Review report, District Attorneys' Retirement System, a component unit of the state of Georgia, year ended June 30, 1994

GA. A3nn
.R:
1)~
1'\'i3 .. 'f4
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT DISTRICT ATTORNEYS' RETIREMENT SYSTEM
A COMPONENT UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1994

DISTRICT ATTORNEYS' RETIREMENT SYSTEM - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANT'S REPORT ON REVIEW OF FINANCIAL STATEMENTS

EXHIBITS

A STATEMENT OF ASSETS AND FUND EQUITY

ARISING FROM CASH TRANSACTIONS

FIDUCIARY FUND TYPE - PENSION TRUST FUND

I

B STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

PENSION TRUST FUND

2

C NOTES TO THE FINANCIAL STATEMENTS

3

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~eparhuent of ~uhits
254 WASHINGTON STREET, S.W. ROOM 214
~tlmtbt, &>.eorgia 30334-8400
December 16, 1994

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe Board ofTrustees ofthe District Attorneys' Retirement System
INDEPENDENT ACCOUNTANT'S REPORT ON REVIEW OF FINANCIAL STATEMENTS
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through C) ofthe District Attorneys' Retirement System as of and for the year ended June 30, 1994, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 2, these financial statements were prepared on the basis of cash receipts and disbursements, which is ~ comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of the District Attorneys' Retirement System.
A review consists principally of inquiries of agency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 2.
Respectfully submitted,

CLV:gp 94ARL-4CX

Claude L. Vickers State Auditor

DISTRICT ATTORNEYS' RETIREMENT SYSTEM STATEMENT OF ASSETS AND FUND EQUITY ARISING FROM CASH TRANSACTIONS
FIDUCIARY FUND TYPE - PENSION TRUST FUND JUNE 30, 1994

EXHIBIT "A"

Cash and Cash Equivalents and Investments Funds Held on Deposit and Invested by Office of Treasury and Fiscal Services Trust and Agency Accounts Special Retirement Account

ASSETS

Fund Balance Reserved for Benefits

FUND EQUITY

$13,584,032.00 $13,584,032.00

See Independent Accountant's Report on Review of Financial Statements. The notes to the financial statements are an integral part of this statement.
- 1-

DISTRICT ATTORNEYS' RETIREMENT SYSTEM STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
PENSION TRUST FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "8"

CASH RECEIPTS
REVENUES
OTHER REVENUES RETAINED Member Contributions Members Paid on Members' Behalf by Superior Courts of Georgia Employer Contributions Through Superior Courts of Georgia
Investment Income Interest Received Gain (Loss) on Investments (Net)
Change in Membership District Attorneys' Retirement Fund (O.C.G.A. 47-13-40) Superior Court Judges' Retirement System (0.C.G.A. 47-13-40.1)
Total Cash Received BALANCE - JULY 1
Cash and Cash Equivalents Investments

$ 120,876.72 153,773.69 $
-------------

274,650.41 157,248.08

$ 788,152.85 390,900.30 1,179,053.15
-------------

$ 130,577.28

118,130.21

248,707.49

------------- -------------

$ 1,859,659.13

$

0.43

12,093,114.37 12,093,114.80

$13,952,773.93

EXPENSES
Administrative Expenses Bank Service Fees
Benefit Expense Retirement Benefits
Refunds to Terminated Members
Total Disbursements
BALANCE - JUNE 30
Cash and Cash Equivalents Investments

DISBURSEMENTS

$ 14,274.68
178,327.92 176,139.33
-------------
$ 368,741.93

$

0.43

13,584,031.57 13,584,032.00

See Independent Accountant's Report on Review of Financial Statements. The notes to the financial statements are an integral part of this statement.
- 2-

$13,952,773.93
=============

DISTRICT ATTORNEYS' RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "C"

