Audit report, Peace Officers' Annuity and Benefit Fund of Georgia, year ended June 30, 2012

Audit Report
Peace Officers' Annuity and Benefit Fund of Georgia
Fiscal Year Ended June 30, 2012
Prepared by: State Accounting Office
"Georgia State Capitol" Artist: GeorgeAnn S. Moore, Gainesville, Georgia

The artwork on the cover was created by Gainesville artist GeorgeAnn Moore and will be hanging in the Office of the Governor as part of a rotating exhibit "The Art of Georgia" through January 25, 2013. For more information about the exhibit, the selected artists and their work, visit www.gaarts.org.

PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA - TABLE OF CONTENTS Page
SECTION I - FINANCIAL

Independent Auditor's Report

1

Basic Financial Statements

Statement of Fiduciary Net Assets

4

Statement of Changes in Fiduciary Net Assets

5

Notes to the Financial Statements

6

Required Supplementary Information

Schedule of Funding Progress

12

Schedule of Contributions from the Employer and Other Contributing Entities

13

SECTION II - REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN

AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS

17

SECTION III - CURRENT YEAR FINDINGS AND QUESTIONED COSTS

Schedule of Findings and Questioned Costs

21

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SECTION I - FINANCIAL

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Greg S. Griffin
STATE AUDITOR (404) 656-2180

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400

INDEPENDENT AUDITOR'S REPORT
Honorable Nathan Deal, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Peace Officers' Annuity and Benefit Fund
and Mr. Robert Carter, Secretary/Treasurer
We have audited the accompanying basic financial statements of the Peace Officers' Annuity and Benefit Fund, a component unit of the State of Georgia, as of and for the year ended June 30, 2012, as listed in the table of contents. These financial statements are the responsibility of the Peace Officers' Annuity and Benefit Fund's management. Our responsibility is to express opinions on these financial statements based on our audit.
Except as disclosed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in 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 financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Peace Officers' Annuity and Benefit Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In accordance with section 50-6-1(c) of the Official Code of Georgia Annotated, Greg S. Griffin was appointed State Auditor on July 1, 2012. During the year under review, Mr. Griffin served as the State Accounting Officer. As the State Accounting Officer, Mr. Griffin was responsible for the State's accounting and financial reporting practices.
In our opinion, the financial statements referred to above present fairly, in all material respects, the fiduciary net assets of the Peace Officers' Annuity and Benefit Fund, as of June 30, 2012, and the changes in fiduciary net assets for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 25, 2013 on our consideration of the Peace Officers' Annuity and Benefit Fund's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the Schedule of Funding Progress and Schedule of Contributions from the Employer and Other Contributing Entities information on pages 12 through 13 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with evidence sufficient to express an opinion or provide any assurance.
Management has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
Respectfully submitted,

January 25, 2013 GSG:bmk

Greg S. Griffin State Auditor

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BASIC FINANCIAL STATEMENTS

PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA STATEMENT OF FIDUCIARY NET ASSETS JUNE 30, 2012

Assets Cash and Cash Equivalents Receivables
Interest and Dividends Due from Brokers for Securities Sold Investments Pooled Investments Mutual Funds Municipal, U. S. and Foreign
Government Obligations Corporate Bonds/Notes/Debentures Asset-Backed Securities Stocks Mortgage Investments Real Estate Investment Trusts Capital Assets Land Buildings Machinery and Equipment Accumulated Depreciation
Total Assets
Liabilities Due to Brokers for Securities Purchased Salary/Withholdings Payable Other Current Liabilities
Total Liabilities
Net Assets Held in Trust for:
Pension Benefits

$

205,800

118,405 3,361,653

91,085,546 267,620,554

77,991,528 39,161,252 4,232,173 70,466,356 9,968,469
1,562,985

97,510 560,357 155,113 (208,860)

566,378,841

31,954,871 1,334
14,148
31,970,353 .

