Review report, Georgia Firemen's Pension Fund, a component unit of the state of Georgia, year ended June 30, 1995

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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

REVIEW REPORT GEORGIA FIREMEN'S PENSION FUND
A COMPONENT UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1995

GEORGIA FIREMEN'S PENSION FUND - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXIIlBITS

FINANCIAL STATEMENTS

A STATEMENT OF ASSETS AND FUND EQUITY

ARISING FROM CASH TRANSACTIONS

FIDUCIARY FUND TYPE - PENSION TRUST FUND

2

B STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

PENSION TRUST FUND

3

C NOTES TO THE FINANCIAL STATEMENTS

4

SUPPLEMENTARY INFORMATION

SCHEDULES

1 CASH AND CASH EQUIVALENTS

19

2 SCHEDULE OF INVESTMENT ACTMTIES

20

3 SCHEDULE OF ADMINISTRATIVE EXPENSES PAID BY OBJECT

26

4 SCHEDULE OF SALARIES AND TRAVEL

27

5 RECONCILIATION OF PER DIEM AND FEES

28

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) 856-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 18, 1996

Honorable Zell Miller, Governor M~mbers of the General Assembly of Georgia Members ofthe Board of Trustees ofthe Georgia Firemen's Pension Fund
and Honorable John C. Kilpatrick, Jr., Secretary-Treasurer
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through C) of the Georgia Firemen's Pension Fund as of and for the year ended June 30, 1995, 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 a 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 Georgia Firemen's Pension Fund.
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.
The financial statements for the year ended June 30, 1994, were examined by us and we expressed an unqualified opinion on such financial statements in our report dated January 5, 1995. We have not performed procedures sufficient to comprise an audit since that date.
Based on our review, we are not aware ofany 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.
Our review was made for the purpose of expressing limited assurance that there were no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note 2. The accompanying supplementary information (Schedules 1 through 5) is

95ARL-4CX

presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,

CLV:cm 95ARL-4CX

Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

GEORGIA FIREMEN'S PENSION FUND STATEMENT OF ASSETS AND FUND EQUITY ARISING FROM CASH TRANSACTIONS
FIDUCIARY FUND TYPE - PENSION TRUST FUND JUNE 30, 1995

EXHIBIT"A"

ASSETS
Cash and Cash Equivalents - Schedule "1"
Investments - Schedule "2" U.S. Government Securities, at Cost (Market Value $98,958,051.06) Stock, at Cost (Market Value $117,309,870.35) Bonds and Debentures, at Cost (Market Value $5,126,987.00) Notes, at Cost (Market Value $8,716,476.51) Investment Account, at Cost (Market Value $187,099.87) Mutual Funds, at Cost (Market Value $6,529,295.34) Real Estates Notes, at Amortized Cost (Market Value not Available)
Fixed Assets Land Building Equipment

Total Assets

Investment in Fixed Assets Fund Balance
Reserved for Benefits

FUND EQUITY

Total Fund Equity

$

769,216.45

$ 93,997,023.15 90,357,851.26 5,068,378.00 8,387,203.65 187,099.87 6,529,295.34 427,170.53

204,954,021.80

$

35,636.00

88,909.00

118,029.78

242,574.78

$ 205,965,813.03

$

242,574.78

205,723,238.25

$ 205,965,813.03

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

GEORGIA flREMEN'S PENSION FUND STATEMENT Of CASH RECEIPTS AND DISBURSEMENTS
PENSION TRUST FUND
YEAR ENDED JUNE 30. 1995

EXHIBIT"B"

REVENUES COLLECTED
OPERATIONS
Member Contributions
Insurance Premiums Tax
Investment Income - Schedule "2" Interest Received Dividends Received Gain or (Loss) on Sale of Investments
Commission Recapture on Stock Transaction Fees Penalty on Member Withdrawal
Total Cash Receipts
BALANCE - JULY 1
Cash and Cash Equivalents Investments

CASH RECEIPTS

EXPENSES PAID
Benefits Expense Disability Benefits Retirement Benefits Survivorship Benefits
Administration - Schedule 3 Personal Services Operating Expenses
Refunds to Terminated Members
Total Disbursements
BALANCE - JUNE 30
Cash and Cash Equivalents Investments

DISBURSEMENTS

$ 1,275,426.00 9,815,408.50

$ 6,984,428.45 3,313,462.07 3,547,198.87

13,845,089.39

$

76,143.76

6,131.25

82,275.01

$ 25,018,198.90

$

674,661.01

189,534,011.04

190,208,672.05

$ 215,226,870.95

$

442,838.00

4,280,754.50

3,624,390.49 $ 8,347,982.99

$

150,723.20

876104.49

1,026,827.69

128,822.02

$ 9,503,632.70

$

769,216.45

204,954,021.80

205,723,238.25

$ 215,226,870.95

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
-3-

GEORGIA FIREMEN'S PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "C"

NOTE 1: PLAN DESCRIPTION

ORGANIZATION AND PURPOSE The Georgia Firemen's Pension Fund is a multiple-employer, defined benefit pension plan established in 1955 by the General Assembly of Georgia for the purpose of paying retirement benefits to the firemen of the State ofGeorgia. The Board ofTrustees of the Pension Fund is comprised of five (5) members and consists ofthe Governor or his designee, the Commissioner of Insurance or his designee, two (2) active members of the Pension Fund appointed by the Governor and one (1) retired beneficiary of the Pension Fund appointed by the Governor. The Georgia Firemen's Pension Fund 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 of the significance of its legal, operational and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 ofthe Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.

Pursuant to the Official Code of Georgia Annotated Section 47-7-1(3), any person employed as a fireman or enrolled as a volunteer fireman within the State of Georgia and any regular employee of the Pension Fund is eligible for membership. The Pension Fund is funded through a combination of member contributions paid by the affected firemen and a tax imposed on gross insurance premiums written by insurance companies, corporations or associations for fire, inland marine and allied lines, lightning extended coverage and windstorm policies covering property within the State of Georgia.