NOTE 1: PLAN DESCRIPTION

ORGANIZATION AND PURPOSE The District Attorneys' Retirement System is a single employer, defined benefit pension plan established in 1978 by the General Assembly ofGeorgia for the purpose ofpaying retirement benefits to the district attorneys ofthe State of Georgia. The Board of Trustees of the Retirement System is comprised of three (3) members and consists ofthe Governor, an appointee ofthe Governor who is not the Attorney General, and the Director of the Office of Treasury and Fiscal Services. The District Attorneys' Retirement System is considered a component unit of the State of Georgia and is included within the State of Georgia reporting entity for financial reporting purposes because ofthe significance ofits legal, operational and financial relationships with the State of Georgia.

Membership in the Retirement System is restricted to those individuals who have served or are serving as district attorneys within the State of Georgia. The Retirement System is funded through a combination of member contributions paid by or on behalf of the affected district attorneys and employer contributions paid by the Superior Courts of Georgia.

CURRENT MEMBERSHIP The following analysis compares the membership of the District Attorneys' Retirement System at June 30, 1994, to that of the prior year:

June 30, 1994 June 30, 1993

Retirees and Beneficiaries Currently Receiving Benefits and Terminated Members Entitled to Benefits but not yet Receiving Them For Retirement

Number of Active Members Vested Nonvested

23

22

28

23

A detailed analysis ofindividuals receiving benefits during the fiscal year ended June 30, 1994, is on file in the office of the State Auditor.
PLAN BENEFITS The District Attorneys' Retirement System provides retirement as well as death and disability benefits. Benefit provisions and vesting requirements are established by statute and may be amended only by the State of Georgia General Assembly. A description of plan benefits and vesting requirements is as follows:

-3-

DISTRICT ATTORNEYS' RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "C"

NOTE 1: PLAN DESCRIPTION
PLAN BENEFITS (A) RETIREMENT CONDITIONS: A member who has obtained at least ten (10) years of creditable
service and who has attained the age of sixty (60) shall be eligible to retire and receive a retirement benefit. After obtaining at least ten (10) years of creditable service, a member may cease to hold office before attaining the age ofsixty (60) and may begin receiving retirement benefits upon reaching age sixty (60).
(B) RETIREMENT BENEFITS: The accrued monthly benefit at normal retirement age or other termination ofemployment, except disablement, is equal to four percent (4%) of the average monthly compensation multiplied by the years of credited service, not to exceed sixteen ( 16) years of credited service.
(C) DISABILITY BENEFITS: Subject to the approval of the Board of Trustees, and after obtaining a minimum of ten (10) years of creditable service, any member, regardless of age, who becomes pennanently and totally disabled to the extent thathe/she is unable to perform the duties of his/her office,
shall be entitled to receive a disability retirement benefit. The accrued monthly benefit in the event of
such a disability retirement shall be computed in the same manner as the accrued benefit for other termination of employment except that such benefits cannot be less than fifty percent (50%) of the maximum retirement benefit based on sixteen (16) years of credited service.
Any member, regardless of age, after obtaining a minimum of four years of credited service, who becomes totally and permanently disabled as a result of an act of external violence incurred in or as a result of the performance of the member's official duties, shall also be entitled to receive a disability
benefit. The accrued monthly benefit in the event of such a disability retirement shall be computed in
the same manner as the accrued benefit for other termination of employment except that such benefits cannot be less than fifty percent (50%) of the maximum retirement benefit based on sixteen (16) years of credited service.
(D) DEATH BENEFITS: In order to receive the death benefits provided under the Plan, a participant must elect such coverage and must contribute an additional amount each month. The benefit provided by such an election is an annuity provided to the surviving spouseof the participant, for life or until remarriage, in the amount of fifty percent (50%) of the monthly benefit being paid to the member to the time of death, ifretired, or fifty percent (50%,) ofthe monthly benefit which would be payable ifthe member had retired on the date of death. In the event the member dies prior to the attainment of the age of sixty (60), the monthly benefit would be computed based on his/her years of credited service as ofthe date of death, and the death benefit would become payable immediately to the surviving spouse regardless of the member's age. In the event that death occurs as a result of an act of external violence incurred as a result of the performance of the participant's official duties, the monthly benefit is computed as if the participant worked to age sixty (60) and retired. The additional employee contribution required for this benefit must be paid at least ten (10) years prior to death in order for the surviving spouse to receive the death benefits provided in the Plan.

