351,960 $ (1,050,598) $ $ 4,201,683 $ 626,687 $ $ 210,816 1,640 (135,326) 77,130 $ $ 14,040,871 2,032,719 1,292,000 (37,939,329) 3,802,480 (16,771,259) $ 1,727,967 14,040,871 5,819,018 22,789,620 207,610 618,747 156,885 (5,129,807) (141,294) (37,939,329) (16,789) 102,298 3,393,110 2,643 (260,602) 5,370,948 74,648 $ 4,741,188 $ 16,677,364 $ (49,243) $ (355,547) $ $ (49,243) $ (355,547) $ (1,000) $ $ (69,506,192) (54,281,968) 12,248 (69,506,192) (1,000) $ (69,506,192) $ (123,775,912) 119 Georgia Primary Government Internal Service Funds Risk Management Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 2001 Cash Flows from Operating Activities: Cash Received from Required Contributions Cash Paid to Vendors Cash Paid for Benefits Cash Paid for Claims and Judgments Other Operating Items (Net) Net Cash Provided by (Used in) Operating Activities Cash Flows from Noncapital Financing Activities: Other Noncapital Items (Net) Cash Flows from Investing Activities: Purchase of Investments (Net) Interest on Investments Net Cash Provided by (Used in) Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, July 1 Georgia State Indemnification Commission Hazard and Insurance Reserve Fund Liability Self-Insurance Reserve Fund $ 5,496,375 $ 2,519,664 $ 10,690,158 (3,609,042) (7,520,134) (821,669) (4,317,254) (23,315,962) 375 $ 4,674,706 $ (5,406,632) $ (20,145,563) $ $ $ $ (3,918,383) $ (1,853,487) $ (35,695,822) 76,397 1,839,602 17,513,413 $ (3,841,986) $ (13,885) $ (18,182,409) $ 832,720 $ (5,420,517) $ (38,327,972) 425,384 11,114,477 90,052,475 Cash and Cash Equivalents, June 30 $ 1,258,104 $ 5,693,960 $ 51,724,503 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: Decrease (Increase) in Other Receivables Decrease in Due from Other Funds Increase (Decrease) in Claims and Judgments Payable Increase in Due to Other Funds Total Adjustments Net Cash Provided by (Used in) Operating Activities $ 4,902,509 $ (7,686,367) $ 40,872,104 $ (149,784) $ (2,334,016) $ (21,812,015) 44,360 33,309 (78,019) 4,536,117 33,274 (39,538,427) 299,466 $ (227,803) $ 2,279,735 $ (61,017,667) $ 4,674,706 $ (5,406,632) $ (20,145,563) Noncash Investing Activities: Net Increase (Decrease) in Fair Value of Investments $ 120 73,387 $ 494,414 $ 4,298,602 State Employees' Assurance Department Unemployment Compensation Fund Workers' Compensation Fund Total $ 15,649,000 $ (225,000) (14,880,000) $ 544,000 $ 3,001,239 $ (3,417,885) (416,646) $ 80,200,475 $ (7,934,126) (46,775,026) 25,491,323 $ 117,556,911 (19,288,302) (14,880,000) (78,647,796) 375 4,741,188 $ (531,000) $ $ $ (531,000) $ (26,141,967) $ 26,157,967 $ 16,000 $ $ 29,000 $ 0 (742,882) $ 378,367 (364,515) $ (781,161) $ 1,843,154 (47,181,463) $ (115,534,004) 9,499,575 55,465,321 (37,681,888) $ (60,068,683) (12,190,565) $ (55,858,495) 46,822,596 150,258,086 $ 29,000 $ 1,061,993 $ 34,632,031 $ 94,399,591 $ (55,372,000) $ 439,871 $ 38,356,330 $ 21,512,447 $ 50,943,000 $ 544,000 1,292,000 3,137,000 $ 55,916,000 $ $ 544,000 $ (466,523) $ (2,994) (387,000) (856,517) $ (12,139,791) $ 1,414,044 (2,472,000) 332,740 (12,865,007) $ 14,040,871 2,032,719 1,292,000 (37,939,329) 3,802,480 (16,771,259) (416,646) $ 25,491,323 $ 4,741,188 $ (77,100,967) $ 88,156 $ 2,640,216 $ (69,506,192) 121 (This page intentionally left blank) PRIMARY GOVERNMENT TRUST AND AGENCY FUNDS (This page intentionally left blank) Georgia Primary Government Trust and Agency Funds Combining Balance Sheet June 30, 2001 Assets Expendable Trust Nonexpendable Trust Pension Trust Investment Trust 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 Other Assets $ 1,833,054,374 $ 7,250,059 162,657 4,654,226 6,266,820 8,019,015 16,112 $ 4,451,761 $ 35,969 12,533,091,453 3,479,832,319 $ 636,066,058 93,956,000 14,592,319 3,137,000 Agency Total 165,246,893 $ 5,482,601,459 210,526,792 13,386,970,331 195,825 5,719,210 8,391 358,482 93,956,000 4,654,226 6,266,820 28,330,544 3,137,000 8,391 Total Assets $ 1,859,407,151 $ 52,081 $ 12,649,228,533 $ 4,115,898,377 $ 381,697,111 $ 19,006,283,253 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 $ 1,338,549 $ 163,175 $ 1,501,724 $ $ $ 1,808,936,221 48,969,206 $ 1,857,905,427 $ $ 10,045,155 $ 27,357 10,419 0 $ 10,082,931 $ $ $ 11,383,704 163,175 27,357 10,419 381,690,186 381,690,186 6,925 6,925 0 $ 381,697,111 $ 393,281,766 $ 12,639,145,602 $ 48,500 3,581 $ 4,115,898,377 52,081 $ 12,639,145,602 $ 4,115,898,377 $ $ 12,639,145,602 4,115,898,377 1,808,984,721 48,972,787 0 $ 18,613,001,487 Total Liabilities and Fund Balances $ 1,859,407,151 $ 52,081 $ 12,649,228,533 $ 4,115,898,377 $ 381,697,111 $ 19,006,283,253 125 (This page intentionally left blank) Georgia Primary Government Expendable Trust Funds For the Fiscal Year Ended June 30, 2001 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. 127 Georgia Primary Government Expendable Trust Funds Combining Balance Sheet June 30, 2001 Assets Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Intergovernmental - Federal Notes and Loans Taxes Other 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 $ 300,694 $ 9,036,916 1,517,414 4,654,226 $ 300,694 $ 15,208,556 $ $ 1,289,649 163,175 $ 0 $ 1,452,824 $ $ 300,694 13,755,732 $ 300,694 $ 13,755,732 $ 300,694 $ 15,208,556 128 Keds Corporation Settlement Fund Real Estate Recovery Fund Subsequent Injury Trust Fund Unemployment Compensation Contributions and Benefits Fund Total $ 64,999 $ 1,564,341 $ 27,520,583 $ 1,794,566,841 $ 1,833,054,374 268,482 5,464,163 7,250,059 32,225 162,657 6,266,820 7,986,790 162,657 4,654,226 6,266,820 8,019,015 $ 64,999 $ 1,865,048 $ 32,984,746 $ 1,808,983,108 $ 1,859,407,151 $ $ $ 2,013 $ 46,887 $ 1,338,549 163,175 $ 0 $ 0 $ 2,013 $ 46,887 $ 1,501,724 $ $ $ $ 1,808,936,221 $ 1,808,936,221 64,999 1,865,048 32,982,733 48,969,206 $ 64,999 $ 1,865,048 $ 32,982,733 $ 1,808,936,221 $ 1,857,905,427 $ 64,999 $ 1,865,048 $ 32,984,746 $ 1,808,983,108 $ 1,859,407,151 129 Georgia Primary Government Expendable Trust Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2001 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 $ $ 37,800 537,812 $ 37,800 $ 537,812 $ $ 863,592 $ 0 $ 863,592 $ 37,800 $ (325,780) 3,281,250 $ 37,800 $ 2,955,470 262,894 10,800,262 $ 300,694 $ 13,755,732 130 Keds Corporation Settlement Fund Real Estate Recovery Fund Subsequent Injury Trust Fund Unemployment Compensation Contributions and Benefits Fund Total $ $ $ 95,000,828 $ 88,885,884 $ 183,886,712 163,649 99,798 335 3,416,535 22,553,143 123,375,528 2,235,493 22,553,143 201,784 127,429,673 2,235,493 $ 0 $ 263,447 $ 98,417,698 $ 237,050,048 $ 336,306,805 $ $ 8,741 $ $ $ 8,741 72,305,057 72,305,057 434,038,800 434,902,392 $ 0 $ 8,741 $ 72,305,057 $ 434,038,800 $ 507,216,190 $ 0 $ 254,706 $ 26,112,641 $ (196,988,752) $ (170,909,385) 3,281,250 $ 0 $ 254,706 $ 26,112,641 $ (196,988,752) $ (167,628,135) 64,999 1,610,342 6,870,092 2,005,924,973 2,025,533,562 $ 64,999 $ 1,865,048 $ 32,982,733 $ 1,808,936,221 $ 1,857,905,427 131 (This page intentionally left blank) Georgia Primary Government Nonexpendable Trust Funds For the Fiscal Year Ended June 30, 2001 Nonexpendable Trust Funds are used to account for assets held by the government in a trustee capacity in which the principal of the trust must be preserved intact. The State's nonexpendable trust funds are described below: The Pupils' Trust Fund - Georgia Academy for the Blind is used to account for principal trust amounts received and related interest income. The interest portion of the trust may be used for student activities at Georgia Academy for the Blind. The Lenora M. Sarling Scholarship Fund is used to account for principal trust amounts received and related interest income. The interest portion of the trust may be used for scholarships at North Georgia Technical Institute. 