Management report, Sheriffs' Retirement Fund of Georgia, a component unit of the State of Georgia, fiscal year ended June 30, 2002

SHERIFFS' RETIREMENT FUND OF GEORGIA -TABLE OF CONTENTS-

LETTER OF TRANSMITTAL EXHIBITS

SELECTED FINANCIAL INFORMATION

A SCHEDULE OF PLAN NET ASSETS

ARISING FROM CASH TRANSACTIONS

2

B SCHEDULE OF CHANGES IN PLAN NET ASSETS

ARISING FROM CASH TRANSACTIONS

3

C SELECTED FINANCIAL NOTES

4

SUPPLEMENTARY INFORMATION

SCHEDULES

1 SCHEDULE OF ADMINISTRATIVE EXPENSES PAID BY OBJECT

15

2 SCHEDULE OF FUNDING PROGRESS

16

3 SCHEDULE OF EMPLOYER CONTRIBUTIONS

17

DEPARTMENT OF AUDITS AND ACCOUNTS

254 Waslungton Street, SW, Suite 214

R,,sssLL W. H,-ro,
<;TATE .a.tTIITOR (404)6<.o-2174

Atlanta, Georgia 30334-8400

March 13, 2003
Honorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the Board of CommIssIoners of the Shenffs' Rebrement Fund of Georgia
and Honorable James A Cody, Secretary-Treasurer
Ladies and Gentlemen
As part of our audit of the basic financial statements of the State of Georgia presented in the State of Georgia Comprehenswe Annual Financial Report and the issuance of a Statewide Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2002, we have performed certain audrt procedures at the Shenffs' Rebrement Fund of Georgia Accordingly, the financial statements and compliance act1vIbes of the Shenffs' Retirement Fund of Georgia were examined to the extent necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal controls as required by the Single Audit Act Amendments of 1996
This Management Report contains information pertinent to the financial and compliance act1vItIes of the Sheriffs' Retirement Fund of Georgia as of and for the year ended June 30, 2002 The particular informabon provided Is enumerated in the Table of Contents
This report Is intended solely for the information and use of management of the State of Georgia and members of the Board and Is not intended to be and should not be used by anyone other than these specified parties
------- ~ Respectfully submitted,

RWHmvr

SELECTED FINANCIAL INFORMATION -1-

SHERIFFS' RETIREMENT FUND OF GEORGIA

EXHIBIT"A"

SCHEDULE OF PLAN NET ASSETS ARISING FROM CASH TRANSACTIONS

JUNE 30 2002

ASSETS
Cash and Cash Equivalents
Investments
U S Govermlent Seambes, at Cost (Market Value $10,307,360 00) Stocks, at Cost (Market Value $23,240,366 19) Bonds and Deben1ures at Cost (Market Value $12,323,839 87) Investment Aa:ounts, at Cost (Market Value $-7,892 05)
M.rtual Funds, at Cost (Market Value $6,980,41043)
Real Estate l.Jrrrted Partnerstups, at Cost (Mari<et Value not Available)
TOTAL ASSETS
LIABILITIES
None Reported

$

18,550 05

$

10,083,280 01

23, 187 440 34

11,840,941 30

-7,892 04

7,608,613 39

8 075 00

52,720,458 00

$ 52,739,008 05

000

NET ASSETS HELD IN TRUST FOR PENSION BENEFITS (A schedule of funding progress IS presented 00 page 16)

$ 52 739,008 05

-2-

SHERIFFS' RETIREMENT FUND OF GEORGIA

EXHIBIT "B"

SCHEDULE OF CHANGES IN PLAN NET ASSETS ARISING FROM CASH TRANSACTIONS

YEAR ENDED JUNE 30, 2002

eroJ10
Mm>er Calribulcns
Rres lrd Bad Fafertu'm
1""'5trnBrt lncare lrterestReceMld ll\A- Received
Glm or (Loss) on Sale of lrM!Slrreris (Net)
ClterScua!s
ln!el!st Reo,r,ed on Qarra-1'.1 Oeposils
-Wl,&TTCNS DealhBln!ftts Re!Jrerreil Benefils &,,A~-
J>dimstra!Jve ~ Pelsalal Ser.,ces Q,era!Jng E,q,er1sos
Refln!s to Termnated Merrners
N=Tc:EJlEASE
l>EJ ASSETS t:ELP IN TRUST fffi PENSIQ:l B6'EEIJS- ,U,X 1 2001

