gefa 2012 cafr
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georgia environmental finance authority
a component unit of the state of georgiafor the fiscal year ended june 30, 2012
2012 comprehensive annual financial report
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GEORGIA ENVIRONMENTAL FINANCE AUTHORITY
A COMPONENT UNIT OF THE STATE OF GEORGIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2012
Prepared By: Accounting Department Kevin Clark Executive Director
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY(A Component Unit of the State of Georgia)
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2012
TABLE OF CONTENTS
PAGEINTRODUCTORY SECTION
Letter of Introduction – Executive Director ILetter of Transmittal – Chief Financial Officer & Controller IIGFOA Certificate of Achievement VIOrganization Chart VIIList of Principal Officials and Authority Staff VIII
FINANCIAL SECTION
Independent Auditors' Report 1Management's Discussion and Analysis – Required Supplementary Information (Unaudited) 3Basic Financial Statements:
Government-wide Financial Statements: Statement of Net Assets 16 Statement of Activities 17
Fund Financial Statements: Combined Balance Sheet – Governmental Funds 18 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 19 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20
Statement of Net Assets - Enterprise Funds 21 Statement of Revenue, Expenses, and Changes in Fund Net Assets - Enterprise Funds 22 Statement of Cash Flows - Enterprise Funds 23 Notes to Basic Financial Statements 24Supplemental Section: Nonmajor Governmental Funds – Special Revenue Funds 48 Combining Balance Sheet - Nonmajor Governmental Funds 50 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 52 Nonmajor Enterprise Funds 54 Combining Statement of Net Assets – Nonmajor Enterprise Funds 55 Combining Statement of Revenue, Expenses, and Changes in Fund Net Assets - Nonmajor Enterprise Funds 56 Combining Statement of Cash Flows - Nonmajor Enterprise Funds 57
STATISTICAL SECTION
Government-wide Net Assets by Category – Last Ten Fiscal Years 58Government-wide Expenses, Program Revenues, and Net (Expense)/Revenue by Function/Program - Last Ten Fiscal Years 59Government-wide General Revenues and Other Changes in Net Assets – Last Ten Fiscal Years 61Fund Balances, Governmental Funds - Last Ten Fiscal Years 62
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY(A Component Unit of the State of Georgia)
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2012
TABLE OF CONTENTS (CONT.)
PAGE
Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years 63Government-wide Program Revenues by Category - Last Ten Fiscal Years 64Annual Loan Program Interest Rate History - Last Ten Fiscal Years 65Principal Loans Receivable Payers - Fiscal Year 2012 and Nine Years Prior (2003) 66Interest Revenue by Fund - Last Ten Fiscal Years 67Schedule of Revenue Bond Coverage - Last Ten Fiscal Years 68Loan Demand by Program - Last Ten Fiscal Years 69Full-time Equivalent State Authority Employees by Identifiable Activity - Last Ten Fiscal Years 70Operating Indicators by Function - Last Ten Fiscal Years 71Capital Asset Statistics by Function - Last Ten Fiscal Years 72
SINGLE AUDIT SECTION
Schedule of Expenditures of Federal Awards S-1Notes to Schedule of Expenditures of Federal Awards S-2Report 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 S-4Report on Compliance with Requirements to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 S-6Schedule of Findings and Questioned Costs S-8Status of Prior Year Findings and Questioned Costs S-10
233 PEACHTREE STREET NE • HARRIS TOWER, SUITE 900 • ATLANTA, GEORGIA 30303-1506 • 404-584-1000 • FAX 404-584-1069
www.gefa.org
September 28, 2012
Honorable Chairman and Members of the Georgia Environmental Finance Authority Board 233 Peachtree Street, NE Harris Tower, Suite 900 Atlanta, Georgia 30303-1506 Dear Board Members: This year’s Comprehensive Annual Financial Report reflects the ability of the Georgia Environmental Finance Authority (“the Authority”) to impact in a positive manner the environmental and energy needs of Georgia’s local governments. In doing so, the Authority has been able to continue its progress to fulfill its mission statement “to conserve and improve Georgia’s energy, land and water resources”. The 2012 state fiscal year proved to be another very productive year. During that period, the Authority executed over $125 million in grant and loan commitments from both state and federal sources to finance water, wastewater, land conservation and solid waste projects for local governments throughout Georgia. The Energy Resources Division continues its work to provide energy information and assistance to our citizens. The Division continues to provide assistance to weatherize the homes of elderly and low-income people. The Division continues to be very actively involved in promoting energy efficiency and renewable energy in the following sectors: buildings, utilities, and industries. The Authority’s Land Division, which is comprised of the Fuel Storage Tank (FST) programs and the Georgia Land Conservation Program (GLCP) continue to provide assistance and support services. The FST programs provided services for approximately 700 fuel storage tanks owned by 21 state agencies and departments at 283 different locations. FST completed its eighth year of the statewide preventive maintenance program which inspects, registers, and repairs all fuel storage tanks owned by the state in accordance with state and federal regulations. In FY 2012, the Division also continued environmental clean-up efforts at 8 ongoing remediation sites. With respect to the land conservation activities, the GLCP facilitated the donation of five conservation easements to the state, protecting more than 2,500 acres of land, and issued eighty-eight tax credits for 35,756 acres of perpetually-protected land.
For the twenty-sixth straight year, the Authority was awarded the prestigious Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada. The Authority is one of only a few agencies in Georgia State government to receive the Certificate of Achievement. Thank you for your continued support and commitment to the highest standards of client service and financial management. I am pleased to present this 2012 annual financial report to you.
Sincerely,
Kevin Clark
Nathan Deal
Governor GEORGIA ENVIRONMENTAL FINANCE AUTHORITY Kevin Clark
Executive Director
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Nathan Deal
Governor GEORGIA ENVIRONMENTAL FINANCE AUTHORITY Kevin Clark
Executive Director
233 PEACHTREE STREET, NE • HARRIS TOWER, SUITE 900 • ATLANTA, GEORGIA 30303-1506 • 404-584-1000 • FAX 404-584-1069 www.gefa.org
September 28, 2012 To the Honorable Chairman, Distinguished Members of the Georgia Environmental Finance Authority Board and the readers of this report: It is with great pleasure that the Georgia Environmental Finance Authority (the “Authority”) presents the Comprehensive Annual Financial Report (the “CAFR”) for the fiscal year (FY) ended June 30, 2012. The report consists of management’s representations concerning the finances of the Authority. Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the management of the Authority. In order to achieve these assurances, the Authority must provide a comprehensive internal control framework designed to protect its assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the Authority’s financial statements in conformity with United States Generally Accepted Accounting Principles. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects. Mauldin and Jenkins, Certified Public Accountants LLC have audited the Authority’s financial statements for the year. The goal of an independent audit is to provide reasonable assurance the financial statements of the Authority are free of material misstatement. The independent auditors concluded, based upon the audit, that there was a reasonable basis for issuing an unqualified (“clean”) opinion on the Authority’s financial statements for the fiscal year ended June 30, 2012. The independent auditor’s report is presented as the first component of the financial section of this report.
The CAFR is presented in three sections: Introductory, Financial and Statistical. The Introductory section includes the executive director’s introduction, this letter of transmittal, the Authority’s organization chart, and our certificate of achievement for excellence in financial reporting from the prior fiscal year. The Financial section includes the report from the independent auditors, Management’s Discussion and Analysis (MD&A), the basic financial statements, including the government-wide financial statements comprised of the Statement of Net Assets and the Statement of Activities and the accompanying notes to the financial statements. The Financial section also includes the fund financial statements, which includes the governmental funds financial statements, the proprietary funds financial statements and the combining individual funds financial statements for the nonmajor governmental funds and nonmajor proprietary funds. Required supplementary information other than the MD&A is also included in the financial section. The Statistical section includes selected financial and demographic information, on a multi-year basis.
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This transmittal letter is designed to complement the MD&A and should be read in conjunction with the MD&A. The CAFR includes all funds of the Authority. The CAFR also includes the Authority’s component unit, the Georgia Environmental Loan Acquisition Corporation (the “Corporation”), which is a legally separate organization whose relationship with the Authority is of a nature and significance that would cause the Authority’s financial statements to be incomplete if not included. Budgetary control for the Authority is maintained at the agency level. The Authority currently receives no operational funds from the state. However, it does receive state appropriations as pass-through funds and as such its budget does not require adoption or legislative passage, except as a one-line budget entry captured in the state of Georgia’s budget. In addition, the Authority receives general obligation bond proceeds from the state of Georgia. These general obligation bond proceeds are provided to leverage resources used within the Authority’s loan programs. In addition to the financial audit, the Authority undertakes a single audit in conformance with the Single Audit Act Amendments of 1996 and the U.S. Office of Management of Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. The results of this single audit, including a schedule of expenditures of federal awards, and the independent auditors’ reports on the Authority’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards, are included in this CAFR.