CURRENT MEMBERSHIP The following analysis compares the membership ofthe Georgia Firemen's Pension Fund at June 30, 1995, to that of the prior year:

Retirees and Beneficiaries Currently Receiving Benefits and Terminated Members Entitled to Benefits but not yet Receivin~ Them For Disab1 ity For Retirement For Survivorship
Number ofActive Members Vested Nonvested

June 30, 1995 June 30, 1994

83 1,336 ___M 1,505
1,560 7,385 8,945

101 1,214 _fil_ 1 398
1,791 5,630 7,421

A detailed analysis ofindividuals receiving benefits during the fiscal year ended June 30, 1995, is on file in the office of the State Auditor.

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GEORGIA FIREMENS PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "C"

NOTE 1: PLAN DESCRIPTION
PLAN BENEFITS The Georgia Firemen's Pension Fund 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:
(A) RETIREMENT CONDITIONS: Normal retirement is at age fifty-five (55) provided the member has at least twenty-five (25) years of service. Early retirement is permitted after at least fifteen (15) years of service at age fifty (50).
(B) RETIREMENT BENEFITS: Normal retirement is $622.00 per month plus one (1) percent for each full year of credited service in excess oftwenty-five (25) years. If credited service is less than twenty-five (25) years, the monthly amount of $622.00 is reduced by the ratio of completed years to the full twenty-five (25) years ofservice retirement. Retirement benefits are reduced by six (6) percent for each year that the member is under the age of fifty-five (55).
(C) OPTIONAL BENEFITS: The monthly benefits referred to above are payable for the lifetime of the member. Members may elect to receive an actuarially reduced benefit in the form of a Ten Years Certain and Life Annuity or a Joint and Survivor Annuity.
(D) DISABILITY BENEffiS: Subject to the approval of the Board of Trustees, any fireman or volunteer fireman who becomes totally and permanently disabled as a result ofbodily injury while actively engaged in the performance of official duties is entitled to a monthly retirement benefit of $397.00 after such disability has continued for at least six (6) months. Any fireman who has served at least five (5) consecutive years or any volunteer fireman who has served at least ten (10) consecutive years prior to his/her disablement and who has fifteen (15) years of service as a fireman or volunteer fireman will be entitled to a monthly benefit of $397.00 if he/she becomes totally and permanently disabled as a result of heart disease or respiratory disease, provided his/her disability status is approved by the Board of Trustees.
Effective July 1, 1993, active members ofthe Pension Fund on or after July 1, 1993, shall not be entitled to disability benefits. However, any person who is receiving disability benefits before July I, 1993, shall continue to be eligible to receive such benefits.
(E) DEATH BENEFITS: (I) Death before Retirement: In the event ofthe death of a member, prior to the attainment of twenty (20) years of service or full retirement, the member's contributions will be returned to the beneficiary of the member.
(2) Death after Retirement: In the event of the death of a member after retirement, the excess if any, ofthe member's contributions over the sum of benefits paid will be returned to the beneficiary of the member. Ifan optional form of payment has been elected, benefits will be paid in accordance with the terms ofthe selected option.
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GEORGIA FIREMEN'S PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "C"

NOTE 1: PLAN DESCRIPTION
PLAN BENEFITS (F) TERMINATION: In the event ofthe termination of a member prior to the completion of twenty (20)
years of service as a fireman, 95% of the member's contributions will be returned.
FUNDING REQUIREMENTS 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) MEMBER'S CONTRIBUTIONS: Each member must contribute $15.00 per month, to be paid no later than the tenth day of each month.
(B) INSURANCE PREMIUMS TAX: Each insurance company, corporation or association doing business within the State ofGeorgia must pay to the Secretary-Treasurer of the Georgia Firemen's Pension Fund one (1) percent of the gross premiums written by such insurance company, corporation or association for fire, inland marine and allied lines, lightning extended coverage and wind storm insurance policies covering property within the State of Georgia.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS
FUND COMPRISING FINANCIAL STATEMENTS The Georgia Firemen's Pension Fund 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 ofthe State ofGeorgia. A fund is an independent fiscal and accounting entity with-a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number offunds are maintained consistent with legal and managerial requirements. The fund represented 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 Georgia Firemen's Pension Fund 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 recognized when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred.

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GEORGIA FIREMENS PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "C"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other financial institutions.
INVESTMENTS The Official Code of Georgia Annotated Section 47-7-23 states that the Board of Trustees of the Georgia Firemen's Pension Fund shall have full power to invest and reinvest funds subject to the terms and conditions imposed by the laws of the State of Georgia upon domestic life insurance companies in the making and disposing of their investments. In addition, the Board is restricted to invest no more than 50% ofthe funds or assets in equities. Statutory provisions governing the investments of domestic life insurance companies are enumerated in Title 33, Chapter 11 of the Official Code of Georgia Annotated. The significant forms of investment in accordance with these statutes and available to the Pension Fund are as follows:
(I) 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.
(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 o f 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 of the 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, subjected to certain conditions.
(7) Dividend paying stocks, common or preferred, of any 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.