s

121,847 85

2.302.216.09

S 1,499 917 75 40!,99513
-1,041,54013

867 372.75

167 55 $ 3,291,604 24

S

3500'.lOO

2,333,208 13

570 646 81 S 2.938,854 94

$ 169 50621 342.7c2.91

512.269 12

1 80000
s

3,452,924 00 -161,31982

529003Z7 87

!'EI ASSETS tELD IN TRUST Fm PENS!OO BEl'EFJTS -J!J'E :ll 2002

S 52,739,006.05

-3-

SHERIFFS' RETIREMENT FUND OF GEORGIA SELECTED FINANCIAL NOTES JUNE 30, 2002

EXHIBIT "C"

A PLAN DESCRIPTION

ORGANIZATION AND PURPOSE The Shenffs' Retirement Fund of Georgia 1s a cost-sharing multiple employer defined benefit pension plan estabhshed m 1963 by the General Assembly of Georgia for the purpose of pa)1ng retirement benefits to the shenffs of the State of Georgia The Board of Comm1~s10ners of the Retirement Fund 1s compnsed of six (6) members and consists of the D1Tcctor of the Office of Treasury and Fiscal Services. one former shenffwho 1s a retired beneficiary ofthe Retirement Fund. and four persons holdmg office as shenffs withm the State of Georgia, each of whom are active members of the Retirement Fund and have held office as a shenff for at least four years The Shenffs' Retirement Fund of Georgia 1s considered a component umt of the State of Georgia and 1s mcluded v.1thm the State of Georgia reporting entity for financial reporting purposes because of the s1gmficanee of Its legal, operational, and financial relat10nsh1ps with the State of Georgia

Any qualified and comrmss10ned shenff of any county withm the State of Georgia who makes payment of the required contnbut10ns 1s ehg1ble for membership The Retirement Fund 1s funded through a combinat10n of member contnbut10ns paid by the affected shenffand designated portions of fines and forfeitures for cnmmal and quas1-cnmmal cases mvolvmg the v10lat10n of State of Georgia statutes, mcludmg traffic laws

CURRENT MEMBERSHIP The following analysis compares the membership of the Shenffs' Retirement Fund of Georgia at June 30, 2002. to that of the pnor year

June 30, 2002 June 30, 200 I

Retirees and Benefic1ar1es Currently Rece1vmg

Benefits and Termmated Members Entitled to

but not yet Rece1vmg Benefits

for Retirement

156

169

For Surv1vorslup

__]l

32

11!.2

~

Number of Active Members Vested Nonvested

84

92

74

62

ill

ill.

-4-

SHERIFFS' RETIREMENT FUND OF GEORGIA SELECTED FINANCIAL NOTES JUNE 30, 2002

EXHIBIT "C"

A PLAN DESCRIPTION
PLAN BENEFITS The Sheriffs' Rctuement Fund of Georgia provides retirement as well as death benefits Benefit prov1s1ons and vcstmg reqmrements are established by statute and may be amended only by the General Assembly of Georgia A description of plan benefits and vesting reqmrements 1s as follows
(A) RETIREMENT CONDITIONS Normal retirement 1s at age fifty-five (55) provided the member has at least four years of credited service as a sheriff after and mcludmg January 1. 1961 The credited service reqmrement 1, eight years for a shenffwho first or agam becomes an active member on or after July I, 1988 A member must have terminated his/her service as sheriff to receive benefits
(B) RETIREMENT BENEFITS The normal benefit 1s calculated by muluplymg $99 00 by the number of years of credited service The mm1mum monthly benefit paid 1, $396 00 and the maximum monthly benefit paid 1s $2,970 00
(C) OPTIONAL BENEFJTS The followmg optional benefit prov1s10ns arc available to members upon application for retirement benefits
(1) 100% Jomt Life Annmty
(2) 50% Contingency Life Annmty
The monthly benefit amount paid under the optional prov1s10ns 1s the actuarial eqmvalent ofthe monthly normal retirement benefit and 1s payable until remamage
(D) DEATH BENEFITS
(I) Upon the death of any member. the total amount of his/her contnbutlons, or those m excess of any retirement benefits rece1 ved to that date, will be paid. without mtcrest. to the surv1vmg spouse, the named beneficiary, or the member's estate
(2) In add1t1on to the death benefit discussed m item (I), upon the death of either
(a) an mactlvc member who would othel'W!se qualify to be earned upon the acuve membership rolls except that he/she no longer holds the office of sheriff,
(b) a member who 1s receiving retirement benefits, or
(c) a member who 1s othel'W!sc qualified to receive retirement benefits from this Retirement Fund except that he/she has not reached the age of 55 years or has not filed an apphcat10n or has not been approved for retirement benefits The sum of