133 (This page intentionally left blank) Georgia Primary Government Nonexpendable Trust Funds Combining Balance Sheet June 30, 2001 Pupils' Trust Fund - Georgia Academy for the Blind Assets Lenora M. Sarling Scholarship Fund Cash and Cash Equivalents Investments $ 13,500 $ 2,612 $ 35,969 Total 16,112 35,969 Total Assets $ 13,500 $ 38,581 $ 52,081 Fund Balances Reserved for Other Specific Purposes $ Unreserved, Undesignated 13,500 $ 35,000 $ 3,581 48,500 3,581 Total Fund Balances $ 13,500 $ 38,581 $ 52,081 135 Georgia Primary Government Nonexpendable Trust Funds Combining Statement of Revenues, Expenses and Changes in Fund Balances For the Fiscal Year Ended June 30, 2001 Pupils' Trust Fund - Georgia Academy for the Blind Lenora M. Sarling Scholarship Fund Operating Revenues: Contributions $ Interest and Other Investment Income $ 869 250 $ 3,055 Total Operating Revenues $ 869 $ 3,305 $ Operating Expenses: Scholarships Other $ $ 740 $ 869 Total Operating Expenses $ 869 $ 740 $ Net Income $ 0 $ 2,565 $ Fund Balances, July 1 13,500 36,016 Total 250 3,924 4,174 740 869 1,609 2,565 49,516 Fund Balances, June 30 $ 13,500 $ 38,581 $ 52,081 136 Georgia Primary Government Nonexpendable Trust Funds Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 2001 Pupils' Trust Fund - Georgia Academy for the Blind Lenora M. Sarling Scholarship Fund Cash Flows from Operating Activities: Cash Paid to Vendors Cash Paid for Scholarships Other Operating Items (Net) $ (869) $ $ (740) 250 Net Cash Used in Operating Activities $ (869) $ (490) $ Cash Flows from Investing Activities: Interest on Investments $ 869 $ 1,992 $ Total (869) (740) 250 (1,359) 2,861 Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July 1 $ 0 $ 13,500 1,502 $ 1,110 1,502 14,610 Cash and Cash Equivalents, June 30 $ 13,500 $ 2,612 $ 16,112 Operating Income Adjustments to Reconcile Operating Income to Net Cash Used in Operating Activities: Interest and Other Investment Income $ 0 $ 2,565 $ 2,565 (869) (3,055) (3,924) Net Cash Used in Operating Activities $ (869) $ (490) $ (1,359) Noncash Investing Activities: Net Increase in Fair Value of Investments $ $ 1,063 $ 1,063 137 (This page intentionally left blank) Georgia Primary Government Pension Trust Funds For the Fiscal Year Ended June 30, 2001 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 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. 139 Georgia Primary Government Pension Trust Funds Combining Statement of Plan Net Assets June 30, 2001 Assets Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Interest and Dividends Other Miscellaneous Due from Other Funds Total Assets Liabilities Accounts Payable and Other Accruals Salaries/Withholdings Payable Due to Other Funds Total Liabilities Fund Balances Reserved for Pension Benefits Defined Contribution Plan District Attorneys Retirement Fund Employees' Retirement System $ 222,997 $ 39,181,435 131,000 892,242 $ 40,427,674 $ 3,000 $ 3,868,602 12,239,503,592 93,825,000 13,578,293 3,167,000 3,000 $ 12,353,942,487 $ 16,000 $ $ 16,000 $ $ 40,411,674 $ 3,000 $ 3,000 $ 9,864,155 27,357 10,419 9,901,931 0 $ 12,344,040,556 140 Georgia Judicial Retirement System Legislative Retirement System Superior Court Judges Retirement Fund Total Before Eliminations Eliminations Total $ 179,163 $ 224,979,334 121,999 $ 27,702,092 120,784 $ 225,279,281 $ 27,824,091 $ 56,000 $ 4,451,761 $ 1,725,000 12,533,091,453 93,956,000 1,000 14,592,319 3,167,000 1,782,000 $ 12,649,258,533 $ $ 4,451,761 12,533,091,453 93,956,000 (30,000) 14,592,319 3,137,000 (30,000) $ 12,649,228,533 $ 103,000 $ $ 103,000 $ 16,000 $ 30,000 46,000 $ 43,000 $ 43,000 $ 10,045,155 $ 27,357 40,419 10,112,931 $ $ 225,176,281 $ 27,778,091 $ 1,739,000 $ 12,639,145,602 $ $ (30,000) (30,000) $ 10,045,155 27,357 10,419 10,082,931 0 $ 12,639,145,602 141 (This page intentionally left blank) Georgia Primary Government Investment Trust Funds For the Fiscal Year Ended June 30, 2001 Investment Trust Funds are used to account for the external portion of a government sponsored investment pool. The State's investment trust funds are described below: The Georgia Fund 1 is a combination local and state government investment pool with primary objectives specific to safety of capital, investment income, liquidity and diversification while maintaining principal. This fund was established to enable local governments to voluntarily invest any idle local monies. The Georgia Extended Asset Pool is responsible for providing prudent management of public funds on behalf of the State of Georgia and local governments seeking income higher than money market rates. 143 (This page intentionally left blank) Georgia Primary Government Investment Trust Funds Combining Statement of Plan Net Assets June 30, 2001 Georgia Extended Asset Pool Georgia Fund 1 Total Assets Cash and Cash Equivalents Investments $ 273,338 $ 3,479,558,981 $ 3,479,832,319 8,772,321 627,293,737 636,066,058 Fund Balances Reserved for Pool Participants $ 9,045,659 $ 4,106,852,718 $ 4,115,898,377 145 (This page intentionally left blank) Georgia Primary Government Agency Funds For the Fiscal Year Ended June 30, 2001 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. 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. 147 Georgia Primary Government Agency Funds For the Fiscal Year Ended June 30, 2001 Public Service Commission 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. 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 Universal Service Fund was established for the purpose of assisting low-income customers in times of emergency by providing energy conservation assistance to such customers; provided, however, that not more than 10 percent of the fund shall be expended for such purpose in any calendar year. 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. 147 Georgia Primary Government Agency Funds Combining Statement of Changes in Assets and Liabilities For the Fiscal Year Ended June 30, 2001 Agriculture, Department of Agricultural Commodity Commissions Assets Cash and Cash Equivalents Investments Total Assets Liabilities Funds Held for Others Balance July 1, 2000 Additions Deletions Balance June 30, 2001 $ 3,737,832 $ 4,764,293 $ 4,982,013 $ 3,520,112 1,559,947 493,702 249,947 1,803,702 $ 5,297,779 $ 5,257,995 $ 5,231,960 $ 5,323,814 $ 5,297,779 $ 4,704,346 $ 4,678,311 $ 5,323,814 Corrections, Department of Detainees' Accounts Assets Cash and Cash Equivalents Liabilities Funds Held for Others $ 30,359,059 $ 117,626,501 $ 118,994,278 $ 28,991,282 $ 30,359,059 $ 117,626,501 $ 118,994,278 $ 28,991,282 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 $ 435,522 $ 470,370,527 $ 466,968,109 $ 3,837,940 $ 435,522 $ 470,370,527 $ 466,968,109 $ 3,837,940 $ 5,178,811 $ 13,232,619 $ 13,286,315 $ 5,125,115 2,846,873 1,768,353 1,577,785 3,037,441 0 34,434 34,434 0 $ 8,025,684 $ 15,035,406 $ 14,898,534 $ 8,162,556 $ 8,025,684 $ 14,942,781 $ 14,805,909 $ 8,162,556 (continued) 149 Georgia Primary Government Agency Funds Combining Statement of Changes in Assets and Liabilities (continued) For the Fiscal Year Ended June 30, 2001 Insurance, Department of Receiverships Assets Cash and Cash Equivalents Investments Total Assets Liabilities Funds Held for Others Balance July 1, 2000 Additions Deletions Balance June 30, 2001 $ 846,144 $ 221,163 $ 1,067,307 $ $ 1,067,307 $ 503,709 $ 503,709 $ 503,709 $ 407,779 $ 221,163 628,942 $ 628,942 $ 942,074 0 942,074 942,074 Merit System of Personnel Administration, State Personnel Board Flexible Benefits Program Assets Cash and Cash Equivalents $ Investments Receivables Other Other Assets Total Assets $ Liabilities Funds Held for Others $ 11,897,652 $ 389,161 316,191 201,450 12,804,454 $ 12,804,454 $ 38,815,570 $ 1,543,369 2,413,675 42,772,614 $ 40,840,084 $ 40,610,002 $ 389,161 201,450 41,200,613 $ 39,268,083 $ 10,103,220 1,543,369 2,729,866 0 14,376,455 14,376,455 Public Service Commission Telecommunications Relay Service Fund Assets Cash and Cash Equivalents Investments Total Assets Liabilities Funds Held for Others Universal Access Fund Assets Cash and Cash Equivalents Investments Total Assets Liabilities Funds Held for Others $ 9,125,015 $ 3,946,988 $ 5,791,197 $ 7,280,806 463,360 1,295,090 463,360 1,295,090 $ 9,588,375 $ 5,242,078 $ 6,254,557 $ 8,575,896 $ 9,588,375 $ 3,483,628 $ 4,496,107 $ 8,575,896 $ 24,396,873 $ 28,725,264 $ 33,680,695 $ 19,441,442 1,217,801 3,462,207 1,217,801 3,462,207 $ 25,614,674 $ 32,187,471 $ 34,898,496 $ 22,903,649 $ 25,614,674 $ 27,507,463 $ 30,218,488 $ 22,903,649 150 Georgia Primary Government Agency Funds Combining Statement of Changes in Assets and Liabilities For the Fiscal Year Ended June 30, 2001 Public Service Commission Universal Service Fund Assets Cash and Cash Equivalents Liabilities Funds Held for Others Balance July 1, 2000 Additions Deletions Balance June 30, 2001 $ 0$ 66,493,944 $ 43,694,201 $ 22,799,743 $ 0$ 66,493,944 $ 43,694,201 $ 22,799,743 Revenue, Department of Real Estate Transfer Tax Assets Cash and Cash Equivalents Investments Total Assets Liabilities Funds Held for Others $ 6,365,003 $ 57,059,242 $ 50,748,196 $ 12,676,049 11,479,805 5,929,487 11,591,456 5,817,836 $ 17,844,808 $ 62,988,729 $ 62,339,652 $ 18,493,885 $ 17,844,808 $ 45,703,917 $ 45,054,840 $ 18,493,885 Treasury and Fiscal Services, Office of Education Local Option Sales Tax Collections Assets Cash and Cash Equivalents $ Investments Total Assets $ Liabilities Funds Held for Others $ Homestead Option Sales Tax Collections Assets Cash and Cash Equivalents $ Investments Total Assets $ Liabilities Funds Held for Others $ 10,752,795 $ 60,447,868 71,200,663 $ 1,265,482,398 $ 71,013,590 1,336,495,988 $ 1,265,596,670 $ 61,035,773 1,326,632,443 $ 71,200,663 $ 1,206,541,371 $ 1,196,677,826 $ 774,578 $ 4,354,367 5,128,945 $ 92,945,694 $ 5,297,402 98,243,096 $ 92,926,443 $ 4,396,717 97,323,160 $ 5,128,945 $ 88,703,765 $ 87,783,829 $ 10,638,523 70,425,685 81,064,208 81,064,208 793,829 5,255,052 6,048,881 6,048,881 (continued) 151 Georgia Primary Government Agency Funds Combining Statement of Changes in Assets and Liabilities (continued) For the Fiscal Year Ended June 30, 2001 Treasury and Fiscal Services, Office of 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 Balance July 1, 2000 Additions Deletions Balance June 30, 2001 $ 8,366,981 $ 999,781,549 $ 999,920,844 $ 8,227,686 47,035,784 54,923,708 47,493,246 54,466,246 $ 55,402,765 $ 1,054,705,257 $ 1,047,414,090 $ 62,693,932 $ 55,402,765 $ 953,911,135 $ 946,619,968 $ 62,693,932 $ 6,707,835 $ 779,470,475 $ 779,588,971 $ 6,589,339 37,708,735 43,987,345 38,075,483 43,620,597 $ 44,416,570 $ 823,457,820 $ 817,664,454 $ 50,209,936 $ 44,416,570 $ 742,695,055 $ 736,901,689 $ 50,209,936 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 $ 29,122,511 $ 775,325,043 $ 780,167,821 $ 24,279,733 16,674,307 19,511,673 16,386,413 19,799,567 677,517 209,812 691,504 195,825 3,080,978 4,634,194 4,725,828 2,989,344 31,643 13,486 36,738 8,391 $ 49,586,956 $ 799,694,208 $ 802,008,304 $ 47,272,860 $ 49,580,031 $ 750,130,848 $ 752,444,944 $ 47,265,935 6,925 6,925 $ 49,586,956 $ 750,130,848 $ 752,444,944 $ 47,272,860 152 PRIMARY GOVERNMENT COLLEGE AND UNIVERSITY FUNDS (This page intentionally left blank) Georgia Primary Government College and University Funds For the Fiscal Year Ended June 30, 2001 Current Funds account for resources that the Institutions may use for any purpose in carrying out their primary objectives. Unrestricted Current Funds account for economic resources that are fully controlled by the Institutions and are used in the performance of their primary functions. Restricted Current Funds account for externally restricted funds which may be utilized only in accordance with the purposes established by their source. Loan Funds account for resources which have been made available for financial loans to students. Endowment and Similar Funds account for assets that are subject to restrictions of gift instruments. Plant Funds account for transactions involving physical properties of the Institutions. Unexpended Plant Funds account for financial resources utilized to acquire or to construct physical properties. Renewals and Replacements Funds account for resources set aside for the renewal and replacement of physical properties. Investment in Plant Funds disclose amounts representing the book value of all physical properties owned. Agency Funds account for resources held by Institutions as custodians or fiscal agents for individual students, faculty, staff members and organizations. 155 Georgia Primary Government College and University Funds Combining Balance Sheet June 30, 2001 Assets Current Funds Unrestricted Restricted 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 362,650,166 $ 45,012,043 1,313,541 43,011,328 39,633,866 23,042,221 26,100,306 36,864,904 $ 2,526,252 43,995,318 75,093,076 2,418,441 Loan Funds Endowment and Similar Funds Unexpended 12,930,942 $ 260,649 79,388,239 $ 52,006,160 92,950,718 4,199,477 24,094 48,282,206 2,043,945 20,400 84,440 6,804,931 7,546,009 27,382,894 Total Assets $ 540,763,471 $ 160,897,991 $ 63,541,836 $ 131,499,239 $ 138,884,029 Liabilities and Fund Equity Liabilities: Accounts Payable and Other Accruals Compensated Absences Payable Contracts 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 $ 120,767,818 $ 96,126,684 439,212 8,362,157 35,179,138 9,763,562 100,982,219 2,461,461 $ 17,031,682 121,146 33,995,866 8,675,000 175,106 1,883,134 150 $ $ 60,421,820 2,082,777 55,665 2,610,904 $ 373,679,030 $ 62,285,155 $ 150 $ 55,665 $ 65,115,501 $ $ 167,084,441 $ 167,084,441 $ $ 98,612,836 98,612,836 $ 47,583,382 $ 15,939,792 18,512 $ 105,828,499 2,491,683 8,660,192 14,463,200 63,541,686 $ 131,443,574 $ 2,050,945 71,717,583 73,768,528 Total Liabilities and Fund Equity $ 540,763,471 $ 160,897,991 $ 63,541,836 $ 131,499,239 $ 138,884,029 156 Plant Funds Renewals and Replacements Investment in Plant Agency Funds Total Before Eliminations Eliminations Total (Memorandum Only) $ 41,860,120 $ 5,340,017 $ 69,593,220 $ 696,238,309 $ 5,842,550 115,187,148 $ 696,238,309 115,187,148 11,018 14,591,582 644,719 1,946,282 1,943,094 51,192 45,953,578 24,094 48,282,206 126,887,035 65,842,936 23,042,221 55,952,833 (65,842,936) 45,953,578 24,094 48,282,206 126,887,035 0 23,042,221 55,952,833 108,118,175 3,284,334,122 256,340,280 1,787,825,138 136,578,647 108,118,175 3,284,334,122 256,340,280 1,787,825,138 136,578,647 108,118,175 3,284,334,122 256,340,280 1,787,825,138 136,578,647 $ 61,802,737 $ 5,573,196,362 $ 80,021,057 $ 6,750,606,722 $ (65,842,936) $ 6,684,763,786 $ 7,654,477 $ 974,354 9,689,056 $ 18,317,887 $ $ 7,475,116 266,918 7,742,034 $ 31,619,611 $ 13,223,958 35,177,488 80,021,057 $ 222,925,337 $ 113,158,366 3,496,343 8,483,303 35,179,138 69,339,011 109,657,219 7,475,116 35,177,488 175,106 1,883,134 266,918 607,216,479 $ $ (65,842,936) (65,842,936) $ 222,925,337 113,158,366 3,496,343 8,483,303 35,179,138 3,496,075 109,657,219 7,475,116 35,177,488 175,106 1,883,134 266,918 541,373,543 $ $ $ 5,565,454,328 43,484,850 $ 43,484,850 $ 5,565,454,328 $ $ 47,583,382 $ 15,939,792 18,512 105,828,499 2,491,683 8,660,192 14,463,200 5,565,454,328 100,663,781 282,286,874 0 $ 6,143,390,243 $ $ 47,583,382 15,939,792 18,512 105,828,499 2,491,683 8,660,192 14,463,200 5,565,454,328 100,663,781 282,286,874 0 $ 6,143,390,243 $ 61,802,737 $ 5,573,196,362 $ 80,021,057 $ 6,750,606,722 $ (65,842,936) $ 6,684,763,786 157 (This page intentionally left blank) PRIMARY GOVERNMENT GENERAL FIXED ASSETS ACCOUNT GROUP (This page intentionally left blank) Georgia Primary Government General Fixed Assets Account Group For the Fiscal Year Ended June 30, 2001 The General Fixed Assets Account Group is used to account for fixed assets acquired or constructed for use by the State for general governmental purposes. These include all Primary Government fixed assets, except those accounted for in the Proprietary, Nonexpendable Trust, Pension Trust, and College and University funds. 