{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2014-belec-p-btext","title":"Audit report, Georgia Firefighters' Pension Fund, fiscal year ended 2014 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body.","Georgia. State Accounting Office."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2015-06-12"],"dcterms_description":["Annual financial report for the Georgia Firefighters' Pension Fund."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2014-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2014-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":null},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2012-h2013-belec-p-btext","title":"Audit report, Georgia Firefighters' Pension Fund, fiscal year ended June 30, 2013","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body.","Georgia. State Accounting Office."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Dept. of Audits and Accounts"],"dc_date":["2012/2013"],"dcterms_description":["Print began with: Year ended June 30, 2006.","Report year covers fiscal year.","\"Prepared by State Accounting Office.\"","Cannot be determined whether print version has ceased.","Year ended June 30, 2006, released in 2007?; title from PDF cover (Georgia Government Publications database, viewed August 25, 2023).","Fiscal year ended June 30, 2014 (Harvested on August 5, 2015 from www.audits.ga.gov); (Georgia Government Publications database, viewed August 25, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2013"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Firefighters' Pension Fund--Appropriations and expenditures--Periodicals.","Fire fighters--Pensions--Georgia--Auditing--Periodicals.","Fire fighters--Pensions--Georgia--Finance--Statistics--Periodicals.","Fire fighters--Retirement--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, Georgia Firefighters' Pension Fund, fiscal year ended June 30, 2013"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2012-h2013-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2012-h2013-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"Audit Report \r\nGeorgia Firefighters' Pension Fund \r\nFiscal Year Ended June 30, 2013 \r\nPrepared by: State Accounting Office \r\n\"Thunder Clouds over Atlanta\", Photograph by John Mason, Mableton, Georgia \r\n \r\n The artwork on the cover was created by Georgia artist, John Mason, and was selected to hang in the Office of the Governor as part of a rotating exhibit \"The Art of Georgia\". For more information about the exhibit, the artists and their work, visit www.gaarts.org. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\n \r\n- TABLE OF CONTENTS Page \r\nSECTION I - FINANCIAL \r\n \r\nIndependent Auditor's Report \r\n \r\n1 \r\n \r\nBasic Financial Statements \r\n \r\nStatement of Fiduciary Net Position \r\n \r\n6 \r\n \r\nStatement of Changes in Fiduciary Net Position \r\n \r\n7 \r\n \r\nNotes to the Financial Statements \r\n \r\n8 \r\n \r\nRequired Supplementary Information (Unaudited) \r\n \r\nSchedule of Funding Progress \r\n \r\n20 \r\n \r\nSchedule of Contributions from the Employer and Other Contributing Entities \r\n \r\n21 \r\n \r\nSECTION II - REPORT ON INTERNAL CONTROL OVER FINANCIAL \r\n \r\nREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN \r\n \r\nAUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH \r\n \r\nGOVERNMENT AUDITING STANDARDS \r\n \r\n25 \r\n \r\nSECTION III - SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n29 \r\n \r\n (This page intentionally left blank) \r\n \r\n SECTION I - FINANCIAL \r\n \r\n (This page intentionally left blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR (404) 656-2180 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1.156 Atlanta, Georgia 30334-8400 \r\n \r\nIndependent Auditor's Report \r\nThe Honorable Nathan Deal, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Georgia Firefighters' Pension Fund \r\nand Mr. C. Morgan Wurst, Executive Director \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the Georgia Firefighters' Pension Fund, a component unit of the State of Georgia, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Georgia Firefighters' Pension Fund's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opmion on these financial statements based on our audit. 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 from material misstatement. \r\n \r\n An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. \r\nOpinion \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the fiduciary net position of the Georgia Firefighters' Pension Fund, as of June 30, 2013, and the changes in fiduciary net position for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2013, Georgia Firefighters' Pension Fund implemented new accounting principles GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Our opinion is not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nAccounting 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 20 and 21 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. \r\n2 \r\n \r\n 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. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated July 23, 2014 on our consideration of the Georgia Firefighters' Pension 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 in considering Georgia Firefighters' Pension Fund's internal control over financial reporting and compliance. \r\nRespectfully submitted, \r\n \r\nJuly 23,2014 GSG:ad \r\n \r\n~/\u003e.~ \r\nGreg S. Griffin State Auditor \r\n \r\n3 \r\n \r\n (This page intentionally left blank) \r\n \r\n BASIC FINANCIAL STATEMENTS \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nStatement of Fiduciary Net Position \r\nJune 30, 2013 \r\n \r\nAssets: Cash and cash equivalents \r\nReceivables: Interest and dividends Due from brokers Other Total receivables \r\nInvestments, at fair value: Mutual funds Municipals and U.S. Government obligations Corporate bonds/notes/debentures Asset-backed securities Stocks Mortgage investments Real estate investment trusts Total investments \r\nCapital assets: Land Buildings Machinery and equipment Works of art and collections Accumulated depreciation Total capital assets \r\nOther assets \r\nTotal Assets \r\nLiabilities: Accounts payable and other accruals Due to brokers for securities purchased Compensated absences payable \r\nTotal liabilities \r\nNet position restricted for pensions \r\nSee accompanying notes to financial statements. \r\n \r\n$ \r\n \r\n38,508,316 \r\n \r\n$ \r\n \r\n1,533,868 \r\n \r\n27,232,229 \r\n \r\n15,799 \r\n \r\n28,781,896 \r\n \r\n163,637,999 51,271,169 80,655,701 3,028,857 \r\n226,285,724 77,709,488 27,370,702 \r\n \r\n629,959,640 \r\n \r\n84,882 1,534,994 \r\n165,142 113,972 (448,414) \r\n \r\n1,450,576 2,388 \r\n698,702,816 \r\n \r\n1,647,011 42,370,186 \r\n55,271 \r\n44,072,468 \r\n \r\n$ 654,630,348 \r\n \r\n6 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nStatement of Changes in Fiduciary Net Position \r\nYear ended June 30, 2013 \r\n \r\nAdditions: Contributions: Members Insurance premium taxes \r\nInterest and other investment income: Dividends and interest Net increase in fair value of investments Less investment expense Net investment income \r\nMiscellaneous \r\nTotal additions \r\nDeductions: General and administrative expenses Benefits Refund of member contributions \r\nTotal deductions \r\nNet increase in net position \r\nNet position restricted for pensions: \r\nBeginning of year \r\nEnd of year \r\nSee accompanying notes to financial statements. \r\n \r\n$ \r\n \r\n2,617,129 \r\n \r\n28,441,739 \r\n \r\n$ \r\n \r\n14,561,469 \r\n \r\n78,288,436 \r\n \r\n(3,338,527) \r\n \r\n89,511,378 406,436 \r\n120,976,682 \r\n \r\n1,352,149 35,919,081 \r\n622,340 \r\n37,893,570 \r\n83,083,112 \r\n \r\n571,547,236 $ 654,630,348 \r\n \r\n7 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nNotes to Financial Statements \r\nFor the Year Ended June 30, 2013 \r\n \r\nNOTE 1 - PLAN DESCRIPTION \r\n \r\nORGANIZATION AND PLAN DESCRIPTION The Georgia Firefighters' Pension Fund is a cost-sharing multiple-employer defined benefit pension plan established in 1955 by the General Assembly of Georgia for the purpose of paying retirement benefits to firefighters of the State of Georgia. The Board of Trustees of the Pension Fund is comprised of five members and consists of the Governor or his designee, the Commissioner of Insurance or his designee, two active members of the Pension Fund appointed by the Governor and one retired beneficiary of the Pension Fund appointed by the Governor. The Georgia Firefighters' Pension Fund, a component unit of the State of Georgia, is included within the State of Georgia's basic financial statements as fiduciary funds of the primary government. \r\n \r\nAny person employed as a full-time firefighter or enrolled as a volunteer firefighter 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 firefighters and a tax imposed on gross insurance premiums written by insurance companies, corporations or associations for fire, inland marine or allied lines, lightning, extended coverage, and windstorm policies covering property within the State of Georgia. \r\n \r\nCURRENT MEMBERSHIP As of June 30, 2013, participation in the Pension Fund is as follows: \r\n \r\nRetirees and beneficiaries currently receiving benefits For disability For retirement For survivorship \r\n \r\nJune 30, 2013 \r\n37 3,945 \r\n359 \r\n \r\nTerminated members entitled to, but not yet receiving benefits \r\n \r\n57 \r\n \r\nTotal \r\n \r\n4,398 \r\n \r\nNumber of active members \r\n \r\n13,073 \r\n \r\nPARTICIPATING EMPLOYERS AND OTHER CONTRIBUTING ENTITIES The number of participating employers of the Pension Fund as of June 30, 2013 was 431. The number of other contributing entities of the Pension Fund as of June 30, 2013 was 568. \r\nBENEFITS The Georgia Firefighters' Pension Fund 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: \r\n \r\n8 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nNotes to Financial Statements \r\nFor the Year Ended June 30, 2013 \r\nNOTE 1 - PLAN DESCRIPTION (continued) \r\n(A) RETIREMENT CONDITIONS: A member shall be eligible to receive retirement benefits at age 55 provided the member has 25 years of service. A member may be eligible to receive a pro rata share of benefits, at the latter of age 55 or at the member's termination as a firefighter or volunteer firefighter, after at least 15 years of service (amount received to be the maximum benefit amount times a ratio of years of service to 25 years). At age 50, a member may elect to receive a percentage of benefits to which the member would have been eligible to receive at age 55. A member must have terminated his or her service as a firefighter or volunteer firefighter to receive benefits. \r\n(B) RETIREMENT BENEFITS: The maximum retirement benefit at June 30, 2013 is $882 per month for the life of the member. The Board of Trustees is authorized to provide for increases effective as of January 1 and July 1 of each year up to 1 percent of the maximum retirement benefit then in effect. Members retiring after July 1, 1984 with service in excess of 25 years are entitled to an additional one percent of the maximum benefit in effect at the time of retirement for each additional full year of service. Members retiring after July 1, 2002 with service in excess of 25 years are entitled to an additional two percent of the maximum benefit in effect at the time of retirement for each additional full year of service. \r\n(C) OPTIONAL BENEFITS: Members may elect, as an alternate to the benefit described above, to receive an actuarially reduced benefit payable during the joint lifetime of the member and the member's spouse, continuing after the death of the member during the lifetime of the spouse or a ten years' certain and life option where an actuarially reduced benefit is received during the member's lifetime and, in the event of the member's death within 10 years of retirement, the same monthly benefits shall be payable to the member's selected beneficiary for the balance of the 10 year period. \r\n(D) DISABILITY BENEFITS: Subject to the approval of the Board of Trustees, any firefighter or volunteer firefighter who was an active member, became totally and permanently disabled, applied for disability benefits, and was awarded such benefits prior to July 1, 1993 is entitled to a monthly disability benefit. The disability would need to have resulted from injuries suffered while performing duties of the position to which he was regularly assigned or was rendered, by heart disease or respiratory disease, totally and permanently disabled and as a result of such physical disability, was separated from his work as a firefighter or appointment as a volunteer firefighter. \r\n(E) DEATH BENEFITS (1) In the event of the death of a member of the Pension Fund who is in good standing and who has not commenced receiving any benefits; the designated beneficiary of such deceased member shall be entitled to be paid the amount of $5,000. \r\n(2) In the event of the death of a member of the Pension Fund who is in good standing and who has commenced receiving benefits; but who has not received total benefits in the amount of $5,000, the designated beneficiary of such deceased member shall be entitled to receive the difference between $5,000 and the amount of benefits received by such deceased member. \r\n(3) In the event of the death of a member with 15 years service, prior to commencing benefits, the spouse or beneficiary of the member is entitled to the retirement benefit elected to have been received by the member in accordance with the terms above. \r\n9 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nNotes to Financial Statements \r\nFor the Year Ended June 30, 2013 \r\nNOTE 1 - PLAN DESCRIPTION (continued) \r\n(F) TERMINATION: In the event of the termination of a member, 95 percent of the member's contributions will be returned. No interest shall be paid upon amounts so withdrawn. \r\nNOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING The Pension Fund's financial statements are prepared on the accrual basis of accounting, except for contributions from insurance premium taxes which are recognized annually, upon receipt. Any accrual of these insurance premium taxes 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. \r\nDuring fiscal year 2013, the Pension Fund adopted the provisions of GASB Statement No. 61, The Financial Reporting Entity: Omnibus  an amendment of GASB Statements No. 14 and No. 34. The objective of this Statement is to improve financial reporting for a governmental financial reporting entity by modifying certain requirements for inclusion of component units in the financial reporting entity, amending the criteria for blended component units, and clarifying the reporting entity interests in component units. The Pension Fund did not have any component units for fiscal year 2013. \r\nDuring fiscal year 2013, the Pension Fund adopted the provisions of GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. This Statement amends the net asset reporting requirements in Statement No. 34, Basic Financial Statements  and Management's Discussion and Analysis  for State and Local Governments, and other pronouncements by incorporating deferred outflows of resources and deferred inflows of resources into the definitions of the required components of the residual measure and renames that measure as net position. The Pension Fund changed its presentation of net assets to net position for fiscal year 2013. There were no other applicable changes to the Pension Fund. \r\nIn June 2012, GASB issued Statement No. 67, Financial Reporting for Pension Plans  an amendment of GASB No. 25. This Statement improves financial reporting by state and local governmental pension plans. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regard to providing decision-useful information, supporting assessments of accountability and inter-period equity, and creating additional transparency. This Statement will be effective for the Pension Fund in fiscal year 2014. Management of the Pension Fund is evaluating the impact on the Pension Fund's financial statements. \r\nCASH AND CASH EQUIVALENTS Cash and cash equivalents, reported at cost, include cash on hand, cash in banks, cash on deposit with the investment custodian earning a credit to offset fees, and short-term highly liquid financial securities with original maturities of three months or less from the date of acquisition. \r\n10 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nNotes to Financial Statements \r\nFor the Year Ended June 30, 2013 \r\nNOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) \r\nINVESTMENTS Investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price. There are no investments in, loans to, or leases with parties related to the Pension Fund. \r\nThe Pension Fund utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements. \r\nNOTE 3 - DEPOSITS AND INVESTMENTS \r\nThe Pension Fund maintains sufficient cash to meet its immediate liquidity needs. Cash not immediately needed is invested as directed by the investment policy of the Pension Fund. All investments are held by agent custodial banks in the name of the Pension Fund. State statutes and the Pension Fund's investment policy authorize the Pension Fund to invest in a variety of short-term and long-term securities as follows: \r\n1) U.S. or Canadian corporations or their obligations with limits as to the corporations' size and credit rating. 2) Repurchase and reverse repurchase agreements for direct obligations of the U.S. Government and for \r\nobligations unconditionally guaranteed by agencies. 3) Federal Deposit Insurance Corporation (FDIC) insured cash assets or deposits. 4) Bonds, notes, warrants, loans or other debt issued or guaranteed by the U.S. Government. 5) Taxable bonds, notes, warrants or other securities issued and guaranteed by any state, the District of \r\nColumbia, Canada or any province in Canada. 6) Bonds, debentures or other securities issued or insured or guaranteed by an agency, authority, unit, or \r\ncorporate body created by the U.S. Government. 7) Investment grade collateralized mortgage obligations. 8) Obligations issued, assumed or guaranteed by the International Bank for Reconstruction and Development or \r\nthe International Financial Corporation. 9) Bonds, debentures, notes and other evidence of indebtedness issued, assumed, or guaranteed by any solvent \r\ninstitution existing under the laws of the U.S. or of Canada, or any state or province thereof, which are not in default and are secured to a certain level. 10) Secured and unsecured obligations issued by any solvent institution existing under the laws of the U.S. or of Canada, or any state or province thereof, bearing interest at a fixed rate, with mandatory principal and interest due at a specified time with additional limits. 11) Equipment trust obligations or interests in transportation equipment, wholly or in part within the U.S., and the right to receive determinate portions or related income. 12) Loans that are secured by pledge or securities eligible for investment. 13) Purchase money mortgages or like securities received upon the sale or exchange of real property acquired. 14) Secured mortgages or mortgage participation, pass-through, conventional pass-through, trust certificate, or other similar securities with restrictions. 15) Land and buildings on such land used or acquired for use as a fund's office for the convenient transaction of its own business with restrictions. 16) Real property and equipment acquired under various circumstances. \r\n11 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nNotes to Financial Statements \r\nFor the Year Ended June 30, 2013 \r\n \r\nNOTE 3 - DEPOSITS AND INVESTMENTS (continued) \r\n \r\nDEPOSITS \r\n \r\nThe Pension Fund had cash on hand of $2,078 at June 30, 2013. \r\n \r\nThe carrying amount of the Pension Fund's deposits totaled $72,654 at June 30, 2013, with actual bank balances of $173,401. The Pension Fund's cash balances are fully insured through the Federal Deposit Insurance Corporation, an independent agency of the U.S. Government. \r\n \r\nINVESTMENTS \r\n \r\nShort-term highly liquid financial securities are authorized in the investment policy of the Pension Fund in money market funds. This investment is classified as a cash equivalent on the Pension Fund's Statement of Fiduciary Net Position. At June 30, 2013, the Pension Fund held $38,433,584 in money market mutual funds. \r\n \r\nFixed income investments are authorized in the following instruments: \r\n \r\n \r\n \r\nState and municipal government securities. At June 30, 2013, the Pension Fund held municipal \r\n \r\ngovernment securities of $128,495. \r\n \r\n \r\n \r\nU.S. Government obligations. At June 30, 2013, the Pension Fund held U.S. Treasury bonds of \r\n \r\n$21,159,800. \r\n \r\n \r\n \r\nObligations unconditionally guaranteed by agencies of the U.S. Government. At June 30, 2013, the \r\n \r\nPension Fund held U.S. Government obligations of $29,982,874. \r\n \r\n \r\n \r\nCorporate bonds that are rated as BBB or higher at the time of purchase as defined by a nationally \r\n \r\nrecognized rating agency. At June 30, 2013, the Pension Fund held U.S. corporate bonds of $77,229,232 \r\n \r\nand international corporate bonds of $3,426,469. \r\n \r\n \r\n \r\nAsset-backed securities. At June 30, 2013, the Pension Fund held asset-backed securities of $3,028,857. \r\n \r\n \r\n \r\nMortgage investments. At June 30, 2013, the Pension Fund held mortgage investments of $77,709,488. \r\n \r\nEquity securities are also authorized by the Public Retirement System Investment Authority Law for investment as a complement to the Pension Fund's fixed income portfolio and as a long-term inflation hedge. By statute, no more than 75% of the total invested assets on a historical cost basis may be placed in equities. The equity portfolio is managed by the Pension Fund in conjunction with independent advisors. Buy/sell decisions are based on securities meeting rating criteria established by the investment policy of the Pension Fund. Equity trades are approved and executed by the independent advisors. Common stocks eligible for investment must meet the General Investment Policies and Guidelines of the Pension Fund investment policy. Equity investments are authorized in the following instruments: \r\n \r\n Mutual funds are investments that are made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. At June 30, 2013, the Pension Fund held mutual funds - equity of $163,637,999. \r\n \r\n12 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nNotes to Financial Statements \r\nFor the Year Ended June 30, 2013 \r\n \r\nNOTE 3 - DEPOSITS AND INVESTMENTS (continued) \r\n \r\n \r\n \r\nDomestic equities are those securities considered by The Official Code of Georgia Annotated (O.C.G.A.) \r\n \r\nto be domiciled in the United States. At June 30, 2013, the Pension Fund held domestic equities of \r\n \r\n$214,459,507. \r\n \r\n \r\n \r\nInternational equities will be a diversified portfolio including both developed and emerging countries. \r\n \r\nThese securities are not considered by the O.C.G.A. to be domiciled in the United States. At June 30, \r\n \r\n2013, the Pension Fund held international equities of $11,826,217. \r\n \r\n Real Estate Investment Trusts (REIT) are a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. At June 30, 2013, the Pension Fund held shares of REITs of $27,370,702. \r\n \r\nInterest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Pension Fund does not have a formal policy for managing interest rate risk. The following table provides information about the Pension Fund's interest rate risk: \r\n \r\nTotal Fair Value \r\n \r\nLess than 3 Months \r\n \r\nMaturity Period 4 - 12 Months 1 - 5 Years 6 - 10 Years \r\n \r\nMore than 10 Years \r\n \r\nMoney Market Mutual Funds $ Municipal Bonds U. S. Treasury Obligations U. S. Agency Obligations Corporate Debt \r\nDomes tic International Asset-backed Securities Domes tic Mortgage-backed Securities Total Debt Securities \r\n \r\n38,433,584 128,495 \r\n21,159,800 29,982,874 \r\n \r\n$ 38,433,584 $ - \r\n \r\n-$ \r\n \r\n-$ \r\n \r\n-$ \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n128,495 \r\n \r\n- \r\n \r\n- \r\n \r\n12,792,644 \r\n \r\n7,072,891 \r\n \r\n1,294,265 \r\n \r\n- \r\n \r\n967,454 \r\n \r\n- \r\n \r\n29,015,420 \r\n \r\n77,229,232 3,426,469 \r\n \r\n727,098 - \r\n \r\n7,412,992 373,277 \r\n \r\n27,402,159 739,067 \r\n \r\n21,172,952 1,034,499 \r\n \r\n20,514,031 1,279,626 \r\n \r\n3,028,857 \r\n \r\n- \r\n \r\n- \r\n \r\n1,664,882 \r\n \r\n1,363,975 \r\n \r\n- \r\n \r\n77,709,488 \r\n \r\n2,405 \r\n \r\n- \r\n \r\n1,347,263 \r\n \r\n2,943,286 \r\n \r\n73,416,534 \r\n \r\n251,098,799 $ 39,163,087 $ 7,786,269 $ 44,913,469 $ 33,716,098 $ 125,519,876 \r\n \r\nMutual Funds - Equity Equity Securities \r\nDomes tic International Real Estate Investment Trust \r\n \r\n163,637,999 \r\n214,459,507 11,826,217 27,370,702 \r\n \r\nTotal Investments \r\n \r\n$ 668,393,224 \r\n \r\n13 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nNotes to Financial Statements \r\nFor the Year Ended June 30, 2013 \r\n \r\nNOTE 3 - DEPOSITS AND INVESTMENTS (continued) \r\n \r\nCredit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations to the Pension Fund. State law limits investments to investment grade securities. The Pension Fund's investment policy requires purchases of fixed income securities to be rated BBB or higher at the time of purchase by a nationally recognized rating organization. Obligations of the U.S. Government or obligations explicitly guaranteed by the U.S. Government are not considered to have credit risk and do not require disclosure of credit quality. The quality ratings of investments in fixed income securities as described by Standard \u0026 Poor's and by Moody's Investor Services, which are nationally recognized statistical rating organizations, at June 30, 2013 are shown in the following chart: \r\n \r\nStandard and \r\n \r\nPoor's /Moody's \r\n \r\nJune 30, 2013 \r\n \r\nInvestment Type \r\n \r\nQuality Rating \r\n \r\nFair Value \r\n \r\nDomestic obligations: \r\n \r\nMoney Market Mutual Funds \r\n \r\nUnrated \r\n \r\n$ 38,433,584 \r\n \r\nMunicipals \r\n \r\nA/A \r\n \r\n128,495 \r\n \r\nU.S. Treasuries \r\n \r\n21,159,800 \r\n \r\nU.S. Agency Obligations \r\n \r\nAA/Aaa \r\n \r\n29,982,874 \r\n \r\nCorporates \r\nTotal corporates Asset-backed securities \r\nTotal asset-backed securities \r\n \r\nAAA/Aaa AAA/Aa AA/Aa \r\nAA/A AA/Baa \r\nA/Aa A/A A/Baa A/Unrated BBB/A BBB/Baa BBB/Ba BBB/Unrated BB/Baa BB/Ba Unrated \r\nAAA/Aaa AAA/Unrated BBB/Unrated Unrated/Aaa \r\n \r\n132,046 1,305,847 1,335,643 1,156,584 \r\n314,750 924,146 22,785,653 2,897,500 8,290,624 166,207 22,198,412 1,287,505 12,469,573 984,525 349,165 631,052 77,229,232 \r\n856,141 693,470 1,030,605 448,641 3,028,857 \r\n \r\n14 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nNotes to Financial Statements \r\nFor the Year Ended June 30, 2013 \r\n \r\nNOTE 3 - DEPOSITS AND INVESTMENTS (continued) \r\nInvestment Type Mortgages \r\n \r\nStandard and Poor's /Moody's Quality Rating \r\nAAA/Aaa AAA/Aa AAA/A AAA/Unrated AA/Aa \r\nAA/A AA/Baa AA/Ba AA/B AA/Unrated \r\nA/Aa A/A A/Baa A/Ba A/B A/Unrated BBB/Aa BBB/A BBB/Baa BBB/Ba BBB/B BBB/Unrated BB/Aa BB/A BB/Baa BB/Ba BB/B BB/Caa BB/Ca BB/Unrated B/Ba B/B B/Caa B/Withdrawn B/Unrated \r\n \r\nJune 30, 2013 Fair Value \r\n$ 1,599,924 298,049 30,398 630,310 \r\n1,288,631 446,480 966,844 129,447 \r\n1,412,232 209,690 305,077 \r\n2,806,698 2,215,203 3,170,748 \r\n41,306 2,713,331 \r\n464,550 862,871 6,474,141 1,178,256 958,913 7,267,007 821,611 1,617,448 4,249,992 1,529,032 1,431,834 1,199,496 2,073,532 2,273,023 562,900 2,663,866 1,628,361 23,203 612,320 \r\n \r\n15 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nNotes to Financial Statements \r\nFor the Year Ended June 30, 2013 \r\n \r\nNOTE 3 - DEPOSITS AND INVESTMENTS (continued) \r\nInvestment Type Mortgages (continued) \r\nTotal mortgages International obligations: \r\nCorporates Total corporates Total fixed income investments \r\n \r\nStandard and Poor's/Moody's Quality Rating \r\nCCC/Ba CCC/B CCC/Caa CCC/Ca CCC/C CCC/Unrated CC/Caa CC/Unrated D/Caa D/Ca \r\nD/C Unrated/Aaa Unrated/Aa Unrated/A Unrated/Baa Unrated/Ba Unrated/B Unrated/Caa Unrated/C Unrated/Withdrawn \r\nUnrated \r\n \r\nJune 30, 2013 \r\n \r\nFair Value \r\n \r\n$ \r\n \r\n81,317 \r\n \r\n2,699,704 \r\n \r\n724,671 \r\n \r\n2,304,893 \r\n \r\n295,038 \r\n \r\n264,239 \r\n \r\n181,758 \r\n \r\n490,721 \r\n \r\n85,732 \r\n \r\n514,299 \r\n \r\n387,140 \r\n \r\n3,129,042 \r\n \r\n271,264 \r\n \r\n2,102,780 \r\n \r\n3,600,577 \r\n \r\n1,774,271 \r\n \r\n590,203 \r\n \r\n416,506 \r\n \r\n371,052 \r\n \r\n111,720 \r\n \r\n1,155,837 \r\n \r\n77,709,488 \r\n \r\nAA/Aa A/A A/Baa \r\nBBB/A BBB/Baa Unrated \r\n \r\n305,483 1,211,785 \r\n169,645 95,403 \r\n1,587,791 56,362 \r\n3,426,469 \r\n$ 251,098,799 \r\n \r\nConcentration of Credit Risk: Concentration of credit risk is the risk of loss attributed to the magnitude of the Pension Fund's investment in a single issuer. At June 30, 2013, the Pension Fund did not have any investments in any one organization which represented greater than 5% of total investments. \r\n \r\n16 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nNotes to Financial Statements \r\nFor the Year Ended June 30, 2013 \r\n \r\nNOTE 4 - CONTRIBUTIONS \r\nFUNDING 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, 2013, which reflected the proceeds of insurance premium taxes as the employer contribution, indicated that the minimum employer contribution for the fiscal year ended June 30, 2013 was $29,994,798. The insurance premium tax revenue of $28,441,739 for the fiscal year ended June 30, 2013 does not meet the minimum required fund contribution. Member contribution requirements are set forth in O.C.G.A. Section 47-7-60 and are not actuarially determined. \r\nAdministrative expenses are generally funded from current member and insurance premium taxes. Investment earnings may be utilized to fund any expenses in excess of contributions. \r\nA description of contribution requirements is as follows: \r\n(A) MEMBERS CONTRIBUTIONS: Each member must contribute $15 per month, to be paid no later than the tenth day of each month. \r\n(B) INSURANCE PREMIUMS TAX: Every fire insurance company, corporation or association doing business within the State of Georgia must pay to the executive director of the Georgia Firefighters' Pension Fund one percent of the