Review report, Superior Court Judges Retirement System, a component unit of the state of Georgia, year ended June 30, 1995

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~931 1994.<\S
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

REVIEW REPORT SUPERIOR COURT ruDGES RETIREMENT SYSTEM
A COMPONENT UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1995

SUPERIOR COURT JUDGES RETIREMENT SYSTEM - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANT'S REPORT ON REVIEW OF FINANCIAL STATEMENTS

EXHIBITS

A STATEMENT OF ASSETS AND FUND EQUITY

ARISING FROM CASH TRANSACTIONS

FIDUCIARY FUND TYPE - PENSION TRUST FUND

I

B STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

PENSION TRUST FUND

2

C NOTES TO THE FINANCIAL STATEMENTS

3

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

SECTION I FINANCIAL

CIAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 25, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia
and Members ofthe Board ofTrustees ofthe Superior Court Judges Retirement System
INDEPENDENT ACCOUNTANT'S REPORT ON REVIEW OF FINANCIAL STATEMENTS
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through C) of the Superior Court Judges Retirement System 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 Superior Court Judges Retirement System.
A review consists principally of inquiries of agency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware 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.
Respectfully submitted,
tr~~
Claude L. Vickers State Auditor
CLV:dt 95ARL-4CX

SUPERIOR COURT JUDGES RETIREMENT SYSTEM STATEMENT OF ASSETS AND FUND EQUITY ARISING FROM CASH TRANSACTIONS
FIDUCIARY FUND TYPE - PENSION TRUST FUND JUNE 30, 1995

EXHIBIT"A"

Investments Funds Held on Deposit and Invested by Office of Treasury and Fiscal Services Agency Funds Special Retirement Account
Fund Balance Reserved for Benefits

ASSETS FUND EQUITY

$ 56,716,787.47 $ 56,716,787.47

See Independent Accountant's Report on Review of Financial Statements. The notes to the financial statements are an integral part of this statement.
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SUPERIOR COURT JUDGES RETIREMENT SYSTEM STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
PENSION TRUST FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"B"

REVENUES
OTHER REVENUES RETAINED Member Contributions Members Paid on Members' Behalf by Superior Courts of Georgia
Reinstatement of Membership Pursuant to O.C.G.A 47-9-75
Employer Contributions Through Superior Courts of Georgia
Investment Income Interest Received Gain (Loss) on Investments (Net)
Total Cash Received
BALANCE - JULY 1
Cash and Cash Equivalents Investments

CASH RECEIPTS

$

424,TT2.36

501,920.21

$

926,692.57

152,217.18 $ 1,078,909.75

821,038.32

$ 3,228,884.36 1,559,193.08
$

4,788,0TT.44 6,688,025.51

$

4.96

51,657,TT4.03

51,657,TTB.99

$ 58,345,804.50

EXPENSES
Administrative Expenses Bank Service Fees Transfer of Funds to Employees' Retirement System of Georgia
Benefit Expense Retirement Benefits
Refunds to Terminated Members
Total Disbursements
BALANCE - JUNE 30
Investments

DISBURSEMENTS

$

62,472.19

4.96 $

62,4TT.15

1,422,593.76 143,946.12

$ 1,629,017.03

56,716,787.47 $ 58,345,804.50

See Independent Accountant's Report on Review of Financial Statements. The notes to the financial statements are an integral part of this statement.
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SUPERIOR COURT JUDGES RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXIIlBIT "C"

NOTE 1: PLAN DESCRIPTION

ORGANIZATION AND PURPOSE The Superior Court Judges Retirement System is a single employer, defined benefit pension plan established in 1976 by the General Assembly of Georgia for the purpose of paying retirement benefits to the Superior Court Judges ofthe State ofGeorgia. The Board of Trustees of the Retirement System is comprised ofthree (3) members and consists of the Governor, an appointee of the Governor who is not the Attorney General, and the Director ofthe Office ofTreaswy and Fiscal Services. The Superior Court Judges Retirement System is considered a component unit of the State of Georgia and is included within the State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.