-4-

DISTRICT ATTORNEYS' RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "C"

NOTE 1: PLAN DESCRIPTION
PLAN BENEFITS (D) DEATH BENEFITS:
Participants who do not elect to participate in this aspect ofthe Plan, and those who die before they have paid the additional employee contribution required for this benefit for a minimum of ten (10) years, receive no death benefits. Survivors ofthe deceased member are entitled to the return of prior employee contributions plus interest at the rate of four percent (4%) per annum.
(E) VESTING OF ACCRUED BENEFITS: (1) One hundred percent (100%) for normal retirement at age sixty (60) with ten (10) years of credited service.
(2) One hundred percent (100/c,) in the event oftotal and permanent disability after ten (10) years of credited service, or after four (4) years of credited service if the disability should occur due to an act of external violence incurred as a result ofthe performance of official duties.
(3) For other tennination of employment, except death, the vesting percentage is equal to one hundred
percent (100%) after ten (10) years of credited service.
(F) CREDITED SERVICE: Credited service includes years of service after January 1, 1979, during which a participant holds office as a district attorney and makes the required contributions for the Plan, plus years ofprior service through December 31, 1978, if any, which were transferred from the Trial Judges and Solicitors Retirement Fund and the District Attorneys' Retirement Fund of Georgia. Credited service may not exceed sixteen (16) years.
(G) TERMINATION: If a participant leaves covered employment or dies before ten (I 0) years of credited
service, accumulated contributions plus interest are refunded to the participant or designated beneficiary.
FUNDING REQUmEMENTS Contribution provisions are established by statute and may be amended only by the State of Georgia General Assembly. A description of contribution requirements is as follows:
(A) MEMBERS' CONTRIBUTIONS: (I) Members' contributions are calculated as seven and one-half percent (7 1/2%) of the salary paid by the ~tate of Georgia. Of this amount, the State of Georgia contributes five percent (5%) less $7.00 monthly on behalf of each participant. The participant is responsible for the remainder of the required member contributions.
(2) Each participant who elects to be covered by the death benefit provision of the Plan must contribute an additional two and one~half percent (2 1/2%) of his/her salary paid by the State of Georgia to the Plan.

-5-

DISTRICT ATTORNEYS' RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "C"

NOTE 1: PLAN DESCRIPTION
FUNDING REQUIREMENTS (B) STATE OF GEORGIA CONTRIBUTIONS: The employer's contribution is currently calculated as five
percent (5%) of the salaries paid by the State of Georgia.
NOTE 2: SlTh1MARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS
FUND COMPRISING FINANCIAL STATEMENTS The District Attorneys' Retirement System uses a fund to report on its financial position and the results of its operations determined in conformity with the accounting practices prescribed or permitted by statutes and regulations of the State of Georgia. A fund is a separate accounting entity with a self-balancing set of accounts. The fund presented in this report is as follows:
FIDUCIARY FUND TYPE
PENSION TRUST FUND - The fund used to account for the accumulation of resources for retirement benefits to eligible members.
BASIS OF ACCOUNTING The District Attorneys' Retirement System prepares its financial statements on the basis of cash receipts and disbursements, which is a comprehensive basis of accounting other than generally accepted accounting principles. This basis of accounting is defined as that method of accounting in which certain revenues and related assets are recogniz~ when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of funds on deposit with the Office of Treasury and Fiscal Services.
INVESTMENTS The Official Code of Georgia Annotated Section 47-13-24 states that the Board of Trustees of the District Attorneys' Retirement System shall have full power to invest- and reinvest funds subject to the terms and conditions imposed by the laws ofthe State of Georgia upon domestic life insurance companies in the making and disposing oftheir investments. Statutory provisions governing the investments of domestic life insurance companies are enumerated in Title 33, Chapter 11 ofthe Official Code of Georgia Annotated. The significant forms ofinvestment in accordance with these statutes and available to the Retirement System are as follows:
(1) Deposits in checking, savings, certificates of deposit or similar evidences of deposits in banks, trust companies, savings and loan associations, and building and loan associations which have qualified for the insurance protection afforded by the Federal Deposit Insurance Corporation.