gross premiums, written by such insurance company, corporation, or association for fire, lightning, or extended coverage, inland marine or allied lines, or windstorm insurance policies covering property within the State of Georgia. \r\nActual contributions for the year ended June 30, 2013, were as follows: \r\n \r\nMember Contributions Insurance Premiums Tax \r\n \r\n$ 2,617,129 28,441,739 \r\n \r\nTotal \r\n \r\n$ 31,058,868 \r\n \r\nNOTE 5 - FUNDED STATUS AND FUNDING PROGRESS \r\n \r\nThe funded status of the plan as of July 1, 2013, the most recent actuarial valuation date, is as follows: \r\n \r\nActuarial value of plan assets \r\n(a) \r\n \r\nActuarial accrued liability (AAL) entry age \r\n(b) \r\n \r\nUnfunded AAL (b-a) \r\n \r\nFunded ratio (a/b) \r\n \r\nAnnual covered payroll \r\n(c) \r\n \r\nUnfunded AAL as percentage of covered payroll [(b-a)/c] \r\n \r\n$ 606,836,423 $ 869,864,809 $ 263,028,386 \r\n \r\n69.8% \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n17 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nNotes to Financial Statements \r\nFor the Year Ended June 30, 2013 \r\n \r\nNOTE 5 - FUNDED STATUS AND FUNDING PROGRESS (continued) \r\n \r\nThe 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. \r\n \r\nAdditional information as of the latest actuarial valuation follows: \r\n \r\nValuation date \r\n \r\nJuly 1, 2013 \r\n \r\nActuarial cost method \r\n \r\nEntry age normal \r\n \r\nAmortization method \r\n \r\nLevel dollar, open \r\n \r\nRemaining amortization period \r\n \r\n30 years \r\n \r\nAsset valuation method \r\nActuarial assumptions: Investment rate of return (includes inflation) Projected salary increases Cost-of-living adjustments \r\n \r\nFive-year smoothed market value with 15% corridor \r\n6% N/A N/A \r\n \r\nNOTE 6 - SUBSEQUENT EVENTS \r\nOn April 22, 2014, Governor Nathan Deal signed Senate Bill 235 which amends the Official Code of Georgia Annotated (O.C.G.A.) 47-7-1 by revising the term \"firefighter\" as a permanent, compensated employee of a fire department who works at least 1,040 hours per year; or appointed and regularly enrolled as a volunteer with a volunteer fire department or combination full-time and volunteer fire department. This bill also amends OCGA 47-7-87 relating to \"prior eligible service\" in that service rendered between July 1, 2006 and June 30, 2014, as a firefighter in part-time employment shall be entitled to credit for prior eligible service, provided that such person files an application on or before September 30, 2014 and pays to the Pension Fund for each month of prior eligible service credit sought an amount equal to the contributions that would have been made had the member or applicant been a member and entitled to credit during the period of prior eligible service, at the monthly contribution rate in effect at the time the application for credit is made, together with interest on such monthly amount from the date on which such contribution would have been made until the date of application for credit at a rate of 12 percent per year; or presents proof that such contributions were timely paid during such period. This bill has an effective date of July 1, 2014 and will resolve Finding Number FS-950-12-01 noted in the Schedule of Findings and Questioned Costs when effective. \r\nOn May 21, 2014, the Pension Fund's Board approved change in the plan's investment rate of return from 6% to 6.5%. This change made it possible for Senate Bill 235 to be concurrently funded under the O.C.G.A. Code Section 47-20-50. Otherwise, the legislation would not have become effective as law and would be null, void and stand repealed in its entirety on July 1, 2014. \r\n \r\n18 \r\n \r\n REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nSchedule of Funding Progress \r\nJune 30, 2013 \r\n \r\nActuarial valuation \r\ndate \r\n \r\nActuarial value of plan assets \r\n(a) \r\n \r\nActuarial accrued liability (AAL) entry age \r\n(b) \r\n \r\nUnfunded AAL (b-a) \r\n \r\nJuly 1, 2009 $ 492,251,109 $ 746,144,702 $ 253,893,593 \r\n \r\nJuly 1, 2011 \r\n \r\n618,625,369 \r\n \r\n810,195,729 \r\n \r\n191,570,360 \r\n \r\nJuly 1, 2013 \r\n \r\n606,836,423 \r\n \r\n869,864,809 \r\n \r\n263,028,386 \r\n \r\nFunded ratio (a/b) \r\n \r\nAnnual covered payroll \r\n(c) \r\n \r\n66.0% N/A \r\n \r\n76.4% N/A \r\n \r\n69.8% N/A \r\n \r\nUnfunded AAL as percentage of covered payroll [(b-a)/c] \r\nN/A \r\nN/A \r\nN/A \r\n \r\n20 \r\n \r\n Fiscal Year \r\n2008 2009 2010 2011 2012 2013 \r\n \r\nGEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nSchedule of Contributions from the Employer and Other Contributing Entities \r\nJune 30, 2013 \r\n \r\nAnnual required contribution \r\n \r\n$ \r\n \r\n20,706,161 \r\n \r\n22,845,197 \r\n \r\n36,030,805 \r\n \r\n36,030,805 \r\n \r\n29,994,798 \r\n \r\n29,994,798 \r\n \r\nPercentage contributed \r\n123% 116% 71% 73% 90% 95% \r\n \r\n21 \r\n \r\n  (This page intentionally left blank) \r\n \r\n SECTION II - REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS \r\nPERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\n Greg S. Griffin \r\nSTA TE AUDITOR (404) 6562180 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\n \r\nReport 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 \r\nIndependent Auditor's Report \r\nThe Honorable Nathan Deal, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Georgia Firefighters' Pension Fund \r\nand Mr. C. Morgan Wurst, Executive Director \r\nWe have audited, 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, the financial statements of the Georgia Firefighters' Pension Fund, a component unit of the State of Georgia, which include the statement of fiduciary net position as of June 30, 2013, the related statement of changes in fiduciary net position for the year then ended, and the related notes to the financial statements, which collectively comprise Georgia Firefighters' Pension Fund's basic fmancial statements, and have issued our report thereon dated July 23, 2014. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the fmancial statements, we considered the Georgia Firefighters' Pension Fund's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circrunstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Georgia Firefighters' Pension Fund's internal control. Accordingly, we do not express an opinion on the effectiveness of Georgia Firefighters' Pension Fund's internal control. \r\nA 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 \r\n \r\n of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's fmancial statements will not be prevented, or detected and corrected on a timely basis. 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. \r\nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Georgia Firefighters' Pension 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 fmancial 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. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n#urA.~ \r\nGreg S. Griffin State Auditor \r\nJuly 23,2014 \r\nGSG:ad \r\n26 \r\n \r\n SECTION III - SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n  GEORGIA FIREFIGHTERS' PENSION FUND (A Component Unit of the State of Georgia) \r\nSchedule of Findings and Questioned Costs \r\nFor the Year Ended June 30, 2013 \r\n \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-950-12-01 \r\n \r\nUnresolved \r\n \r\nFS-950-12-01 Admission of Ineligible Members to the Pension Plan \r\n \r\nControl Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nRevenues and Receivables Expenses/Expenditures and Liabilities Financial Reporting and Disclosure Significant Deficiency Nonmaterial Noncompliance \r\n \r\nIn the 2013 session of the General Assembly, Senate Bill 235 was introduced to define a firefighter as either \"paid\" or \"volunteer\", thus eliminating the criteria of either full time or part time. A \"paid\" firefighter must be engaged for a minimum of 1,080 hours to earn creditable service for the year. Provisions were also provided to allow prior part-time firefighters to purchase service if they were denied entry during the period 2006-2014. The bill is a fiscal bill and was evaluated by the actuary over the summer and was presented for final consideration in the 2014 legislative session. In the 2014 Legislative Session, the Bill passed through both the Senate and House unopposed. The Bill was signed by the governor on April 22, 2014. \r\n \r\n29 \r\n \r\n (This page intentionally left blank) \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2011-h2012-belec-p-btext","title":"Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2012","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body.","Georgia. 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Dept. of Audits and Accounts"],"dc_date":["2010/2011"],"dcterms_description":["Print began with: Year ended June 30, 2006.","Report year covers fiscal year.","\"Prepared by State Accounting Office.\"","Cannot be determined whether print version has ceased.","Year ended June 30, 2006, released in 2007?; title from PDF cover (Georgia Government Publications database, viewed August 25, 2023).","Fiscal year ended June 30, 2014 (Harvested on August 5, 2015 from www.audits.ga.gov); (Georgia Government Publications database, viewed August 25, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2011"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Firefighters' Pension Fund--Appropriations and expenditures--Periodicals.","Fire fighters--Pensions--Georgia--Auditing--Periodicals.","Fire fighters--Pensions--Georgia--Finance--Statistics--Periodicals.","Fire fighters--Retirement--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2011"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2010-h2011"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2010-h2011"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"  GEORGIA FIREFIGHTERS' PENSION FUND \r\n- TABLE OF CONTENTS - \r\nSECTION I - FINANCIAL \r\nIndependent Auditor's Report \r\nBasic Financial Statements Statement of Fiduciary Net Assets Statement of Changes in Fiduciary Net Assets Notes to the Financial Statements \r\nRequired Supplementary Information Schedule of Funding Progress Schedule of Contributions from the Employer and Other Contributing Entities \r\n- SECTION I1 REPORT ON INTERNAL CONTROL OVER FINANCIAL \r\nREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCLAL STATEMENTS PERF'ORMED IN ACCORDANCE WITH GOWRNMENTA UDITING STANDARDS \r\n \r\n (This page intentionally left blank) \r\n \r\n SECTION I - FINANCIAL \r\n \r\n (This page intentionally left blank) \r\n \r\n DEPARTMEONFTAUDITASND ACCOUNTS 270 Washington St. S.W. Suite 1-156 Atlanta, Georgia 30334 \r\nRUSSELWL. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\nINDEPENDENT AUDITOR'S REPORT \r\nHonorable Nathan Deal, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Georgia Firefighters' Pension Fund \r\nand Mr. James R. Meynard, Executive Director \r\nLadies and Gentlemen: \r\nWe have audited the accompanying basic financial statements of the Georgia Firefighters' Pension Fund, a component unit of the State of Georgia, as of and for the year ended June 30,201 1, as listed in the table of contents. These financial statements are the responsibility of the Georgia Firefighters' Pension Fund's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted o w 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 Georgia Firefighters' Pension 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, 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. \r\nIn o w opinion, the financial statements referred to above present fairly, in all material respects, the fiduciary net assets of the Georgia Firefighters' Pension Fund, as of June 30, 2011, 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. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 2, 2012 on our consideration of the Georgia Firefighters' Pension 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 \r\n \r\n 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 o w audit. \r\nThe Schedule of Funding Progress and Schedule of Contributions fiom the Employer and Other Contributing Entities information on pages 12 through 13 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted primarily of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. \r\nThe Georgia Firefighters' Pension Fund has not presented the Management's Discussion and Analysis that the Governmental Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements, \r\nRespectfully submitted, \r\n \r\nFebruary 2,2012 RWH:cmh \r\n \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n BASIC FINANCIAL STATEMENTS \r\n \r\n GEORGLA FIREFIGHTERS' PENSION FUND STATEMENT OF FIDUCIARY NET ASSETS \r\nJUNE 30,2011 \r\nAssets Cash and Cash Equivalents Receivables \r\nInterest and Dividends Due from Brokers for Securities Sold Other Investments Mutual Funds Municipal, U. S. and Foreign \r\nGovernment Obligations Corporate Bonds/Notes/Debentwes Asset-Backed Securities Stocks Mortgage lnvestrnents Real Estate Investment Trusts Capital Assets Land Buildings Machinery and Equipment Accumulated Depreciation Other Assets \r\nTotal Assets \r\nLiabilities Accounts Payable and Other Accruals Due to Brokers for Securities Purchased Compensated Absences Payable \r\nTotal Liabilities \r\nNet Assets Held in Trust for: \r\nPension Benefits \r\nThe notes to the financial statements are an integral part of this statement. \r\n4 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFOR THE YEAR ENDED JUNE 30.2011 \r\nAdditions: Contributions Plan Members Insurance Company Premium Taxes Interest and Other Investment Income Dividends and Interest Net Appreciation (Depreciation) in Investments Reported at Fair Value Less: Investment Expense Net Investment Income Other Miscellaneous \r\nTotal Additions Deductions: \r\nGeneral and Administrative Expenses Benefits Refunds Total Deductions Change in Net Assets Held in Trust for Pension Benefits Net Assets, July 1 \r\nNet Assets, June 30 \r\nThe notes to the financial statements are an integral part of this statement. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30,201 1 \r\n \r\nA. PLAN DESCRIPTION \r\n \r\nORGANIZATION AND PLAN DESCRIPTION The Georgia Firefighters' Pension Fund is a cost-sharing multiple-employer defined benefit pension plan established in 1955 by the General Assembly of Georgia for the purpose of paying retirement benefits to firefighters of the State of Georgia. The Board of Trustees of the Pension Fund is comprised of five members and consists of the Governor or his designee, the Commissioner of Insurance or his designee, two active members of the Pension Fund appointed by the Governor and one retired beneficiary of the Pension Fund appointed by the Governor. The Georgia Firefighters' Pension Fund is included within the State of Georgia's basic financial statements as a part of the primary government. \r\n \r\nAny person employed as a firefighter or enrolled as a volunteer firefighter 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 firefighters and a tax imposed on gross insurance premiums written by insurance companies, corporations or associations for fire, inland, marine or allied lines, lightning, extended covetage, and windstorm policies covering property within the State of Georgia. \r\n \r\nCURRENT MEMBERSHIP The following analysis compares the membership of the Georgia Firefighters' Pension Fund at June 30, 201 1, to that of the prior year: \r\n \r\nRetirees and Beneficiaries Currently Receiving Benefits For Disability For Retirement For Survivorship \r\nTerminated Members Entitled to, But Not Yet Receiving Benefits \r\n \r\nJune 30,20 11 June 30,20 10 \r\n \r\n39 3,595 \r\n3 17 \r\n46 \r\n \r\n40 3,407 \r\n303 \r\n5 0 \r\n \r\nTotal \r\n \r\nNumber of Active Members \r\n \r\nBENEFITS The Georgia Firefighters' Pension Fund 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: \r\n(A) RETIREMENT CONDITIONS: A member shall be eligible to receive retirement benefits at age 55 provided the member has 25 years of service. A member may be eligible to receive a pro rata share of benefits, at the latter of age 55 or at the member's termination as a firefighter or volunteer firefighter, after at least 15 years of service (amount received to be the maximum benefit amount times a ratio of years of \r\nservice to 25 years). At age 50, a member may elect to receive a percentage of benefits to which the \r\nmember would have been eligible to receive at age 55. A member must have terminated his or her service as a firefighter or volunteer firefighter to receive benefits. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30,2011 \r\nA. PLAN DESCRIPTION \r\n(B) RETIREMENT BENEFITS: The maximum retirement benefit at June 30,201 1 is $882 per month for the \r\nlife of the member. The Board of Trustees is authorized to provide for increases effective as of January 1 and July 1 of each year up to 1% percent of the maximum retirement benefit then in effect. Members retiring after July 1, 1984 with service in excess of 25 years are entitled to an additional one percent of the maximum benefit in effect at the time of retirement for each additional full year of service. Members retiring after July 1,2002 with service in excess of 25 years are entitled to an additional two percent of the maximum benefit in effect at the time of retirement for each additional full year of service. \r\n(C) OPTIONAL BENEFITS: Members may elect, as an alternate to the benefit described above, to receive an actuarially reduced benefit payable during the joint lifetime of the member and the member's spouse, continuing after the death of the member during the lifetime of the spouse or a ten years' certain and life option where an actuarially reduced benefit is received during the member's lifetime and, in the event of the member's death within 10 years of retirement, the same monthly benefits shall be payable to the member's selected beneficiary for the balance of the 10 year period. \r\n(D) DISABILITY BENEFITS: Subject to the approval of the Board of Trustees, any firefighter or volunteer firefighter who was an active member, became totally and permanently disabled, applied for disability benefits, and was awarded such benefits prior to July 1, 1993 is entitled to a monthly disability benefit. The disability would need to have resulted from injuries suffered while performing duties of the position to which he was regularly assigned or was rendered, by heart disease or respiratory disease, totally and permanently disabled and as a result of such physical disability, was separated from his work as a firefighter or appointment as a volunteer firefighter. \r\n(E) DEATH BENEFITS (1) In the event of the death of a member of the Pension Fund on or after July 1, 2001, who is in good standing and who has not commenced receiving any benefits; the designated beneficiary of such deceased member shall be entitled to be paid the amount of $5,000. \r\n(2) In the event of the death of a member of the Pension Fund on or after July 1, 200 1, who is in good standing and who has commenced receiving benefits; but who has not received total benefits in the amount of $5,000, the designated beneficiary of such deceased member shall be entitled to receive the difference between $5,000 and the amount of benefits received by such deceased member. \r\n(3) In the event of the death of a member with 15 years service, prior to commencing benefits, the spouse or beneficiary of the member is entitled to the retirement benefit elected to have been received by the member in accordance with the terms, above. \r\n(F) TERMINATION: In the event of the termination of a member prior to the completion of fifteen years of service as a firefighter, 95 percent of the member's contributions will be returned. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30,201 1 \r\nB. SUMMARY OF SIGNIFICANT ACCOUNTMG POLICIES \r\nBASIS OF ACCOUNTING The Pension Fund's financial statements are prepared on the accrual basis of accounting. Contributions from members are recognized as additions in the period in which the members provide services and insurance premiums tax are recognized annually, upon receipt. Retirement benefit and refund payments are recognized as deductions when due and payable. \r\nINVESTMENTS 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 Pension Fund's investment custodian for purposes of continual investment are reflected as investments regardless of the term of the instruments. \r\nInvestments 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. \r\nC. CONTRIBUTIONS \r\nFUNDING 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. Based on July 1,2009 valuation results, the Fund does not meet minimum funding standards under the Georgia Code due to the significant asset losses for the last two years. Member contribution requirements are set forth in O.C.G.A. Section 47-7-60 and are not actuarially determined. Administrative expenses are paid from funds received by the Pension Fund. \r\nA description of contribution requirements is as follows: \r\n(A) MEMBERS CONTRIBUTIONS: Each member must contribute $15 per month, to be paid no later than the tenth day of each month. In 201 1 , member contributions were $2,537,358. \r\n(B) INSURANCE PREMIUMS TAX: Every fire insurance company, corporation or association doing business within the State of Georgia must pay to the executive director of the Georgia Firefighters' Pension Fund one percent of the gross premiums, written by such insurance company, corporation, or association for fire, lightning, or extended coverage, inland marine or allied lines, or windstorm insurance policies covering property within the State of Georgia. In 201 1, insurance premiums tax contributions were $25,965,514. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30,2011 \r\n \r\nD. FUNDED STATUS AND FUNDING PROGRESS \r\n \r\nThe funded status of the plan as of June 30,2009, the most recent actuarial valuation date, is as follows: \r\n \r\nActuarial value of Plan \r\nassets \r\n \r\nActurial accrued liability (AAL) entry age \r\n \r\nUnfunded AAL (UAAL) \r\n(funding excess) \r\n \r\nFunding ratio \r\n \r\nAnnual covered payroll \r\n \r\nUAAL (funding excess) as a percentage of covered payroll \r\n \r\nThe 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. \r\n \r\nAdditional information as of the latest actuarial valuation follows: \r\n \r\nValuation date \r\n \r\nJuly 1,2009 \r\n \r\nActuarial cost method \r\n \r\nEntry age normal \r\n \r\nAmortization method \r\n \r\nLevel dollar, open \r\n \r\nRemaining amortization period \r\n \r\n30 years \r\n \r\nAsset valuation method \r\n \r\nFive-year smoothed market value \r\n \r\nActuarial assumptions: \r\n \r\nInvestment rate of return \r\n \r\n6% \r\n \r\nProjected salary increases \r\n \r\nnla \r\n \r\nCost-of-living adjustments \r\n \r\nn/a \r\n \r\nE. SUBSEQUENT EVENTS \r\nThe notes to the financial statements are based on the latest actuarial report available, which was dated January 20 10, with an actuarial valuation date of July 1,2009. An actuarial study is now in progress and is due to be completed in March, 2012. \r\n \r\n (This page intentionally left blank) \r\n \r\n REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND SCHEDULE OF FUNDING PROGRESS JUNE 30,2011 \r\n \r\nActuarial Valuation \r\nDate \r\nJuly 1, 2005 \r\nJuly 1,2007 \r\nJuly 1,2009 \r\n \r\nActuarial Value of Assets \r\n(a) \r\n \r\nActuarial \r\nAccrued Liability (AAL) \r\n- Entry Age \r\nNormal \r\n(b) \r\n \r\nUnfunded AAL/(Funding \r\nExcess) (UAAL) \r\n@-a) \r\n \r\nFunded Ratio \r\n(am) \r\n \r\nCovered Payroll \r\n(c) \r\n \r\nUAAL as a Percentage of Covered \r\nPayroll \r\n((b-a)/c) \r\n \r\n$ 527,554,698 $ 579,427,484 $ \r\n \r\n5 1,872,786 \r\n \r\n604,379,384 \r\n \r\n661,805,609 \r\n \r\n57,426,225 \r\n \r\n492,25 1,109 \r\n \r\n746,144,702 \r\n \r\n253,893,593 \r\n \r\nThe actuarial value of assets at July 1, 2009 is equal to 115% of the market value of assets. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND \r\nOTHER CONTRIBUTING ENTITIES JUNE 30,2011 \r\n \r\nFiscal Year \r\n2005 2006 (See Note) 2007 2008 2009 2010 \r\n \r\nAnnual Required Contribution \r\n \r\nPercentage Contributed \r\n \r\nNote: \r\n \r\nActuarial determination of Annual Required Contribution includes Class Nine Fire Department \r\n \r\nPension Fund. Actual Employer Contributions were presented in separately issued audit reports for \r\n \r\nfiscal year ended 2006 as follows: \r\n \r\nFirefighters' Pension Fund \r\n \r\n$20,449,544 \r\n \r\nClass Nine Fire Department Pension Fund \r\n \r\n584,002 \r\n \r\n (This page intentionally left blank) \r\n \r\n SECTION 11 - REPORT ON IN'rEHNAL CON'TROI, OVER FINANCIAI, REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS \r\nPERFORMED lN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS \r\n \r\n (This page intentionally left blank) \r\n \r\n DEPARTMEONF TAUDITSAND ACCOUNTS 270 Washington St. S.W. Suite 1-156 Atlanta, Georgia 30334 \r\nRUSSELWL . HINTON \r\nSTATE AUDITOR (404) 656-2174 \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS \r\nHonorable Nathan Deal, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Georgia Firefighters' Pension Fund \r\nand Mr. James R. Meynard, Executive Director \r\nWe have audited the basic financial statements of the Georgia Firefighters' Pension Fund, a component unit of the State of Georgia, as of and for the year ended June 30, 2011, and have issued our report thereon dated February 2,2012. 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. \r\nInternal Control Over Financial Reporting \r\nManagement of the Georgia Firefighters' Pension Fund is responsible for establishing and maintaining effective internal controls over financial reporting. In planning and performing our audit, we considered the Georgia Firefighters' Pension 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 Georgia Firefighters' Pension Fund's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Georgia Firefighters' Pension Fund's internal control over financial reporting. \r\nA dejciency 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. \r\nOur 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. \r\n \r\n Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the Georgia Firefighters' Pension Fund's financial statements are fiee 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 GovernmentAuditing Standards. \r\nThis report is intended solely for the information and use of management, members of the Georgia Firefighters' Pension 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. \r\nRespecthlly submitted, \r\n \r\nFebruary 2,2012 RWH:cmh \r\n \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2008-h2009","title":"Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2009","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body.","Georgia. State Accounting Office."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Dept. of Audits and Accounts"],"dc_date":["2009/2010"],"dcterms_description":["Print began with: Year ended June 30, 2006.","Report year covers fiscal year.","\"Prepared by State Accounting Office.\"","Cannot be determined whether print version has ceased.","Year ended June 30, 2006, released in 2007?; title from PDF cover (Georgia Government Publications database, viewed August 25, 2023).","Fiscal year ended June 30, 2014 (Harvested on August 5, 2015 from www.audits.ga.gov); (Georgia Government Publications database, viewed August 25, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2009"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Firefighters' Pension Fund--Appropriations and expenditures--Periodicals.","Fire fighters--Pensions--Georgia--Auditing--Periodicals.","Fire fighters--Pensions--Georgia--Finance--Statistics--Periodicals.","Fire fighters--Retirement--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2009"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2008-h2009"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2008-h2009"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA \r\nSonny Perdue Governor \r\nAUDIT REPORT GEORGIA FIREFIGHTERS' PENSION FUND \r\nYEAR ENDED JUNE 30,2009 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND - TABLE OF CONTENTS - \r\nSECTION I - FINANCIAL \r\nIndependent Auditor's Report on Basic Financial Statements Accompanied by Required Supplementary Information \r\nBasic Financial Statements Statement of Fiduciary Net Assets Statement of Changes in Fiduciary Net Assets Notes to the Financial Statements \r\nRequired Supplementary Information Schedule of Funding Progress Schedule of Contributions from the Employer and Other Contributing Entities \r\nSECTION I1 - REPORT ON INTERNAL CONTROL OVER FlNANCLAL \r\nREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTA UDITING STANDARDS \r\n \r\n (This page intentionally left blank) \r\n \r\n SECTION I - FINANCIAL \r\n \r\n (This page intentionally left blank) \r\n \r\n DEPARTMEONFTAUDITASND ACCOUNTS 270 Washington St. S.W. Suite 1-156 Atlanta, Georgia 30334 \r\nRUSSELWL . HINTON \r\nSTATE AUDITOR \r\n(404)656-2174 \r\nFebruary 10,2010 \r\nThe Honorable Sonny Perdue, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Board of Trustees of the Georgia Firefighters' Pension Fund \r\nand Honorable James R. Meynard, Executive Director \r\nINDEPENDENT AUDITOR'S REPORT ON BASIC FINANCIAL STATEMENTS ACCOMPANIED BY REOUIRED SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the Georgia Firefighters' Pension Fund, a part of the primary government of the State of Georgia, as of and for the year ended June 30, 2009, as listed in the table of contents. These financial statements are the responsibility of the Fund's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe 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 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, 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. \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Georgia Firefighters' Pension Fund, as of June 30, 2009, and the change in plan net assets available for benefits for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\n \r\n                  "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2009-h2010","title":"Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2010","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body.","Georgia. State Accounting Office."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Dept. of Audits and Accounts"],"dc_date":["2009/2010"],"dcterms_description":["Print began with: Year ended June 30, 2006.","Report year covers fiscal year.","\"Prepared by State Accounting Office.