PROFILE OF THE AUTHORITY In 1983, the Governor and the Georgia General Assembly, acting on the 1982 recommendations of the Environmental Facilities Study Commission, created the Environmental Facilities Program and placed it in an existing agency called the Georgia Development Authority. The findings of the study commission identified the widening gap between local environmental infrastructure needs and the financial resources to pay for them. The Georgia General Assembly created the Georgia Environmental Facilities Authority in 1986 and transferred all of the environmental facilities program assets and functions from the Georgia Development Authority to the Georgia Environmental Facilities Authority. In FY 2010, the Georgia General Assembly renamed the Georgia Environmental Facilities Authority to the Georgia Environmental Finance Authority.
The Authority is a public corporation and an instrumentality of Georgia state government. There is an eleven-member board, eight appointed by the Governor and three who serve ex-officio. Three of the eight appointees are municipal officials, three are county officials and two are appointed from the state at large. The three ex-officio members are the Commissioner of the Georgia Department of Economic Development, the Commissioner of the Georgia Department of Community Affairs and the State Auditor. The Authority is organized under the Official Code of Georgia Annotated (the “OCGA”), Title 50, Chapter 23 ("The Georgia Environmental Finance Authority Act"). The Authority's stated purpose is "to assist local governments in constructing, extending, rehabilitating, repairing and renewing environmental facilities, and to assist in the financing of such needs by providing grants, loans, bonds and other assistance to local governments" and eligible local authorities. Initially, the Authority was only authorized to make loans for water supply or wastewater treatment and related facilities. In 1989, legislation was passed that allowed the Authority to also make loans to fund solid waste management facilities. In 2010, legislation was passed to allow the Authority to create a subsidiary organization for the purposes of carrying out certain powers of the Authority. As a result of this change, the Authority created the Georgia Environmental Loan Acquisition Corporation (the “Corporation”), a nonprofit organization, to purchase tax-exempt loans from the Authority through a loan securitization transaction. Proceeds from the sale, in conjunction with cash reserves, were used to remit funds back to the state treasury at the voluntary option of the Authority’s board of directors.
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The Authority is comprised of three primary divisions: Water Resources (WRD), Energy Resources (ERD) and Land Resources (LRD). The divisions provide a wide range of services including loans, grants and subsidies to jurisdictions throughout the state for water supply and wastewater improvements, grants for energy conservation and household energy efficiency restorations, services for remediation of underground storage tanks, and grants or loans for conservation of land resources. Administrative divisions of the Authority also exist to support initiatives of these primary divisions.
Additionally, in a collaborative effort with the Georgia Department of Economic Development (GDecD), FY 2008 marked the first year of a statewide alliance with the OneGeorgia Authority, the University System of Georgia, Georgia Research Alliance, Technical College System of Georgia, the Intellectual Capital Partnership Program and others on an initiative to strategically formulate the State of Georgia’s Centers of Innovation (COI). There are six centers of innovation across the state of Georgia. The mission of each COI is to accelerate business growth, investment, productivity, competitiveness and the successful launch of new ventures within Georgia’s most vital industries. The Energy Innovation Center (EIC) is facilitated through GEFA. Its key focus is expanding and strengthening the state of Georgia’s bioenergy industry, which includes the expansion, production and use of renewable energy and bio-fuels. Effective February 1, 2012, the EIC and its operations were transferred to the (GDecD) and all financial ties were equitably severed by the Authority.
ECONOMIC CONDITIONS AND OUTLOOK
Since the impact of the loan asset sale in the previous fiscal year, the Authority has been gradually returning to its once stable financial position. Program policies within the Water Resources Division have been revised to help expand the strength of the base programs, as the heightened influence of American Recovery and Reinvestment Act (ARRA) dwindles, all while achieving the maximum balance between capacity and loan demand. One of the more important outcomes from FY 12 within the WRD was the successful launch of the Governor’s Water Supply Program. In its first round of applications several prospective applicants vied for funding for projects that will have varied phases of completion throughout the lifespan of the program. As the various projects are approved and funded, it is anticipated they will have positive effects on water supply delivery and storage throughout the state. Within the ERD, the programs yielded many outcomes. More notably of these accomplishments was the completion of a statewide energy assurance plan, co-managed with the Georgia Emergency Management Agency. This plan will be the basis for the state’s official protocol for handling extreme disasters like that of Hurricane Katrina in the state of Louisiana a few years ago and many other natural disasters experienced around the world. In addition, the ERD completed measurement and verification of state retrofit program projects funded by ARRA. It is expected that through the efficiency and conservation measures installed that annual energy costs savings of $9.8 million will be achieved from an initial investment of $62.1 million. The LRD also met challenges presented them within the fiscal year. Seventy-two regulatory compliance inspections over underground or above-ground storage tanks were conducted to correct noted violations by federal or state authorities and successfully facilitated five conservation easements and properties to state agencies that will permanently conserve over 2,500 acres in Georgia. Each of these divisions will continue to adapt to the various federal, state and local level changes that influence their core missions. Each will have to look to formulate new ways to secure additional funding to manage its programs due to federal, state and local government budget cuts. Cash Management. The Authority has a responsibility to carefully account for public, state and federal funds used to administer its programs. Cash temporarily idle during the year was invested in the state of Georgia Local Government Investment Pool, which is managed by the Office of the State Treasurer. This investment
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pool is available to local governments and state authorities and is authorized to invest in the same types of securities as the Authority. All pooled assets are collateralized in accordance with State Depository Board rules.
Risk Management. The Authority is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Authority participates in the State's Risk Management Pool, which purchases commercial insurance and also self-insures for risks associated with the theft of state-owned real and personal property, liability claims against the Authority arising from its operations, liability claims against the Authority's officials and employees, and honesty and faithful performance bonds on employees. A premium is paid to the Department of Administrative Services for the Authority's insurance coverage. Independent Audit. OCGA 50-23-3 (c) requires that "The Authority shall keep suitable books and records of all actions and transactions and shall submit such books together with a statement of the Authority's financial position to an independent auditing firm selected by the Authority on or about the close of the state's fiscal year for the purpose of obtaining a certified audit of the Authority's finances.” The Authority has complied with this law and the report resulting from the certified audit performed by Mauldin & Jenkins, Certified Public Accountants LLC, is included in the financial section of this report. Due to the substantial amount of federal funding in the Clean Water State Revolving Loan Fund, Drinking Water State Revolving Loan Fund and ARRA programs, the Authority also had a single audit performed in accordance with OMB Circular A-133. These statements are presented in the Single Audit section of this report. Under the revised provisions of OMB Circular A- 133, the Authority has not been classified as a “low risk auditee.” Certificate of Achievement for Excellence in Financial Reporting. The Government Finance Officers Association of the United States and Canada (the “GFOA”) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Authority for its CAFR for the fiscal year ended June 30, 2011. This was the twenty-sixth consecutive year the Authority has achieved this prestigious award.
To be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. We anticipate this year’s CAFR will also qualify for this distinguished award. Acknowledgements. This report could not have been prepared without the support and encouragement of the Authority’s management, staff and members of its board. We are very appreciative for their dedication to sound responsible financial operations. Additionally, any financial report is only as good as the accounting and financial records that supply its supporting data. The Authority’s accounting and finance staff deserve special recognition for their dedication, knowledge, perseverance and attention to detail. Lastly, we would like to send a special thanks to the division directors; the administrative team for its contributions in the preparation of the CAFR and to our independent auditors, Mauldin and Jenkins, Certified Public Accountants LLC, for their expertise, professionalism and dedication to ensuring our audit was completed efficiently and timely.
Respectfully submitted,
J. Chris Jones
Chief Financial Officer
Jammie Z. Harden, CGFM Controller
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VII
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY(A Component Unit of the State of Georgia)
LIST OF PRINCIPAL OFFICIALS AND KEY AUTHORITY PERSONNEL
June 30, 2012
BOARD OF DIRECTORS
Grady Thompson, Jr. Chairman
Gary McCollough Vice Chairman
Greg Griffin Secretary (Ex-Officio)
Jimmy Andrews City Member
Boyd Austin City Member
Mike Beatty Ex-Officio Member
Chris Cummiskey Ex-Officio Member
Stephen Gray At-Large Member
John Perryman At-Large Member
Gator Hodges County Member
Elmo Richardson County Member
EXECUTIVE MANAGEMENT
Kevin Clark Executive Director
Shane Hix Director of Public Affairs
Gregory Mason Chief Operations Officer
Glendale Jones Chief Administrative Officer
Chris Jones Chief Financial Officer
CHIEF FINANCIAL STAFF
Jammie Harden Controller
Curtis Brooks Compliance/Procurement Accountant II
Wan Yi Chen Accounting Assistant
Renita Coleman Accountant III
Valerie Zackery Accountant II
Allison Halron Finance Director
Shelina Ali Financial Analyst II
Jeremy Cormier Finance Technician
Derek Sands, Jr. Financial Operations Specialist
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INDEPENDENT AUDITOR'S REPORT To the Members of the
Georgia Environmental Finance Authority: We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Georgia Environmental Finance Authority (the “Authority”), a component unit of the State of Georgia, as of and for the year ended June 30, 2012, which collectively comprise the Authority’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Authority’s management. Our responsibility is to express opinions 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 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 the 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 opinions.