-6-

DISTRICT ATTORNEYS' RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "C"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS
INVESTMENTS (2) Securities of any open-end management type investment company or investment trust registered with the Securities and Exchange Commission, provided that the investment company or trust has been organized for not less than ten years or has assets of not less than $25,000,000.00 at the date of investment.
(3) Bonds, notes, securities or other evidences of indebtedness which are direct obligations of the government of the United States of America.
(4) Loans guaranteed as to principal and interest by the government of the United States of America, to the extent of such guaranty.
(5) Bonds, notes, warrants or securities not in default which are direct obligations of any state ofthe United States of America or of the District of Columbia, or of the government of Canada or any province of Canada, or for which the full faith and credit of such state, district, government or province has been pledged for the payment of principal and interest.
(6) Obligations oflocal units of government or government related entities located within the United States of America or Canada, subject to certain conditions.
(7) Dividend paying stocks, common or preferred, ofany solvent corporation created or existing under the laws of the United States of America or any state or of the District of Columbia, subject to certain conditions.
(8) Bonds, debentures, notes, or other evidences of indebtedness of any solvent corporation created or existing under the laws of the United States of America or of any state or of the District of Columbia, subject to certain conditions.
(9) Bonds, debentures, notes, or other evidences of indebtedness which are secured by first mortgage or deed of trust or deed to secure debt upon fee simple, unencumbered improved real estate or income producing real property located in the United States of America or Canada, subject to certain conditions.
(10) Purchase money mortgages or like securities received upon the sale or exchange of real property acquired.
( 11) Real estate acquired for the purpose of leasing same to any person, firm or corporation, or in real estate already leased to any person, firm or corporation, subject to certain conditions.
Investments consist of funds maintained in an investment pool by the Office of Treasury and Fiscal Services.

-7-

DISTRICT ATTORNEYS' RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXIIlBIT "C"

NOTE 3: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS Cash and Cash Equivalents of the District Attorneys' Retirement System shown on Exhibit "B" ofthis report are a part ofthe demand deposits maintained by the Office of Treasury and Fiscal Services. The amounts of the bank balances for these deposits are classified by credit risk categories in the audit report of the Office of Treasury and Fiscal Services.

CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount shown below is maintained in an investment pool by the Office ofTreasury and Fiscal Services.

Type of Investment

Carrying Amount

Market Value

State Investment Pool

$13,584.031.57 $13,776,835.61

NOTE4: FUNDINGSTATUSANDPROGRESS

PENSION BENEFIT OBLIGATION Governmental Accounting Standards Board (GASB) Statement Number 5 requires the use of a standardized measure ofthe pension obligation in order to help users assess funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among public employee retirement systems. The standardized pension obligation measure required by GASB Statement Number 5 is the actuarial present value of credited projected benefits, which is defined as the present value ofbenefits estimated to be payable in the future as a result ofemployee service to date, computed by attributing an equal benefit amount (including the effects of both projected salary increases and any step-rate benefits, if applicable) to each year of credited and expected future employee service, using assumptions that reflect the best judgement of future events affecting the actuarial present value. The Statement further requires the use of the term pension benefit obligation when referring to the standardized
measure. The standardized measure is independent of the actuarial funding method, if any, used to determine contributions to the affected public employees retirement system.