\"","Cannot be determined whether print version has ceased.","Year ended June 30, 2006, released in 2007?; title from PDF cover (Georgia Government Publications database, viewed August 25, 2023).","Fiscal year ended June 30, 2014 (Harvested on August 5, 2015 from www.audits.ga.gov); (Georgia Government Publications database, viewed August 25, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2010"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Firefighters' Pension Fund--Appropriations and expenditures--Periodicals.","Fire fighters--Pensions--Georgia--Auditing--Periodicals.","Fire fighters--Pensions--Georgia--Finance--Statistics--Periodicals.","Fire fighters--Retirement--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2010"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2009-h2010"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2009-h2010"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":" MoeeaabP Creek State Park \r\n \r\nKnownas tbe pafk \"whmspring gpends the rsumm6r.\" Moccasin Creek is nestledin h eBlw Ridgo Mountainson the \r\nshares of lowly \u0026BOO-acsa M e Bunon In R a b County. In rhcmly 1960s, Fulm h U . Dimtor of the M a rFish \r\nmdOameDivldon, envisioneda campgromd located on the aqjaeant hatchmypmperty for fishermen who visiwdmh \r\nseason, ln 1963,a pmposlwas made ta land ownersC h r hand LmaHunt for the usa of Lovell's vi$ion.In May 1963, \r\n$63.415 was given to Fish and Gameto eonm what was mce a oomfield intoa Ci-a Power eampund, run by the \r\nFish Efatdwy, \r\n \r\nTha mtt of Wgiaacquired the m p p u n d in 1966 and the m awas \r\n \r\nw W a s i n Cre\u0026 State Park, in \r\n \r\ntsfsronce tothadiemthat flows bdwsear the parkand the hatohey.Today thepark is an easily a-ibte baascamp \r\n \r\nfor artvdntlrnsIn fishing, hiking,hatchery tom,h h g , hunting, swimming, and n a m l water slides.The pnrk4s \r\n \r\nlaeation dgo pro~idmvisitom with the opplhtnity to vbit mournin o W k sand nearby state pwkk \r\n \r\nFor additional infbmation on this Bite, p l w visit \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND \r\n- TABLE OF CONTENTS - \r\n- SECTION I FINANCIAL \r\nIndependent Auditor's Report \r\nBasic Financial Statements Statement of Fiduciary Net Assets Statement of Changes in Fiduciary Net Assets Notes to the Financial Statements \r\nRequired Supplementary Information Schedule of Funding Progress Schedule of Contributions from the Employer and Other Contributing Entities \r\n- SECTION II REPORT ON INTERNAL CONTROL OVER FINANCIAL \r\nREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH \r\nGOVERNMENT A UDITING STANDARDS \r\n \r\n (This page intentionally left blank) \r\n \r\n SECTION I - FINANCIAL \r\n \r\n (This page intentionally left blank) \r\n \r\n DEPARTMEONFTAUDITSAND ACCOUNTS 270 Washington St. S.W. Suite 1-156 Atlanta, Georgia 30334 \r\nRUSSELWL . HINTON \r\nSTATE AUDITOR (404) 656-2174 \r\nFebruary 22,201 1 \r\nHonorable Nathan Deal, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Board of Trustees of the Georgia Firefighters' Pension Fund \r\nand Honorable James R. Meynard, Executive Director \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the Georgia Firefighters' Pension Fund, a component unit of the State of Georgia, as of and for the year ended June 30,2010, as listed in the table of contents. These fmancial statements are the responsibility of the Georgia Firefighters' Pension Fund's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe 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 fi-ee 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 effectivenessof the Georgia Firefighters' Pension Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \r\nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the fiduciary net assets of the Georgia Firefighters' Pension Fund, as of June 30, 2010, 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. \r\n \r\n In accordance with Government Auditing Standards, we have also issued our report dated February 22, 2011 on our consideration of the Georgia Firefighters' Pension Fund's internal control over fmancial 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 fmancial 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. \r\nThe Schedule of Funding Progress and Schedule of Contributions \u0026om the Employer and Other Contributing Entities information on pages 12 through 13 are not a required part of the basic fmancial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted primarily of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. \r\nThe Georgia Firefighters' Pension Fund has not presented the Management's Discussion and Analysis that the Governmental Accounting Standards Board has determined is necessary to supplement, although not required to be part of,the basic financial statements. \r\nRespecthlly submitted, \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n BASIC FINANCIAL STATEMENTS \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND STATEMENT OF FIDUCIARY NET ASSETS \r\nJUNE 30,2010 \r\nAssets Cash and Cash Equivalents Receivables \r\nInterest and Dividends Due from Brokers for Securities Sold Other Investments Mutual Funds Municipal, U. S. and Foreign \r\nGovernment Obligations Corporate Bonds/Notes/Debentures Asset-Backed Securities Stocks Mortgage Investments Real Estate Investment Trusts Capital Assets Land Buildings Machinery and Equipment Accumulated Depreciation Other Assets \r\nTotal Assets \r\nLiabilities Accounts Payable and Other Accruals Due to Brokers for Securities Purchased Compensated Absences Payable Due to Other Funds \r\nTotal Liabilities \r\nNet Assets Held in Trust for: \r\nPension Benefits \r\nThe notes to the tinancia] statements are an integral part of this statement. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFOR THE YEAR ENDED JUNE 30,2010 \r\nAdditions: Contributions Plan Members Insurance Company Premium Taxes Interest and Other Investment Income Dividends and Interest Net Appreciation (Depreciation) in Investments Reported at Fair Value Less: Investment Expense Net Investment Income Other Miscellaneous \r\nTotal Additions Deductions: \r\nGeneral and Administrative Expenses Benefits Refunds Total Deductions Change in Net Assets Held in Trust for Pension Benefits Net Assets, July 1 \r\nNet Assets, June 30 \r\nThe notes to the financial statements are an integral part of this statement. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30,2010 \r\n \r\nA. PLAN DESCRIPTION \r\n \r\nORGANIZATION AND PLAN DESCRIPTION The Georgia Firefighters' Pension Fund is a cost-sharing multiple-employer defined benefit pension plan established in 1955 by the General Assembly of Georgia for the purpose of paying retirement benefits to firefighters of the State of Georgia. The Board of Trustees of the Pension Fund is comprised of five members and consists of the Governor or his designee, the Commissioner of Insurance or his designee, two active members of the Pension Fund appointed by the Governor and one retired beneficiary of the Pension Fund appointed by the Governor. The Georgia Firefighters' Pension Fund is included within the State of Georgia's basic financial statements as a part of the primary government. \r\n \r\nAny person employed as a firefighter or enrolled as a volunteer firefighter 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 firefighters and a tax imposed on gross insurance premiums written by insurance companies, corporations or associations for fire, inland, marine or allied lines, lightning, extended coverage, and windstorm policies covering property within the State of Georgia. \r\n \r\nCURRENT MEMBERSHIP The following analysis compares the membership of the Georgia Firefighters' Pension Fund at June 30, 2010, to that of the prior year: \r\n \r\nRetirees and Beneficiaries Currently Receiving Benefits For Disability For Retirement For Survivorship \r\nTerminated Members Entitled to, But Not Yet Receiving Benefits \r\n \r\nJune 30,2010 June 30,2009 \r\n \r\n40 3,407 \r\n303 \r\n50 \r\n \r\n40 3,168 \r\n299 \r\n126 \r\n \r\nTotal \r\n \r\nNumber of Active Members \r\n \r\n12,842 \r\n \r\n12,673 \r\n \r\nBENEFITS The Georgia Firefighters' Pension Fund 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: \r\n(A) RETIREMENT CONDITIONS: A member shall be eligible to receive retirement benefits at age 55 provided the member has 25 years of service. A member may be eligible to receive a pro rata share of benefits, at the latter of age 55 or at the member's termination as a firefighter or volunteer firefighter, after at least 15 years of service (amount received to be the maximum benefit amount times a ratio of years of service to 25 years). At age 50, a member may elect to receive a percentage of benefits to which the member would have been eligible to receive at age 55. A member must have terminated his or her service as a firefighter or volunteer firefighter to receive benefits. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30,2010 \r\nA. PLAN DESCRIPTION \r\n(B) RETIREMENT BENEFITS: The maximum retirement benefit at June 30, 2010 is $882 per month for the life of the member. The Board of Trustees is authorized to provide for increases effective as of January 1 and July 1 of each year up to 1% percent of the maximum retirement benefit then in effect. Members retiring after July 1, 1984 with service in excess of 25 years are entitled to an additional one percent of the maximum benefit in effect at the time of retirement for each additional full year of service. Members retiring after July 1, 2002 with service in excess of 25 years are entitled to an additional two percent of the maximum benefit in effect at the time of retirement for each additional full year of service. \r\n(C) OPTIONAL BENEFITS: Members may elect, as an alternate to the benefit described above, to receive an actuarially reduced benefit payable during the joint lifetime of the member and the member's spouse, continuing after the death of the member during the lifetime of the spouse or a ten years' certain and life option where an actuarially reduced benefit is received during the member's lifetime and, in the event of the member's death within 10 years of retirement, the same monthly benefits shall be payable to the member's selected beneficiary for the balance of the 10 year period. \r\n(D) DISABILITY BENEFITS: Subject to the approval of the Board of Trustees, any firefighter or volunteer firefighter who was an active member, became totally and permanently disabled, applied for disability benefits, and was awarded such benefits prior to July 1, 1993 is entitled to a monthly disability benefit. The disability would need to have resulted from injuries suffered while performing duties of the position to which he was regularly assigned or was rendered, by heart disease or respiratory disease, totally and permanently disabled and as a result of such physical disability, was separated from his work as a firefighter or appointment as a volunteer firefighter. \r\n(E) DEATH BENEFITS (1) In the event of the death of a member of the Pension Fund on or after July 1, 2001, who is in good standing and who has not commenced receiving any benefits; the designated beneficiary of such deceased member shall be entitled to be paid the amount of $5,000. \r\n(2) In the event of the death of a member of the Pension Fund on or after July 1, 2001, who is in good standing and who has commenced receiving benefits; but who has not received total benefits in the amount of $5,000, the designated beneficiary of such deceased member shall be entitled to receive the difference between $5,000 and the amount of benefits received by such deceased member. \r\n(3) In the event of the death of a member with 15 years service, prior to commencing benefits, the spouse or beneficiary of the member is entitled to the retirement benefit elected to have been received by the member in accordance with the terms. above. \r\n(F) TERMINATION: In the event of the termination of a member prior to the completion of fifteen years of service as a firefighter, 95 percent of the member's contributions will be returned. \r\nB. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING The Pension Fund's financial statements are prepared on the accrual basis of accounting. Contributions from members are recognized as additions in the period in which the members provide services and insurance premiums tax are recognized annually, upon receipt. Retirement benefit and refund payments are recognized as deductions when due and payable. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30,2010 \r\nB. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nINVESTMENTS 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 Pension Fund's investment custodian for purposes of continual investment are reflected as investments regardless of the term of the instruments. \r\nInvestments 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. \r\nC. CONTRIBUTIONS \r\nFUNDING 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. Based on July 1,2009 valuation results, the Fund does not meet minimum funding standards under the Georgia Code due to the significant asset losses for the last two years. Member contribution requirements are set forth in O.C.G.A. Section 47-7-60 and are not actuarially determined. Administrative expenses are paid from funds received by the Pension Fund. \r\nA description of contribution requirements is as follows: \r\n(A) MEMBERS CONTRIBUTIONS: Each member must contribute $1 5 per month, to be paid no later than the tenth day of each month. In 2010, member contributions were $2,609,086. \r\n(B) INSURANCE PREMIUMS TAX: Every fire insurance company, corporation or association doing business within the State of Georgia must pay to the executive director of the Georgia Firefighters' Pension Fund one percent of the gross premiums, written by such insurance company, corporation, or association for fire, lightning, or extended coverage, inland marine or allied lines, or windstorm insurance policies covering property within the State of Georgia. In 2010, insurance premiums tax contributions were $25,328,493. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30,2010 \r\n \r\nD. FUNDED STATUS AND FUNDING PROGRESS \r\n \r\nThe funded status of the plan as of June 30,2009, the most recent actuarial valuation date, is as follows: \r\n \r\nActuarial value of Plan \r\nassets (a) \r\n \r\nActurial accrued liability (AAL) entry age \r\n(b) \r\n \r\nUnfunded AAL (UAAL) \r\n(funding excess) \r\n(b-a) \r\n \r\nFunding ratio (alb) \r\n \r\nAnnual covered payroll \r\n(c) \r\n \r\nUPLAL (funding excess) as a percentage of covered payroll \r\n[(b-a)/cl \r\n \r\n$ 492,251,109 $ 746,144,702 $ 253,893,593 \r\n \r\n66.0% \r\n \r\nnla \r\n \r\nda \r\n \r\nThe 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. \r\n \r\nAdditional information as of the latest actuarial valuation follows: \r\n \r\nValuation date \r\n \r\nJuly 1,2009 \r\n \r\nActuarial cost method \r\n \r\nEntry age normal \r\n \r\nAmortization method \r\n \r\nLevel dollar, open \r\n \r\nRemaining amortization period \r\n \r\n30 years \r\n \r\nAsset valuation method \r\n \r\nFive-year smoothed market value \r\n \r\nActuarial assumptions: Investment rate of return Projected salary increases Cost-of-living adjustments \r\n \r\n (This page intentionally left blank) \r\n \r\n REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND SCHEDULE OF FUNDING PROGRESS JUNE 30,2010 \r\n \r\nActuarial Valuation \r\nDate \r\nJuly 1,2005 \r\nJuly 1,2007 \r\nJuly 1,2009 \r\n \r\nActuarial Value of Assets \r\n(a) \r\n \r\nActuarial Accrued Liability (AAL) \r\n- Entry Age \r\nNormal \r\n(b) \r\n \r\nUnfunded AAW(Funding \r\nExcess) (UAAL) \r\n(b-a) \r\n \r\nFunded Ratio (ah) \r\n \r\nCovered Payroll \r\n(c) \r\n \r\nUAAL as a Percentage of Covered \r\nPayroll \r\n((b-a)/c) \r\n \r\n$ 527,554,698 $ 579,427,484 $ \r\n \r\n5 1,872,786 \r\n \r\n604,379,384 \r\n \r\n661,805,609 \r\n \r\n57,426,225 \r\n \r\n492,25 1,109 \r\n \r\n746,144,702 \r\n \r\n253,893,593 \r\n \r\nThe actuarial value of assets at July 1,2009 is equal to 115% of the market value of assets. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND \r\nOTHER CONTRIBUTING ENTITIES JUNE 30,2010 \r\n \r\nFiscal Year \r\n2005 2006 (See Note) 2007 2008 2009 2010 \r\n \r\nAnnual Required Contribution \r\n \r\nPercentage Contributed \r\n \r\nNote: \r\n \r\nActuarial determination of Annual Required Contribution includes Class Nine Fire Department \r\n \r\nPension Fund. Actual Employer Contributions were presented in separately issued audit reports for \r\n \r\nfiscal year ended 2006 as follows: \r\n \r\nFirefighters' Pension Fund \r\n \r\n$ 20,449,544 \r\n \r\nClass Nine Fire Department Pension Fund \r\n \r\n584,002 \r\n \r\n (This page intentionally left blank) \r\n \r\n SECTION I1 - REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS \r\nPERFORMED IN ACCORDANCE WITH COVERNMENTAUDITINCSTANDARDS \r\n \r\n (This page intentionally left blank) \r\n \r\n DEPARTMEONF TAUDITSAND ACCOUNTS 270 Washington St. S.W. Suite 1-156 Atlanta, Georgia 30334 \r\nRUSSELWL . HINTON \r\nSTATE AUDITOR \r\n(404)656-2174 \r\nFebruary 22,201 1 \r\nHonorable Nathan Deal, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Board of Trustees of the Georgia Firefighters' Pension Fund \r\nand Honorable James R. Meynard, Executive Director \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTA UDITING STANDARDS \r\nWe have audited the accompanying basic financial statements of the Georgia Firefighters' Pension Fund, a component unit of the State of Georgia, as of and for the year ended June 30, 2010, and have issued our report thereon dated February 22, 2011. 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 GovernmentAuditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered the Georgia Firefighters' Pension 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 Georgia Firefighters' Pension Fund's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Georgia Firefighters' Pension Fund's internal control over financial reporting. \r\nA 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 hnctions, 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 statementswill not be prevented, or detected and corrected on a timely basis. \r\nOur 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 \r\n \r\n not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the Georgia Firefighters' Pension Fund's financial statements are fiee 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 fmancial 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 Governmental Auditing Standards. \r\nWe noted certain matters that we reported to management of the Georgia Firefighters' Pension Fund in a separate letter dated February 22,2011. \r\nThis report is intended solely for the information and use of management, members of the Georgia Firefighters' Pension 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. \r\nRespectfully submitted, \r\n~ u s $ l lW. Hinton, CPA, CGFM State Auditor \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2007-h2008","title":"Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2008","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body.","Georgia. State Accounting Office."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Dept. of Audits and Accounts"],"dc_date":["2007/2008"],"dcterms_description":["Print began with: Year ended June 30, 2006.","Report year covers fiscal year.","\"Prepared by State Accounting Office.\"","Cannot be determined whether print version has ceased.","Year ended June 30, 2006, released in 2007?; title from PDF cover (Georgia Government Publications database, viewed August 25, 2023).","Fiscal year ended June 30, 2014 (Harvested on August 5, 2015 from www.audits.ga.gov); (Georgia Government Publications database, viewed August 25, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2008"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Firefighters' Pension Fund--Appropriations and expenditures--Periodicals.","Fire fighters--Pensions--Georgia--Auditing--Periodicals.","Fire fighters--Pensions--Georgia--Finance--Statistics--Periodicals.","Fire fighters--Retirement--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2008"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":null},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2006-h2007","title":"Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2007","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body.","Georgia. State Accounting Office."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Dept. of Audits and Accounts"],"dc_date":["2006/2007"],"dcterms_description":["Print began with: Year ended June 30, 2006.","Report year covers fiscal year.","\"Prepared by State Accounting Office.\"","Cannot be determined whether print version has ceased.","Year ended June 30, 2006, released in 2007?; title from PDF cover (Georgia Government Publications database, viewed August 25, 2023).","Fiscal year ended June 30, 2014 (Harvested on August 5, 2015 from www.audits.ga.gov); (Georgia Government Publications database, viewed August 25, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Firefighters' Pension Fund--Appropriations and expenditures--Periodicals.","Fire fighters--Pensions--Georgia--Auditing--Periodicals.","Fire fighters--Pensions--Georgia--Finance--Statistics--Periodicals.","Fire fighters--Retirement--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2007"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA \r\nSonny Perdue Governor \r\nAUDIT REPORT GEORGIA FIREFIGHTERS' PENSION FUND \r\nYEAR ENDED JUNE 30, 2007 \r\nPrepared by State Accounting Office \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND - TABLE OF CONTENTS - \r\n \r\nSECTION I - FINANCIAL \r\n \r\nIndependent Auditor's Report on Basic Financial Statements Accompanied by Required \r\n \r\nSupplementary Information \r\n \r\n1 \r\n \r\nBasic Financial Statements \r\n \r\nStatement of Fiduciary Net Assets \r\n \r\n4 \r\n \r\nStatement of Changes in Fiduciary Net Assets \r\n \r\n5 \r\n \r\nNotes to the Financial Statements \r\n \r\n6 \r\n \r\nRequired Supplementary Information \r\n \r\nSchedule of Funding Progress \r\n \r\n10 \r\n \r\nSchedule of Employer Contributions \r\n \r\n11 \r\n \r\nNotes to Required Supplementary Information \r\n \r\n12 \r\n \r\nSECTION II - REPORT ON INTERNAL CONTROL OVER FINANCIAL \r\n \r\nREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN \r\n \r\nAUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH \r\n \r\nGOVERNMENTAUDITING STANDARDS \r\n \r\n15 \r\n \r\n (This page intentionally left blank) \r\n \r\n SECTION I - FINANCIAL \r\n \r\n (This page intentionally left blank) \r\n \r\n  DEPARTMENT OF AUDITS AND ACCOUNTS \r\n \r\nRUSSELL W. HINTON \r\nSTATE AUDITOR (404) 656-2174 \r\n \r\n270 Washington Street, S.W. Suite 1-156 Atlanta, Georgia 30334-8400 \r\n \r\nJune 19, 2008 \r\nHonorable Sonny Perdue, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Board of Trustees of the Georgia Firefighters' Pension Fund \r\nand Honorable James R. Meynard, Executive Director \r\nINDEPENDENT AUDITOR'S REPORT ON BASIC FINANCIAL STATEMENTS ACCOMPANIED BY REQUIRED SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the Georgia Firefighters' Pension Fund, a part of the primary government of the State of Georgia, as of and for the year ended June 30, 2007, as listed in the table of contents. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audit. \r\nWe 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 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. \r\nIn our opinion, the statements referred to above present fairly, in all material respects, the financial position of the Georgia Firefighters' Pension Fund, as of June 30, 2007, and the changes in plan net assets available for benefits for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nIn accordance with Government Auditing Standards, we have also issued a report dated June 19, 2008 on our consideration of the Georgia Firefighters' Pension Fund's internal control over \r\n \r\n financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The Georgia Firefighters' Pension Fund has not presented the management's discussion and analysis that the Governmental Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements. The accompanying Schedule of Funding Progress, Schedule of Employer Contributions, and Notes to Required Supplementary Information are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We did not audit the information and express no opinion on it. \r\n~~-~-~--- Respectfully submitted, Russell W. Hinton, CPA, CGFM State Auditor \r\nRWH:bp \r\n2 \r\n \r\n BASIC FINANCIAL STATEMENTS \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND STATEMENT OF FIDUCIARY NET ASSETS \r\nJUNE 30, 2007 \r\n \r\nAssets Receivables \r\nInterest and Dividends Due from Brokers for Securities Sold Taxes Receivable Investments Mutual Funds Municipal, U. S. and Foreign \r\nGovernment Obligations Corporate Bonds/Notes/Debentures Asset-Backed Securities Stocks Mortgage Investments Real Estate Investment Trusts Capital Assets Land Buildings Machinery and Equipment Accumulated Depreciation \r\nTotal Assets \r\nLiabilities Cash Overdraft Accounts Payable and Other Accruals Due to Brokers for Securities Purchased Compensated Absences Payable \r\nTotal Liabilities \r\nNet Assets Held in Trust for: \r\nPension Benefits \r\n \r\n$ \r\n \r\n1,690,875 \r\n \r\n9,179,182 \r\n \r\n95,191 \r\n \r\n153,442,777 \r\n \r\n48,037,176 83,800,218 2,554,542 313,872,111 59,773,057 \r\n670,612 \r\n \r\n84,882 1,534,994 \r\n73,724 (77,008) \r\n \r\n$ 674,732,333 \r\n \r\n$ \r\n \r\n589 \r\n \r\n1,616,835 \r\n \r\n22,365,609 \r\n \r\n35,192 \r\n \r\n$ \r\n \r\n24,018,225 \r\n \r\n$ ====65=0=,7=1=4,=10=8= \r\n \r\nThe notes to the financial statements are an integral part ofthis statement. 4 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFOR THE YEAR ENDED JUNE 30, 2007 \r\n \r\nAdditions: Contributions Plan Members Insurance Company Premium Taxes Interest and Other Investment Income Dividends and Interest Net Appreciation (Depreciation) in Investments Reported at Fair Value Less: Investment Expense Other Transfers from Other Funds (Note B) Miscellaneous \r\nTotal Additions \r\nDeductions: General and Administrative Expenses Benefits Refunds \r\nTotal Deductions \r\nChange in Net Assets Held in Trust for Pension Benefits \r\nNet Assets, July 1 \r\nNet Assets, June 30 \r\n \r\n$ \r\n \r\n2,256,692 \r\n \r\n22,537,822 \r\n \r\n15,771,498 \r\n \r\n76,350,530 {3,848,312) \r\n \r\n3,939,169 924,966 \r\n \r\n$ 117,932,365 \r\n \r\n$ \r\n \r\n1,133,633 \r\n \r\n23,949,940 \r\n \r\n921,373 \r\n \r\n$ \r\n \r\n26,004,946 \r\n \r\n$ \r\n \r\n91,927,419 \r\n \r\n558,786,689 \r\n \r\n$ ===65=0,=71=4,1=08= \r\n \r\nThe notes to the financial statements are an integral part of this statement. 5 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30, 2007 \r\n \r\nA. PLAN DESCRIPTION \r\n \r\nORGANIZATION AND PLAN DESCRIPTION The Georgia Firefighters' Pension Fund is a cost-sharing multiple-employer defined benefit pension plan established in 1955 by the General Assembly of Georgia for the purpose of paying retirement benefits to firefighters of the State of Georgia. The Board of Trustees of the Pension Fund is comprised of five members and consists of the Governor or his designee, the Commissioner of Insurance or his designee, two active members of the Pension Fund appointed by the Governor and one retired beneficiary of the Pension Fund appointed by the Governor. The Georgia Firefighters' Pension Fund is included within the State of Georgia's basic financial statements as a part of the primary government. \r\n \r\nAny person employed as a firefighter or enrolled as a volunteer firefighter 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 firefighters and a tax imposed on gross insurance premiums written by insurance companies, corporations or associations for fire, inland, marine or allied lines, lightning, extended coverage, and windstorm policies covering property within the State of Georgia. \r\n \r\nCURRENT MEMBERSHIP The following analysis compares the membership of the Georgia Firefighters' Pension Fund at June 30, 2007, to that of the prior year: \r\n \r\nRetirees and Beneficiaries Currently Receiving Benefits For Disability For Retirement For Survivorship \r\nTerminated Members Entitled to, But Not Yet Receiving Benefits \r\n \r\nJune 30, 2007 June 30, 2006 \r\n \r\n44 2,761 \r\n280 \r\n135 \r\n \r\n45 2,590 \r\n254 \r\n124 \r\n \r\nTotal \r\n \r\n3,220 \r\n \r\n3,013 \r\n \r\nNumber of Active Members \r\n \r\n11,990 \r\n \r\n11,355 \r\n \r\nBENEFITS The Georgia Firefighters' Pension Fund 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: \r\n(A) RETIREMENT CONDITIONS: A member shall be eligible to receive retirement benefits at age 55 provided the member has 25 years of service. A member may be eligible to receive a pro rata share of benefits, at the latter of age 55 or at the member's termination as a firefighter or volunteer firefighter, after at least 15 years of service (amount received to be the maximum benefit amount times a ratio of years of service to 25 years). At age 50, a member may elect to receive a percentage of benefits to which the member would have been eligible to receive at age 55. A member must have terminated his or her service as a firefighter or volunteer firefighter to receive benefits. \r\n \r\n6 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30, 2007 \r\nA. PLAN DESCRIPTION \r\n(B) RETIREMENT BENEFITS: The maximum retirement benefit at June 30, 2007 is $849 per month for the life of the member. The Board of Trustees is authorized to provide for increases effective as of January 1 and July 1 of each year up to 1 percent of the maximum retirement benefit then in effect. Members retiring after July 1, 1984 with service in excess of 25 years are entitled to an additional one percent of the maximum benefit in effect at the time of retirement for each additional full year of service. Members retiring after July 1, 2002 with service in excess of 25 years are entitled to an additional two percent of the maximum benefit in effect at the time of retirement for each additional full year of service. \r\n(C) OPTIONAL BENEFITS: Members may elect, as an alternate to the benefit described above, to receive an actuarially reduced benefit payable during the joint lifetime of the member and the member's spouse, continuing after the death of the member during the lifetime of the spouse or a ten years' certain and life option where an actuarially reduced benefit is received during the member's lifetime and, in the event of the member's death within 10 years ofretirement, the same monthly benefits shall be payable to the member's selected beneficiary for the balance of the 10 year period. \r\n(D) DISABILITY BENEFITS: Subject to the approval of the Board of Trustees, any firefighter or volunteer firefighter who was an active member prior to July 1, 1993, who becomes totally and permanently physically disabled by injuries suffered while performing duties of the position to which he was regularly assigned or who is rendered, by heart disease or respiratory disease, totally and permanently disabled and as a result of such physical disability is separated from his work as a firefighter or his appointment as a volunteer firefighter is entitled to a monthly disability benefit, the amount of which is dependent upon the date of application for disability benefits. \r\n(E) DEATH BENEFITS (1) In the event of the death of a member of the Pension Fund on or after July 1, 2001, who is in good standing and who has not commenced receiving any benefits; the designated beneficiary of such deceased member shall be entitled to be paid the amount of $5,000. \r\n(2) In the event of the death of a member of the Pension Fund on or after July 1, 2001, who is in good standing and who has commenced receiving benefits; but who has not received total benefits in the amount of $5,000, the designated beneficiary of such deceased member shall be entitled to receive the difference between $5,000 and the amount of benefits received by such deceased member. \r\n(3) In the event of the death of a member with 15 years service, prior to commencing benefits, the spouse or beneficiary of the member is entitled to the retirement benefit elected to have been received by the member in accordance with the terms, above. \r\n(F) TERMINATION: In the event of the termination of a member prior to the completion of fifteen years of service as a firefighter, 95 percent of the member's contributions will be returned. \r\nB. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING The Pension Fund's financial statements are prepared on the accrual basis of accounting. Contributions from members are recognized as additions in the period in which the members provide services and insurance premiums tax are recognized annually, upon receipt. Retirement benefit and refund payments are recognized as deductions when due and payable. \r\n7 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30, 2007 \r\nB. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nINVESTMENTS 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 Pension Fund's investment custodian for purposes of continual investment are reflected as investments regardless of the term of the instruments. \r\nInvestments 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. \r\nTRANSFERS On July 1, 2006, the membership, assets and administration of the Class Nine Fire Department Pension Fund were transferred to the Georgia Firefighters' Pension Fund and the Class Nine Fire Department Pension Fund ceased to exist as a separate entity. Net assets of the Class Nine Fire Department Pension Fund of $3,939,169 are reflected as Transfers from Other Funds on the Statement of Changes in Fiduciary Net Assets. All members transferred received creditable service for all service credited under the Class Nine Fire Department Pension Fund and are entitled to all rights and benefits of the Georgia Firefighters' Pension Fund. \r\nC. CONTRIBUTIONS \r\nFUNDING 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, 2005, which reflected the proceeds of the insurance premiums tax as the employer contribution, indicated that the minimum employer contribution was met. Member contribution requirements are set forth in O.C.G.A. Section 47-7-60 and are not actuarially determined. Administrative expenses are paid from funds received by the Pension Fund. \r\nA description of contribution requirements is as follows: \r\n(A) MEMBERS CONTRIBUTIONS: Each member must contribute $15 per month, to be paid no later than the tenth day of each month. In 2007, member contributions were $2,256,692. \r\n(B) INSURANCE PREMIUMS TAX: Every fire insurance company, corporation or association doing business within the State of Georgia must pay to the executive director of the Georgia Firefighters' Pension Fund one percent of the gross premiums, written by such insurance company, corporation, or association for fire, lightning, or extended coverage, inland marine or allied lines, or windstorm insurance policies covering property within the State of Georgia. In 2007, insurance premiums tax contributions were $22,537,822. \r\nD. RELATEDPARTIES \r\nThe Georgia Firefighters' Pension Fund retains State Street Corporation as its investment custodian in 2007. In addition, the Pension Fund retains State Street Global Advisors, an affiliate of State Street Corporation, as the investment manager of a portion of the investments held by State Street Corporation. The fair value of the investments managed by State Street Global Advisors, at June 30, 2007, totaled $119,780,072, or 18% of the investments in the custody of State Street Corporation. In fiscal year 2007, the Pension Fund paid $330,529 in custodian fees to State Street Corporation and $240,487 in management fees to State Street Global Advisors. \r\n8 \r\n \r\n REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND SCHEDULE OF FUNDING PROGRESS JUNE 30, 2007 \r\n \r\nActuarial Valuation \r\nDate \r\n \r\nActuarial Value of Assets \r\n(a) \r\n \r\nActuarial Accrued Liability (AAL) -Entry Age Normal \r\n(b) \r\n \r\nUnfunded AAL/(Funding \r\nExcess) (UAAL) \r\n(b-a) \r\n \r\nFunded Ratio (alb) \r\n \r\nCovered Payroll \r\n(c) \r\n \r\nUAALasa Percentage of Covered \r\nPayroll ((b-a)/c) \r\n \r\nJuly 1, 2003 \r\n \r\n$ \r\n \r\n500,437,940 $ \r\n \r\n488,692,735 $ \r\n \r\n(11,745,205) \r\n \r\n102.4% \r\n \r\nn/a \r\n \r\nn/a \r\n \r\nJuly 1, 2005 \r\n \r\n$ \r\n \r\n527,554,698 $ \r\n \r\n579,427,484 $ \r\n \r\n51,872,786 \r\n \r\n91.0% \r\n \r\nn/a \r\n \r\nn/a \r\n \r\nJuly 1, 2007 \r\n \r\n$ \r\n \r\n604,158,927 $ \r\n \r\n661,805,609 $ \r\n \r\n57,646,682 \r\n \r\n91.3% \r\n \r\nn/a \r\n \r\nn/a \r\n \r\nThe actuarial value of assets at July 1, 2007 is equal to 93% ofthe market value of assets. \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS \r\nJUNE 30, 2007 \r\n \r\nFiscal Year \r\n2002 2003 2004 2005 2006 (See Note) 2007 \r\n \r\nAnnual Required Contribution \r\n \r\n$ \r\n \r\n7,299,475 \r\n \r\n$ \r\n \r\n7,607,310 \r\n \r\n$ \r\n \r\n10,240,234 \r\n \r\n$ \r\n \r\n12,011,288 \r\n \r\n$ \r\n \r\n16,083,325 \r\n \r\n$ \r\n \r\n20,455,866 \r\n \r\nPercentage Contributed \r\n209% 221% 170% 157% 131% 110% \r\n \r\nNote: Actuarial determination ofAnnual Required Contribution includes Class Nine Fire Department Pension Fund. Actual Employer Contributions were presented in separately issued audit reports as follows: \r\n \r\nFirefighters' Pension Fund Class Nine Fire Department Pension Fund \r\n \r\n$ 20,449,544 584,002 \r\n \r\n11 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO REQUIRED SUPPLEMENTARY INFORMATION \r\nJUNE 30, 2007 \r\n \r\nActuarial Assumptions \r\nThe information presented in the required supplementary schedules was determined as part of the actuarial valuation at the dates indicated. Additional information from the actuarial valuation follows: \r\n \r\nValuation Date: \r\n \r\nJuly 1, 2007 \r\n \r\nActuarial Cost Method: \r\n \r\nEntry age normal \r\n \r\nAmortization Method: \r\n \r\nLevel dollar, open \r\n \r\nRemaining Amortization Period: \r\n \r\n30 years \r\n \r\nAsset Valuation Method: \r\n \r\n5 year smoothed market value \r\n \r\nActuarial Assumptions: Investment Rate of Return Projected Salary Increases Includes Inflation at Cost-of-Living Adjustments \r\n \r\n6% Not applicable None None \r\n \r\n12 \r\n \r\n SECTION II - REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS \r\nPERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS \r\n \r\n (This page intentionally left blank) \r\n \r\n w. RUSSELL HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\n DEPARTMENT OF AUDITS AND ACCOUNTS 270 Washington Street, S.W. Suite 1-156 Atlanta, Georgia 30334-8400 \r\n \r\nJune 19, 2008 \r\nHonorable Sonny Purdue, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Board of Trustees of the Georgia Firefighters' Pension Fund \r\nand Honorable James R. Meynard, Executive Director \r\nREPORT 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 \r\nWe have audited the financial statements of the Georgia Firefighters' Pension Fund, a part of the primary government of the State of Georgia, as of and for the year ended June 30, 2007, and have issued our report thereon dated June 19, 2008. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered the Georgia Firefighters' Pension 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 Georgia Firefighters' Pension Fund's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Georgia Firefighters' Pension Fund's internal control over financial reporting. \r\nA control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. \r\n \r\n A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be 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. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Georgia Firefighters' Pension 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 Georgia Firefighters' Pension Fund Board of Trustees, 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. \r\nRespectfully submitted, \r\n~~-~=-~~ Russell W. Hinton, CPA, CGFM State Auditor RWH: bp \r\n16 \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2005-h2006","title":"Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2006","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body.","Georgia. State Accounting Office."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Dept. of Audits and Accounts"],"dc_date":["2005/2006"],"dcterms_description":["Print began with: Year ended June 30, 2006.","Report year covers fiscal year.","\"Prepared by State Accounting Office.\"","Cannot be determined whether print version has ceased.","Year ended June 30, 2006, released in 2007?; title from PDF cover (Georgia Government Publications database, viewed August 25, 2023).","Fiscal year ended June 30, 2014 (Harvested on August 5, 2015 from www.audits.ga.gov); (Georgia Government Publications database, viewed August 25, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2006"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Firefighters' Pension Fund--Appropriations and expenditures--Periodicals.","Fire fighters--Pensions--Georgia--Auditing--Periodicals.","Fire fighters--Pensions--Georgia--Finance--Statistics--Periodicals.","Fire fighters--Retirement--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, Georgia Firefighters' Pension Fund, year ended June 30, 2006"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bf53-b2005-h2006"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA \r\nSonny Perdue Governor \r\nAUDIT REPORT GEORGIA FIREFIGHTERS' PENSION FUND \r\nYEAR ENDED JUNE 30, 2006 \r\nPrepared by State Accounting Office \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND - TABLE OF CONTENTS - \r\n \r\nSECTION I - FINANCIAL \r\n \r\nIndependent Auditor's Report on Basic Financial Statements Accompanied by Required Supplementary Information \r\n \r\nBasic Financial Statements \r\n \r\nStatement of Fiduciary Net Assets \r\n \r\n4 \r\n \r\nStatement of Changes in Fiduciary Net Assets \r\n \r\n5 \r\n \r\nNotes to the Financial Statements \r\n \r\n6 \r\n \r\nRequired Supplementary Information \r\n \r\nSchedule of Funding Progress \r\n \r\n12 \r\n \r\nSchedule of Employer Contributions \r\n \r\n13 \r\n \r\nNotes to Required Supplementary Information \r\n \r\n14 \r\n \r\nSECTION II - REPORT ON INTERNAL CONTROL OVER FINANCIAL \r\n \r\nREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN \r\n \r\nAUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH \r\n \r\nGOVERNMENT AUDITING STANDARDS \r\n \r\n17 \r\n \r\n (This page intentionally left blank) \r\n \r\n SECTION I - FINANCIAL \r\n \r\n (This page intentionally left blank) \r\n \r\n DEPARTMENT OF AUDITS AND ACCOUNTS \r\n \r\nw. RUSSELL HINTON \r\n \r\n270 Washington St. S.W. Suite 1-156 Atlanta, Georgia 30334 \r\n \r\nSTATE AUDITOR (404) 656-2174 \r\n \r\nMarch 1, 2007 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the Board of Trustees of the Georgia Firefighters' Pension Fund \r\nand Honorable James R. Meynard, Executive Director \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON BASIC FINANCIAL STATEMENTS ACCOMPANIED BY REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nLadies and Gentlemen: \r\n \r\nWe have audited the accompanying financial statements of the Georgia Firefighters' Pension Fund, a part of the primary government of the State of Georgia, as of and for the year ended June 30, 2006, as listed in the table of contents. These financial statements are the responsibility of the Fund's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\n \r\nExcept as discussed 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 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. \r\n \r\nThe financial statements of the Georgia Firefighters' Pension Fund for the fiscal year ended June 30, 2005 were not audited in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Since the amount of net assets reported in the Statement of Fiduciary Net Assets as of June 30, 2005 materially affect the amounts reported in the Statement of Changes in Fiduciary Net Assets for the year ended June 30, 2006, the scope of our work was not sufficient \r\n \r\n to enable us to express, and we do not express, an opinion on the Statement of Changes in Fiduciary Net Assets for the year ended June 30, 2006. \r\nIn our opinion, the statement of Fiduciary Net Assets of the Georgia Firefighters' Pension Fund present fairly, in all material respects, the financial position of the Georgia Firefighters' Pension Fund, as of June 30, 2006, in conformity with accounting principles generally accepted in the United States of America. \r\nIn accordance with Government Auditing Standards, we have also issued a report dated March 1, 2007 on our consideration of the Georgia Firefighters' Pension Fund's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nThe Georgia Firefighters' Pension Fund has not presented the management's discussion and analysis that the Governmental Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements. \r\nThe accompanying Schedule of Funding Progress, Schedule of Employer Contributions, and Notes to Required Supplementary Information are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We did not audit the information and express no opinion on it. \r\nRespectfully submitted, \r\n \r\nRWH:dp \r\n \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n2 \r\n \r\n BASIC FINANCIAL STATEMENTS \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND STATEMENT OF FIDUCIARY NET ASSETS \r\nJUNE 30, 2006 \r\n \r\nAssets Cash and Cash Equivalents Receivables \r\nInterest and Dividends Due from Brokers for Securities Sold Investments Investment Accounts Pooled Investments Mutual Funds Municipal, U. S. and Foreign \r\nGovernment Obligations Corporate Bonds/Notes/Debentures Stocks Mortgage Investments Real Estate Investment Trusts Capital Assets Land Buildings Machinery and Equipment Accumulated Depreciation \r\nTotal Assets \r\nLiabilities Accounts Payable and Other Accruals Due to Brokers for Securities Purchased Compensated Absences Payable \r\nTotal Liabilities \r\nNet Assets Held in Trust for: \r\nPension Benefits \r\n \r\n$ \r\n \r\n48,333 \r\n \r\n1,175,694 20,749,282 \r\n \r\n564,335 (3,800,975) 183,864,643 \r\n \r\n48,436,796 62,982,015 218,698,005 49,614,384 \r\n894,398 \r\n \r\n128,882 1,604,831 \r\n136,305 (167,179) \r\n \r\n$ 584,929,749 \r\n \r\n$ \r\n \r\n96,433 \r\n \r\n26,016,962 \r\n \r\n29,665 \r\n \r\n$ \r\n \r\n26,143,060 \r\n \r\n$ 558,786,689 \r\n \r\nThe notes to the financial statements are an integral part of this statement. 