In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Georgia Environmental Finance Authority as of June 30, 2012 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated September 28, 2012 on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
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Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3 through 15 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 inquires 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 sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Georgia Environmental Finance Authority’s basic financial statements. The combining non-major fund statements, as listed in the accompanying table of contents, and the Schedule of Expenditures of Federal Awards, as required by U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining non-major fund statements and the Schedule of Expenditures of Federal Awards are fairly stated in all material respects in relation to the basic financial statements as a whole.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Georgia Environmental Finance Authority’s basic financial statements. The introductory and statistical sections, as identified in the accompanying table of contents, are presented for the purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Atlanta, Georgia September 28, 2012
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GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
The management of the Georgia Environmental Finance Authority (the “Authority”) offers this narrative overview and analysis of the financial activities of the Authority for the fiscal year (FY) ended June 30, 2012. This discussion and analysis examines in further detail the Authority’s financial performance as a whole. Readers of this report are also encouraged to review the financial statements and notes to the financial statements to enhance their understanding of business activities conducted by the Authority.
Financial Highlights
Key financial highlights for the year ended June 30, 2012 include:
The Authority’s combined net assets totaled $1.7 billion.
The Authority’s total net assets increased by $143.7 million.
Total net assets of governmental activities decreased by $4.4 million, compared to a $5.7 million increase the year before and total net assets of business-type activities increased by $148.1 million, compared to a $257.7 million decrease in the prior year.
At the close of the fiscal year, the Authority’s governmental funds reported combined ending fund balances of $46.2 million, a decrease of $4.4 million from the prior year. Approximately 8% of this total amount, or $3.8 million, is available for spending at the Authority’s discretion, provided it is spent within approved guidelines (unassigned fund balance). The unassigned fund balance represents 34% of total General Fund expenditures.
Combined revenues totaled $268.7 million, of which governmental activities totaled $117.6 million and business-type activities totaled $151.1 million. Current year revenues decreased approximately 6% from those of the prior year.
Overall, the Authority’s net assets experienced an increase of $143.7 million, signifying a positive return after a significant decrease of $252 million in the previous year. Net cash within business-type activities increased by $36.1 million further reinforcing the Authority’s viability in lending, its core business function.
The above financial highlights are explained further in the “financial analysis” section of this document.
3
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
Overview of the Financial Statements
This discussion and analysis section is intended to serve as an introduction to the Authority’s basic financial statements. The Authority’s financial statements contain three components: government-wide statements; fund financial statements; and notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements
The Authority’s comprehensive annual financial report includes two government-wide financial statements. These statements are intended to provide a broad overview of both long-term and short-term information about the Authority’s overall financial position. Financial reporting at this level uses a financial perspective similar to that found in the private sector with its basis in accrual accounting and elimination or reclassification of activities between funds.
The first government-wide statement is the Statement of Net Assets which is the government-wide statement of position presenting information that includes all of the Authority’s assets and liabilities, with the difference between them reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Authority, as a whole, is improving or deteriorating. Evaluation of the overall fiscal health of the Authority would extend to other nonfinancial factors such as new or changes in legislation over which the Authority has no direct control, changes in level of federal or state funding, or a change in management’s programmatic focus, in addition to the financial information provided in this report.
The second government-wide statement is the Statement of Activities, which reports how the Authority’s net assets changed during the reported fiscal period. All current year’s revenues and expenses are accounted for regardless of when cash is received or paid. Thus, revenues and expenses are reported in this statement that will result in cash flows in future fiscal periods. One important purpose of the statement of activities is to show the financial reliance of the Authority’s distinct activities or functions on the revenues provided by the State of Georgia and federal grantors, as well as that on the revenue streams from repayment of loans from our ever-growing customer base.
Both government-wide financial statements distinguish governmental activities of the Authority that are principally supported by federal or state appropriated grants from business-type activities that are intended to recover all or a significant portion of their costs through user fees and charges. Governmental activities include general administrative operations of the Authority and those costs incurred for expenditure-driven grant programs, such as those incurred by the Division of Energy Resources as well as those costs associated with administering the federal state revolving loan programs. Business-type activities include all operations of the Authority’s lending programs, as well as activities associated with its fuel storage tank maintenance program. The government-wide financial statements are presented on pages 16 and 17 of this report.
4
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
Fund Financial Statements
A fund is an accounting unit used to maintain control over resources segregated for specific activities or objectives. The Authority uses funds to ensure and demonstrate compliance with finance-related laws and regulations. Within the basic financial statements, fund financial statements focus on the Authority’s most significant funds rather than the Authority as a whole. Major funds are separately reported while all other (nonmajor) funds are combined into a single, aggregated presentation. Individual fund data for nonmajor funds is provided in the form of combining statements in a later section of this report.
All of the funds of the Authority can be divided into two categories: governmental funds and proprietary funds.
Governmental funds are reported in the fund financial statements and include the same functions reported as governmental activities in the government-wide financial statements. However, the focus is different with fund financial statements providing a varied view of the Authority’s governmental funds. These statements report short-term fiscal accountability focusing on the use of the spendable resources. They account for items using the current financial resources measurement focus and the modified accrual basis of accounting which measures cash and all other financial assets that can readily be converted to cash. They are useful in evaluating annual financing requirements of governmental programs and the Authority’s ability to commit spendable resources for near-term expenditures.
Since the government-wide focus includes the long-term view, comparisons between these two outlooks may provide insight into the long-term impact of short-term spending decisions. For this particular reason, reconciliation between the governmental activities (shown in the Statement of Net Assets and Statement of Activities) and the governmental funds is provided at the bottom of the fund financial statements.
The Authority maintains 14 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, ARRA-State Energy Program, ARRA-Weatherization Assistance Program Funds and the ARRA-Energy Efficiency Conservation Block Grant, which are considered to be major funds and are presented on pages 18-20 of this report. Data from other governmental funds are combined into a single, aggregated presentation. Individual data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.
Proprietary funds are reported in the fund financial statements and generally report those activities for which the Authority charges its customers a fee for the use of its financial resources or technical expertise. The Authority’s proprietary funds are classified as enterprise funds. These enterprise funds essentially are the same as the business-type activities reported in the government-wide statements but provide more detail and additional information, such as cash flows associated with these distinct programs.
The Authority maintains 9 individual enterprise funds. Information is presented separately in the enterprise fund statement of net assets and in the enterprise fund statement of revenues, expenses, and changes in net assets for the Georgia Fund, Georgia Reservoir & Water Supply Fund, Clean Water State Revolving Loan Fund, Clean Water
5
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
State Match Revolving Loan Fund, Drinking Water State Revolving Loan Fund, and Drinking Water State Match Revolving Loan Fund, all of which are considered to be major funds of the Authority and are presented on pages 21-23 of this report. Individual fund data for the nonmajor enterprise funds is provided in the form of combining statements elsewhere in this report.
Notes to the Basic Financial Statements
The accompanying notes to the financial statements provide information necessary for a full understanding of the government-wide and fund financial statements. The notes to the financial statements begin on page 24 of this report.
Supplementary information
In addition to the basic financial statements and accompanying note disclosures, this report also presents certain supplementary information concerning the Authority’s funds. As mentioned previously, the Authority reports major funds in the basic financial statements. Combining and individual statements and schedules for nonmajor funds are presented in this section of this report beginning on page 50.
Government-wide Financial Analysis of the Authority
Year-to-year financial changes in net assets trend information is accumulated on a consistent basis. This information trend will be observed, analyzed and used to discuss the financial position of the Authority as a whole. As noted earlier, net assets over time may serve as a useful indicator of the Authority’s financial position. In the case of the Authority, net assets were $1.7 billion as of June 30, 2012 compared to $1.6 billion in the preceding fiscal year. The following table presents a summary of the Authority’s net assets:
Georgia Environmental Finance Authority - Net Assets
As of June 30, 2012 and 2011
Governmental activities Business-type activities Total
2012 2011 2012 2011 2012 2011
Current and other assets $ 52,182,805 89,526,298 1,724,316,906 1,574,951,565 1,776,499,711 1,664,477,863
Capital assets 35,324 54,755 - - 35,324 54,755
Total assets 52,218,129 89,581,053 1,724,316,906 1,574,951,565 1,776,535,035 1,664,532,618
Long-term liabilities outstanding 504,268 563,348 - - 504,268 563,348
Other liabilities 6,008,816 38,912,857 29,794,903 28,495,357 35,803,719 67,408,214
Total liabilities 6,513,084 39,476,205 29,794,903 28,495,357 36,307,987 67,971,562
Net assets:
Inv ested in capital assets net of related debt 35,324 47,777 - - 35,324 47,777
Restricted 42,345,523 45,251,013 1,254,229,701 1,154,326,566 1,296,575,224 1,199,577,579
Unrestricted 3,324,198 4,806,058 440,292,302 392,129,642 443,616,500 396,935,700
Total net assets $ 45,705,045 50,104,848 1,694,522,003 1,546,456,208 1,740,227,048 1,596,561,056
Primary Government
6
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
The Authority’s investment in capital assets comprises expenditures made for securing computer equipment and furniture and fixtures. Minimal cash is expended for the purposes of acquiring capital assets because the Authority’s primary function is to be a financial conduit on behalf of the State of Georgia and therefore holds few depreciable assets. The Authority’s investment in capital assets at fiscal year year-end was $35.3 thousand which represents less than 1% of total net assets.