In accordance with policies prescribed or permitted by statutes of the State of Georgia, the District Attorneys' Retirement System does not calculate the pension obligation in the manner prescribed by the Governmental Accounting Standards Board. The actuary engaged by the Retirement System utilized the aggregate actuarial cost method to calculate the actuarial present value ofaccumulated plan benefits at the valuation date of July 1, 1993. The valuation results with regard to the funded status of the plan is reflected below.

- 8-

DISTRICT ATTORNEYS' RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "C"

NOTE 4: FUNDING STATUS AND PROGRESS

VALUATION RESULTS:

Actuarial Present Value of Accumulated Plan Benefits Active Members Pensioners, Future Survivors and Beneficiaries Former Members Eligible for Deferred Vested Benefits

$14,360,392.00 1,625,239.00 19,454.00

Total

$16,005,085.00

Valuation Assets (Market Value)

13,958,683.00

Unfunded Actuarial Present Value of Accumulated Plan Benefits

$ 2,046.402.00

ACTUARIAL ASSUMPTIONS The most recent actuarial investigation of the Retirement System was performed by the consulting actuary engaged by the District Attorneys' Retirement System using census data as of July 1, 1993. Significant actuarial assumptions used include:

(A) Interest Rate: All cost estimates have been based on an interest rate of seven and one-half percent (7 1/2%) per annum. This rate serves as an estimate of the average yield which the assets of the ,Retirement System may reasonably be expected to earn over an extended period.

(B) Valuation of Assets: Market value reduced by the balance of the employee contributions for past retirement cost-of-living benefit adjustments.

(C) Mortality Rates: The 1971 Group Annuity Mortality Tables for males with a 5 year setback for females.

(D) Disability Rates: The disability assumptions have been based upon the 1965 Railroad.Retirement Board Totally Disabled Life Mortality Table.

(E) Retirement Age: Age at normal retirement.

(F) Termination Rates: The rates of turnover from causes other than disability or death for included employees are shown in the table below for sample ages:

-9-

DISTRICT ATTORNEYS' RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "C"

NOTE 4: FUNDING STATUS AND PROGRESS

ACTUARIAL ASSUMPTIONS

Percentage

Age

Male

Female

30

3.702%

4.895%

35

2.349%

3.692%

40

1.128%

2.319"/o

45

.265%

1.038%

50

.000%

.065%

55

.000%

.000%

60

.000%

.000%

(G) Contribution Levels: It has been assumed that all contribution levels will increase at an annual rate of five and one-half percent (5 1/2%).

NOTE 5: CONTRIBUTIONS REQUIRED AND MADE

FUNDING POLICY The minimum annual employer contribution requirements are set forth in the Official Code of Georgia Annotated (O.C.G.A) Section 47-20-10. This statute further prohibits any action to grant a benefit increase until such time as the minimum annual contribution requirements meet or exceed legislative requirements. The actuarial valuation as ofJuly 1, 1993, indicated that the minimum employer contribution level was being met. Member contribution requirements are set forth in O.C.G.A. Section 47-13-50. Contribution levels are not actuarially determined. Covered payroll information was not available.

FUNDING REQUIREMENTS Actual contributions for the year ended June 30, 1994, were as follows:

Member Contributions Employer Contributions

$ 274,650.41 157,248.08

$ 431 898.49

NOTE 6: HISTORICAL TREND INFORMATION

Statement Number 5 issued by the Governmental Accounting Standards Board requires the disclosure of
certain 10-year historical trend data and an explanation that this data provide information about progress made
in accumulating sufficient assets to pay benefits when due.