4 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFOR THE YEAR ENDED JUNE 30, 2006 \r\n \r\nAdditions: Contributions Plan Members Insurance Company Premium Taxes Interest and Other Investment Income Dividends and Interest Net Appreciation (Depreciation) in Investments Reported at Fair Value Less: Investment Expense Other Miscellaneous \r\nTotal Additions \r\nDeductions: General and Administrative Expenses Benefits Refunds \r\nTotal Deductions \r\nChange in Net Assets Held in Trust for Pension Benefits \r\nNet Assets, July 1 \r\nNet Assets, June 30 \r\n \r\n$ \r\n \r\n2,061,579 \r\n \r\n20,449,544 \r\n \r\n11,832,937 \r\n \r\n19,022,259 (2,469,054) \r\n \r\n45,034 \r\n \r\n$ \r\n \r\n50,942,299 \r\n \r\n$ \r\n \r\n959,203 \r\n \r\n21,594,951 \r\n \r\n204,657 \r\n \r\n$ \r\n \r\n22,758,811 \r\n \r\n$ \r\n \r\n28,183,488 \r\n \r\n530,603,201 \r\n \r\n$ ====5=58=,=78=6=,6=8=9= \r\n \r\nThe notes to the financial statements are an integral part of this statement. 5 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30, 2006 \r\n \r\nA. PLAN DESCRIPTION \r\n \r\nORGANIZATION AND PLAN DESCRIPTION The Georgia Firefighters' Pension Fund is a cost-sharing multiple-employer defined benefit pension plan established in 1955 by the General Assembly of Georgia for the purpose of paying retirement benefits to firefighters of the State of Georgia. The Board of Trustees of the Pension Fund is comprised of five members and consists of the Governor or his designee, the Commissioner of Insurance or his designee, two active members of the Pension Fund appointed by the Governor and one retired beneficiary of the Pension Fund appointed by the Governor. The Georgia Firefighters' Pension Fund is included within the State of Georgia's basic financial statements as a part of the primary government. \r\n \r\nAny person employed as a firefighter or enrolled as a volunteer firefighter 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 firefighters and a tax imposed on gross insurance premiums written by insurance companies, corporations or associations for fire, inland, marine or allied lines, lightning, extended coverage, and windstorm policies covering property within the State of Georgia. \r\n \r\nCURRENT MEMBERSIDP The following analysis compares the membership of the Georgia Firefighters' Pension Fund at June 30, 2006, to that of the prior year: \r\n \r\nRetirees and Beneficiaries Currently Receiving Benefits For Disability For Retirement For Survivorship \r\nTerminated Members Entitled to, But Not Yet Receiving Benefits \r\n \r\nJune 30, 2006 June 30, 2005 \r\n \r\n45 2,590 \r\n254 \r\n124 \r\n \r\n49 2,410 \r\n227 \r\n233 \r\n \r\nTotal \r\n \r\n3,013 \r\n \r\n2,919 \r\n \r\nNumber of Active Members \r\n \r\n11,355 \r\n \r\n10,760 \r\n \r\nBENEFITS The Georgia Firefighters' Pension Fund 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: \r\n(A) RETIREMENT CONDITIONS: A member shall be eligible to receive retirement benefits at age 55 provided the member has 25 years of service. A member may be eligible to receive a pro rata share of benefits, at the latter of age 55 or at the member's termination as a firefighter or volunteer firefighter, after at least 15 years of service (amount received to be the maximum benefit amount times a ratio of years of service to 25 years). At age 50, a member may elect to receive a percentage of benefits to which the member would have been eligible to receive at age 55. A member must have terminated his or her service as a firefighter or volunteer firefighter to receive benefits. \r\n \r\n6 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30, 2006 \r\nA. PLAN DESCRIPTION \r\n(B) RETIREMENT BENEFITS: The maximum retirement benefit at June 30, 2006 is $824 per month for the life of the member. The Board of Trustees is authorized to provide for increases effective as of January 1 and July 1 of each year up to 1 percent of the maximum retirement benefit then in effect. Members retiring after July 1, 1984 with service in excess of 25 years are entitled to an additional one percent of the maximum benefit in effect at the time of retirement for each additional full year of service. Members retiring after July 1, 2002 with service in excess of 25 years are entitled to an additional two percent of the maximum benefit in effect at the time of retirement for each additional full year of service. \r\n(C) OPTIONAL BENEFITS: Members may elect, as an alternate to the benefit described above, to receive an actuarially reduced benefit payable during the joint lifetime of the member and the member's spouse, continuing after the death of the member during the lifetime of the spouse or a ten years' certain and life option where an actuarially reduced benefit is received during the member's lifetime and, in the event of the member's death within 10 years of retirement, the same monthly benefits shall be payable to the member's selected beneficiary for the balance of the 10 year period. \r\n(D) DISABILITY BENEFITS: Subject to the approval of the Board of Trustees, any firefighter or volunteer firefighter who was an active member prior to July 1, 1993, who becomes totally and permanently physically disabled by injuries suffered while performing duties of the position to which he was regularly assigned or who is rendered, by heart disease or respiratory disease, totally and permanently disabled and as a result of such physical disability is separated from his work as a firefighter or his appointment as a volunteer firefighter is entitled to a monthly disability benefit, the amount of which is dependent upon the date of application for disability benefits. \r\n(E) DEATH BENEFITS (1) In the event of the death of a member of the Pension Fund on or after July 1, 2001, who is in good standing and who has not commenced receiving any benefits; the designated beneficiary of such deceased member shall be entitled to be paid the amount of $5,000. \r\n(2) In the event of the death of a member of the Pension Fund on or after July 1, 2001, who is in good standing and who has commenced receiving benefits; but who has not received total benefits in the amount of $5,000, the designated beneficiary of such deceased member shall be entitled to receive the difference between $5,000 and the amount of benefits received by such deceased member. \r\n(3) In the event of the death of a member with 15 years service, prior to commencing benefits, the spouse or beneficiary of the member is entitled to the retirement benefit elected to have been received by the member in accordance with the terms, above. \r\n(F) TERMINATION: In the event of the termination of a member prior to the completion of fifteen years of service as a firefighter, 95 percent of the member's contributions will be returned. \r\nB. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING The Pension Fund's financial statements are prepared on the accrual basis of accounting. Contributions from members are recognized as additions in the period in which the members provide services and insurance premiums tax are recognized annually, upon receipt. Retirement benefit and refund payments are recognized as deductions when due and payable. \r\n7 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30, 2006 \r\nB. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nINVESTMENTS 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 Pension Fund's investment custodian for purposes of continual investment are reflected as investments regardless of the term of the instruments. \r\nInvestments 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. \r\nC. CONTRIBUTIONS AND RESERVES \r\nFUNDING 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, 2005, which reflected the proceeds of the insurance premiums tax as the employer contribution, indicated that the minimum employer contribution was met. Member contribution requirements are set forth in O.C.G.A. Section 47-7-60 and are not actuarially determined. Administrative expenses are paid from funds received by the Pension Fund. \r\nA description of contribution requirements is as follows: \r\n(A) MEMBERS CONTRIBUTIONS: Each member must contribute $15 per month, to be paid no later than the tenth day of each month. In 2006, member contributions were $2,061,579. \r\n(B) INSURANCE PREMIUMS TAX: Every fire insurance company, corporation or association doing business within the State of Georgia must pay to the executive director of the Georgia Firefighters' Pension Fund one percent of the gross premiums, written by such insurance company, corporation, or association for fire, lightning, or extended coverage, inland marine or allied lines, or windstorm insurance policies covering property within the State of Georgia. In 2006, insurance premiums tax contributions were $20,449,544. \r\nD. CONCENTRATION OF CREDIT RISK \r\nAt June 30, 2006, more than 5 percent of the Pension Fund's total investments were investments in securities of U. S. agencies not explicitly guaranteed by the U. S. government. These investments represented approximately 5.73 percent of the Pension Fund's total investments. \r\nE. RELATED PARTIES \r\nThe Georgia Firefighters' Pension Fund retained State Street Corporation as its investment custodian in fiscal year 2006. In addition, the Pension Fund retained State Street Global Advisors, an affiliate of State Street Corporation, as the investment manager of a portion of the investments held by State Street Corporation. The fair value of the investments managed by State Street Global Advisors, at June 30, 2006, totaled $150,889,840, or 27% of the investments in the custody of State Street Corporation. In fiscal year 2006, the Pension Fund paid $249,623 in custodian fees to State Street Corporation and $191,425 in management fees to State Street Global Advisors. \r\n8 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO THE FINANCIAL STATEMENTS \r\nFOR THE YEAR ENDED JUNE 30, 2006 F. SUBSEQUENT EVENT During fiscal year 2006, OCGA Section 47-7-40 was amended to provide that on and after July 1, 2006, the membership, assets and administration of the Class Nine Fire Department Pension Fund shall be transferred to the Georgia Firefighters' Pension Fund and that the Class Nine Fire Department Pension Fund shall cease to exist as a separate entity. All members transferred shall receive creditable service for all service credited under the Class Nine Fire Department Pension Fund and shall be entitled to all rights and benefits of the Georgia Firefighters' Pension Fund. \r\n9 \r\n \r\n (This page intentionally left blank) \r\n \r\n REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND SCHEDULE OF FUNDING PROGRESS JUNE 30, 2006 \r\n \r\nActuarial Valuation \r\nDate \r\nJuly 1, 2001 \r\nJuly 1, 2003 \r\nJuly 1, 2005 \r\n \r\nActuarial Value of Assets \r\n(a) \r\n \r\nActuarial Accrued Liability (AAL) - Entry Age Normal \r\n(b) \r\n \r\nUnfunded AAL \r\n(UAAL) (b-a) \r\n \r\nFunded Ratio (alb) \r\n \r\nCovered Payroll \r\n( C) \r\n \r\nUAALasa Percentage of Covered \r\nPayroll ((b-a)/c) \r\n \r\n$ \r\n \r\n469,473,946 $ \r\n \r\n428,155,154 $ \r\n \r\n(41,318,792) \r\n \r\n109.7% \r\n \r\nn/a \r\n \r\nn/a \r\n \r\n$ \r\n \r\n500,437,940 $ \r\n \r\n488,692,735 $ \r\n \r\n(11,745,205) \r\n \r\n102.4% \r\n \r\nn/a \r\n \r\nn/a \r\n \r\n$ \r\n \r\n527,554,698 $ \r\n \r\n579,427,484 $ \r\n \r\n51,872,786 \r\n \r\n91.0% \r\n \r\nn/a \r\n \r\nn/a \r\n \r\nThe actuarial value of assets at July 1, 2005 is equal to 99% of the market value of assets. \r\n \r\n12 \r\n \r\n Fiscal Year \r\n2000 2001 2002 2003 2004 2005 \r\n \r\nGEORGIA FIREFIGHTERS' PENSION FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS \r\nJUNE 30, 2006 \r\n \r\nAnnual Required Contribution \r\n \r\n$ \r\n \r\n7,957,616 \r\n \r\n$ \r\n \r\n4,795,888 \r\n \r\n$ \r\n \r\n7,299,475 \r\n \r\n$ \r\n \r\n7,607,310 \r\n \r\n$ \r\n \r\n10,240,234 \r\n \r\n$ \r\n \r\n12,011,288 \r\n \r\nPercentage Contributed \r\n161% 271% 209% 221% 170% 157% \r\n \r\n13 \r\n \r\n GEORGIA FIREFIGHTERS' PENSION FUND NOTES TO REQUIRED SUPPLEMENTARY INFORMATION \r\nJUNE 30, 2006 \r\n \r\nActuarial Assumptions \r\nThe information presented in the required supplementary schedules was determined as part of the actuarial valuation at the dates indicated. Additional information from the actuarial valuation follows: \r\n \r\nValuation Date: \r\nActuarial Cost Method: \r\nAmortization Method: \r\nRemaining Amortization Period: \r\nAsset Valuation Method: \r\nActuarial Assumptions: Investment Rate of Return Projected Salary Increases Includes Inflation at Cost-of-Living Adjustments \r\n \r\nJuly 1, 2005 Entry age normal Level dollar, open 30 years 5 year smoothed market value \r\n6% Not applicable None None \r\n \r\n14 \r\n \r\n SECTION II - REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS \r\nPERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS \r\n \r\n (This page intentionally left blank) \r\n \r\n DEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington St. S.W. Suite 1-156 Atlanta, Georgia 30334 \r\nRUSSELL W. HINTON \r\nSTATE AUDITOR (404) 656-2174 \r\nMarch 1, 2007 \r\nHonorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the Board of Trustees of the Georgia Fire Fighters' Pension Fund \r\nand Honorable James R. Meynard, Executive Director \r\nREPORT 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 \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the Georgia Firefighters' Pension Fund, a part of the primary government of the State of Georgia, as of and for the year ended June 30, 2006, and have issued our report thereon dated March 1, 2007. 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, except we did not apply audit procedures necessary to satisfy ourselves about the opening balance (July 1, 2005) on the Statement of Changes in Fiduciary Net Assets. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered the Georgia Firefighters' Pension Fund's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over \r\n \r\n financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Georgia Firefighters' Pension'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 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 Fund 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. \r\nRespectfully submitted, \r\n~~~~~ Russell W. Hinton, CPA, CGFM State Auditor \r\nRWH:dp \r\n18 \r\n \r\n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":9,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":9}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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