The following table provides a summary of the changes in net assets, with comparative data for the current and prior fiscal years:
Georgia Environmental Finance Authority - Changes in Net Assets
For the Fiscal Year Ended June 30, 2012 and 2011
Governmental activities Business-type activities Total
2012 2011 2012 2011 2012 2011
Rev enues:
Program rev enues:
Charges for serv ices $ 1,529,171 11,392,512 38,459,360 44,905,397 39,988,531 56,297,909
Operating grants and contributions 115,960,883 134,163,153 112,292,163 95,237,116 228,253,046 229,400,269
Capital grants and contributions - - - - - -
General rev enues:
Unrestricted inv estment earnings 68,914 93,017 - - 68,914 93,017
Other income 32,922 17,338 363,722 25,407 396,644 42,745
Total rev enues 117,591,890 145,666,020 151,115,245 140,167,920 268,707,135 285,833,940
Ex penses (net of indirect costs):
General gov ernment 9,022,959 11,763,760 - - 9,022,959 11,763,760
Water and w astew ater 8,799,184 12,382,414 13,768,944 31,435,363 22,568,128 43,817,777
Solid w aste & env ironment - 1,680 - - - 1,680
Land conserv ation 59,061 60,212 - - 59,061 60,212
Energy & env ironment 91,335,755 109,506,743 - - 91,335,755 109,506,743
Storage tank maintenance - - 1,357,477 1,232,599 1,357,477 1,232,599
Loan & financing serv ices - - 697,685 2,319,969 697,685 2,319,969
Interest on long-term debt 78 619 - - 78 619
Total ex penses 109,217,037 133,715,428 15,824,106 34,987,931 125,041,143 168,703,359
Increase in net assets before special items & transfers 8,374,853 11,950,592 135,291,139 105,179,989 143,665,992 117,130,581
Special item - loss on sale of loans receiv able - - - (81,096,228) - (81,096,228)
Special Item - v oluntary return to state treasury - - - (288,000,000) - (288,000,000)
Transfers (12,774,656) (6,206,325) 12,774,656 6,206,325 - -
Increase (decrease) in net assets (4,399,803) 5,744,267 148,065,795 (257,709,914) 143,665,992 (251,965,647)
Net assets - July 1 50,104,848 44,360,581 1,546,456,208 1,804,166,122 1,596,561,056 1,848,526,703
Net assets - June 30 $ 45,705,045 50,104,848 1,694,522,003 1,546,456,208 1,740,227,048 1,596,561,056
Primary Government
7
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
Governmental Revenues
The Authority’s revenues for governmental activities of $117.6 million were comprised mostly of $88 million in charges for services and operating grants and contributions primarily from the United States Department of Energy for programs funded by ARRA and $12 million received from the state, representing approximately 95% of total revenues for governmental activities as shown in the graph below. Because these programs are operate on the basis of expenditure-driven grants, revenues typically parallel activity within those programs.
Unassigned investment earnings of $69 thousand within governmental activities were reported during the year, down slightly from $93 thousand in 2011. This decrease in investment earnings can be attributed a decline in investment rates of return coupled with a decrease in investable funds.
8
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
Governmental Functional Expenses
In fiscal year 2012, expenses within the general government function experienced a decrease of approximately 23%. The decrease is partially linked to a reduction in staffing costs associated with administration of ARRA-related programs. As the temporary ARRA grants have reduced activity, the Authority has also scaled back initiatives in an attempt to achieve maximum utilitization of its workforce.
Expenses in the water and wastewater program function of governmental activities decreased substantially by 29%. This function of the Authority is primarily dependent upon activity associated with pass through contractors and is driven mostly by related expenses incurred by these contractors. As such, year-to-year fluctuations have been experienced as this year’s results show.
9
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
The solid waste and environmental program function expenses had no activity this year as compared to $2 thousand from the previous year. The decrease can be explained by a decrease in funding received for the solid waste program due to state budget cuts and a redirection of funds at the state level.
In its fifth year of operations, the land conservation function financed projects and other program expenses totaling $59.1 thousand. A continuing decline in appropriated funds and fewer approved projects attributed to the reduction in activity within this function.
The energy program function comprises 84% of total governmental activities’ expenses and 73% of the Authority’s total expenses. In fiscal year 2011, these percentages were 82% and 65%, respectively. The execution of ARRA programs has had a major impact on the Authority’s energy programs, which has been illustrated by a continued elevated level of expenses as the grant programs matured and more awards of federal dollars were made. However, these levels have spiked and saw a decline during the latter part of the fiscal year.
Business-type Activities: Revenues vs Expenses
Revenues
While revenues had fluctuating results within each program area, total revenue for the business-type activities for the Authority were $151.1 million, an increase of approximately 8% from the previous fiscal year total of $140.2 million. Revenues increased primarily due to an increase in loan acivity of the loan programs. For the business-type activities, ARRA provided 4% of operating grants and contributions revenues as compared to 46% in fiscal year 2011. Operating grants and contributions revenue is recognized as funds are requested to cover cash disbursements made to loan recipients, as well as when cash is received from the state to fund state approved loan projects or other program based funds received.
1010
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
Expenses
Expenses within the Authority’s business-type activites decreased substantially for the current fiscal year, with the water and wastewater programs experiencing the greatest decrease. This decrease is mainly related to a requirement that the Authority has to provide a total of 50% principal forgiveness on loans financed by ARRA. For fiscal year 2012, the Authority provided approximately $11.2 million in principal forgiveness, combined, for its Clean Water and Drinking Water State Revolving loan programs as compared to $23.1 million from the prior year.
The storage tank maintenance program had increased expenses of approximately 10%. This increase can be attributed to increased activity by service providers and participation by beneficiaries to supplement funding on projects that have a higher cost and provide a dedicated use by their organizations.
Loan and financing services expenses reflect those expenses incurred by the Authority to execute its loan programs. These expenses decreased significantly by 70% primarily due to the Authority’s decision in the prior year to redeem its bonds.
11
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
Financial Analysis of the Authority’s Funds
Governmental Funds
As noted earlier, the focus of the Authority’s governmental funds is to provide information on short-term inflows and outflows of spendable resources. This information is useful in assessing reserves available at the end of the year in comparison to upcoming financing requirements. Governmental funds reported ending fund balances of $46.2 million in fiscal year 2012, compared to $50.6 million in fiscal year 2011. Of these year-end totals, $3.8 million in fiscal year 2012 and $5.4 million in fiscal year 2011 was unassigned and available for continued financing by the Authority.
The total ending fund balances of governmental funds show a decrease of $4.4 million, compared to the increase experienced in fiscal year 2011 of $5.8 million. This change is primarily due to increased activity in loan programs requiring match funds which were transferred out to their appropriate loan programs.
1212
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
Major Governmental Funds
The General Fund is the Authority’s primary operating fund and the source of daily administrative operations. The General Fund’s fund balance decreased by $4.3 million in fiscal year 2012 as compared to the $7.6 million increase from the previous year. This decrease is mostly due to receipt of fewer bond funds received from the state which are deposited in the General Fund until it is expended for pass-through contracts or match requirements. The remainder is held and considered restricted for specific purposes such as grant or loan specific requirements. The portion of fund balance obligated in the General Fund at year-end was $9.0 million, down from $11.8 million in fiscal year 2011. The majority of this decrease can be attributed to a fewer bond dollars received from the state and increased activity levels in match-related expenditures for the federal loan programs.
The General Fund’s ending unassigned portion of fund balance of $3.8 million represents the equivalent of 34% of its current year’s expenditures. The Authority’s overall cash flow within the General Fund is generally consistent with increased activity occurring at quarter’s end. The Authority relies very little on the unassigned portion of fund balance because administrative expenses of the Authority are satisfied by either direct grants or contracts from federal and state sources or transfers from the repayment stream of the Georgia Fund. The Georgia Fund is the Authority’s resource to cover administrative expenses incurred within certain programs which are not directly funded by a dedicated revenue source or financing contract or grant.