161 Georgia Schedule of General Fixed Assets By Function June 30, 2001 Function Land and Buildings Improvements Other Than Buildings Construction in Progress Equipment Total General Government $ Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay 439,844,245 $ 380,829,757 193,100,722 856,573,711 93,080,574 290,193,142 10,046,147 144,796,080 $ 4,925 617,832 $ 7,441 75,847,055 $ 245,501,516 180,865,035 237,188,406 202,450,903 34,718,635 71,277,999 75,019,407 515,691,300 626,331,273 373,970,682 237,188,406 1,059,024,614 127,799,209 362,096,414 85,065,554 144,796,080 Total General Fixed Assets $ 2,408,464,378 $ 622,757 $ 7,441 $ 1,122,868,956 $ 3,531,963,532 162 Georgia Schedule of Changes in General Fixed Assets By Function For the Fiscal Year Ended June 30, 2001 Function General Government Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay General Fixed Assets July 1, 2000 $ 448,879,025 $ 581,841,084 346,035,751 217,426,063 1,004,581,290 131,189,183 315,894,889 79,848,807 144,796,080 Additions 88,285,714 $ 70,166,886 39,675,832 30,545,767 79,504,385 9,458,037 50,552,053 9,231,558 Deletions Retroactive Restatement of Prior Year Balance General Fixed Assets June 30, 2001 17,307,309 $ 32,618,057 11,742,642 9,628,519 25,061,061 12,848,011 4,409,791 4,014,811 (4,166,130) $ 6,941,360 1,741 (1,154,905) 59,263 515,691,300 626,331,273 373,970,682 237,188,406 1,059,024,614 127,799,209 362,096,414 85,065,554 144,796,080 $ 3,270,492,172 $ 377,420,232 $ 117,630,201 $ 1,681,329 $ 3,531,963,532 163 (This page intentionally left blank) COMPONENT UNITS GOVERNMENTAL FUND TYPES (This page intentionally left blank) Georgia Component Units Governmental Fund Types For the Fiscal Year Ended June 30, 2001 Governmental Fund Types are used to account for component unit general activities. The State's governmental funds are described below: 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. Georgia Regional Transportation Authority is responsible for managing or causing to be managed land transportation and air quality within certain areas of Georgia. 167 Georgia Component Units Governmental Fund Types Combining Balance Sheet June 30, 2001 Assets and Other Debits Assets: Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Other Due from Primary Government Inventories Fixed Assets Land and Buildings Equipment Other Debits: Amounts to be Provided for Retirement of General Long-Term Debt Total Assets and Other Debits Liabilities, Fund Balances and Other Credits Liabilities: Accounts Payable and Other Accruals Compensated Absences Payable Salaries/Withholdings Payable Due to Primary Government Deferred Revenue Capital Leases/Installment Purchases Payable Total Liabilities Fund Balances and Other Credits: Other Credits: Investment in Fixed Assets Fund Balances: Reserved for Encumbrances Reserved for Other Specific Purposes Unreserved Designated for Future Capital Outlay Designated for Other Specific Purposes Undesignated Total Fund Balances Total Fund Balances and Other Credits Total Liabilities, Fund Balances and Other Credits Georgia Education Authority (Schools) Georgia Public Telecommunications Commission Georgia Regional Transportation Authority Total $ 601,301 $ 13,202,053 $ 11,636,737 $ 25,440,091 108,391 625,319 1,550,524 2,284,234 916,284 18,209 448 20,542 916,732 20,542 18,209 27,406,110 57,487,552 200,945 27,406,110 57,688,497 6,884,887 30,436 6,915,323 $ 709,692 $ 106,540,414 $ 13,439,632 $ 120,689,738 $ $ 194,282 $ 439,862 $ 634,144 964,294 78,881 1,043,175 625 625 21 51,993 52,014 553,194 553,194 5,920,593 5,920,593 $ 0 $ 7,632,384 $ 571,361 $ 8,203,745 $ $ 84,893,662 $ 200,945 $ 85,094,607 $ $ 1,342,134 $ 470,209 $ 1,812,343 397,479 397,479 709,692 428,019 11,831,242 15,494 2,147,000 10,050,117 428,019 13,978,242 10,775,303 $ 709,692 $ 14,014,368 $ 12,667,326 $ 27,391,386 $ 709,692 $ 98,908,030 $ 12,868,271 $ 112,485,993 $ 709,692 $ 106,540,414 $ 13,439,632 $ 120,689,738 168 Georgia Component Units Governmental Fund Types Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2001 Revenues: Intergovernmental Other Sales and Services Interest and Other Investment Income Rents and Royalties Contributions and Donations Total Revenues Expenditures: Transportation Culture and Recreation Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources: Operating Transfers from Primary Government Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures Fund Balances, July 1 Georgia Education Authority (Schools) Georgia Public Telecommunications Commission Georgia Regional Transportation Authority $ $ $ 142,114 $ 1,795,304 40,290 344,447 620,642 82,254 11,302,057 $ 40,290 $ 13,524,062 $ 762,756 $ $ $ $ 4,254,113 $ 33,820,547 $ 0 $ 33,820,547 $ 4,254,113 $ $ 40,290 $ (20,296,485) $ (3,491,357) $ $ $ 26,712,428 $ 8,350,097 $ $ 40,290 $ 6,415,943 $ 4,858,740 $ 669,402 7,598,425 7,808,586 Total 142,114 1,795,304 1,005,379 82,254 11,302,057 14,327,108 4,254,113 33,820,547 38,074,660 (23,747,552) 35,062,525 11,314,973 16,076,413 Fund Balances, June 30 $ 709,692 $ 14,014,368 $ 12,667,326 $ 27,391,386 169 (This page intentionally left blank) COMPONENT UNITS PROPRIETARY FUND TYPES (This page intentionally left blank) Georgia Component Unit Proprietary Fund Types For the Fiscal Year Ended June 30, 2001 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 Road and Tollway Authority provides financing for the construction of toll highways and bridges in the State. 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 World Congress Center Authority operates the World Congress Center, a comprehensive international trade and convention meeting facility providing exhibit space to handle large numbers of trade displays, and the Georgia Dome. The authority promotes trade shows, conventions, tourism and sporting events within the State. The Other Entities column is an accumulation of the proprietary funds that are not individually material to the total assets presented on the proprietary fund type balance sheet. The State's other proprietary funds are described below: The Agricultural Exposition Authority operates a facility at Perry, Georgia, where the agricultural community can exhibit and promote products and livestock, and where other public events may be held. 173 Georgia Component Unit Proprietary Fund Types For the Fiscal Year Ended June 30, 2001 The Agrirama Development Authority operates and maintains an agricultural museum and restoration complex at Tifton, Georgia. The Georgia Golf Hall of Fame Authority was created to construct, operate and manage a facility and related attractions to house the Georgia Golf Hall of Fame. 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 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 OneGeorgia Authority was created for the purpose of promoting the health, welfare, safety and economic society of the rural citizens of the State through the development and retention of employment opportunities in rural areas and the enhancement of the infrastructures that accomplish that goal. 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. 173 (This page intentionally left blank) Georgia Component Unit Proprietary Fund Types Combining Balance Sheet June 30, 2001 Assets Development Authority Environmental Facilities Authority Housing and Finance Authority Jekyll Island State Park Authority Lake Lanier Islands Development Authority 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 $ 3,009,093 $ 245,642,443 $ 21,289,059 $ 528,489 $ 2,178,303 3,658,795 8,371,385 575,058 531,356 1,263,938 3,016,646 455,528 219,432 21,527 500,618 42,757,741 49,115,840 3,115,856 78,289,368 623,536,285 7,320,591 119,757,655 30,167,399 2,816,243 6,264,006 675,434,788 13,410,586 4,665,000 33,680,757 278,438 3,483,570 (3,590,159) 4,317,045 200,000 5,332,331 1,661,656 6,641,391 14,600 Total Assets $ 83,977,382 $ 930,809,332 $ 933,225,724 $ 43,602,572 $ 8,317,647 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/Mortgage Bonds Payable Total Liabilities $ $ $ $ 969,755 7,225,526 23,153,848 3,244 7,901,152 2,260 1,636,300 13,316,936 1,066 3,813,639 90,014 6,869,602 $ 761,614 508,320 310,172 42,260 501,729 925 40,938,648 72,524,750 800,708,277 $ 49,812,799 $ 94,705,772 $ 834,636,446 $ 2,125,020 $ 21,256 233,312 254,568 176 Lottery Corporation Ports Authority Road and Tollway Authority Stone Mountain Memorial Association