Membership in the Retirement System is restricted to those individuals who have served or are serving as judges of the superior courts. The Retirement System is funded through a combination of member contributions paid by or on behalf of the affected superior court judges and employer contributions paid by the Superior Courts ofGeorgia. The Superior Courts of Georgia's payroll for the year ended June 30, 1995, for employees covered by the Superior Court Judges Retirement System was $10,262,978.86. The Superior Courts of Georgia's total payroll for all employees was $37,011,193.16.

CURRENT MEMBERSHIP The following analysis compares the membership of the Superior Court Judges Retirement System at June 30, 1995, to that ofthe prior year:

June 30, 1995 June 30, 1994

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

33

28

_lQ

-----2

43

37

Number of Active Members Vested Nonvested

88

77

48

60

136

137

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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SUPERIOR COURT JUDGES RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXIIlBIT "C"

NOTE 1: PLAN DESCRIPTION
PLAN BENEFITS The Superior Court Judges Retirement System provides retirement as well as death and disability benefits. Benefit provisions and vesting requirements are established by statute and may be amended only by the State of Georgia General Assembly. A description of plan benefits and vesting requirements is as follows:
(A) RETIREMENT CONDITIONS: A member who has obtained at least sixteen (16) years of creditable service and who has attained the age of sixty-five (65) shall be eligible to retire and receive a normal retirement benefit. A member who has obtained at least ten (10) years of creditable service and who has attained the age of sixty (60) shall be eligible to retire and receive a reduced early retirement benefit.
(B) RETIREMENT BENEFITS: (1) The accrued monthly benefit for participants with less than sixteen ( 16) years of credited service as ofNovember 1, 1982, and for participants entering the Retirement System after November 1, 1982, is equal to two-thirds (2/3) of the monthly salary being paid to the participant by the State of Georgia at the time of actual retirement.
(2) The accrued monthly benefit for other participants is equal to two-thirds (2/3) of the monthly salary being paid to the participant by the State of Georgia at the completion of sixteen (16) years ofcredited service. Such participants may elect to utilize the salary at actual retirement as a basis for calculation of monthly retirement benefits by paying the required employee contributions for years ofservice in excess of sixteen (16) years of credited service plus interest accrued at the rate of six percent (6%) per annum.
(3) The accrued monthly benefit at early retirement age or other termination of employment, except disability retirement, is equal to a pro rata portion, based on credited service not in excess of sixteen (16) years, of the monthly benefit at normal retirement age. A reduction of one quarter of one percent (.25%) is applied for each month ofservice less than sixteen (16) years, or for each month prior to the attainment of age sixty-five (65), whichever is greater, by which the benefit commencement date precedes normal retirement age.
For participants in the Retirement System at November 1, 1982, the accrued monthly benefit at early retirement age or other termination of employment, except disability retirement, is equal to a pro rata portion, based on credited service not in excess of sixteen (16) years, of the monthly benefit at normal retirement age, but such benefit cannot exceed seventy-five percent (75%) of the projected normal retirement benefit. Such participants receive the larger of the differing calculations.
(C) DISABILITY BENEillS: The accrued monthly benefit in the event of total and permanent disability is equal to fifty percent (50%) of the projected normal retirement benefit. If the participant is eligible for early retirement benefits at the time of disablement, and such benefits would exceed the benefits provided by the disability provisions of the Plan, then the larger of the two benefits would be paid.
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SUPERIOR COURT JUDGES RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXIIlBIT "C"