The Weatherization Assistance Program Fund serves as a special revenue fund to provide federal grant funds to local governments and nonprofit organizations throughout the state of Georgia in an effort to assist low income households achieve energey efficiencies in their homes. Revenues and expenditures typically net to zero as the funding is expenditure-driven and thus no fund balance has been reported for fiscal year 2012. During fiscal year 2012, the Authority absorbed approximately $157,785 in federal charges under this proram due to a self-audit of a subrecipient’s business practices found to be unallowable.
The ARRA-State Energy Program Fund serves as special revenue fund for programs providing federal grant funds to organizations to improve energy efficiency and thereby decrease long-term use of energy resources and is funded by the Recovery Act. Revenues and expenditures of the ARRA-State Energy Program Fund typically net to zero as the funding is expenditure-driven and thus no fund balance has been reported for fiscal year 2012.
The ARRA-Weatherization Assistance Program Fund serves as a special revenue fund for programs assisting disadvantaged citizens throughout the State of Georgia and is funded by ARRA. The Authority reported expenditures in this fund toatling approximately $32 million. Revenues and expenditures of the ARRA-Weatherization Assistance Program Fund typically net to zero as the funding is expenditure-driven and thus no fund balance has been reported for fiscal year 2012.
The ARRA-Energy Eficient Conservation Block Grant Fund serves as special revenue fund for programs providing federal grant funds to recipients to improve energy efficiency and thereby decrease long-term use of energy resources and is funded by the Recovery Act. This grant has a focus on new energy types such as renewable energy, fossil fuel emissions reductions and long-term reduction in energy use and increased energy savings.
13
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
Revenues and expenditures of the ARRA-Energy Conservation Block Grant Fund typically net to zero as the funding is expenditure-driven and thus no fund balance has been reported for fiscal year 2012.
The Proprietary Funds
The proprietary funds’ statements share the same focus as the government-wide statements, reporting both short-term and long-term information about financial status. Each of the fund statements gives detailed information about the fund’s financial condition. The viability of the Authority’s loan and fuel storage tank maintenance programs is evident by this year-end’s changes in net assets detailed below.
The Authority’s proprietary funds report the activities of the loan and fuel storage tank maintenance programs. The net assets of the proprietary funds increased $148.1 million. The total interest income from loans for proprietary funds with a lending component for 2012 was $37.5 million, a 6% decrease from the prior year which is explained by loss of income on loans receivable for the portion of the loan portfolio sold stemming from the previous year. Total contributions for federal and state-funded loan programs during the year were $111.2 million. The fuel storage tank maintenance program had total revenues of approximately $1.6 million partially from fees charged customers for the maintenance of state-owned equipment, contract revenues from other state agencies, and promotional expense refunds from vendors. Net assets of the Authority’s proprietary funds for federal programs are restricted for their respective purposes and are recycled into resources available to fund their core missions. Net assets of the Authority’s proprietary funds for state programs are unrestricted and can be used for the purposes they are held for, as authorized through current legislation, and recycled into resources available to fund their core missions.
Budgetary Information
The Authority does not adopt an annual budget because it is included in the State’s budget as a one-line appropriation in the Department of Community Affairs’ budget under the Authority’s enabling legislation. However, the Authority’s management does utilize a budget for the General Fund to be used for financial analysis purposes and expenditure control throughout the year.
Capital Assets and Debt Administration
Capital Assets
The Authority’s investment in capital assets for its governmental activities as of June 30, 2012 amounts to $35.3 thousand (net of accumulated depreciation). This investment in capital assets includes equipment, furniture and fixtures. As of the close of the fiscal year, the Authority had no investment in capital assets of business-type activities because those activities are dedicated to the financing of loan and certain grant or subsidized projects and hold no depreciable assets. Additional information regarding the Authority’s capital assets can be found in Note 7, pages 41.
14
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Management’s Discussion and Analysis
(Unaudited)
Long-term Debt
As of June 30, 2012, the Authority had a total of $504.3 thousand in outstanding long-term liabilities, a decrease of $59 thousand. Of this amount, approximately $126.1 thousand is due within one year.
Additional information regarding the Authority’s long-term debt can be found in Note 5, pages 35-38.
Requests for Information
This financial report is designed to provide a general overview of the Authority’s finances, comply with finance-related laws and regulations, and demonstrate the Authority’s commitment to public accountability to all parties with an interest in its financial activities. Questions concerning any of the information provided in this report or requests for additional information should be addressed to: Georgia Environmental Finance Authority, Controller’s Office, 233 Peachtree Street, NE, Harris Tower, Suite 900, Atlanta, Georgia 30303-1506.
Georgia Environmental Finance Authority's Long-term Debt ObligationsFor the Fiscal Year Ended June 30, 2012
Balance atJune 30, Percentage Due Within
2011 of Total One YearCompensated absences 504,268$ 100% 126,067$ Governmental long-term liabilities 504,268$ 126,067$
Governmental Activities
15
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY(A Component Unit of the State of Georgia)
Statement of Net Assets
June 30, 2012
Primary Government Component UnitGovernmental Business-type Ga. Environ.
activities activities Total Loan Acq. Corp.
Cash $ 4,719,522 18,456,622 23,176,144 17,699,703 Cash with fiscal agent — — — 20,324,807 Investments 40,697,528 380,256,405 420,953,933 — Due from other governments 7,477,869 20,885,724 28,363,593 — Internal balances (732,875) 732,875 — — Accrued interest receivable — 6,108,748 6,108,748 951,526 Loans receivable — 1,297,876,532 1,297,876,532 230,257,294 Other assets 20,761 — 20,761 3,575,434 Capital assets, net of accumulated
depreciation 35,324 — 35,324 —
Total assets 52,218,129 1,724,316,906 1,776,535,035 272,808,764
Accounts payable and accrued liabilities 5,895,933 298,451 6,194,384 12,385 Due to other governments 14,865 17 14,882 — Accrued interest payable — — — 767,529 Unearned revenue 98,018 29,496,435 29,594,453 — Long-term liabilities: Amount due within one year 126,067 — 126,067 10,765,000 Amount due in more than one year 378,201 — 378,201 177,355,500
Total liabilities 6,513,084 29,794,903 36,307,987 188,900,414
Invested in capital assets 35,324 — 35,324 — Restricted for: Grant programs 5,347,638 — 5,347,638 — Loan programs 36,997,885 1,254,229,701 1,291,227,586 — Unrestricted 3,324,198 440,292,302 443,616,500 83,908,350
Total net assets $ 45,705,045 1,694,522,003 1,740,227,048 83,908,350
See accompanying notes to basic financial statements.
16
GEO
RG
IA E
NVI
RO
NM
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L FI
NA
NC
E A
UTH
OR
ITY
(A C
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t of t
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tate
of G
eorg
ia)
Stat
emen
t of A
ctiv
ities
Year
end
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une
30, 2
012
Prog
ram
reve
nues
Net
(exp
ense
) rev
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and
cha
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in n
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Gov
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Gen
eral
gov
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$9,
022,
959
—
19,4
58,2
77
10,4
35,3
18
—
10
,435
,318
Wat
er &
was
tew
ater
8,79
9,18
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1,52
9,17
1
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1,15
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—
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Land
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—
55,9
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—
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Ener
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91,3
35,7
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—
91
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—
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Inte
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deb
t78
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—
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8)
—
(7
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Tota
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9,21
7,03
7
1,52
9,17
1
115,
960,
883
8,
273,
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—
8,27
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7
Bus
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ctiv
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:
Wat
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1 3,7
68,9
44
—
1 3
,768
,944
—
—
—
Stor
age
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mai
nten
ance
1,35
7,47
7
700,
710
52
3,95
3
—
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(132
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Loan
& fi
nanc
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serv
ices
697,
685
37
,758
,650
97
,999
,266
—
135,
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231
13
5,06
0,23
1
Tota
l bus
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ities
15,8
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38,4
59,3
60
112,
292,
163
—
134,
927,
417
13
4,92
7,41
7
T ota
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5,04
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3 9,9
88,5
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2 28,
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8 ,
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1 3
4,92
7,41
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1 43,
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434
Com
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nit:
Geo
rgia
Env
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n Ac
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Cor
pora
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$9,
064,
898
10
,454
,805
—
1,38
9,90
7
Tota
l Com
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nits
$9,
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898
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,454
,805
—
Gen
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:
Unr
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cted
inve
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arni
ngs
$68
,914
—
68,9
14
—
Oth
er32
,922
36
3,72
2
396,
644
22
,858
Tran
sfer
s(1
2,77
4,65
6)
12,7
74,6
56
—
—
Tota
l gen
eral
reve
nues
and
tran
sfer
s(1
2,67
2,82
0)
13,1
38,3
78
465,
558
1,
412,
765
Cha
nge
in n
et a
sset
s( 4
,399
,803
) 1 4
8,06
5,79
5
143,
665,
992
1,
412,
765
Net
ass
ets
- Jul
y 1
50,1
04,8
48
1,54
6,45
6,20
8
1,59
6,56
1,05
6
82,4
95,5
85
Net
ass
ets
– Ju
ne 3
0$
45,7
05,0
45
1,69
4,52
2,00
3
1,74
0,22
7,04
8
83,9
08,3
50
See
acco
mpa
nyin
g no
tes
to b
asic
fina
ncia
l sta
tem
ents
.