Student Finance Authority World Congress Center Authority Other Entities Total $ $ 17,049,338 $ 72,752,000 3,560,000 (1,588,450) 18,080,000 6,561,000 3,395,000 143,000 6,553,662 500,000 209,177,000 190,000 2,095,000 13,453,000 (12,650,000) 215,454,000 226,505,000 150,272,000 (251,017,000) 55,615,000 1,488,000 13,974,145 $ 426,696 87,637 12,021,776 $ 22,147 9,457,027 $ 28,304 10,718,177 1,671,783 22,987,371 $ 6,348,023 6,016 21,426,505 4,014,554 26,075,629 6,866 82,126 2,024,237 243,980 340,857,575 406,528 277,101 34,322,698 1,635,527 48,354,531 5,029,792 4,142,099 5,428,087 (7,176,694) 52,011,033 79,360,541 21,753,253 26,628,531 (44,122,529) 200,637 214,702 4,191,655 2,484,920 (3,697,440) 246,685,622 35,797,675 15,636,307 (72,811,697) 78,618,422 $ 426,238,819 3,549,269 216,920 7,236,368 22,486,539 1,094,129 221,129 11,730 267,472 44,975 101,851,013 6,782,129 3,483,904 4,295,298 4,134,745 22,031,528 187,145,606 1,050,003,819 126,097,736 313,774,559 6,264,006 675,434,788 16,226,829 68,079,224 17,639,106 (6,527,902) 435,170 659,241,591 288,198,027 239,635,604 (401,593,421) 55,815,637 59,681,236 $ 287,298,550 $ 450,289,000 $ 125,445,499 $ 98,192,287 $ 365,955,981 $ 339,639,686 $ 185,681,172 $ 3,852,434,832 $ 7,196,550 $ 69,414,214 12,786 162,000 205,674,000 $ 282,459,550 $ $ 1,439,880 1,134,910 4,224,000 453,627 38,583 256,000 2,785,000 2,093,000 21,300,000 33,725,000 $ $ 421,647 729,553 1,740,094 3,038,923 213,765 74,233,424 80,377,406 $ $ 491,217 3,380,130 149,170 $ 593,512 6,679,872 $ 5,822,122 1,423,464 249,918 37,929 5,415,553 20,846,864 6,041,143 300,268,927 2,332,040 78,666 11,191,780 10,061,660 $ 5,500,000 315,374,351 $ 188,615,000 233,681,296 $ 177 $ 16,310,591 280,924 649,974 4,389 4,738 79,961 7,196,550 126,603,926 3,368,874 5,836,839 1,018,106 142,866 3,380,130 12,754,756 44,810,299 53,603 15,100,383 53,603 7,901,152 315,448,901 12,148,642 11,405,545 6,041,143 348,246 205,674,000 48,879,894 1,157,381,451 32,832,809 $ 1,970,046,677 (continued) Georgia Component Unit Proprietary Fund Types Combining Balance Sheet June 30, 2001 Development Authority Environmental Facilities Authority Housing and Finance Authority Jekyll Island State Park Authority Lake Lanier Islands Development Authority 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 $ $ 278,438 $ $ $ $ $ 249,644,304 $ $ 13,918,492 $ 19,217,635 293,828,946 $ 0 $ 543,473,250 $ 0 $ 13,918,492 $ 19,217,635 $ 1,185,173 $ 5,114,508 $ 40,124,146 $ $ 6,049,507 32,979,410 270,756,471 55,435,473 27,559,060 (17,204,063) $ 34,164,583 $ 275,870,979 $ 95,559,619 $ 27,559,060 $ (11,154,556) $ $ 13,212,559 $ $ $ 3,268,334 3,029,659 $ 0 $ 16,480,893 $ 3,029,659 $ 0 $ $ 34,164,583 $ 835,825,122 $ 98,589,278 $ 41,477,552 $ $ 34,164,583 $ 836,103,560 $ 98,589,278 $ 41,477,552 $ 0 8,063,079 8,063,079 Total Liabilities, Fund Equity and Other Credits $ 83,977,382 $ 930,809,332 $ 933,225,724 $ 43,602,572 $ 8,317,647 178 Lottery Corporation Ports Authority Road and Tollway Authority Stone Mountain Memorial Association Student Finance Authority World Congress Center Authority Other Entities Total $ $ $ $ $ $ $ $ 278,438 $ $ 265,973,849 $ $ 24,510,066 $ $ 7,936,463 $ 70,099,710 $ 651,300,519 9,676,882 303,505,828 292,063 15,126,652 63,783,860 1,083,417 80,285,992 $ 0 $ 275,942,794 $ 0 $ 39,636,718 $ 0 $ 71,720,323 $ 71,183,127 $ 1,035,092,339 $ 3,584,000 $ $ $ $ 24,568,550 $ 739,262 $ 134,177 $ 81,499,323 1,255,000 140,621,206 45,068,093 48,493,909 26,013,080 33,498,805 81,531,059 746,007,503 $ 4,839,000 $ 140,621,206 $ 45,068,093 $ 48,493,909 $ 50,581,630 $ 34,238,067 $ 81,665,236 $ 827,506,826 $ $ $ $ $ $ $ $ 13,212,559 6,297,993 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 19,510,552 $ 4,839,000 $ 416,564,000 $ 45,068,093 $ 88,130,627 $ 50,581,630 $ 105,958,390 $ 152,848,363 $ 1,882,109,717 $ 4,839,000 $ 416,564,000 $ 45,068,093 $ 88,130,627 $ 50,581,630 $ 105,958,390 $ 152,848,363 $ 1,882,388,155 $ 287,298,550 $ 450,289,000 $ 125,445,499 $ 98,192,287 $ 365,955,981 $ 339,639,686 $ 185,681,172 $ 3,852,434,832 179 Georgia Component Units Proprietary Fund Types Combining Statement of Revenues, Expenses and Changes in Fund Equity For the Fiscal Year Ended June 30, 2001 Development Authority Environmental Facilities Authority Housing and Finance Authority Jekyll Island State Park Authority Lake Lanier Islands Development Authority Operating Revenues: Contributions Interest and Other Investment Income Intergovernmental Rents and Royalties Sales and Services Taxes Other $ $ $ $ $ 6,174,308 24,414,220 49,273,583 39,801 1,237,440 5,966,290 650,393 4,347,398 11,061,765 1,264,389 23,581 3,240,213 36,000 349,114 100,119 Total Operating Revenues $ 6,214,109 $ 24,414,220 $ 57,127,706 $ 16,697,133 $ 3,725,446 Operating Expenses: General and Administrative Goods and Services Interest Prizes Depreciation Other $ 749,947 $ 1,139,002 $ 9,287,411 $ 15,365,836 $ 595,302 3,532,423 1,307,489 47,820,884 538,489 510,281 118,781 Total Operating Expenses $ 749,947 $ 1,139,002 $ 61,689,488 $ 16,673,325 $ 714,083 Operating Income (Loss) $ 5,464,162 $ 23,275,218 $ (4,561,782) $ 23,808 $ 3,011,363 Nonoperating Revenues (Expenses): Contributions and Intergovernmental Revenue Interest and Other Investment Income Hotel/Motel Tax (Net) Interest Expense Other Debt Service Charges Other $ $ $ $ 316,803 12,566,255 16,698,345 (3,052,709) (3,272,600) 547,325 25,378 $ 273,537 (338,556) (82,124) 520,574 Net Nonoperating Revenues (Expenses) $ (2,735,906) $ 9,840,980 $ 16,698,345 $ (121,765) $ 520,574 Net Income (Loss) Before Capital Contributions and Operating Transfers $ 2,728,256 $ 33,116,198 $ 12,136,563 $ (97,957) $ 3,531,937 Capital Contributions $ $ 57,874,277 $ $ 1,133,776 $ Operating Transfers: Transfers from Primary Government Transfers to Primary Government $ $ 17,203,675 $ $ $ (501,634) (1,331,931) Net Operating Transfers $ 0$ 17,203,675 $ 0$ (501,634) $ (1,331,931) Net Income (Loss) $ 2,728,256 $ 108,194,150 $ 12,136,563 $ 534,185 $ 2,200,006 Excess (Deficiency) of Revenues Over (Under) Expenditures from Governmental Operations and Expendable Trust Funds (15,465,162) 689,077 Fund Equity, July 1 Adjustments Change in Accounting Principle Increase (Decrease) in Inventories 31,436,327 808,153,953 (65,057,819) 85,763,638 40,943,367 5,863,073 Fund Equity, June 30 $ 34,164,583 $ 835,825,122 $ 98,589,278 $ 41,477,552 $ 8,063,079 180 Lottery Corporation Ports Authority Road and Tollway Authority Stone Mountain Memorial Association Student Finance Authority World Congress Center Authority Other Entities Total $ $ $ $ $ 2,093,811,000 $ 2,093,811,000 $ 97,778,000 97,778,000 $ 47,305 21,611,189 21,658,494 $ 10,891,628 51,949 10,943,577 $ $ 6,203,879 1,523,647 64,339 7,791,865 $ $ 37,082,636 25,190,396 62,273,032 $ 50,680 $ 75,697 3,692,066 2,065,654 27,679,420 3,189,015 50,680 86,141,687 3,692,066 58,912,274 2,284,657,707 1,613,503 4,119,197 36,752,532 $ 2,439,187,114 $ 20,586,000 $ 243,815,000 1,141,483,000 1,317,000 1,158,000 $ 1,408,359,000 $ $ 685,452,000 $ 20,066,000 $ 49,305,000 16,447,000 85,818,000 $ 11,960,000 $ 4,404,575 $ 3,901,706 1,494,360 3,640,063 13,440,704 $ 8,217,790 $ 3,660,954 $ 5,200,182 $ 8,726,961 5,019,900 8,680,854 $ 2,262,723 $ 503,168 35,182,702 49,613,013 $ (41,821,148) $ 25,375,414 $ 30,797,514 9,339,358 65,512,286 $ (3,239,254) $ 47,685,460 $ 9,208,072 2,229,788 28,204 154,116,083 350,594,165 47,820,884 1,141,483,000 36,889,063 40,638,031 59,151,524 $ 1,771,541,226 (22,398,992) $ 667,645,888 $ $ 14,916,000 $ 1,891,000 $ 3,535,986 (10,395,000) (3,767,937) 180,000 18,000 (12,617) $ 15,096,000 $ (8,486,000) $ (244,568) $ $ 824,643 (540,034) 4,867 289,476 $ $ 773,779 (764,040) 1,046,729 1,056,468 $ $ 5,049,979 21,056,446 (10,853,806) (14,347) 35,651 15,273,923 $ 954,863 $ 4,006,123 1,602,579 (785,799) (530) (9,393,845) (3,616,609) $ 980,241 61,373,024 22,659,025 (33,770,481) (14,877) (7,656,014) 43,570,918 $ 700,548,000 $ $ $ 3,474,000 $ 25,077,000 $ 7,973,222 $ $ 2,552,199 $ $ (40,764,680) $ $ 12,034,669 $ $ (26,015,601) $ 1,484,376 $ 711,216,806 