-5-

SHERIFFS' RETIREMENT FUND OF GEORGIA SELECTED FINANCIAL NOTES JUNE 30. 2002

EXHIBIT "C"

A PLAN DESCRIPTION

PLAN BENEFITS (D) DEATH BENEFITS
(2) (c) $7,000 00 w11l be paid as add1t10nal death benefits to the surv1vmg spouse. the nami:d beneficiary. or the member's estate

(3) In add1t1on to the death benefit discussed m item ( 1), upon the death of an active member. the sum of$7,000 00 will be paid as add1t1onal death benefits to the surv1vmg spouse. the named beneficiary, or the member's estate

(4) In add1110n to the death benefit discussed m item (3), upon the death ofan active member, the surv1vmg spouse receives an add1t1onal benefit m the form ofa 100%Jomt life annmty In such event, the death benefit discussed m Item (1) will not be payable

(E) TERMINATION The sum of contnbut1ons \\1thout mterest can be paid to the member at any tune prior to commencmg benefits. but the w1thdrawal causes the member to lose entitlement to any benefits

FUNDING REQUIREMENTS Contribut10n prov1s10ns are established by statute and may be amended only by the General Assembly of Georgia. A description of contnbut10n reqmrements 1s as follows

(A) MEMBER'S CONTRIBUTIONS Members must contribute $45 00 per month of credited service, with a maximum payment period of thirty years For credited service pnor to January 1, 1961, deductions m the amountof$20 00 are made from monthly retirement benefits until all credited months pnor to January 1, 1961, are paid, subject to a twenty-five year maximum Dues of $25 00 must be paid for every month of credited service claimed from January 1961 to June 30, 1990, $30 00 per month of credited service from July!, 1990 to June 30, 1994. and $37 50 per month of credited service from July 1, 1994 to June 30, 2000

(B) COURT FINES AND FORFEITURES For each cnmmal and quas1-crimmal case mvolvmg the v10lat1on of State of Georgia statutes, mcludmg traffic laws, a sum based upon the scale set forth below 1s collected by the pres1dmg Judge and remitted to the Retirement Fund

For fines or bond forfeitures m excess of $5 00, m which a Sheriff of the Superior Courts acts as Sheriff m other courts

$ 2 00

In add1t10n. the followmg amounts are reqmred to be collected by the applicable courts and renntted to the Retucmcnt Fund

- 6-

SHERIFFS' RETIREMENT FUND OF GEORGIA SELECTED FINANCIAL NOTES JUNE 30, 2002

EXHIBIT"C"

A PLAN DESCRIPTION

FUNDING REQUIREMENTS (BJ COURT FINES AND FORFEJTITRES
For c1v1l ,uits filed m Supenor Court,

$ I 00

for c1v1l actions filed m State Courts and Magistrate Courts where a Shcnff of the Superior Courts acts as a Shenff m thosi: courts

$ 1 00

B CASH AND INVESTMENTS

CASH AND CASH EQUIVALENTS Cash and Cash Equivalents mclude demand deposits with a bank

INVESTMENTS The Official Code of Georgia Annotated (0 CG A) Sect10n 47-16-26 states that the Board of Comm1ss10ners of the Shenffs' Retirement Fund of Georgia shall have full power to mvest and remvest funds, subJect to all terms, cond1t1ons. hm1tat10ns, and restnctlons imposed by the "Pubhc Retirement Systems Investment Authonty law" of Georgia In add1t10n. the Board of Comm1ss10ners 1s restricted to mvest no more than 60% of the assets of the Annuity and Benefit fund m equities and may not mvest more than 10% of the assets m eorporat10ns or m obhgauons of corporations organized ma country other than the Umted States of Amenca or Canada Statutory prov1s10ns goverrung ehg1ble mvestments are enumerated m the O CG A Sect10n 47-20-83 as follows