17
GE
OR
GIA
EN
VIR
ON
ME
NT
AL
FIN
AN
CE
AU
TH
OR
ITY
(A C
ompo
nent
Uni
t of t
he S
tate
of G
eorg
ia)
Bal
ance
She
et -
Gov
ernm
enta
l Fun
ds
June
30,
201
2
Non
maj
orTo
tal
Wea
ther
izat
ion
AR
RA
-Sta
teA
RR
A-W
eath
eriz
atio
nA
RR
A-E
nerg
y Ef
ficie
ntG
over
nmen
tal
Gov
ernm
enta
l
Ass
ets
Gen
eral
Ass
ista
nce
Prog
ram
Ener
gy P
rogr
amA
ssis
tanc
e Pr
ogra
mC
onse
rvat
ion
Blo
ck G
rant
Fund
sFu
nds
Cas
h$
4,32
2,65
2
146,
632
—
95,0
58
—
15
5,18
0
4,71
9,52
2
Inve
stm
ents
9,64
8,22
7
—
—
—
—
31,0
49,3
01
40,6
97,5
28
Due
f rom
oth
er g
over
nmen
ts1,
036,
876
1,
882,
514
73
9,99
0
537,
705
1,
776,
784
1,
504,
000
7,
477,
869
Due
f rom
oth
er fu
nds
808,
986
83
1,58
9
—
—
—
2,
602,
302
4,
242,
877
Ot h
er a
sset
s—
626
—
20,1
35
—
—
20,7
61
Tota
l ass
ets
$15
,816
,741
2,
861,
361
73
9,99
0
652,
898
1,
776,
784
35
,310
,783
57
,158
,557
Li
abili
ties
and
Fund
Bal
ance
s
Liab
ilitie
s:
Acco
unts
pay
able
and
acc
rued
liab
ilitie
s$
850,
254
88
5,75
1
648,
426
65
2,89
8
1,77
6,78
4
1,08
1,82
0
5,89
5,93
3
Due
to o
ther
fund
s2,
012,
648
1,
960,
745
91
,564
—
—
91
0,79
5
4,97
5,75
2
Due
t o o
ther
gov
ernm
ents
—
14
,865
—
—
—
—
14
,865
Une
arne
d re
venu
e98
,018
—
—
—
—
98
,018
T
otal
liab
ilitie
s2,
960,
920
2,
861,
361
73
9,99
0
652,
898
1,
776,
784
1,
992,
615
10
,984
,568
Fund
bal
ance
s:
Res
trict
ed fo
r gra
nt p
rogr
ams
100,
000
—
—
—
—
5,
247,
638
5,
347,
638
Res
trict
ed fo
r loa
n pr
ogra
ms
8,92
7,35
5
—
—
—
—
28,0
70,5
30
36,9
97,8
85
Una
ssig
ned
3,82
8,46
6
—
—
—
—
—
3,
828,
466
T
otal
fund
bal
ance
s12
,855
, 821
—
—
—
—
33
,318
, 168
46
,173
, 989
Tota
l lia
bilit
ies
and
fund
bal
ance
s$
15,8
16,7
41
2,86
1,36
1
739,
990
65
2,89
8
1,77
6,78
4
35,3
10,7
83
Amou
nts
repo
rted
for g
over
nmen
tal a
ctiv
ities
in th
e st
atem
ent o
f net
ass
ets
are
diffe
rent
bec
ause
:
C
apita
l ass
ets,
net
of r
elat
ed d
ebt u
sed
in g
over
nmen
tal a
ctiv
ities
are
not
fina
ncia
l res
ourc
es a
nd, t
here
fore
, are
not
repo
rted
in th
e fu
nds.
35,3
24
Lo
ng-t e
rm li
abilit
ies
are
not d
ue a
nd p
ayab
le in
the
curre
nt p
erio
d an
d, th
eref
ore,
are
not
repo
rted
in th
e fu
nds.
(504
, 268
)
N
et a
sset
s of
gov
ernm
enta
l act
iviti
es$
45,7
05,0
45
See
acco
mpa
nyin
g no
tes
to b
asic
fina
ncia
l sta
tem
ents
.
18
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NA
NC
E A
UTH
OR
ITY
(A C
ompo
nent
Uni
t of t
he S
tate
of G
eorg
ia)
Stat
emen
t of R
even
ues,
Exp
endi
ture
s, a
nd C
hang
es in
Fun
d Ba
lanc
es -
Gov
ernm
enta
l Fun
ds
Year
end
ed J
une
30, 2
012
Non
maj
orTo
tal
Wea
ther
izat
ion
AR
RA
-Sta
teA
RR
A-W
eath
eriz
atio
nA
RR
A-E
nerg
y Ef
ficie
ntG
over
nmen
tal
Gov
ernm
enta
lG
ener
alA
ssis
tanc
e Pr
ogra
mEn
ergy
Pro
gram
Ass
ista
nce
Prog
ram
Con
serv
atio
n B
lock
Gra
ntFu
nds
Fund
s
Rev
enue
s:St
ate
appr
opria
tions
$28
3,49
5
—
—
—
—
—
28
3,49
5
Stat
e ge
nera
l obl
igat
ion
bond
pro
ceed
s12
,000
,000
—
—
—
—
—
12,0
00,0
00
Adm
inis
trativ
e fe
es22
5,83
4
—
—
—
—
1,30
3,33
7
1,52
9,17
1
Gra
nt re
venu
es7,
174,
782
6,
830,
810
44
,516
,397
32
,150
,390
6,
538,
836
6,
407,
735
10
3,61
8,95
0
Publ
ic d
onat
ions
—
—
—
—
—
55
,909
55
,909
In
tere
st in
com
e on
inve
stm
ents
24,9
03
—
—
—
—
46,5
40
71,4
43
Mis
cella
neou
s14
,054
—
—
—
—
18
,868
32
,922
Tota
l rev
enue
s19
,723
,068
6,
830,
810
44
,516
,397
32
,150
,390
6,
538,
836
7,
832,
389
11
7,59
1,89
0
Expe
nditu
res:
Cur
rent
:G
ener
al g
over
nmen
t9,
055,
630
—
—
—
—
—
9,05
5,63
0
Wat
er a
nd w
aste
wat
er p
rogr
ams
1,99
7,58
3
—
—
—
—
6,80
1,60
1
8,79
9,18
4
Land
con
serv
atio
n pr
ogra
ms
—
—
—
—
—
59
,061
59
,061
En
ergy
pro
gram
s—
6,83
0,81
0
44,5
16,3
97
32,3
08,1
75
6,53
8,83
6
1,14
1,53
7
91,3
35,7
55
Deb
t ser
vice
:—
—
—
—
—
Prin
cipa
l red
uctio
ns6,
978
—
—
—
—
—
6,97
8
Inte
rest
on
long
-term
deb
t78
—
—
—
—
—
78
Tota
l exp
endi
ture
s11
,060
,269
6,
830,
810
44
,516
,397
32
,308
,175
6,
538,
836
8,
002,
199
10
9,25
6,68
6
Exce
ss o
f rev
enue
s ov
er o
r (un
der)
expe
nditu
res
8,66
2,79
9
—
—
(157
,785
) —
(169
,810
) 8,
335,
204
Oth
er F
inan
cing
Sou
rces
(Use
s):
Tran
sfer
s in
3,40
8,64
1
—
—
157,
785
—
154,
956
3,
721,
382
Tr
ansf
ers
out
(16,
398,
507)
—
—
—
—
(9
7,53
1)
(16,
496,
038)
Tota
l oth
er fi
nanc
ing
sour
ces
and
(use
s)(1
2,98
9,86
6)
—
—
157,
785
—
57,4
25
(12,
774,
656)
Net
cha
nge
in fu
nd b
alan
ces
(4,3
27,0
67)
—
—
—
—
(112
,385
) (4
,439
,452
)
Fund
bal
ance
s –
July
117
,182
,888
—
—
—
—
33
,430
,553
50
,613
,441
Fund
bal
ance
s –
June
30
$12
,855
,821
—
—
—
—
33
,318
,168
46
,173
,989
See
acco
mpa
nyin
g no
tes
to b
asic
fina
ncia
l sta
tem
ents
.
19
Net change in fund balances - total governmental funds (4,439,452)$
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
Depreciation Expense (19,431)
The issuance of long-term debt for capital leases provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. This amount is the net effect of these differences in the treatment of long-term debt and related accounts.