-7-

GEORGIA FIREMENS PENSION FUND
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "C"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS
INVESTMENTS (8) Bonds, debentures, notes, or other evidences ofindebtedness ofany 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 ofindebtedness 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 ofleasing same to any person, firm or corporation, or in real estate already leased to any person, firm or corporation, subject to certain conditions.
Investments are defined as those financial instruments with terms in excess ofthree months from the date of purchase and certain other securities held for the production of revenue. In addition, funds on deposit with the Pension Fund's investment custodian for purposes of continual investment are reflected as Investments regardless of the term of the instruments. Investments in U. S. Government stock, bonds and debentures, notes, investment accounts and open-end mutual funds are recorded at cost. Accrued interest purchased, premiums or discounts on bonds and debentures and U. S. Government securities are reflected as a part of cost and are not amortized over the remaining life ofthe security. Real estate notes are reflected at amortized cost. The market values reflected on Exhibit "A" of this report were based on valuations appearing in the Pension Fund's Investment Custodian Trust Report at June 30, 1995.
Interest income and dividend income are recognized when received in cash. Gains and/or losses are recognized using the completed transaction method. Accrued interest purchased is recorded as a reduction of interest income at the time of purchase.
Approximately 46% of the net assets available for benefits are invested in U. S. Government securities. The Pension Fund has no other investments in securities ofgovernmental, commercial or industrial organizations whose market value exceeds 5% or more ofthe net assets available for benefits.
The Pension Fund has funds invested in open-end mutual funds. The Pension Fund is not aware of the risk exposure resulting from investments in derivatives or similar investments, if any, through these open-end mutual funds.
FIXED ASSETS Fixed assets are recorded as expenditures at the time ofpurchase. No depreciation has been provided on fixed assets. Fixed assets are reflected on Exhibit "A" for informational purposes only.
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GEORGIA FIREMEN'S PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIDBIT "C"

NOTE 3: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk.

Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Pension Fund or by its agent in the Pension Fund's name.

Category 2 - Amounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the Pension Fund's name.

Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution or by its trust department or agent, but not in the Pension Fund's name, and amounts uncollateralized.

Carrying
.Am2Y!!!.

Bank Balance

Risk Categories

,2

3

Cash Deposits

s 769 12us s 672 669 03 s 672,669 03 s===o...,.oo.,. s===o,..oo=

CATEGORIZATION OF INVESTMENTS For purposes of analysis of custodial credit risk, investments consist ofU. S. Government securities, bonds and debentures, notes, stock, and investment accounts. Investments are stated at cost and are summarized and classified as to custodial credit risk within the categories described below:

Category 1 - Insured or registered, or securities held by the Pension Fund or its agent in the Pension Fund's name.

Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Pension Fund's name.

Category 3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Pension Fund's name.

The carrying amounts ofinvestment balances as of June 30, 1995 are categorized below. These amounts also include amounts maintained in open-end mutual funds and real estate notes which are not subject to risk categorization.

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GEORGIA FIREMEN'S PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "C"

NOTE 3: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS

Type ofInvestment

Risk Categories 2

U. S. Government Securities Stock Bonds and Debentures Notes Investment Account

$ 93,997,023.15 $ 90,357,851.26 5,068,378.00 8,387,203.65 187,099.87

0.00 $

Carrying

Market

3

Amount

Value

0.00 $ 93,997,023.15 $ 98,958,051.06

90,357,851.26 117,309,870.35

5,068,378.00

5,126,987.00

8,387,203.65

8,716,476.51

187.099.87

187,099.87

Total

S 197 997 555 93 $

000 $

0.00 $197,997,555.93 $230,298,484.79

Open-End Mutual Funds Real Estate Notes

6,529,295.34 427.170.53

6,529,295.34 0.00 (I)

$ 204 95!1 021.80 S 23!!1!27 780 13

(1) Market value at June 30, 1995, was not available.
NOTE 4: FUNDING STATUS AND PROGRESS

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 of benefits estimated to be payable in the future as a result of employee service to date, computed by attributing an equal benefit amount (including the effects ofboth projected salary increases and any step-rate benefits, ifapplicable) to each year of credited and expected future employee service, using assumptions that reflect the best judgement offuture events affecting the actuarial present value. The Statement further requires the use ofthe tenn pension benefit obligation when referring to the standardized measure. The standardized measure is independent ofthe actuarial funding method, ifany, used to determine contributions to the affected public employees retirement system. The Pension Benefit Obligation at the actuarial valuation date of April 1, 1993, for the Georgia Firemen's Pension Fund is reflected below.

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GEORGIA FIREMENS PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXJilBIT "C"

NOTE 4: FUNDING STATUS AND PROGRESS

VALUATION RESULTS: Actuarial Present Value (APV) of Credited Projected Benefits (Pension Benefit Obligation) Vested Benefits Active Members Pensioners, Future Survivors and Beneficiaries Former Members Eligible for Deferred Vested Benefits Accumulated Member Contributions Nonvested Benefits

$ 46,019,934.00 72,705,537.00
1,920,024.00 7,248,327.00 47,557,876.00

Total Pension Benefit Obligation

$175,451,698.00

Net Assets Available for Benefits, at Cost (Market Value Not Available)

171,851,646.00

Unfunded Pension Benefit Obligation

$ 3,600 052,00

ACTUARIAL ASSUMPTIONS The most recent actuarial study ofthe Pension Fund was performed by the consulting actuary engaged by the Georgia Firemen's Pension Fund using census data as ofApril 1, 1993. Significant actuarial assumptions used include:

(A) Mortality Rates: The 1971 Group Annuity Mortality Tables separately for males and females.

(B) Termination Rates: The assumptions for withdrawal rates have been based upon the results of the 1978 termination experience study ofthe Pension Fund's membership as follows:

Age

Male

Female

20

.102974

.102987

30

.071971

.071983

40

.039967

.039981

50

.007979

.07991

(C) Disability Rates and Disabled Life Annuity Values: The disability assumptions have been based upon the 1944 Railroad Board Ultimate Table.

(D) Contribution Levels: It has been assumed that all contribution levels (total annual normal costs including expenses, state contributions and member contributions) will increase at an annual rate of three (3%) percent.

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GEORGIA FIREMEN'S PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "C"

NOTE 4: FUNDING STATUS AND PROGRESS

ACTUARIAL ASSUMPTIONS (E) Retirement Age: Employees who have worked at least 20 years are assumed to retire at the following
annual rates:

Per

Age

Cent

50

10

51

8

52

8

53

10

54

15

55

50

56

60

57

70

58

80

59

90

60

100

(F) Investment Return: Six percent (6%) compounded annually.

(G) Funding Method: Entry Age Normal Cost Method.

(H) Asset Valuation Method: Assets are determined on the basis ofbook value.