( 1) Corporations or obligations of corporallons organized under the laws of Georgia or any other state or under the laws of Canada, but only 1f the corporation ha, a market cap1tahwt10n equivalent to $ I00 mil hon, provided, however. that except a~ provided m O CG A Section 47-20-84, no fund shall mvest m corporations or m obhgatlons of corporations orgamzed m a country other than the Umted States or Canada, provided, further, that such obhgation shall be hsted as mvestment grade by a nat10nally recogmzed rating agency,

(2) Repurchase and reverse repurchase agreements for direct obhgat10ns ofthe Umted States government and for obhgatlons uncond1t1onally guaranteed by agencies of the Umted States government and for mvestments ehg1ble under paragraph (I) of this Code section.

(3) Ca,h aets or deposits m checkmg or savmgs accounts under certificates of depo~1t or m other form m banks and trust companies and m savmgs accounts, certificates ofdeposit, or smular certificates or evidences ofdeposits m savmgs and loan associat10ns and buildmg and loan associat10ns which have qualified for the msurance protcct10n afforded by the federal Deposit Insurance Corporat10n,

-7-

SHERIFFS' RETIREMENT FUND OF GEORGIA SELECTED FINANCIAL NOTES JUNE 30, 2002

EXHIBIT "C"

B CASH AND INVESTMENTS
INVESTMENTS (4) Bonds, notes, warrants, and other evidence ofmdebtedness which are direct obhgations of the government of the Umted States of America or for which the full faith and credit of the government of the Umted States of America 1s pledged for the payment of principal and mterest,
(5) Loans b'l.lllfantccd as to principal and mterest by the government of the Umted States of America, or by any agency or mstrumentahty of the government of the Umted States of America. to the extent of such guaranty,
(6) Taxable bonds. notes, warrants, and other securities not m default which are the direct obhga!Ions of any state of the Umted States or of the D1stnct of Columbia, or of the government of Canada or any provmce of Canada, or forwh1ch the full faith and credit of such state, d1~trict, government, or provmce has been pledged for the payment ofprincipal and mterest,
(7) Bonds. notes, warrants, and other secunlles not m default which are the direct obhgat1ons of the government of any foreign country wluch the Internallonal Monetary Fund hsts as an mdustnal1zed country and for which the full faith and credit of such government has been pledged for the payment of principal and mterest, provided such secunt1es are hsted as mvestrnent grade by a nallonally recogmzed ratmg agency,
(8) Bonds, debentures, or other secunties 1s~ued or msured or guaranteed by any agency, authority. unit. or corporate body created by the government of the Uruted States of America whether or not such obhgat10ns are guaranteed by the Uruted States.
(9) Collaterahzed mortgage obligations that arc hsted as mvestrnent grade by a nat10nally recognized ratmg agency;
(I 0) Obhgat10ns issued, assumed, or guaranteed by the International Bank for Reconstrucllon and Development or the Internat10nal Fmanc1al Corporallon.
(11) ln add11Ion to those mvestrnents ehg1ble under paragraph (1) of this Code section, bonds, debentures, notes, and other evidences of mdebtedness issued. assumed, or guaranteed by any solvent mslltullon ell.istmg under the laws of the Umted States of America or of Canada, or any state or provmce thereof, which are not m default as to pnnc1pal or mtercst and which arc secured by collateral worth at least 50 percent more than the par value of the entire issue of such obhgallons, but only 1fnot more than one-tlurd of the total value of the reqmred collateral consists of common stocks,
( 12) In add11lon to those mvestrnents ehg1ble under paragraph (I) ofth1~ Code secllon, secured and unsecured obhgat1ons of issuers descnbed m paragraph (11) oftlus Code secllon other than the obhgauons described m paragraph ( 11) ofth1s Code section, beanng interest at a fixed rate, with mandatory prmc1pal and mtercst due at specified times, 1fthe net earnmgs - 8-

SHERIFFS' RETIREMENT FUND OF GEORGIA SELECTED FINANCIAL NOTES JUNE 30, 2002

EXHIBIT "C"