NOTE 1: PLAN DESCRIPTION
PLAN BENEFITS (D) DEATH BENEFITS: In order to receive death benefits provided under the Plan, a participant must
elect such coverage and must contribute an additional amount each month. The benefit provided by such an election is an annuity provided to the surviving spouse of the participant, for life or until remarriage, in the amount of fifty percent (50%) of the monthly benefit being paid to the member at the time of
death, ifretired, or fifty percent (500/4) ofthe monthly benefit which would be payable ifthe member had
retired on the date of death. In the event the member dies prior to the attainment of the age of sixty (60), the monthly benefit would be computed based on his/her years of credited service as ofthe date ofdeath, and the death benefit would become payable immediately to the surviving spouse regardless of the member's age. The additional employee contributions required for this benefit must be paid at least ten (10) years prior to death in order for the surviving spouse to receive the death benefits provided in the Plan. Participants who do not elect to participate in this aspect of the Plan, and those who die before they have paid the additional employee contribution required for this benefit for a minimum often (10) years, receive no death benefits. Survivors of the deceased member are entitled to the return of prior employee contributions plus interest at the rate of six percent (6%) per annum.
A participant may elect to extend coverage of the death benefit provided under the Plan by paying an additional employee contribution. The benefit provided by such an election is equal to the benefit
described above, but is payable for the life of the spouse without regard to any subsequent remarriage.
The additional employee contribution required for this benefit must be paid for at least ten (10) years prior to death in order for the participant's spouse to receive the death benefit.
Certain participants who are covered by other retirement systems may elect to be covered by the death benefits of the Superior Court Judges Retirement System. Such participants must contribute an additional two and one-halfpercent (2 %) of the monthly salary paid to them by the State of Georgia. The benefit provided by such an election is an annuity provided to the surviving spouse of the participant, for life or until remarriage, in the amount of fifty percent (50%) of the monthly benefit due to the participant from the other retirement system at the time of death.
(E) VESTING IN ACCRUED BENEFITS: (1) One hundred percent (100%) for normal retirement at age sixty-five (65) with sixteen (16) years of credited service.
(2) One hundred percent (1000/4) for early retirement at age sixty (60) with ten (10) years of credited servtce.
(3) One hundred percent (100%) in the event of total and permanent disability after four (4) years of credited service.
(4) For other termination ofemployment, except death, the vesting percentage is one hundred percent (100%) after ten (10) years of credited service.
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SUPERIOR COURT JUDGES RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXlilBIT "C"

NOTE 1: PLAN DESCRIPTION
PLAN BENEFITS (F) CREDITED SERVICE: Credited service includes years of service after December 31, 1976, during
which a participant holds office as a Superior Court Judge and makes the required contributions for the Plan, plus years of prior service through December 31, 1976, if any, which were transferred from the Trial Judges and Solicitors Retirement Fund. Credited service may not exceed sixteen (16) years.
(G) TERMINATION: Ifa participant leaves covered employment or dies before ten (I 0) years of credited service, accumulated contributions plus interest are refunded to the participant or designated beneficiary.
FUNDING 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) ME:MBERS' CONTRIBUTIONS: (I) Members' contributions are calculated as seven and one-half percent (7 %) of the salary paid by the State of Georgia. Of this amount, the State of Georgia contributes five percent (5%) less $7.00 monthly on behalf of each participant. The participant is responsible for the remainder of the required member contributions.
(2) Each participant who elects to be covered by the death benefit provision of the Plan must contribute an additional two and one-half percent (2 %) of his/her salary paid by the State of Georgia to the Plan. Each participant may elect a death benefit payable for the surviving spouse's lifetime rather than for life or until remarriage. If this option is selected, the participant must contribute an additional one quarter of one percent (.25%) of the salary paid by the State of Georgia.
(3) Each participant who is covered by other retirement plans and who elects to be covered by the death benefit provision ofthe Plan must contribute an additional two and one-half percent (2 %) of his/her salary paid by the State of Georgia to the Plan. Each participant may elect a death benefit payable for the surviving spouse's lifetime rather than for life or until remarriage. Ifthis option is selected, the participant must contribute an additional one quarter of one percent (.25%) of the salary paid by the State of Georgia.
(4) Participants may elect to contribute an additional one percent (1%) of their salary to the Retirement System to become eligible for post retirement cost of living benefit adjustments as provided in the Official Code of Georgia Annotated Section 47-9-76.
(B) STATE OF GEORGIA CONTRIBUTIONS: The employer's contribution is currently calculated as eight percent (8%) of the salaries paid by the State of Georgia.