(I) Changes in Benefit Provisions: The following changes in the benefit provisions occurred since the actuarial valuation at July 1, 1991.

(1) Effective July 1, 1992, the Plan was amended to provide "pop-up" benefits to any retiree who elected a Joint and Survivor form of payment and had his spouse either predecease or divorce him. The "pop-up" provision increases the benefit to the amount that would have been payable ifthe Joint and Survivor option had not been elected.

The effect of this change was to increase the pension benefit obligation by $833,248.00.

(2) Effective July 1, 1993, a cost-of-living adjustment of 3% was granted to all current and future retirees. Also, the disability benefit was eliminated and the Joint and Survivor actuarial equivalence basis was changed. The 3% cost-of-living adjustment increased the normal retirement benefit from $604.00 to $622.00.

The effect of these changes was to increase the pension benefit obligation by $3,607,492.00.

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GEORGIA FIREMENS PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "C"

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 of April 1, 1993, which reflected the proceeds of the insurance premiums tax as the employer contribution, indicated that the minimum employer contribution level was being met. Member contribution requirements are set forth in O.C.G.A. Section 47-7-60 and are not actuarially determined. Covered payroll information was not available.

FUNDING REQUIREMENTS Actual contributions for the year ended June 30, 1995, were as follows:

Member Contributions Insurance Premiums Tax

$ 1,275,426.00 9,815,408.50

$11,090,834.50

NOTE 6: IIlSTORICAL 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.

All required historical trend data for the Georgia Firemen's Pension Fund were not available at the time ofthis report. In addition, trend information relative to the pension benefit obligation was not available on an annual basis, as it is the policy ofthe Pension Fund to have an actuarial valuation every three years or as needed if an increase in benefits is proposed. Available trend data are as follows:

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GEORGIA FIREMEN'S PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "C"

NOTE 6: lilSTORICAL TREND INFORMATION

REVENUES COLLECTED BY SOURCE AND EXPENSES PAID BY TYPE

Fiscal Year

REVENUESCOLLECED

Member

Insurance

Contributions Premiums Tax

Other (I)

Total

1988 1989 1990 1991 1992 1993 1994 1995

$ 666,575.00 $ 998,235.00 $ 1,035,865.00 $ 1,040,014.50 $ 1,099,568.00 $ 1,340,840.52 $ 1,207,181.25 $ 1,275,426.00

$ 7,449,750.64 $ 7,695,803.11 $ 8,066,049.51 $ 8,242,319.23 $ 8,417,807.35 $ 8,438,383.98 $ 9,177,689.48 $ 9,815,408.50

$ 7,450,353.27 $ 8,861,991.27 $12,322,564.16 $12,028,944.92 $13,557,107.56 $13,652,495.85 $14,494,581.80 $13,927,364.40

$15,566,678.91 $17,556,029.38 $21,424,478.67 $21,311,278.65 $23,074,482.91 $23,431,720.35 $24,879,452.53 $25,018,198.90

Fiscal Year

EXPENSES PAID

Benefits

Administration

Refunds To Terminated
Members

Total

1988
1989 1990 1991 1992 1993 1994 1995

$ 3,515,801.55 $ 4,554,682.71 $ 5,057,429.00 $ 5,983,201.50 $ 6,443,949.40 $ 6,844,414.50 $ 7,589,415.00 $ 8,347,982.99

$ 546,041.86 $ 576,295.83 $ 588,076.20 $ 717,243.04 $ 820,175.01 $ 841,922.42 $ 971,036.98 $ 1,026,827.69

$ 101,455.00 $ 109,655.00 $ 110,495.00 $ 141,425.75 $ 123,909.50 $ 118,105.42 $ 127,377.50 $ 128,822.02

$ 4,163,298.41 $ 5,240,633.54 $ 5,756,000.20 $ 6,841,870.29 $ 7,388,033.91 $ 7,804,442.34 $ 8,687,829.48 $ 9,503,632.70

(1) Includes benefit refunds and 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.

- 14 -

GEORGIA FIREMEN'S PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "C"

NOTE 7: RISK MANAGEMENT
Public Entity Risk Pool
The State Personnel Board, Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government ofthe State of Georgia and 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 ofgovernment participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board, Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.
Other Risk Management
The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. 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 is purchased applicable to property, employee and automobile liability, :fidelity and certain other risks. The Georgia Firemen's Pension Fund is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment.
NOTE 8: CONTINGENCIES
Litigation, claims and assessments filed against the Georgia Firemen's Pension Fund, 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 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, 1995.
At June 30, 1995, the Georgia Firemen's Pension Fund had inactive members' dues on hand in the amount of $25,745.00. Ninety-five percent (95%) of such dues are refundable upon request of the inactive members.

- 15 -

GEORGIA FIREMENS PENSION FUND NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "C"

NOTE 9: CHANGES IN FIXED ASSETS

The following is a summary of changes in Fixed Assets during the fiscal year:

Balance July 1, 1994

Land

Building

Eguipment

Total

$ 35,636.00 $ 88,909.00 $ 107,947.42 $ 232,492.42

Additions Deletions Balance June 30, 1995

0.00

0.00

103,370.77

103,370.77

0.00

0.00

-93,288.41

-93,288.41

$ 35 636 00 $ 88 202 00 $ 118 02218 $ 2~2 57418

NOTE 10: BONDING INFORMATION

The Secretary-Treasurer and all employees of the Georgia Firemen's Pension Fund 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, 1995. Under this agreement the Public Employee Dishonesty Coverage insures the Pension Fund 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 Pension Fund to a maximum of $1,000,000.00 against loss sustained from failure ofits 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 of the Georgia Firemen's Pension Fund are also bonded under a Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 012292 6 and 626 012294 4, on which the premium was paid to October 1, 1995. Under this additional public employee dishonesty coverage, the policies insure the Pension Fund to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 16 -

SUPPLEMENTARY INFORMATION - 17 -

~

GEORGIA FIREMEN'S PENSION FUND CASH AND CASH EQUIVALENTS JUNE 30, 1995
NONINTEREST BEARING ACCOUNTS
Wachovia Bank of Georgia N. A., Atlanta, Georgia
OTHER Petty Cash