B CASH AND INVESTMENTS
INVESTMENTS (12) of the 1ssumg, assurnmg, or guaranteemg institution available for its fixed charges for a penod of five fiscal years next preceding date ofacqms11lon by the fund have averaged per year not less than one and one-halftimes its average annual fi'l.ed charges apphcable to such penod and 1f dunng either of the last two years of the penod of such net earnings have been not less than one and one-half times its fixed charges for the year, provided, however, that any such obhgat1on shall be hsted as mvestment grade by a nat10nally recognized rating agency,
(13) In add1t1on to those investments ehg1ble under paragraph (I) of this Code sect10n, cqmpment trust obhgat1ons or certificates adequately secured and ev1dencmg an mterest m transportat10n eqwpment, wholly or in part w1thm the Umted States of Amcnca. and the nght to receive detenmned port10ns of rental, purchase, or other fixed obhgatory payments for the use or purchase of the transportat10n eqmpment,
(14) Loans that arc secured by pledge or secuntles ehg1ble for mvestment under this article,
(15) Purchase money mortgages or like secunties received upon the sale or exchange of real property acqmred,
(16) In addition to those investments ehg1blc under paragraph (I) of this Code section, a mortgage or a mortgage part1c1pat1on, pass-through, conventional pass-through, trust certificate, or other s1m1lar secunty which represents an und1V1ded, beneficial interest ma pool of loans secured by first mortgages, deeds of trust. or deeds to secure debt upon fee simple, unencumbered, unproved, or mcome-producmg real property located m the United States or Canada. which 1s improved with a res1dent1al bmldmg or condommmm umt or bmldmgs designed for occupancy by not more than four fam1hes, includmg leasehold estates m such real estate 1fsuch first mortgages, deeds oftrust, or deeds to secure debt are fully guaranteed or msured by the Federal Housing Adm1nistrat10n, the United States Department of Veterans Affairs, the Farmers Home Adm1mstrat1on, the Federal Home Loan Mortgage Corporat10n, the Goverrunent Nauonal Mortgage Associa11on, the Federal National Mortgage Association, or any similar governmental entity or mstrumentahty,
( 17) Land and bmldmgs on such land used or acqmred for use as a fund's office for the convenient transact10n of Its own busmess, provided, however, that portions of such bmldmgs not used for its own busmess may be rented by the fund to others, provided, further, that the amount investment by a fund m office property shall not exceed 10 percent of the retirement system assets,
(18) Real property acqmred in sat1sfact1on m whole or m part of loans, mortgages, hens, Judgments, decrees, or debts previously owing to the fund m the course of its business,

-9-

SHERIFFS' RETIREMENT FUND OF GEORGIA SELECTED FINANCIAL NOTES JUNE 30, 2002

EXHIBIT"C"

B CASH AND INVESTMENTS
INVESTMENTS ( 19) Real property acqwred in part payment of the cons1derat10n on the sale of other real property O\vned by the fund 1f such transaction effects a net reduct10n in the fund's mvestment m real estate,
(20) Real property acqwred by gift or devise, or through merger or consohdat1on with another fund.and
(21) Additional real property and equipment mc1dent to real property 1f necessary or convemcnt for the enhancement of the marketability or sale value of real property previously acquired or held by the fund under paragraphs ( 18), (19), and (20) ofth1s Code sect10n
Investments are defined as those financial mstruments wtth terms m excess ofthree months from the date ofpurchase and certam other sccuntles held for the production ofrevenue In add11Ion. funds on deposit wtth the Rellrement Fund's investment custodian for purposes of continual investment are reflected as investments regardless of the term ofthe instruments Investments in U S government secuntles, stocks, bonds and debentures, investment accounts, mutual funds, and real estate hm1ted partnerships are recorded at cost Accrued interest purchased, premmms or discounts on bonds and debentures and U S government secunt1es are reflected as a part ofcost and are not amortized over the remammg hfe of the secunty The market values reflected on the Statement of Plan Net Assets were based on valuat10ns appeanng in the Retirement Fund's Investment Custodian Trust Report at June 30, 2002
Interest mcome and d1v1dend income are recogmzed when received in cash Gains and/or los;es arc recogmzed using the completed transaction method Accrued mtercst purchased 1s recorded as a reduct10n of interest mcome at the time of purchase
Approximately I 9% of the net assets available for benefits arc mvested in U S government secuntles
Statutory prov1s10ns govemmg the investment of funds by the Shenff;' Retirement Fund of Georgia do not appear to provide for investments in real estate hm1ted partnerships These investments represent 015% of the total investments, at cost, of the Retirement Fund
The Retuement Fund has funds invested m open-end mutual funds The Retirement Fund 1s not aware of the nsk exposure resultmg from investments m denvauve~ or s1m1lar mvestments. 1fany, through these open-end mutual funds