85,569,429 $ $ (691,872,000) $ (691,872,000) $ $ 8,676,000 $ $ (605,000) (605,000) $ 27,946,000 $ $ 0$ 7,973,222 $ $ 0$ 2,552,199 $ 38,854,145 $ 38,854,145 $ (1,910,535) $ $ 0$ 12,034,669 $ 84,869,145 $ (13,669,943) 71,199,202 $ 46,667,977 $ 140,926,965 (707,980,508) (567,053,543) 229,732,692 (3,837,000) 388,618,000 37,094,871 85,578,428 52,492,165 93,885,893 37,828 127,667,221 (21,420,981) (65,854) (14,776,085) 1,753,659,936 (86,478,800) (28,026) $ 4,839,000 $ 416,564,000 $ 45,068,093 $ 88,130,627 $ 50,581,630 $ 105,958,390 $ 152,848,363 $ 1,882,109,717 181 Georgia Component Units Proprietary Fund Types Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 2001 Development Authority Environmental Facilities Authority Housing and Finance Authority Jekyll Island State Park Authority Lake Lanier Islands Development Authority 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 Grants and Scholarships Cash Paid for Lottery Prizes Origination of Program Loans Governmental and Fiduciary Fund Type Activity (Net) Other Operating Items (Net) $ $ $ 7,908,147 $ 16,809,134 $ 13,896,553 6,111,327 (402,017) (503,451) 31,006,317 23,279,881 214,585 (735,621) 71,629,708 48,897,589 (3,550,224) (5,609,171) (8,294,704) (8,252,787) (13,319,925) (101,585,290) (18,334,540) (81,865,071) 1,466,193 (1,202) 485,233 3,240,213 (281,586) (193,480) Net Cash Provided by (Used in) Operating Activities $ 5,782,487 $ (66,154,668) $ 38,877,171 $ 260,441 $ 3,250,380 Cash Flows from Noncapital Financing Activities: Operating Transfers from Primary Government Issuance of Bonds/Loans/Notes Capital Contributions Hotel/Motel Tax (Net) Operating Transfers to Primary Government Repayment of Advances Principal Paid on Bonds/Loans/Notes Interest Paid on Bonds/Loans/Notes Other Debt Service Payments Other Noncapital Items (Net) $ $ 17,203,675 $ $ 1,019,885 112,800,000 57,344,622 (5,437,493) (3,116,709) (728,320) 547,325 (100,203,606) (46,086,362) (3,921,445) $ (501,634) (1,331,931) 27,412 Net Cash Provided by (Used in) Noncapital Financing Activities $ (8,262,637) $ 75,095,622 $ (37,411,413) $ (474,222) $ (1,331,931) Cash Flows from Capital and Related Financing Activities: Hotel/Motel Tax Received $ $ $ $ $ Capital Contributions 1,307,092 Sale of Capital Assets Acquisition and Construction of Capital Assets (129,352) (1,250,108) Principal Paid on Bonds/Loans/Notes (5,225,000) Interest Paid on Bonds/Loans/Notes (3,390,164) (338,556) Other Debt Service Payments Other Capital and Related Items (Net) Net Cash Provided by (Used in) Capital and Related Financing Activities $ 0$ (8,615,164) $ (129,352) $ (281,572) $ 0 Cash Flows from Investing Activities: Purchase of Investments (Net) Interest on Investments $ (500,261) $ (26,942,454) $ 5,310,170 $ (2,920,649) $ (1,433,140) 316,803 12,566,255 12,759,623 273,537 520,574 Net Cash Provided by (Used in) Investing Activities $ (183,458) $ (14,376,199) $ 18,069,793 $ (2,647,112) $ (912,566) Net Increase (Decrease) in Cash and Cash Equivalents $ (2,663,608) $ (14,050,409) $ 19,406,199 $ (3,142,465) $ 1,005,883 Cash and Cash Equivalents, July 1 5,672,701 259,692,852 121,640,515 3,670,954 655,773 Cash and Cash Equivalents, June 30 $ 3,009,093 $ 245,642,443 $ 141,046,714 $ 528,489 $ 1,661,656 182 Lottery Corporation Ports Authority Road and Tollway Authority Stone Mountain Memorial Association Student Finance Authority World Congress Center Authority Other Entities Total $ 2,082,906,000 $ 97,188,000 $ (248,710,000) (15,116,000) (1,167,105,000) (25,410,517) (44,125,483) $ 651,975,000 $ 27,652,000 $ 22,094,696 $ (8,793,744) 13,300,952 $ 26,264 $ 10,891,628 (1,219,352) (2,625,392) 7,073,148 $ 4,135,147 $ 5,711,770 (13,797,978) (35,182,702) (4,096,860) 1,465,496 (41,765,127) $ 116,104,138 $ (86,710,224) (25,308,558) 74,256 (3,875,510) 284,102 $ 36,877,196 $ (48,668,408) (5,902,234) (3,631,145) 2,384,533,955 14,131,841 116,532,578 84,000,567 (445,624,169) (108,372,177) (35,182,702) (1,167,105,000) (200,867,146) (18,960,942) (3,875,510) (21,324,591) $ 619,211,295 $ $ $ (691,872,000) (605,000) (2,559,411) $ (694,431,411) $ 1,302,000 697,000 $ $ $ 38,854,145 $ 66,000,000 (3,225,889) (67,000,000) (764,040) 1,046,729 0$ (3,225,889) $ 38,136,834 $ $ 3,944,407 351,932 4,296,339 $ 84,864,423 $ 1,600,763 (13,669,943) (9,125,028) 63,670,215 $ 140,922,243 179,819,885 57,344,622 5,545,170 (707,980,508) (3,225,889) (172,641,099) (49,967,111) (3,921,445) (9,137,361) (563,241,493) $ $ $ $ 24,816,000 93,000 10,000 (1,055,000) (43,451,000) (731,397) (1,323,000) (5,390,000) (10,395,000) (3,582,598) $ 7,466 (739,332) (591,111) $ (962,000) $ (30,343,000) $ (9,703,995) $ (1,322,977) $ $ (553,498) (553,498) $ 16,812,673 $ (1,814,813) (8,033,070) (14,347) (164,576) 6,785,867 $ $ 274,023 (1,620,860) (81,011) (786,153) (530) (2,214,531) $ 16,812,673 26,397,115 110,466 (51,345,360) (12,019,011) (27,116,652) (14,877) (164,576) (47,340,222) $ 35,923,411 $ 7,495,000 (1,447,524) $ 1,891,000 (4,390,437) $ 3,523,089 (2,015,682) $ 816,088 180,775 $ 773,779 (8,408,742) $ 5,049,979 (8,332,828) $ 3,759,998 (14,977,361) 49,745,725 $ 43,418,411 $ 443,476 $ (867,348) $ (1,199,594) $ 954,554 $ (3,358,763) $ (4,572,830) $ 34,768,364 $ 0$ (1,550,524) $ 2,729,609 $ 1,324,688 $ (3,227,237) $ 8,007,545 $ 35,558,263 $ 43,397,944 500,000 18,789,862 15,259,090 10,697,088 12,684,264 16,615,353 43,060,159 508,938,611 $ 500,000 $ 17,239,338 $ 17,988,699 $ 12,021,776 $ 9,457,027 $ 24,622,898 $ 78,618,422 $ 552,336,555 (continued) 183 Georgia Component Units Proprietary Fund Types Combining Statement of Cash Flows (continued) For the Fiscal Year Ended June 30, 2001 Development Authority Environmental Facilities Authority Housing and Finance Authority Jekyll Island State Park Authority Lake Lanier Islands Development Authority Operating Income (Loss) $ 5,464,162 $ 23,275,218 $ (4,561,782) $ 23,808 $ 3,011,363 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 in Intergovernmental Receivables Increase in Interest and Dividends Receivable Decrease (Increase) in Notes and Loans Receivable Decrease (Increase) in Other Receivables Increase in Due from Primary Government Decrease (Increase) in Inventories Decrease (Increase) in Prepaid Items Decrease in Deferred Charges Decrease (Increase) in Other Assets Increase (Decrease) in Accounts Payable and Other Accruals Increase in Compensated Absences Payable Increase (Decrease) in Contracts Payable Increase (Decrease) in Salaries/Withholdings Payable Increase (Decrease) in Due to Primary Government Increase (Decrease) in Deferred Revenue Increase (Decrease) in Other Liabilities Increase (Decrease) in Deposits and Overpayments Decrease in Grand Prizes Payable $ $ (28,548) $ 162,495 $ 47,820,884 (18,334,540) 1,959,394 (70,852) 508,984 (1,997,609) (70,847,187) (10,235,363) 4,085 (204,103) 268,214 617,966 54,024 3,678,449 833 79,378 891,818 (930) $ (1,202) 40,895 (5,805) 71,141 (59,675) 41,287 42,112 36,774 71,106 2,909 2,796 233,312 Total Adjustments $ 318,325 $ (89,429,886) $ 43,438,953 $ 236,633 $ 239,017 Net Cash Provided by (Used in) Operating Activities $ 5,782,487 $ (66,154,668) $ 38,877,171 $ 260,441 $ 3,250,380 Noncash Investing, Capital, and Financing Activities: Disposal of Fixed Assets Donation of Fixed Assets Interest Earned on Grand Prize Investments and Grand Prizes Payable Interest Expense Related to Grand Prizes Payable Net Increase (Decrease) in Fair Value of Investments $ $ $ $ (96,008) $ 11,850 3,900,148 $ 0$ 0$ 3,900,148 $ (84,158) $ 0 184 Lottery Corporation $ 685,452,000 $ Ports Authority 11,960,000 $ Road and Tollway Authority Stone Mountain Memorial Association 8,217,790 $ 2,262,723 $ Student Finance Authority (41,821,148) $ World Congress Center Authority (3,239,254) $ Other Entities (22,398,992) $ Total 667,645,888 $ 1,317,000 $ (14,398,000) 16,447,000 $ 5,134,423 $ (10,905,000) (930,000) 12,409,531 (61,531) (127,000) (20,782,000) $ (33,477,000) $ 507,000 (338,000) 314,000 (988,000) (919,058) 7,051 498,000 (40,026) (53,967) (109,000) 367,000 15,692,000 $ (2,646) (4,052) (37,207) (446,204) 