SCHEDULE 1

$

769,191.45

25.00

$

769,216.45

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-19-

GEORGIA BREMEN'S PENSION fUNP SCHEDULE Of IN\'ESTMENT ACTlVJDES
VEAR ENDED JUNE 3Q 19@5

U GQYEBNMENJ' ECURIDES
WacllcMa Bank of Geagla, N. A., Allanla,o-gia
Federal Home Loan Banks
Federal National Mol1pge Auociation

ORIGINAL LOAN

Unimd Slatles T-..y Bonds

Unimd Slatles Treasury Bills

LOAN
DAlE

MATURITY
DAlE
03/30199 OBl2&'04 081121116 04122102 01,'00/0() OQl18/09 11/15195 08115103 11/15116 11/15121 05115195 01105195 01/121115
06/2Q/95
05/30lll6 04l30l00 05131197 05115101 05115102 04/15100 04/30l9B 02/15104 01/31197 05115196 04/30/97 05115105 05115197 08115197 02/15196 05115198 10115196 11/151119 01/15197 02/15100 08115195 08115100 01/15196 02/15101
04/30,'95
08l30l96 05131/00 05115195

SHARESHB.D JUNE 30. 11195

PAR
VALUE

MARKET VALUE

s s 1,000,000.00
750,000.00 500,000.00 1,000,000.00 1,350,000.00
1,000,000.00 1,500,000.00 2,000,000.00 1,450,000.00

9119,170.00 752,175.00 509,920.00 1,088,720.00 1,351,107.00
1,020,310.00 1,1162,eeo.00
2.1n,500.00
1,1174,088.50

5,000,000.00 4,000,000.00 2,000,000.00 11,500,000.00 6,000,000.00 2,500,000.00 1,500,000.00 6,000,000.00 4,500,000.00 1,500,000.00 2,500,000.00 3,500,000.00
500,000.00 500,000.00 13,000,000.00 10,000,000.00 500,000.00 1,000,000.00 500,000.00 1,000,000.00 500,000.00 500,000.00 1,500,000.00 1,000,000.00

4,747,255.56 4,121,240.00 2,010,320.00 12,603,310.00 6,459,360.00 2,451,550.00 1,470,240.00 5,852,820.00 4,611,780.00 1,5111,680.00 2,528,525.00 3,574,375.00
522,1170.00 527,110.00 13,ee6,670.00 10,603,100.00 513,260.00 1,071,0110.00 515,625.00 1,100,310.00 501,485.00 seo.000.00 1,56Q,375.00 1,0111,0110.00

3,000,000.00

3,031,860.00

S 114,550,000.00 S 118,1158,051.06

WacllcMa Bank of Georgia, N. A., Allanla, Georgia
...._,_. and Delena Agricultural Air Transporlation Aluminum and Nonlenous Metals Apparel Automative Banks 8-,ages Chemicals Computer Equipment Computer Data Processing Servic:es ConstJuction Cosmetics, Toilelnes, Soap Drugs, Medical Eleclrical Equi~ Electronics Entar1ainment - Leisure Related Effilironrnenlal Control Financial Sell/ice Non-Banking Food Processed Food Sell/ice Furniture and Fixtures
See accompanying noles and Independent Acc:ountanl's Combined Report on Review of Financial Slatements and Supplementary Information.
-20-

13,400 17,700 45,250 14,000 16,000 116,000 52,700 58,600 85,500 111,200
4,300 18,400 130,1100 173,600 87,800 155,675 112,3113
71,300 1111,700 33,500

S

8211,112.50

743,400.00

1,262,125.00

701,750.00

340,000.00

3,661,675.00

3,122,112.50

3,480,250.00

3,307,1175.00

7,521,825.00

2110,250.00

n2,550.00

7,448,862.50

10,878,1125.00

4,5116,600.00

7,1123,4e6.60

3,256,016.25

3,350, 125.00 5,013,782.50 1,310,887.50

SCHEDULE "2"

INTEREST RATE

BALANCE JULY 11 1994

INVESTMENTS

INVESTMENTS INVESTMENTS

MADE

REALIZED

BALANCE JUNE 30, 1995

DIVIDENDS RECEIVED

INTEREST RECEIVED

GAIN OR (LOSS) ON SALE OF INVESTMENTS

5.~ $ 7.450Wt 7.~ 7.~ 7.~
11.SOOW, 11.129.
7.SOOW, a.ooo,i,
6,ooo,i, 8.750% 8.129. 8.ooo,i, 7.SOOW, 5.SOOW, 5.129. 5.87lW> 7,SOOW, 7.37lW> 8.SOOW, 8,SOOW, 8.SOOW, 8.829. 8.129. 11.ooo,i, 8.ooo,i, 7.87lW> 8.ooo,i, 8.SOOW, 8.SOOW, 8.750% 7.87lW> 7.750%
6.~

1,000,000.00
s
500,000.00 886,718.75
0.00
1181,582.50 1,470,156.25
0.00 1,581,638.05
477,582.50 0.00 0.00 0.00 0.00 0.00 0.00
11,41111,806.25 0.00
2,483,828.13 1,488,640.63 4,745,156.25
0.00 1,454,887.50
0.00 0.00 497,812.50 41111,809.38 20,078,408.26 11,1125,488.78 498,828.13 1175,546.88 41111,470.00 995,414.38 522,187.50 494,921.88 1,493,828.13 11110,842.50 0.00 0.00 0.00 0.00

750,000.00
1,334,812.50
1,961,250.00
s
3,905,779.44 3,413,297.22 4,270,8G0.90 4,747,255.56 4,084,375.00 2,020,937.50 5,927,421.88
867,500.00 4,562,224.82 2,518,359.38 3,556,250.01
2,485,156.25 2,9110,000.00 3,050,156.25 3,949l08.25

s
477,582.50 3,905,779.44 3,413,297.22 4,270,8G0.90
7,034,050.18
2,485,156.25 2,9110,000.00 3,949,708.25