- IO -

SHERIFFS' RETIREMENT FUND OF GEORGIA SELECTED FINANCIAL NOTES JUNE 30, 2002

EXHIBIT "C"

C CONTRIBUTIONS REQUIRED ANO MADE

FUNDING POLICY The minimum annual employer contnbuuon reqmrements are set forth m the Official Code of Georgia Annotated Sectwn 47-20-10 and are not actuanally determined ThIS statute further proh1b1ts any action to grant a benefit mcrease until such time as the mm1mum annual contnbut1on reqmrements meet or exceed leg1slatJve reqmrements The actuarial valuatwn as of July I, 2002, which reflected the proceeds of designated portions of fines and bond forfeitures as the employer contnbutwn, indicated that the m1mmum employer contribution level was met Member contnbut1on reqmrements are set forth m O CG A Sectwn 47-16-43 and are not actuanally determmed

FUNDING REQUIREMENTS Actual contributions for the year ended June 30, 2002, were as follows

Member Contributions Fmes and Bond Forfeitures

$ 121,847 85 2.302,2 I6 09

D RELATED PARTY TRANSACTIONS

$).424.063.94

Certam related party transactions were noted between the Shenffs' Retirement Fund of Georgia (Retirement Fund) and the Georgia Sheriffs' Youth Homes, Incorporated (Youth Homes) The Secretary-Treasurer of the Retirement Fund also serves as the Executive Director of the Youth Homes; and the Assistant Secretary-Treasurer and Comptroller ofthe Retirement Fund hold s1m1lar pos1t1ons with the Youth Homes

In addition to shared personnel. the Relirement Fund and the Youth Homes share property space For the fiscal year ended June 30, 2002, the Rel!rement Fund reimbursed the Youth Homes $16,200 00 for shared space

E CHANGES IN FIXED ASSETS Fixed assets used m plan operations are not included m the accompanymg financial mformatrnn

- 11 -

SHERIFFS' RETIREMENT FUND OF GEORGIA SELECTED FINANCIAL NOTES JUNE 30, 2002

EXHIBIT "C"

E CHANGES IN f!XED ASSETS The followmg 1s a summary of changes m fixed assets durmg the fiscal year
Balance July I, 2001 Add1t10ns Delet10ns Balance June 30. 2002

Equipment $27,770 63
0 00 27,770 63

F CONTINGENCIES

At June 30, 2002. the Shenffs' Retuement Fund of Georgia had mactlve members' dues on hand m the amount of$854,811 66 One-hundred percent ( I 00%) ofsuch dues are refundable upon request of the mactlve members

G EMPLOYEES' RETIREMENT PLAN

The ShenfTs' Retirement Fund of Georgia part1c1pates m a defined contnbut1on plan, m wluch benefits depend solely on amounts contnbuted to the plan plus investment earrungs The Georgia Sheriffs' Youth Homes, Incorporated Money Purchase Pens10n Plan was established May 22, 1979. for the purpose of providing retirement allowances for employees of the Georgia Shenffs' Youth Homes, Incorporated and employee~ of the Sheriffs' Retirement Fund of Georgia The Georgia ShenfTs' Youth Homes, Incorporated adm1msters the money purchase pension plan The plan 1s available to all employees that are twenty-one (21) years of age and have completed one year of service An employee must have completed at least LOOO hours of service in an ehg1b1hty service penod to quahfy for one year ofservice in the plan Vesting m employer contnbutJons to the plan 1s based on the followmg table

Years of Service

Percentage

I

30%

2

35%

3

40%

4

45%

5

60%

6

80%

7

100%

- 12 -

SHERIFFS' RETIREMENT FUND OF GEORGIA SELECTED FINANCIAL NOTES JUNE 30. 2002

EXHIBir "C"