$ 534,408,488

The notes to the financial statements are an integral part of this statement.
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PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FOR THE YEAR ENDED JUNE 30, 2012

Additions: Contributions Plan Members Other Contributions Fines and Bond Forfeitures Interest and Other Investment Income Dividends and Interest Net Appreciation in Investments Reported at Fair Value Less: Investment Expense Net Investment Income Other Miscellaneous
Total Additions
Deductions: General and Administrative Expenses Benefits Refunds
Total Deductions
Change in Net Assets Held in Trust for Pension Benefits
Net Assets, July 1
Net Assets, June 30

$

3,451,787

16,256,050

$

13,967,548

1,453,767 (2,160,656)

13,260,659

91,342

33,059,838

697,459 23,931,268
378,678
25,007,405

8,052,433 526,356,055

$ 534,408,488

The notes to the financial statements are an integral part of this statement.
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PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012

A. PLAN DESCRIPTION
ORGANIZATION AND PLAN DESCRIPTION The Peace Officers' Annuity and Benefit Fund of Georgia is a cost-sharing multiple-employer defined benefit pension plan established in 1950 by the General Assembly of Georgia for the purpose of paying retirement benefits to peace officers of the State of Georgia. The Board of Commissioners of the Annuity and Benefit Fund is comprised of six members and consists of the Governor or his designee, an appointee of the Governor other than the Attorney General, the Commissioner of Insurance or his designee and three active or retired peace officers appointed by the Governor in accordance with the Official Code of Georgia (O.C.G.A.) Section 47-17-20. The Peace Officers' Annuity and Benefit Fund of Georgia is included within the State of Georgia's basic financial statements as a part of the primary government.
Individuals eligible to apply for membership in the Annuity and Benefit Fund are defined in O.C.G.A. Section 4717-1 and generally include: any individual employed by the State of Georgia or any municipality, county, or other political subdivision thereof for the preservation of public order, the protection of life and property or the detection of crime; wardens and correction officers of correctional institutions; full-time parole officers; other individuals employed full-time for the purpose of law enforcement and full-time employees of the Annuity and Benefit Fund. The Annuity and Benefit Fund is funded through a combination of member contributions paid by the affected members and designated portions of fines and forfeitures collected for criminal and quasi-criminal cases involving the violation of State of Georgia laws, county ordinances, or municipal ordinances.
CURRENT MEMBERSHIP The following analysis compares the membership of the Peace Officers' Annuity and Benefit Fund of Georgia at June 30, 2012, to that of the prior year:
June 30, 2012 June 30, 2011

Retirees and Beneficiaries Currently Receiving Benefits and Terminated Members Entitled to, but not yet receiving Benefits For Disability For Retirement For Survivorship Terminated Vested Members

443 3,444
348 906

448 3,138
343 848

Total

5,141

4,777

Number of Active Members

13,161

13,272

PARTICIPATING EMPLOYERS AND CONTRIBUTING ENTITIES The number of participating employers at June 30, 2012 was 159. The number of contributing entities at June 30, 2012 was 1,092.
BENEFITS The Peace Officers' Annuity and Benefit Fund of Georgia provides retirement as well as disability and death benefits. Benefit provisions and vesting requirements are established by statute and may be amended only by the General Assembly of Georgia. A description of plan benefits and vesting requirements is as follows:

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PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012
A. PLAN DESCRIPTION
(A) RETIREMENT CONDITIONS: A member shall be eligible to receive retirement benefits at age 55 with ten years of membership service or (15 years of service for members joining on or after July 1, 2010), regardless of age, with thirty years creditable service. A member must have terminated his or her active employment as a peace officer to receive benefits.
(B) RETIREMENT BENEFITS: The monthly benefit is a single life annuity payable in monthly payments for the life of the member only. The monthly payment amount at June 30, 2012 was $24.41 per month (plus 1/12 of this amount for each month of any partial year) for each full year of creditable service up to a maximum of 30 years of total service. The Board of Commissioners is authorized to provide for increases effective as of January 1 and July 1 of each year up to 1 percent of the maximum monthly retirement benefit then in effect.
(C) OPTIONAL BENEFITS: Members may elect, as an alternate to the benefit described above, to receive a 100 percent joint life annuity payable during the life of the member or the member's spouse or, a contingency life annuity with a 50 percent monthly payment to the surviving spouse. The amount of the benefit for these options is an actuarially reduced portion of the single life annuity benefit described, above.
(D) DISABILITY BENEFITS: Any dues paying member who became a member prior to July 1, 1993 who is rendered totally and permanently disabled is entitled to receive disability benefits, the amount of which is dependent upon the date of application for disability benefits.
(E) DEATH BENEFITS (1) Death before Retirement: If a member dies before retirement, the beneficiary is entitled to a lump sum of $3,500.
(2) If a member dies in the line of duty and has a designated beneficiary, that beneficiary is eligible to receive a lump sum benefit of $5,500 to be reduced (to no less than $2,500) by the amount of any disability benefits received for the causative injury, as described above.
(3) Death after Retirement: If a member dies after retirement, the death benefit of the designated beneficiary is dependent on the amount of retirement benefits previously received by the deceased member. If the deceased member had received $1,000 or more, the beneficiary is entitled to receive a lump sum of $2,500. If the deceased member had received less than $1,000, the beneficiary is entitled to receive an amount that when added to the amount previously received by the deceased member will total $3,500.
(F) TERMINATION: At any time before a member begins drawing retirement benefits, the member may request a refund of 95 percent of all member contributions paid into the Annuity and Benefit Fund during creditable service.
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING The Pension Fund's financial statements are prepared on the accrual basis of accounting, except for the collection of fines and forfeitures which are recognized when collected from the courts. Any accrual of these fines and forfeitures would be immaterial to the Pension Fund's financial statements. Contributions from members are recognized as additions in the period in which the members provide services. Retirement benefit and refund payments are recognized as deductions when due and payable.
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PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. In addition, funds on deposit with the Annuity and Benefit Fund's investment custodian for purposes of continual investment are reflected as investments regardless of the term of the instruments.
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.