1,000,000.00 750,000.00 500,000.00 lleEl,718.75
1,334,812.50 0.00
981,582.50 1,470, 156.25 1,961,250.00 1,581,638.05
0.00 0.00 0.00 0.00 4,747,255.56 4,084,375.00 2,020,937.50 11,41111,808.25 5,927,421.88 2,483,828.13 1,488,640.63 5,812,856.25 4,582,224.82 1,454,887.50 2,518,359.38 3,556,250.01 497,812.50 499,809.38 13,042,356.08 9,1125,488.78 498,828.13 1175,546.88 499,470.00 995,414.38 522,187.50 494,921.88 1,493,828.13 11110,642.50 0.00 0.00 3,050, 156.25 0.00

s 86,148,093.13 $ 56,375,372.76 $ 28,526,442.74 S 93,997,023.15

s

52,500.00

26,385.42

39,500.00

75,500.00

51,637.50 115,000.00 166,875.00
27,348.07 116,000.00
63,125.00 s
94,220.56 86,702.78 147,605.92

-12,839.67
-2,342.90 1120,000.00 282,703.81 137,500.00
78,875.00 309,235.73

110,825.00 -3,974.18
-15,808.43 42,500.00 43,125.00 1,440,072.33 900,000.00 40,000.00 78,750.00 40,000.00 85,000.00 42,500.00 43,750.00 118,125.00 77,500.00 28,834.32 172,487.57 -10,758.20 119,657.48

22,437.50 -8,671.24
172,979.76
14,843.75 19,843.75 -29,708.25

s 6,105,698.011 $

191,727.27

s

586,2811.17 s

s 324,8115.50

251,8811.17 S

639,315.50 S

14,555.00

751,873.811

268,420.58

599,532.71

420,781.56

111,852.00

1,240,290.10

511,715.00

182,854.22

1,137,150.88

12,552.00

1,012,304.42

539,8115.88

472,408.74

17,425.00

960,022.50

384,187.50

615,835.00

12,150.00

2, 118,455.08

1,522,9110.40

779,267.76

2,882,177.72

66,797.50

1,744,600.116

201,345.00

152,837.011

1,793,108.811

118,081.00

2,267,667.64

393,868.35

1,873,999.29

52,293.00

2,507,258.65

2,881,987.40

2,213,063.47

2,976,182.58

73,012.50

4,448,494.08

1,975,8811.70

343,975.60

6,078,388.18

85,530.00

241,640.00

51,590.50

131,577.78

161,852.72

1,430.00

489,111.011

521,018.00

250,8117.00

7511,432.011

10,833.00

4,675,410.20

1,629,626.40

782,147.08

5,522,8811.54

134,708.50

8,1151,321.23

4,588,049.60

2,748,488.37

8,790,882.46

285,3611.50

3,128,038.52

939,763.80

784,237.64

3,283,584.88

1011,978.00

4,063,122.56

1,7011,1157.50

1,883,596.70

3,9011,483.36

39,801.50

1,947,152.811

436,803.34

85,539.93

2,296,216.30

21,151.08

3011,845.50

274,282.00

584,107.50

0.00

3,315.00

1,288,861.32

2,505,584.10

1, 136,lleEl.54

2,857,428.88

54,343.00

1,960,322.62

2,744,487.10

1,084,405.88

3,620,403.84

73,452.25

1,577,214.66

114,928.00

1,016,905.01

675,237.85

9,875.25

851,1145.00

851,1145.00

0.00

4,400.00

-21 -

s

21,584.70

148,904.99

28,520.78

119,292.30

1,182.80

63,929.76

43,588.84

193,707.01

210,912.26

33,1117.80

811,030.51

-14, 708.118

12,471.611

-76,397.14

167,463.08

1,040, 130.08

28,607.70

-77,542.76

280,977.58

235,9113.11

86,339.62

80,383.83

GEORGIA RREMEN'S PENSION FUND
SCHEDULE OF INVESTMENT ACTIVmes
YEAR ENDED JUNE 30 1995

ORIGINAL LOAN
Wachovia Bank ol Gecxgia, N. A., Atlanta, Georgia
Gins, Slone, Clay Pmduca HouNhold Appliances 1111d Supplies lnsura~ .ie-ky, Si'--9, Plalled Ware leather 1111d Leather Ploducls Lumber 1111d Wood Ploducls Machinety Farm 1111d ConslJuction Medical Supplies and SefYices Metal Pioducts Fabricated Oil and Gas Domestic Oil and Gas International Oil and Gas Exploration and Pioduction Oil and Gas Supplies and ConslJuction . Paper 1111d Paper Pioducts Phol0graphy and Optical Printing and Publishing Railroad and Railroad Equipment Relail Trade General Merchandise Retail Trade Specialty Retail Trade Drugs Rubber and Plastics Selllices Non-Financial Steel Telecommunications SeNices Tobacco Pioducls Transportation Utilities Electric Utilities Gas Utilities Gas and Electric Video, Broadcasting, Cable Wholesale Trade Wholesale Trade Food

LOAN DATE

MATlJRrrY DATE

BONDS AND DEBENTlJRES
Wachovia Bank ol Georgia, N. A., Atlanta, Georgia
Dupont De Nemours E. I. International Business Machines Corporation PepsiCo, Incorporated Worid Book Fin, Incorporated Cigna Corporation Private Export Funding Corporation Salamon, Incorporated

12101197 08115/00 011115/04 011101198 10/01/01 03/15195 081011911

SHARES HELD JUNE 30, 1995

PAR VALUE

MARKET VALUE

11,200
48,1125
11,300
50,500 211,100 26,400 22,300 110,850
5,500 80,500 88,800 20,500 11,100 30,000 20,200 83,500
11,700 75,1100
85,400 511,200
35,000 8,1100
50,000 12,300

s

322,000.00

3,378,112.50

781,200.00

2,512,382.50 2,0811,375.00 1,834,625.00 1,849,812.50 5,553,262.50
2110, 1 2 5 . 0 0 3,405,375.00 4,3115, 7 2 5 . 0 0 1,894,000.00
375,375.00 1,1138,050.00
789,012.50 2,926,375.00