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SUPERIOR COURT ruDGES RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "C"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS
FUND COMPRISING FINANCIAL STATEMENTS The Superior Court Judges Retirement System uses a fund to report on its financial position and the results ofits operations determined in conformity with the accounting practices prescribed or permitted by statutes and regulations of the State of Georgia. 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 of funds 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 Superior Court Judges Retirement System prepares its financial statements on the basis of cash receipts and disbursements, which is a comprehensive basis of accounting other than generally accepted accounting principles. This basis of accounting is defined as that method of accounting in which certain revenues and related assets are recognized when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred.
INVESTMENTS The Official Code of Georgia Annotated Section 47-9-23 states that the Board of Trustees of the Superior Court Judges Retirement System shall have full power to invest and reinvest funds subject to the terms and conditions imposed by the laws ofthe State of Georgia upon domestic life insurance companies in the making and disposing oftheir investments. Statutory provisions governing the investments of domestic life insurance companies are enumerated in Title 33, Chapter 11 ofthe Official Code of Georgia Annotated. The significant forms ofinvestment in accordance with these statutes and available to the Retirement System are as follows:
(1) Deposits in checking, savings, certificates of deposit or similar evidences of deposits in banks, trust companies, savings and loan associations, and building and loan associations which have qualified for the insurance protection afforded by the Federal Deposit Insurance Corporation.
(2) Securities of any open-end management type investment company or investment trust registered with the Securities and Exchange Commission, provided that the investment company or trust has been organized for not less than ten years or has assets of not less than $25,000,000.00 at the date of investment.
(3) Bonds, notes, securities or other evidences of indebtedness which are direct obligations of the government ofthe United States of America.

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SUPERIOR COURT ruDGES RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "C"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS
INVESTMENTS (4) Loans guaranteed as to principal and interest by the government ofthe United States of America, to the extent of such guaranty.
(5) Bonds, notes, warrants or securities not in default which are direct obligations of any state ofthe United States ofAmerica or of the District of Columbia, or of the government of Canada or any province of Canada, or for which the full faith and credit of such state, district, government or province has been pledged for the payment of principal and interest.
(6) Obligations oflocal units of government or government related entities located within the United States of America or Canada, subject to certain conditions.
(7) Dividend paying stocks, common or preferred, ofany solvent corporation created or existing under the laws of the United States of America or any state or of the District of Columbia, subject to certain conditions.
(8) Bonds, debentures, notes, or other evidences of indebtedness of any solvent corporation created or existing under the laws of the United States of America or of any state or of the District of Columbia, subject to certain conditions.
(9) Bonds, debentures, notes, or other evidences of indebtedness which are secured by first mortgage or deed of trust or deed to secure debt upon fee simple, unencumbered improved real estate or income producing real property located in the United States of America or Canada, subject to certain conditions.
(10) Purchase money mortgages or like securities received upon the sale or exchange of real property acquired.
( 11) Real estate acquired for the purpose of leasing same to any person, firm or corporation, or in real estate already leased to any person, firm or corporation, subject to certain conditions.
The Superior Court Judges Retirement System (SCJRS) participates in investment pools managed by the State of Georgia's Office ofTreasury and Fiscal Services (OTFS} and the Employees' Retirement System of Georgia (ERS). The ERS investment pool is managed for OTFS as custodian of the SCJRS's funds. The SCJRS is not aware of any risk exposure from investments in derivatives or similar investments made through the ERS investment pool. Investment disclosures for the OTFS investment pool are located in the OTFS financial report.
NOTE 3: CUSTODIAL CREDIT RISKS OF INVESTMENTS
CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount of the investment balance as of June 30, 1995, shown
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SUPERIOR COURT JUDGES RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "C"

NOTE 3: CUSTODIAL CREDIT RISKS OF INVESTMENTS

CATEGORIZATION OF INVESTMENTS below is maintained in investment pools as discussed above and are not subject to risk categorization.