G EMPLOYEES' RETIREMENT PLAN
The Sheriffs' Retirement Fund of Georgia contnbutes 14% of the employee's qualified salary to the plan per fiscal year Upon termmat1on or re1Irement, any vested benefit will be paid to the part1c1pant ma lump sum or as penod1c payments from one of the deferred opt10ns available The Re1Irement Fund's total payroll m fiscal year 2002 amounted to $129,809 88, which was for covered employees and used by the Retirement Fund for calculatmg contnbut1ons For fiscal year 2002, the Retirement Fund contnbuted $16,795 78 to this retirement plan No employee contnbut10ns were made to the plan for fiscal year 2002 The Retirement Fund has no further hab1hty under the plan other than the future contnbut10ns to the plan as established

- 13 -

SUPPLEMENTARY INFORMATION - 14 -

SHERIFFS' RETIREMENT FUND OF GEORGIA SCHEDULE OF ADMINISTRATIVE EXPENSES PAID BY OBJECT
YEAR ENDED JUNE 30, 2002

SCHEDULE "1"

PERSONAL SERVICES
Salanes and Wages Employe~s Contnbut1ons for
FICA ReUrement Health Insurance
OPERATING EXPENSES
Regular Opera~ng Expenses Supplies and Matenals Insurance and Bonding Other Operating Expenses Equipment Purchases
Travel
Computer Charges Software
Real Estate Rentals Georgia Shenffs' Youth Homes, Incorporated
Telecommun1cat1ons
Per Diem and Fees

$ 129 809 88

$ 10,251 73 16,795 78 12 648 82

39 696 33 $

169,506 21

s 1,337 71
3,405 00 12,498 28
3 683 88 $ 20,924 87 22,382 63
14,082 81
16 200 00 1,377 60
267 795 00

342 762 91

$

512,269 12

- 15 -

SHERIFFS' RETIREMENT FUND OF GEORGIA SCHEDULE OF FUNDING PROGRESS
YEAR ENDED JUNE 30, 2002

SCHEDULE "2"

ACTUARIAL VALUATION
DATE
07/01/96 $
07/01/98 $
07/01/00 s s 07/01/02

ACTUARlAL VALUE OF
ASSETS a

ACTUARIAL ACCRUED LIABILITY (AAL) - ENTRY AGE NORMAL
b

UNFUNDED AAL
(UAAL)
(b-a)

s 32 426 196 00 $ 34,200 203 00

1,773,907 00

47 2sa sa1 oo s 40 494 247 00 s -6 76,II 734 00

56 618 942 00 s s 50 178,073 00 -6 4-10 869 00

58 129 062 00 $ 53 045 439 00 s -5 083 623 00

FUNDED RATIO
!albi
94 8%
1167%
1128%
109 6%

COVERED PAYROLL
\cl

UAALASA
PERCENTAGE
OF COVERED PAYROLL
Hb-egc)

n/o

n/a

n1e

nla

n/a

n/a

nia

n/a

Information pnor to July 1 1996, Is not eve1lable
The mformat1on presen1ed m this schedule 1s based on the actuanal study prepared as of July 1 2002 The actuanal wlue of assets Is equal to 110% of market value of asset5

- 16 -

SHERIFFS' RETIREMENT FUND OF GEORGIA
SCHEDULE OF EMPLOYER CONTRIBUTIONS
YEAR ENDED JUNE 30. 2002

SCHEDULE 3

FISCAL YEAR
1996 1999 2000 2001 2002

ANNUAL REQUIRED CONTRIBUTION

$

636 626 00

$

000

s

0 00

s

0 00

s

0 00

Information prior to July 1, 1998 ts not available
The information presented In this schedule rs based on the actuarial sbJdy prepared as of Jlly 1, 2002 Additional lnformaHon of ths latest aduanal valuation follows

PERCENTAGE CONTRIBUTED
324 9% 00% 00% 00% 00%

Valuation Date
Actuartal Cost Method
Amorti.zaUon MethOd
Remaining AmorbZation Period
Asset ValuabOn Method
Actuarial Assumptions
Investment Rate of Reh.Ill
Pro,lected Salary lnaeases lnckJc:les Inflation at Cost-of-LMng AdJustments

July 1 2002
Ent,y Age Normal Level 00I\ar open
30 years 5-)'8ar &moothed market value with 10% corooor
65%
Not applicable None None

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