- 10 -

DISTRICT ATTORNEYS' RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXIIlBIT "C"

NOTE 6: HISTORICAL TREND INFORMATION

All required historical trend data for the District Attorneys' Retirement System were not available at the time of this report. In addition, trend information relative to the pension benefit obligation was not available. Available trend data are presented as follows:

REVENUES BY SOURCE AND EXPENSES BY TYPE

Fiscal Year

REVENUES

Member

Employer

Contributions Contributions

Other (1)

Total

1988 1989 1990 1991 1992 1993 1994

$ 212,380.35 $ 239,882.52 $ 595,128.43 $ 1,047,391.30 $ 221,432.00 $ 125,146.40 $ 654,834.95 $ 1,001,413.35 $ 221,872.32 $ 125,472.36 $ 775,410.64 $ 1,122,755.32 $ 301,088.06 $ 149,889.15 $ 771,702.95 $ 1,222,680.16 $ 251,380.81 $ 147,932.72 $ 947,753.49 $ 1,347,067.02 $ 272,259.14 $ 162,998.66 $ 935,728.44 $ 1,370,986.24 $ 274,650.41 $ 157,248.08 $ 1,427,760.64 $ 1,859,659.13

Fiscal Year

Benefits

EXPENSES
Administrative Expenses

Refunds To Terminated
Members

Total

1988 1989 1990 1991 1992 1993 1994

$ 35,586.48 $ $ 48,663.48 $ $ 61,740.48 $ $ 53,720.46 $ $ 130,909.56 $ $ 158,570.27 $ $ 178,327.92 $

0.00 3,787.50 8,900.44 10,067.66 11,649.65 11,485.18 14,274.68

$ 23,470.90 $ $ 228,529.89 $ $ 31,838.56 $ $ 35,598.30 $ $ 35,598.30 $ $ 146,179.98 $ $ 176,139.33 $

59,057.38 280,980.87 102,479.48
99,386.42 178,157.51 316,235.43 368,741.93

(1) Includes Investment Income

To conform to generally accepted accounting principles, the above trend information should include certain information relative to the pension benefit obligation and should be presented as required supplementary information.

NOTE 7: CONTINGENCIES

Litigation, claims and assessments filed against the District Attorneys' Retirement System, if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self-insurance

- 11 -

DISTRICT ATTORNEYS' RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "C"

NOTE 7: CONTINGENCIES
which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994.
NOTE 8: BONDING INFORMATION
The accounting records for the District Attorneys' Retirement System are maintained by the Office of Treasury and Fiscal Services. The Director and all employees of the Office of Treasury and Fiscal Services are bonded under a Public Employees Blanket Bond written by Employers Insurance ofWausau, their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1994. Under this agreement the Public Employee Dishonesty Coverage insures the Office of Treasury and Fiscal Services to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance ofDuty Coverage insures the Office to a maximum of$100,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
All employees ofthe Office ofTreasury and Fiscal Services are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium was paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Office to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 12 -

SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS

DISTRICT ATTORNEYS' RETIREMENT SYSTEM SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
INVESTMENTS Failure to Reconcile Investment Account in a Timely Manner Financial Statements Audit Control Number 946-94-01
Investments ofthe District Attorneys' Retirement System are maintained by the Office of Treasury and Fiscal Services in the Employees Retirement System ofGeorgia Investment Pool. During fiscal year 1994, the Office ofTreasury and Fiscal Services failed to reconcile the Employees Retirement System of Georgia Investment Pool's monthly investment statement to the general ledger for the District Attorneys' Retirement System. As a result of the failure to reconcile this investment account, the Office of Treasury and Fiscal Services was unable to determine the actual balance of the District Attorneys' Retirement System at June 30, 1994.
Subsequent to June 30, 1994, the Office of Treasury and Fiscal Services reconciled each monthly statement for fiscal year 1994. Based on these reconciliations, audit adjustments of $170,631.62 were made to the District Attorneys' Retirement System's financial statements.
The Office of Treasury and Fiscal Services should implement procedures to ensure that investments are reconciled on a monthly basis and needed adjustments are recorded on a timely basis.