Type ofInvestment

Carrying Amount

Market Value

Investment Pools

$56,716,787.47 $66,124,255 99

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 ofbenefits 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 of both projected salary increases and any step-rate benefits, if applicable) to each year of credited and expected future employee service, using assumptions that reflect the best judgement of future events affecting the actuarial present value. The Statement further requires the use of the term pension benefit obligation when referring to the standardized measure. The standardized measure is independent of the actuarial funding method, if any, used to determine contributions to the affected public employees retirement system.

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

VALUATION RESULTS:

Actuarial Present Value of Accumulated Plan Benefits Active Members Pensioners, Future Survivors and Beneficiaries Former Members Eligible for Deferred Vested Benefits
Total
Valuation Assets (Market Value)
Unfunded Actuarial Present Value of Accumulated Plan Benefits

$44,805,584.00 9,267,667.00 90,963.00
$54,164,214.00
53,523,968.00 $ 640,246.00

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SUPERIOR COURT JUDGES RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "C"

NOTE 4: FUNDING STATUS AND PROGRESS

ACTUARIAL ASSUMPTIONS The most recent actuarial investigation of the Retirement System was performed by the consulting actuary engaged by the Superior Court Judges Retirement System using census data as of July l, 1993. Significant actuarial assumptions used include:

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

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

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

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

(E) Retirement Age: Age at normal retirement.

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

Percentage

Age

Male

Female

30

3.702%

4.895%

35

2.349%

3.692%

40

1.128%

2.319%

45

.265%

1.038%

50

.000%

.065%

55

.000%

.000%

60

.000%

.000%

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

(H) Cost of Living Adjustments: Benefits for participants covered by spouses only death benefits are assumed to increase at the rate of five and one-half percent (5 %) per annum.

(I) Funding Method: Aggregate actuarial cost method.

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SUPERIOR COURT JUDGES RETIREMENT SYSTEM 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 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. Member contribution requirements are set forth in O.C.G.A Section 47-9-40 and are not actuarially determined. Total contributions to the Superior Court Judges Retirement System in fiscal year 1995 amounted to $1,747,730.89 of which $1,322,958.53 was made by the Superior Courts of Georgia and $424,772.36 was made by the member. The employer contribution includes the 5% contributed on behalf of the member referred to above. Contributions made by the employer and member approximate 12.89/o and 4.14%, respectively, of covered payroll for the fiscal year. The contribution made by the Superior Courts ofGeorgia does not include $67,326.76, which was billed to the Superior Courts of Georgia in fiscal year 1996 for fiscal year 1995 underpayment of employer contributions.
Pursuant to O.C.G.A Section 47-9-75, a superior court judge which has previously withdrawn amounts paid into the Retirement System may be permitted to be reinstated and to reestablish prior creditable service by making reimbursement to the Retirement System ofthe amount withdrawn plus interest. Such amounts paid into the Retirement System for reinstated members amounted to $152,217.18 for the fiscal year.
NOTE 6: HISTORICAL TREND INFORMATION
Statement Number 5 issued by the Governmental Accounting Standards Board requires the disclosure of certain 10-year historical trend data and an explanation that this data provide information about progress made in accumulating sufficient assets to pay benefits when due.
All required historical trend data for the Superior Court Judges Retirement System were not available at the time ofthis report. In addition, trend information relative to the pension benefit obligation was not available. Available trend data are as follows:

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SUPERIOR COURT mDGES RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "C"