402,198 36,650 5,083,162 $ $ 651,975,000 $ 27,652,000 $ 13,300,952 $ 5,019,900 $ 505 31 (24,648) (26,190) (159,173) 4,810,425 $ 503,168 $ 1,465,496 707,871 (492,109) (4,516,577) (992,033) (40,206) 3,420,411 56,021 $ 9,339,358 $ (343,050) (1,763,004) (5,201) (166,273) 3,865,847 84,183 (562,806) (14,390) (2,722,978) (4,188,330) 3,523,356 $ 2,229,788 $ (3,631,145) 580,827 32,466 (7,008) (9,019) (5,424) (420,380) 2,541,088 35,599 499,974 (349,440) (361,684) (61,241) 1,074,401 $ 40,124,584 47,820,884 (33,283,047) 1,288,698 (2,560,570) (85,090,143) (13,081,817) (7,008) (357,994) (738,262) 268,214 (1,380,546) 21,693,459 170,916 785,082 (910,160) (454,895) 1,971,692 240,000 (4,151,680) (20,782,000) (48,434,593) 7,073,148 $ (41,765,127) $ 284,102 $ (21,324,591) $ 619,211,295 $ (605,000) $ 14,398,000 (14,398,000) 7,421,000 $ 6,816,000 $ (569,000) $ (569,000) $ (538,597) $ (538,597) $ (76,799) $ 15,000 8,555 (53,244) $ $ (419,316) $ (108,557) $ (2,413,277) 2,028,473 2,055,323 216,970 14,398,000 (14,398,000) 11,546,673 0$ (419,316) $ 2,136,886 $ 11,188,719 185 (This page intentionally left blank) COMPONENT UNITS FIDUCIARY FUND TYPES (This page intentionally left blank) Georgia Component Units Fiduciary Fund Types For the Fiscal Year Ended June 30, 2001 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 State's fiduciary funds are described below: The Class Nine Fire Department Pension Fund is used to account for the accumulation of resources for the purpose of paying retirement and death benefits to volunteer firefighters of the State of Georgia. The Firefighter's Pension Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the firemen of the State of Georgia. The Judges of the Probate Courts Retirement Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the judges of the Probate Courts of the State of Georgia. The Peace Officers' Annuity and Benefit Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the peace officers of the State of Georgia. The Public School Employees Retirement System is used to account for the accumulation of resources for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System. The Sheriffs' Retirement Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the sheriffs of the State of Georgia. The Superior Court Clerks' Retirement Fund is used to account for the accumulation of resources for the purpose of paying retirement benefits to the Superior Court Clerks of the State of Georgia. The Teachers Retirement System is used to account for the accumulation of resources for the purpose of providing retirement allowances and other benefits for teachers and administrative personnel employed in the public schools and the University System of Georgia. 189 Georgia Component Units Fiduciary Fund Types Combining Statement of Plan Net Assets June 30, 2001 Assets Cash and Cash Equivalents Investments Receivables (Net of Allowances for Uncollectibles) Interest and Dividends Other Miscellaneous Due From Other Funds Fixed Assets Land and Buildings Equipment Total Assets Liabilities Cash Overdraft Accounts Payable and Other Accruals Salaries/Withholdings Payable Due To Other Funds Due To Primary Government Capital Leases Payable Total Liabilities Class Nine Fire Department Pension Fund Firefighters' Pension Fund Judges of the Probate Courts Retirement Fund Peace Officers' Annuity and Benefit Fund $ 16,485 $ $ 7,577 $ 5,187,764 415,491,645 44,467,932 310,429,241 3,208,063 458,165 1,555,076 489,938 152,724 186,447 310,296 606 233,559 $ 506,423 $ 419,038,879 $ 44,934,280 $ 317,715,936 $ $ 18 $ $ 489,938 17,349 $ 0 $ 489,956 $ 0 $ 17,349 Fund Balances Reserved for Pension Benefits $ 506,423 $ 418,548,923 $ 44,934,280 $ 317,698,587 190 Public School Employees Retirement System Sheriffs' Retirement Fund Superior Court Clerks' Retirement Fund Teachers' Retirement System Total Before Eliminations Eliminations Total $ 127,000 $ 748,852,000 14,547 $ 52,885,781 527,304 $ 977,659 $ 6,858,336 $ 43,082,075 39,230,757,000 40,845,965,674 8,000 $ 748,987,000 $ 383,182 27,771 53,311,281 $ 266,333,000 271,937,486 168,013,222 168,021,222 489,938 21,112 463,020 469,495 43,630,491 $ 39,666,080,881 $ 41,294,205,171 $ $ 6,858,336 40,845,965,674 271,937,486 (489,938) 168,021,222 0 463,020 469,495 (489,938) $ 41,293,715,233 $ $ $ $ $ 18 $ 416,000 3,343,507 3,759,507 109,229 109,229 489,938 3,145 3,145 17,349 $ 416,000 $ 0 $ 0 $ 3,455,881 $ 4,379,186 $ $ 748,571,000 $ 53,311,281 $ 43,630,491 $ 39,662,625,000 $ 41,289,825,985 $ $ (489,938) (489,938) $ 18 3,759,507 109,229 0 3,145 17,349 3,889,248 0 $ 41,289,825,985 191 (This page intentionally left blank) Georgia Statistical Section Index Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Page General Governmental Expenditures by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 General Governmental Revenues by Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 State Tax Revenues by Source - All Governmental Fund Types . . . . . . . . . . . . . . . . . . . . . . 200 Principal Nongovernmental Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 Computation of Legal Debt Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Governmental Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Demographic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Schedule of Bank Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Miscellaneous Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205 195 Georgia General Governmental Expenditures by Function (1) For the Last Ten Fiscal Years Table 1 2001 2000 1999 1998 1997 Expenditures by Function General Government $ Education (3) Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay Debt Service Intergovernmental 788,458,919 $ 7,752,818,250 8,300,962,838 1,626,360,119 1,587,054,229 455,033,691 205,578,201 84,148,200 522,931,260 704,233,985 (2) 822,268,403 $ 6,957,849,312 7,498,521,721 1,581,318,460 1,443,073,761 453,860,928 203,220,402 49,256,757 337,817,613 702,751,701 (2) 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 (2) 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 (2) 637,247,287 5,700,389,994 6,796,847,561 1,113,788,591 1,124,542,047 263,090,507 170,667,100 48,769,799 373,677,146 629,588,332 (2) Total General Governmental Expenditures $ 22,027,579,692 $ 20,049,939,058 $ 18,698,714,128 $ 17,355,735,949 $ 16,858,608,364 (1) General Governmental Functions include general, special revenue, capital projects and debt service funds. (2) The "Intergovernmental" expenditure category was eliminated in 1993. Such expenditures are categorized by "Current" expenditure function. (3) In fiscal year 1995, the state began recording a liability and related expenditures for teachers' summer salaries. 196 1996 1995 1994 1993 1992 $ 471,240,748 $ 539,762,518 $ 409,630,033 $ 380,920,519 $ 297,671,885 4,998,994,142 4,625,591,699 4,168,677,500 3,738,241,752 3,356,647,585 6,558,077,298 5,693,088,331 5,257,989,665 4,684,027,431 4,159,170,527 1,287,172,005 1,401,010,780 975,771,056 1,088,108,187 898,101,022 1,104,443,315 1,030,957,652 891,894,168 798,451,763 702,543,743 294,112,317 190,029,084 175,159,029 184,179,867 186,742,307 169,961,642 156,234,675 121,413,898 116,370,238 103,007,704 46,557,857 45,875,856 45,299,326 42,923,710 40,267,999 391,876,879 493,326,267 325,340,789 347,403,119 249,777,992 571,524,445 537,800,975 427,689,905 451,136,869 409,267,811 (2) (2) (2) (2) 325,890,492 $ 15,893,960,648 $ 14,713,677,837 $ 12,798,865,369 $ 11,831,763,455 $ 10,729,089,067 197 Georgia General Governmental Revenues by Source (1) For the Last Ten Fiscal Years Table 2 2001 2000 1999 1998 1997 Revenues by Source Taxes (3) 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 (2) $ 13,695,968,855 $ 12,966,453,323 $ 12,021,751,940 $ 11,439,170,422 $ 10,483,497,704 440,808,678 410,024,861 397,962,567 346,081,148 351,181,927 7,279,299,131 6,499,451,114 5,923,606,145 5,617,029,811 5,549,805,877 565,762,607 629,416,207 581,123,782 536,827,964 513,909,314 214,379,855 246,188,571 41,657,448 49,204,317 50,426,165 502,015,939 348,716,046 300,699,674 275,999,300 239,306,741 17,355,972 15,555,365 16,872,007 13,920,492 9,992,943 206,596,674 274,246,976 187,061,598 192,209,388 190,841,985 9,684,355 8,045,497 5,991,314 9,485,653 6,699,639 41,157,538 45,530,760 26,104,874 20,690,958 20,118,021 567,363,080 794,815,522 720,607,460 257,123,411 373,248,075 26,408,330 14,876,905 7,209,322 5,409,857 32,522,511 Total General Governmental Revenues $ 23,566,801,014 $ 22,253,321,147 $ 20,230,648,131 $ 18,763,152,721 $ 17,821,550,902 (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 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. (3) In fiscal year 1995, the state began accounting for certain tax revenues on the modified accrual basis. 