481,182.50 2,821,882.50

4,547,100.00 3,018,000.00

783,125.00 312,812.50 1,450,000.00 252,150.00

S 117.3011.870.35

s

200,000.00 S

2,500,000.00

1,500,000.00

1100,000.00

210,318.00 2,492,575.00 1,504,215.00
11111,881.00

s s,1001000.00 $

5 112611187.oo

Wachovia Bank of Georgia, N. A., Atlanta, Georgia
Ford MDIDr Credit Corporation
Merrill Lynch Nortt.- Finl, Incorporated Republic NY Corporation Smithkline Beechham PLC Discover Card TR Premier Auto Trust

02/26198 03/15/05 11/01/02 08/15198 11/01/01 05/01/02 02/16/00 08/16/00 12/15198

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
-22-

s s 1,000,000.00
1,000,000.00 1,000,000.00
1100,000.00 1,000,000.00 1,500,000.00 1,000,000.00
550,000.00 481,404.53

11117,420.00 1,051,030.00 1,075,1130.00
1150,1131.00 1,078,150.00 1,551,570.00 1,008,870.00
548,7115.50 455.780.01

s 8 411 404.53 S 8,718,478.51

SCHEDULE "2"

INTEREST RATE

BALANCE JULY 1.1994

INVESTMENTS

INVESTMENTS

INVESTMENTS

MADE

REALIZED

BALANCE JUNE 301 1995

DIVIDENDS RECEIVED

INTEREST RECEIVED

GAIN OR (LOSS)
ON SALE OF INVESTMENTS

s

0.00 S

597,127.20 s

292,559.50 S

304,587.70 S

1,280.00

840,478.87

840,478.87

0.00

3,784.00

2,n5,1183.42

2,010,863.60

1,946,745.76

2,840,101.26

58,283.91

en,457.69

en,457.69

0.00

3,388.00

0.00

594,372.30

594,372.30

4,850.00

0.00

318,920.00

318,920.00

0.00

7,000.00

1,1158,915.50

1,810,396.80

1,338,344.19

2,130,968.11

44,504.00

554,910.18

1,829,998.00

969,052.26

1,415,855.92

24,865.75

1,848,802.00

1,240,851.90

1,315,945.00

1,573,708.90

39,959.00

697,206.84

1,296,004.00

538,072.84

1,455,138.00

52,135.00

3,727,878.43

971,594.50

504,668.76

4,194,804.17

208,929.75

638,512.00

491,140.50

9n,759.42

151,893.08

9,826.00

2,661,035.61

1,143,027.50

533,362.06

3,270,661.05

73,444.00

3,378,997.40

711,155.50

381,833.04

3,708,319.66

115,958.00

427,300.00

1,158,678.50

1,583,978.50

25,800.00

0.00

1,094,109.90

761,763.90

332,346.00

8,487.00

761,011.61

618,011.50

1,379,023.11

52,379.00

327,067.00

485,945.00

793,012.00

16,930.00

1,707,691.35

1,610,533.81

374,403.85

2,943,821.51

39,785.00

847,187.00

847,187.00

0.00

4,284.00

99,032.80

437,389.50

99,032.80

437,389.50

4,475.00

1,471,628.94

2,919,148.20

1,925,106.39

2,485,870.75

57,413.25

106,485.00

94,961.00

201,426.00

0.00

3,937.50

4,592,105.99

1,227,355.00

2,363,391.52

3,458,069.47

244,311.25

2,118,363.00

569,005.66

582,237.81

2,105,131.05

153,080.00

741,078.00

741,078.00

0.00

2,800.00

0.00

688,975.00

688,975.00

24,250.00

213,045.00

59,964.00

273,009.00

6,272.50

1,038,790.00

583,472.50

199,887.50

1,402,375.00

87,150.00

307,920.16

307,920.16

1,076.25

942,270.00

942,270.00

0.00

8,000.00

900,070.50

900,070.50

0.00

14 200.00

s s 80,800,846.19 S 47,072,075.49 S 37,515,070.42 S 90,357,851.26

2,602,901.24

s

-32,790.18

-43,152.73

~.562.43

121,264.84

0.00

-8,886.52

106,017.06

216,931.22

-148,627.20

36,960.66

23,490.60

31,769.84

-32,m.so

69,166.87

-101,445.45

47,922.74 99,898.17 -1,335.07 -191,469.43 51,240.58 302,761.62 94,093.58 .1n,S62.oo

23,717.53
181,492.50 97 801.16

s

3,417,267.48

8.650'11, s
6.375'1. 7.600'11,
8.125'1.

200,000.00 990,735.00 S
0.00 908,973.00 999,400.00 500,000.00 1,200,000.00

1,476,170.00 1,492,500.00
s

s
999,400.00 500,000.00 1,200,000.00

200,000.00 2,466,905.00 1,492,500.00
908,973.00 0.00 0.00 0.00

s 4,799,108.00 S 2,968,670.00 S 2,699,400.00 S 5,068,378.00

s

17,300.00

91,840.62

57,000.00

73,125.00
75,104.17 s

44,500.00

95,950.00

s 454,619.79 S

3,880.00 -85 700.00
-81,820.00

6.250'11, s
7.750% 8.300'l6 8.SOOM, 8.250'11, 7.SOOM, 6.70011, 6.250'11,
4.90011,