C. CONTRIBUTIONS

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 and are not actuarially determined. 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 July 1, 2012, which reflected the proceeds of designated portions of fines and forfeitures as the employer contribution, indicated that the minimum employer contribution for the fiscal year ended June 30, 2012 was $19,760,211. The fines and forfeitures revenue of $16,256,050 for the fiscal year ended June 30, 2012 does not meet the minimum required fund contribution. Member contribution requirements are set forth in O.C.G.A. Section 47-17-44 and are not actuarially determined.

Administrative expenses are generally funded from current member and court fine and forfeiture contributions. Investment earnings may be utilized to fund any expenses in excess of contributions.

Contribution provisions are established by statute and may be amended only by the General Assembly of Georgia. A description of contribution requirement is as follows:

(A) MEMBERS CONTRIBUTIONS: Each member must contribute $20 per month, to be paid no later than the tenth day of each month.

(B) COURT FINES AND FORFEITURES: For each criminal and quasi-criminal case involving the violation of State of Georgia laws, county ordinances, or municipal ordinances, a sum based upon the scale set forth below is collected and remitted to the Annuity and Benefit Fund:

For fines and bond forfeitures in excess of $4,

but not more than $25

$3

For fines and bond forfeitures in excess of $25,

but not more than $50

$4

For fines and bond forfeitures in excess of $50,

but not more than $100

$5

For fines and bond forfeitures in excess of $100

5%

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PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012

C. CONTRIBUTIONS Actual contributions for the year ended June 30, 2012 were as follows:

Member Contributions Fines and Forfeitures

$

3,451,787

16,256,050

Total

$

19,707,837

D. CONCENTRATION OF CREDIT RISK
At June 30, 2012, more than 5 percent of the Retirement Fund's total investments were investments in securities of U. S. agencies not explicitly guaranteed by the U. S. government. These investments represented approximately 9 percent of the Retirement Fund's total investments. In addition, more than 5 percent of the Retirement Fund's total investments were in securities of WTC CTF Core Value, WTC CIF Small Cap Value and LSV International Value Equity Trust. These investments represented 14 percent, 11 percent and 9 percent, respectively of the Retirement Fund's total investments.
E. FUNDED STATUS AND FUNDING PROGRESS
The funded status of the plan as of July 1, 2012, the most recent actuarial valuation date, is as follows:

Actuarial value of Plan
assets (a)
$ 510,974,703

Acturial accrued liability (AAL) entry age
(b)
$ 606,988,960

Unfunded AAL (UAAL)
(b-a)
$ 96,014,257

Funding ratio (a/b)
84.2%

Annual covered payroll
(c)
n/a

UAAL as a
percentage of covered payroll [(b-a)c]
n/a

The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the AAL for benefits.

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PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012

E. FUNDED STATUS AND FUNDING PROGRESS
Additional information as of the latest actuarial valuation follows:
Valuation Date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions: Investment rate of return Projected salary increases Cost-of-living adjustments

July 1, 2012 Entry age normal Level dollar, open 30 years Market-related value
7.00% N/A N/A

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REQUIRED SUPPLEMENTARY INFORMATION

PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA SCHEDULE OF FUNDING PROGRESS JUNE 30, 2012

Actuarial Valuation
Date
July 1, 2008
July 1, 2010
July 1, 2012

Actuarial Value of Assets
(a)
471,492,476
468,097,441
510,974,703

Actuarial Accrued Liability (AAL) - Entry Age Normal
(b)
481,711,888
532,739,382
606,988,960

Unfunded AAL
(UAAL) (b-a)
10,219,412
64,641,941
96,014,257

Funded Ratio (a/b)

Covered Payroll
( c )

97.9%

n/a

87.9%

n/a

84.2%

n/a

UAAL as a Percentage of Covered
Payroll ((b-a)/c)
n/a
n/a
n/a

The actuarial value of assets at July 1, 2012 is equal to 96% of the market value of assets.