198 1996 1995 1994 1993 1992 $ 9,891,126,837 $ 9,068,979,799 $ 8,337,801,318 $ 7,761,536,952 $ 7,014,576,028 343,118,630 335,061,015 323,679,549 273,530,522 156,555,971 5,457,487,877 4,837,628,972 4,163,447,196 4,024,383,231 3,481,785,992 363,320,801 339,380,452 304,600,443 273,321,290 284,191,405 32,022,270 34,043,976 32,570,070 27,968,839 26,684,051 242,059,488 184,686,971 131,238,703 122,575,976 113,224,780 17,600,277 17,733,647 9,285,637 22,275,341 25,757,175 169,020,652 170,464,588 149,621,154 103,743,601 95,966,335 9,082,163 8,282,630 16,110,883 18,888,188 17,936,355 25,809,698 19,815,272 19,935,473 34,611,896 11,798,133 960,650,338 727,775,339 977,957,328 356,333,042 667,655,288 6,781,951 24,833,072 121,670,497 6,437,851 9,936,790 $ 17,518,080,982 $ 15,768,685,733 $ 14,587,918,251 $ 13,025,606,729 $ 11,906,068,303 199 Georgia State Tax Revenues by Source All Governmental Fund Types For the Last Ten Fiscal Years Table 3 Source: Income (*) General Sales Selective Sales Motor Fuel Alcoholic Beverages Cigars/Cigarettes Insurance Premium Estate Property Corporation Net Worth (*) Other Total Tax Revenues All Governmental Fund Types 2001 2000 1999 1998 1997 $ 7,473,304,675 $ 7,108,385,607 $ 6,646,175,462 $ 6,218,387,032 $ 5,490,241,749 5,127,697,977 4,709,213,152 4,323,189,194 4,238,397,531 4,062,494,318 444,185,975 139,642,983 81,777,839 223,190,967 126,114,453 49,042,785 20,371,629 10,639,572 447,580,578 139,189,273 83,012,695 239,710,645 148,254,987 44,606,200 33,317,137 13,183,049 428,150,221 132,903,384 87,355,714 211,908,338 111,192,262 40,727,315 25,388,604 14,761,446 405,269,766 126,825,895 80,051,470 212,839,904 84,808,642 36,021,442 24,013,610 12,555,130 387,418,653 124,667,603 76,391,777 204,744,512 60,295,856 35,630,751 22,491,188 19,121,297 $ 13,695,968,855 $ 12,966,453,323 $ 12,021,751,940 $ 11,439,170,422 $ 10,483,497,704 (1) In Fiscal Year 1995, the state began accounting for certain tax revenues on the modified accrual basis. (*) Amounts restated between revenue functions are due to prior errors of adjusting certain tax revenue against Corporation Net Worth. Source: Georgia Comprehensive Annual Financial Report Note: Governmental Fund Types are described in the Notes to the Financial Statements. 200 1996 1995 1994 1993 1992 $ 4,962,182,220 $ 4,502,308,762 $ 4,102,592,850 $ 3,850,571,615 $ 3,452,551,939 3,954,442,920 3,651,583,790 3,361,513,613 3,072,269,685 2,777,595,357 391,550,566 121,702,379 91,248,012 196,508,650 66,538,071 33,091,530 23,722,938 50,139,551 379,119,386 114,681,538 86,176,720 187,190,136 73,607,282 31,106,689 21,931,918 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 (1) $ 9,891,126,837 $ 9,068,979,799 $ 8,337,801,318 $ 7,761,536,952 $ 7,014,576,028 201 Georgia Principal Nongovernmental Employers June 30, 2001 Table 4 Company Wal-Mart Stores, Incorporated Delta Air Lines, Incorporated * BellSouth Corporation * Shaw Industries, Incorporated * Publix Super Markets, Incorporated Mohawk Industries Incorportated * Emory System of Health Care* Promina Health System * The Southern Company/Georgia Power Company * Georgia-Pacific Corporation The Home Depot Incorporated* AT&T Company United Parcel Service Incorporated * Indicates Georgia Headquarters Source: Georgia Department of Industry, Trade and Tourism, January, 2002 Number of Employees 40,575 31,500 25,000 23,500 20,000 18,000 14,398 13,800 13,386 11,300 11,085 11,000 10,000 202 Georgia Computation of Legal Debt Margin June 30, 2001 Table 5 Treasury Receipts - Fiscal Year Ended June 30, 2000 (1) Legal Debt Margin: Highest Annual Commitments Permitted Under Constitutional Limitation (10% of above) Highest Total Annual Commitments in any Fiscal Year (Highest FY 2001) As a Percentage of FY 2000 State Treasury Receipts As a Percentage of FY 2001 State Treasury Receipts $ 14,959,980,702 $ 1,495,998,070 $ 660,903,018 4.42% 4.19% (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 Ten Fiscal Years Table 6 Fiscal Year 2001 $ 2000 1999 1998 1997 1996 1995 1994 1993 1992 Principal General Bonded Debt Interest and Other Fiscal Charges Total Debt Service General Governmental Expenditures (1) 395,515,000 $ 434,875,000 448,960,000 387,030,000 392,165,000 352,300,000 350,385,000 246,840,000 258,548,346 243,921,646 292,821,352 $ 260,790,770 230,772,839 258,317,069 236,835,498 218,523,118 186,826,275 179,738,306 191,022,895 164,291,856 688,336,352 $ 695,665,770 679,732,839 645,347,069 629,000,498 570,823,118 537,211,275 426,578,306 449,571,241 408,213,502 22,027,579,692 20,049,939,058 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 Ratio of Debt Service to General Governmental Expenditures 3.12% 3.47% 3.64% 3.72% 3.73% 3.59% 3.65% 3.33% 3.80% 3.80% (1) See Table 1, Total General Governmental Expenditures Source: Georgia Comprehensive Annual Financial Report 203 Georgia Demographic Statistics For the Last Ten Calendar Years Table 7 Calendar Year Population Per Capita Personal Income * Public School Enrollment Unemployment Rate 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 8,383,915 8,186,453 7,788,240 7,642,207 7,486,242 7,353,225 7,102,000 7,055,000 6,917,000 6,773,000 27,790 26,522 25,481 23,945 23,090 21,840 20,873 19,916 19,197 1,470,634 1,444,937 1,422,941 1,401,291 1,346,761 1,311,126 1,271,903 1,233,362 1,205,357 1,174,437 4.00% 3.70% 4.00% 4.20% 4.50% 4.60% 4.90% 5.20% 5.80% 6.90% 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 2001 estimate not available at time of report issuance . The Bureau of Economic Analysis released interim Per Capita Personal Income estimates for Fiscal Years 1992 - 2000. Release of final Per Capita Personal Income will follow the release by the Census Bureau of intercensal population estimates. Schedule of Bank Deposits For the Last Ten Years (Dollars in Thousands) Table 8 Fiscal Year Commercial Banks Savings and Loan Associations Total Deposits 2001 2000* 1999 1998 1997 1996 1995 1994 1993 1992 $ 97,337,131 $ 4,765,934 $ 102,103,065 92,541,946 3,995,466 96,537,412 44,295,000 4,600,000 48,895,000 77,505,212 4,191,658 81,696,870 42,235,312 4,798,940 47,034,252 91,933,990 4,640,878 96,574,868 66,895,898 5,107,013 72,002,911 62,065,439 5,285,489 67,350,928 60,063,284 5,180,763 65,244,047 55,066,858 10,659,544 65,726,402 Source: * Federal Reserve Bank of Atlanta, Research Department Total Deposits reported in Fiscal Year 2000 have been revised in Fiscal Year 2001. 204 Georgia Miscellaneous Statistics June 30, 2001 Table 9 Date Entered Union Form of Government Miles of State Highway Land Area January 2, 1788 Legislative-Executive-Judicial 18,106 59,441 Square Miles State Police Protection: Number of Stations 48 Number of State Troopers 778 State Colleges and Universities: Number of Separate Institutions Number of Active Educators Number of Students 34 7,765 205,878 Recreation: Number of State Parks Number of Historic Sites Area of State Parks and Historic Sites 51 17 78,942 acres Sources: Facts About the States, 1989 - Kane, Anzovin, Podell Georgia Descriptions in Data, 1988 - Georgia Office of Planning and Budget State and Metropolitan Area Data Book, 1991 - U. S. Department of Commerce Georgia Department of Transportation Georgia Department of Public Safety Board of Regents of the University System of Georgia Georgia Department of Natural Resources 205