Debt service - principal reductions 6,978
Expenses related to the change in accrued vacation reported in the governmental activities do not require the use of current financial resources and therefore are not reported as expenditures for governmental funds. 52,102
Change in net assets of governmental activities (4,399,803)$
The notes to the financial statements are an integral part of this statement.
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY(A Component Unit of the State of Georgia)
Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year ended June 30, 2012
20
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NAN
CE
AUTH
OR
ITY
(A C
ompo
nent
Uni
t of t
he S
tate
of G
eorg
ia)
Stat
emen
t of N
et A
sset
s - E
nter
pris
e Fu
nds
June
30,
201
2
Non
maj
orTo
tal
Geo
rgia
Res
ervo
irC
lean
Wat
er S
tate
Cle
an W
ater
Sta
te M
atch
Drin
king
Wat
er S
tate
Drin
king
Wat
er S
tate
Mat
chEn
terp
rise
Ente
rpris
e
A
sset
sG
eorg
ia F
und
& W
ater
Sup
ply
Fund
Rev
olvi
ng L
oan
Fund
Rev
olvi
ng L
oan
Fund
Rev
olvi
ng L
oan
Fund
Rev
olvi
ng L
oan
Fund
Fund
sFu
nds
Cur
rent
ass
ets:
C
ash
$8,
439,
732
8,
811
7,
537,
643
1,
297,
890
89
7,11
0
255,
622
19
,814
18
,456
,622
In
vest
men
ts12
9,41
0,76
2
29,0
74,7
02
94,7
14,8
29
55,4
00,7
49
51,1
06,2
09
19,1
05,3
14
1,44
3,84
0
380,
256,
405
D
ue fr
om o
ther
gov
ernm
ents
75,8
33
20,7
50,0
00
—
—
—
—
59,8
91
20,8
85,7
24
D
ue fr
om o
ther
fund
s—
—
22
, 286
27
1,23
0
1,36
0
1,20
4,25
4
—
1,
499,
130
A c
crue
d in
tere
st re
ceiv
able
2,39
9,11
1
4,55
1
2,57
8,26
9
626,
017
27
0,83
8
127,
105
10
2,85
7
6,10
8,74
8
Tot
al c
urre
nt a
sset
s14
0,32
5,43
8
49,8
38,0
64
104,
853,
027
57
,595
,886
52
,275
,517
20
,692
,295
1,
626,
402
42
7,20
6,62
9
Non
curre
nt a
sset
s:
Lo
ans
rece
ivab
le24
8,22
6,06
9
1,37
1,89
3
744,
334,
005
12
7,52
2,18
8
135,
240,
552
34
, 493
,445
6,
688,
380
1,
297,
876,
532
Tot
al n
oncu
rrent
ass
ets
248,
226,
069
1,
371,
893
74
4,33
4,00
5
127,
522,
188
13
5,24
0,55
2
34, 4
93,4
45
6,68
8,38
0
1,29
7,87
6,53
2
Tota
l ass
ets
388,
551,
507
51
,209
,957
84
9,18
7,03
2
185,
118,
074
18
7,51
6,06
9
55,1
85,7
40
8,31
4,78
2
1,72
5,08
3,16
1
Li
abili
ties
Acco
unts
pay
able
and
acc
rued
liab
ilitie
s16
5,81
6
—
—
—
—
—
13
2,63
5
298,
451
Due
to o
ther
fund
s49
5,18
1
—
78
,091
—
—
—
192,
983
76
6,25
5
Due
to o
ther
gov
ernm
ents
—
—
—
—
—
—
17
17
Une
arne
d re
venu
e—
—
—
24,9
67,3
85
—
4,
522,
975
6,
075
29
,496
,435
T
otal
liab
ilitie
s66
0,99
7
—
78
,091
24
,967
,385
—
4,52
2,97
5
331,
710
30
,561
,158
Net
Ass
ets
Res
trict
ed fo
r loa
n pr
ogra
ms
—
—
849,
108,
941
16
0,15
0,68
9
187,
516,
069
50
,662
,765
6,
791,
237
1,
254,
229,
701
Unr
estri
cted
387,
890,
510
51
,209
,957
—
—
—
—
1,
191,
835
44
0,29
2,30
2
T
otal
net
ass
ets
$38
7,89
0,51
0
51, 2
09,9
57
849,
108,
941
16
0,15
0,68
9
187,
516,
069
50
, 662
,765
7,
983,
072
1,
694,
522,
003
S ee
acco
mpa
nyin
g no
tes
to b
asic
fina
ncia
l sta
tem
ents
.
21
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NA
NC
E A
UTH
OR
ITY
(A C
ompo
nent
Uni
t of t
he S
tate
of G
eorg
ia)
Stat
emen
t of R
even
ues,
Exp
ense
s, a
nd C
hang
es in
Net
Ass
ets
- Ent
erpr
ise
Fund
s
Year
end
ed J
une
30, 2
012
Non
maj
orTo
tal
Geo
rgia
Res
ervo
irC
lean
Wat
er S
tate
Cle
an W
ater
Sta
te M
atch
D
rinki
ng W
ater
Sta
teD
rinki
ng W
ater
Sta
te M
atch
Ente
rpris
eEn
terp
rise
Geo
rgia
Fun
d&
Wat
er S
uppl
y Fu
ndR
evol
ving
Loa
n Fu
ndR
evol
ving
Loa
n Fu
ndR
evol
ving
Loa
n Fu
ndR
evol
ving
Loa
n Fu
ndFu
nds
Fund
s
Ope
ratin
g R
even
ues:
Cha
rges
for s
ervi
ces
– in
tere
st in
com
e on
loan
s re
ceiv
able
$8,
961,
789
55
,817
23
,052
,731
1,
809,
702
3,
003,
892
31
1,76
8
368,
460
37
,564
,159
Ad
min
istra
tive
and
prev
enta
tive
mai
nten
ance
fees
194,
491
—
—
—
—
—
700,
710
89
5,20
1
Stat
e co
ntra
ct re
venu
es—
—
—
—
—
—
52
1,75
7
521,
757
M
isce
llane
ous
334
—
—
—
2,69
5
300
36
0,39
3
363,
722
Tota
l ope
ratin
g re
venu
e9,
156,
614
55
,817
23
,052
,731
1,
809,
702
3,
006,
587
31
2,06
8
1,95
1,32
0
39,3
44,8
39
Ope
ratin
g Ex
pens
es:
Wat
er a
nd w
aste
wat
er p
rogr
ams
998,
992
—
4,05
9,20
2
1,50
0,00
0
6,15
1,76
2
311,
768
74
7,22
0
13, 7
68,9
44
Stor
age
tank
mai
nten
ance
pro
gram
s—
—
—
—
—
—
1,
357,
477
1,
357,
477
G
ener
al a
nd a
dmin
istra
tive
659,
908
9,
605
—
22,6
85
—
5,
487
—
697,
685
Tota
l ope
ratin
g ex
pens
es1,
658,
900
9,
605
4,
059,
202
1,
522,
685
6,
151,
762
31
7,25
5
2,10
4,69
7
15,8
24,1
06
Ope
ratin
g in
com
e (lo
ss)
7,49
7,71
4
46,2
12
18,9
93,5
29
287,
017
(3
,145
,175
) (5
,187
) (1
53,3
77)
23,5
20,7
33
Non
oper
atin
g R
even
ues
(Exp
ense
s):
Fede
ral g
rant
con
tribu
tions
—
—
41,0
83,2
32
—
20
,629
,017
—
5,75
6,04
6
67,4
68,2
95
Stat
e co
ntrib
utio
ns23
,000
,000
20
,750
,000
—
—
—
—
—
43,7
50,0
00
Inte
rest
inco
me
on in
vest
men
ts22
0,40
9
44,5
96
85,7
43
104,
199
69
,263
25
,705
2,
196
55
2,11
1
Tota
l non
oper
atin
g re
venu
e23
,220
,409
20
,794
,596
41
,168
,975
10
4,19
9
20,6
98,2
80
25,7
05
5,75
8,24
2
111,
770,
406
Inco
me
befo
re tr
ansf
ers
30,7
18,1
23
20,8
40,8
08
60,1
62,5
04
391,
216
17
,553
,105
20
,518
5,
604,
865
13
5,29
1,13
9
Tran
sfer
s in
—
—
20,1
77,6
80
10,3
69,5
62
4,81
2,10
6
6,02
8,94
6
—
41
,388
,294
Tr
ansf
ers
out
(3,2
00,2
21)
—
—
—
—
(92,
330)
(2
5,32
1,08
7)
(28,
613,
638)
Cha
nges
in n
et a
sset
s27
,517
,902
20
,840
,808
80
,340
,184
10
,760
,778
22
,365
,211
5,
957,
134
(1
9,71
6,22
2)
148,
065,
795
Tota
l net
ass
ets
– J
uly
136
0,37
2,60
8
30,3
69,1
49
768,
768,
757
14
9,38
9,91
1
165,
150,
858
44
,705
,631
27
,699
,294
1,
546,
456,
208
Tota
l net
ass
ets
– J
une
30$
387,
890,
510
51
,209
,957
84
9,10
8,94
1
160,
150,
689
18
7,51
6,06
9
50,6
62,7
65
7,98
3,07
2
1,69
4,52
2,00
3
S ee
acco
mpa
nyin
g no
tes
to b
asic
fina
ncia
l sta
tem
ents
.