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PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND
OTHER CONTRIBUTING ENTITIES JUNE 30, 2012

Fiscal Year
2007 2008 2009 2010 2011 2012

Annual Required Contribution
12,936,344 12,936,344 14,034,429 14,034,429 19,760,211 19,760,211

Percentage Contributed
134% 136% 115% 123% 82% 82%

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SECTION II - REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

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Greg S. Griffin
STATE AUDITOR (404) 656-2180

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Nathan Deal, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Peace Officers' Annuity and Benefit Fund
and Mr. Robert Carter, Secretary/Treasurer
We have audited the basic financial statements of the Peace Officers' Annuity and Benefit Fund, a component unit of the State of Georgia, as of and for the year ended June 30, 2012, and have issued our report thereon dated January 25, 2013. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
Management of the Peace Officers' Annuity and Benefit Fund is responsible for establishing and maintaining effective internal controls over financial reporting. In planning and performing our audit, we considered the Peace Officers' Annuity and Benefit Fund's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Peace Officers' Annuity and Benefit Fund's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Peace Officers' Annuity and Benefit Fund's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did

not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. However, we identified the following deficiency in internal control over financial reporting, described in the accompanying Schedule of Findings and Questioned Costs that we consider to be a significant deficiency in internal control over financial reporting.
1. Accounting Controls (Overall) Financial Reporting and Disclosure Failure to Meet Deadlines Established by the State Accounting Office FS-947-12-01
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Peace Officers' Annuity and Benefit Fund's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, members of the Peace Officers' Annuity and Benefit Fund Board, and management of the State of Georgia, and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

January 25, 2013 GSG:bmk

Greg S. Griffin State Auditor

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SECTION III - CURRENT YEAR FINDINGS AND QUESTIONED COSTS

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PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS JUNE 30, 2012

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

Finding Control Number: FS-947-12-01 ACCOUNTING CONTROLS (OVERALL) FINANCIAL REPORTING AND DISCLOSURE Failure to Meet Deadlines Established by the State Accounting Office

Condition:

The Peace Officers' Annuity and Benefit Fund of Georgia failed to meet deadlines established by the State Accounting Office (SAO) for the submission of forms, data, and other information required for the preparation of the Comprehensive Annual Financial Report (CAFR). Our review revealed the following was not submitted to SAO by the prescribed deadlines:

- Allowance for Doubtful Accounts - Capital Assets - Cash and Deposits - General Information - Inter-Organization Transactions - Lease Agreement Data - Long-Term Liabilities - Pollution Remediation - Questionnaire - Trial Balance Shell

Criteria:

As prescribed by O.C.G.A. 50-5B-4, "All organizations of state government...shall conform to and comply with the rules, regulations, policies, procedures, and forms devised, promulgated, and installed by the state accounting officer. All organizations of state government shall submit statements, reports, information, and data necessary to enable the state accounting officer to complete the reports required under this code section... All organizations of state government shall provide lease information to the state accounting officer to permit the state accounting officer to properly account for and report all capital and operating leases. All organizations of state government shall provide information to the state accounting officer necessary to properly account for and report real property and personal property. All information and reports required in this Code section shall be provided in the form and within the time frame prescribed by the state accounting officer."

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PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS JUNE 30, 2012

Cause:

The Peace Officers' Annuity and Benefit Fund of Georgia failed to have adequate policies and procedures in place to ensure compliance with State law regarding the submission of required forms, data, and other information to the State Accounting Office by established deadlines.

Effect:

The failure on behalf of the Peace Officers' Annuity and Benefit Fund of Georgia to submit the required information to SAO by the prescribed deadlines results in delays in the preparation of the CAFR; delays which could result in that report not being issued by its deadline.

Recommendation:

The Peace Officers' Annuity and Benefit Fund of Georgia should implement policies and procedures, as needed, to ensure that all forms, data, and other information required by SAO for the preparation of the CAFR are submitted to SAO by the prescribed deadlines.

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