NOTE 6: ffiSTORICAL TREND INFORMATION

REVENUESBYSOURCEANDEXPENSESBYTYPE

Fiscal Year

REVENUES

Member

Employer

Contributions Contributions

Other (1)

Total

1988 1989 1990 1991 1992 1993 1994 1995

$ 745,128.84 $ 1,465,036.38 $ 2,098,560.81 $ 4,308,726.03 $ 817,681.06 $ 1,436,314.42 $ 2,347,860.88 $ 4,601,856.36 $ 840,754.24 $ 1,473,746.77 $ 2,985,008.34 $ 5,299,509.35 $ 946,758.81 $ 1,094,913.52 $ 3,022,615.81 $ 5,064,288.14 $ 854,468.42 $ 746,871.35 $ 3,687,582.52 $ 5,288,922.29 $ 955,068.48 $ 973,343.47 $ 3,631,087.70 $ 5,559,499.65 $ 881,559.53 $ 766,489.27 $ 4,580,309.42 $ 6,228,358.22 $ 1,078,909.75 $ 821,038.32 $ 4,788,077.44 $ 6,688,025.51

Fiscal Year

Benefits

EXPENSES

Refunds To

Administrative Terminated

Expenses

Members

Other (2)

Total

1988 1989 1990 1991 1992 1993 1994 1995

$ 286,282.52 $ $ 407,425.52 $ $ 488,651.52 $ $ 601,270.85 $ $ 724,374.59 $ $ 910,486.63 $ $ 1,216,573.61 $ $ 1,422,593.76 $

0.00 $ 11,886.50 $ 34,277.74 $ 39,451.38 $ 45,318.44 $ 44,560.28 $ 55,535.34 $ 62,477.15 $

0.00 $ 0.00 $ 0.00 $ 311,071.67 $ 86,710.83 $ 244,904.92 $ 21,127.41 $ 143,946.12 $

0.00 $ 286,282.52 0.00 $ 419,312.02 0.00 $ 522,929.26 0.00 $ 951,793.90 0.00 $ 856,403.86 0.00 $ 1,199,951.83 118,130.21 $ 1,411,366.57 0.00 $ 1,629,017.03

(I) Includes Investment Income (2) Membership change

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

NOTE 7: RISK MANAGEMENT

The Superior Court Judges Retirement System is exposed to risk of loss related to general liability. The Retirement System has elected to self-insure in regards to this risk exposure. There were no claims made against the Retirement System in fiscal year 1995 and there were no claims brought forward from previous fiscal years.

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SUPERIOR COURT ruDGES RETIREMENT SYSTEM NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXIIlBIT "C"

NOTE 8: CONTINGENCIES
Litigation, claims and assessments filed against the Superior Court Judges Retirement System, if any, are generally considered to be actions against the State of Georgia. 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.
NOTE9: SUBSEOUENTEVENTS
Pursuant to the provisions of the Official Code of Georgia annotated 47-9-27, effective July 1, 1995, the Superior Court Judges Retirement System will transfer administration of the Retirement System from the Office of Treasury and Fiscal Services to the Employees' Retirement System of Georgia.
NOTE 10: BONDING INFORMATION
The accounting records for the Superior Court Judges Retirement System are maintained by the Office of Treasury and Fiscal Services. The Director and all employees of the Office of Treasury and Fiscal Services are bonded under a Public Employees Blanket Bond written by Employers Insurance ofWausau, their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1995. Under this agreement the Public Employee Dishonesty Coverage insures the Office of Treasury and Fiscal Services to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance ofDuty Coverage insures the Office to a maximum of $1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
All employees ofthe Office ofTreasury and Fiscal Services are also bonded under 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 Office to a maximum of $9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

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SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SUPERIOR COURT mDGES RETIREMENT SYSTEM 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 of the finding disclosed in the report for the year ended June 30, 1994, is summarized below:

Audit Control Number

Status of Finding

945-94-01

Corrective Action Implemented