500,480.00 s
990,300.00 900,562.50 1,004,530.00
549,405.00 499684.24

486,600.00 999,090.00
1,497,750.00 997,370.00
s

s
38,568.09

987,080.00 999,090.00 990,300.00 900,562.50 1,004,530.00 1,497,750.00 997,370.00 549,405.00 461116.15

s 4,444,961.74 S 3,980,810.00 S

38,568.09 S 8,387,203.85

-23-

s

50,520.83

83,000.00 76,500.00 62,500.00

31,825.00 34,374.60
24 434.76 s

s 383,155.19 S

24.12 24.12

GEORGIA FIREMEN'S PENSION FUND
SCHEDULE OF INVESTMENT Acnymes
YEAR ENDED JUNE 3Q 1995

ltflETMENT ACCOUNT
Wachovia Bank of Georgia, N. A., Atlanta, Georgia
Sweep Account
Ml.DJ.!&. EJ.!f:!C!S !QfEf:!::i;Hl21
Wachovia Bank of Gemgia, N. A., Atlanta, Georgia
Fidelity Treasury Cnh Port, Number 53 Short-Tenn hwestmentCompany B

ORIGINAL LOAN

LOAN DATE

R~b EIA!fi NOIE
Wachovia Bank of Georgia, N. A., Atlanta, Georgia
Saint Jouph's Hospital of Atlanta, lncorporal8d

s 1,0CXJ,OCXJ.00

08108178

MAlURITY DATE

SHARES HELO JUNE 30, 1995

PAR VALUE

MARKET VALUE

s

187 0119.87

s

839,355.44

5,689,939.90

s 6,529,295.34

See aecompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-24-

SCHEOULE"2"

INTEREST RATE

BALANCE JULY 1.1994

INVESTMENTS

INVESTMENTS INVESTMENTS

MADE

REALIZED

BALANCE
JUNE 30, 1995

DIVIDENDS RECEIVED

INTEREST RECEIVED

GAIN OR (LOSS) ON SALE OF INVESTMENTS

s

ee,082.26 s____101......,01'--'1"".""e1_

$ _ _~1=87~..,.0..9..9...8..~7

S 8,890,597.95 S 12,799,988.011 S 18,951,210.80 S

2S1n 41e1e.22

88.11411.334.80

87.034.070.92

839,355.44 S 5.889.939.90

195,933.30 514827.53

S 32,785,274.17 S 79,749,302.89 S 105,985,281.52 S 8,528,295.34 S 710,580.83

e . ~ s _ _....:"'89=,84~5.;.;;.ss;;;;_

s

82,475.02 s_ _....:4;:;.27;.:.,1.;.;1.;o.;.;.53;;_

s_ _40-'=,955'-=.;.;;;38.;.

s 18915341011.04 s 19012411248.ss s 11418271237.79 s 20419541021.so s 313131482.07 s e,9841428.45 s _ _3_._54_.1..,1_98_._8_1

.25.

GEORGIA FIREMEN'S PENSION FUND SCHEDULE OF ADMINISTRATIVE EXPENSES PAID BY OBJECT
YEAR ENDED JUNE 30, 1995

SCHEDULE "3"

PERSONAL SERVICES
Salaries and Wages - Schedule "4" Employer's Contributions for:
F.I.C.A. Group Insurance Unemployment Compensation Insurance Worker's Compensation Insurance
OPERATING EXPENSES
Regular Operating Expenses Supplies and Materials Repairs and Maintenance Utilities Postage Insurance and Bonding other Operating Expenses Employee Training Property Taxes - City of Decatur Publications and Printing
Travel - Schedule "4"
Telecommunications
Per Diem, Fees and Contracts Per Diem and Fees

$ 120,877.74

$

9,336.10

19,680.48

391.88

437.00

29,845.46 $ 150,723.20

$

9,675.46

13,746.40

6,542.16

18,082.10

1,340.00

560.00 570.00 7,273.45 $

57,789.57

3,980.02

2,762.90

811,572.00

876,104.49

$ 1,026,827.69

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-26 -

GEORGIA FIREMEN'S PENSION FUND SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE "4N

NAME
Dawkins, Drake, Kilpatrick, Rogers, Rusk,

Kristopher Sharon H. John C., Jr. Pamela ShirleyJ.

POSITION Clerk Secretary Secretary-Treasurer Secretary Clerk

TIME MONTHS
2* 3* 12 * 12 * 12*

SALARIES

$

264.00

21,671.78 $

52,834.08

22,601.54

231506.34

TRAVEL
119.32 3,764.25
18.96 77.49

$ 120,877.74 $....,..,_.,.,j3,_,98_0_.0_2

(*) On Payroff June 30, 1995

5

=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 27 -

GEORGIA FIREMEN'S PENSION FUND RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30, 1995

SCHEDULE 5

Totals per Annual Supplement
Adjustments Invesco Capital Management, Incorporated Globalt, Incorporated Maddox, W. L. Montag and Caldwell, Incorporated Westbrooks. C. N. Wofford, C. H.

TYPE PAYMENT
Consultant Consultant Reimbursable Expense Consultant Reimbursable Expense Reimbursable Expense

FEE AMOUNT

EXPENSE AMOUNT

$ 724,636.82 $

8,492.41 $

TOTAL 733,129.23

6,704.83 4,552.63
66,636.76

356.50
-197.00 389.05

6,704.83 4,552.63
356.50 66,636.76
-197.00 389.05

Totals per Report

$ 802,531.04 $

9,040.96 $ 811,572.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-28-

SECTION II FINDING AND IMPROPER OR QUESTIONED COSTS

GEORGIA FIREMEN'S PENSION FUND SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status offindings disclosed in the report for the year ended June 30, 1994, is summarized below:

Audit Control Number
950-94-01 950-94-02

Status ofFinding
See Audit Control Number 950-95-01 Corrective Action Implemented

PRIOR YEAR

BENEFITS Retirement Benefits Overpayments Audit Control Number 950-95-0 I

The financial report for the year ended June 30, 1994, noted an outstanding balance of $7,378.00 for overpayments ofretirement benefits to deceased members. The Pension Fund recovered $2,062.50 of these overpayments during the year under review. The remaining balance of $5,315.50 is being recovered in monthly payments from the survivors of those members involved.