22
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NA
NC
E A
UTH
OR
ITY
(A C
ompo
nent
Uni
t of t
he S
tate
of G
eorg
ia)
Stat
emen
t of C
ash
Flow
s - P
ropr
ieta
ry F
und
Type
s - E
nter
pris
e Fu
nds
Year
end
ed J
une
30, 2
012
No
nm
ajo
rT
ota
lG
eorg
ia R
eser
voir
Cle
an W
ater
Sta
teC
lean
Wat
er S
tate
Mat
chD
rin
kin
g W
ater
Sta
teD
rin
kin
g W
ater
Sta
te M
atch
En
terp
rise
En
terp
ris
eG
eorg
ia F
un
d&
Wat
er S
up
ply
Fu
nd
Rev
olv
ing
Lo
an F
un
dR
evo
lvin
g L
oan
Fu
nd
Rev
olv
ing
Lo
an F
un
dR
evo
lvin
g L
oan
Fu
nd
Fu
nd
sF
un
ds
Cas
h flo
ws
from
ope
ratin
g ac
tiviti
es:
Inte
rest
pay
men
ts r
ecei
ved
on lo
ans
rece
ivab
le$
9,94
6,94
4
55,4
89
24,8
39,9
94
3,19
1,49
7
3,48
6,22
3
904,
147
63
8,43
8
43,0
62,
73
2
Adm
inis
trat
ive
fee
paym
ents
100,
897
—
—
—
—
—
706,
785
8
07
,68
2
Sta
te c
ontr
act p
aym
ents
—
—
—
—
—
—
521,
757
5
21
,75
7
Pay
men
ts to
ser
vice
pro
vide
rs(2
,268
,567
)
(9,6
05)
(4
,059
,202
)
(1,5
22,6
85)
(6
,151
,762
)
(317
,255
)
(2,2
54,2
19)
(1
6,5
83
,295
)
Inte
rnal
act
ivity
– p
aym
ents
from
oth
er fu
nds
—
—
7,45
3,03
8
—
24
7,96
0
805,
278
17
,848
,831
26
,35
5,1
07
In
tern
al a
ctiv
ity –
pay
men
ts to
oth
er fu
nds
(3,3
26,0
66)
—
(22,
394,
174)
(6
,545
,911
)
(4,1
13,0
64)
(3
,838
,938
)
(461
,175
)
(40
,67
9,3
27)
M
isce
llane
ous
rece
ipts
273,
155
—
—
—
23,4
89
300
66
0,16
9
95
7,1
13
Net
cas
h pr
ovid
ed b
y (u
sed
in)
oper
atin
g ac
tiviti
es4,
726,
364
45
,884
5,
839,
656
(4
,877
,099
)
(6,5
07,1
54)
(2
,446
,468
)
17,6
60,5
86
14
,44
1,7
69
Cas
h flo
ws
from
non
capi
tal f
inan
cing
act
iviti
es:
Fed
eral
gra
nt c
ontr
ibut
ions
—
—
41,0
83,2
32
—
20
,629
,017
—
5,75
6,04
6
67,4
68,
29
5
Sta
te c
ontr
ibut
ions
23,0
00,0
00
20,7
50,0
00
—
—
—
—
—
43
,75
0,0
00
T
rans
fers
in—
—
20
,177
,680
10
,369
,562
4,
812,
106
6,
028,
946
—
41,3
88,
29
4
Tra
nsfe
rs o
ut(3
,200
,221
)
—
—
—
—
(92,
330)
(2
5,32
1,08
7)
(28
,61
3,6
38)
Net
cas
h pr
ovid
ed b
y (u
sed
in)
nonc
apita
l fin
anci
ng a
ctiv
ities
19,7
99,7
79
20,7
50,0
00
61,2
60,9
12
10,3
69,5
62
25,4
41,1
23
5,93
6,61
6
(19,
565,
041)
1
23
,99
2,9
53
Cas
h flo
ws
from
inve
stin
g ac
tiviti
es:
Inte
rest
inco
me
on in
vest
men
ts22
0,40
9
44,5
96
85,7
43
104,
199
69
,263
25
,705
2,
196
5
52
,11
1
Orig
inat
ions
of a
nd a
dvan
ces
on lo
ans
rece
ivab
le(5
5,64
2,96
5)
(95,
124)
(4
7,37
2,52
4)
(59,
954,
718)
(1
5,88
4,90
3)
(4,8
45,4
86)
(5
,751
,831
)
(18
9,5
47
,55
0)
P
rinci
pal p
aym
ents
rec
eive
d on
loan
s re
ceiv
able
25,8
50,9
82
38,0
64
59,1
90,9
57
5,52
3,28
0
7,38
1,75
8
5,52
3,28
0
3,92
7,61
6
107
,435
,93
6
Net
cas
h pr
ovid
ed b
y (u
sed
in)
inve
stin
g ac
tiviti
es(2
9,57
1,57
4)
(12,
464)
11
,904
,176
(5
4,32
7,23
9)
(8,4
33,8
82)
70
3,49
9
(1,8
22,0
19)
(8
1,5
59
,50
3)
Net
incr
ease
or
(dec
reas
e) in
cas
h an
d ca
sh e
quiv
alen
ts(5
,045
,431
)
33,4
20
79,0
04,7
44
(48,
834,
776)
10
,500
,087
4,
193,
648
(3
,726
,476
)
36
,12
5,2
14
Cas
h an
d ca
sh e
quiv
alen
ts a
t beg
inni
ng o
f yea
r14
2,89
5,92
5
29,0
50,0
93
23,2
47,7
28
105,
533,
415
41
,503
,232
15
,167
,288
5,
190,
130
3
62
,58
7,8
13
Cas
h an
d ca
sh e
quiv
alen
ts a
t end
of y
ear
$13
7,85
0,49
4
29,0
83,5
13
102,
252,
472
56
,698
,639
52
,003
,319
19
,360
,936
1,
463,
654
3
98
,71
3,0
27
Rec
onci
liatio
n to
the
stat
emen
t of n
et a
sset
s:C
ash
$8,
439,
732
8,
811
7,
537,
643
1,
297,
890
89
7,11
0
255,
622
19
,814
18
,45
6,6
22
In
vest
men
ts12
9,41
0,76
2
29,0
74,7
02
94,7
14,8
29
55,4
00,7
49
51,1
06,2
09
19,1
05,3
14
1,44
3,84
0
380
,256
,40
5
$13
7,85
0,49
4
29,0
83,5
13
102,
252,
472
56
,698
,639
52
,003
,319
19
,360
,936
1,
463,
654
3
98,
71
3,0
27
Rec
onci
liatio
n of
ope
ratin
g in
com
e (lo
ss)
to n
et c
ash
prov
ided
by (
used
in)
oper
atin
g ac
tiviti
es:
Ope
ratin
g in
com
e (lo
ss)
$7,
497,
714
46
,212
18
,993
,529
28
7,01
7
(3,1
45,1
75)
(5
,187
)
(153
,377
)
23,5
20,
73
3
Adj
ustm
ents
to r
econ
cile
ope
ratin
g in
com
e (lo
ss)
to n
et c
ash
prov
ided
by
(use
d in
) op
erat
ing
activ
ities
:C
hang
e in
ass
ets
and
liabi
litie
s:D
ue fr
om o
ther
gov
ernm
ents
373,
719
—
—
—
20,7
94
—
29
9,77
7
69
4,2
90
A
ccru
ed in
tere
st r
ecei
vabl
e79
0,66
3
(328
)
1,78
7,26
3
(173
,850
)
482,
331
95
,362
26
9,97
8
3,2
51
,41
9
Due
from
oth
er fu
nds
—
—
7,45
3,03
8
—
24
7,96
0
805,
278
17
,848
,831
26
,35
5,1
07
D
ue to
oth
er fu
nds
(3,3
26,0
66)
—
(22,
394,
174)
(6
,545
,911
)
(4,1
13,0
64)
(3
,838
,938
)
(461
,175
)
(40
,67
9,3
27)
A
ccru
ed li
abili
ties
(609
,667
)
—
—
—
—
—
(1
49,5
23)
(7
59
,190
)
Une
arne
d re
venu
e—
—
—
1,55
5,64
5
—
49
7,01
7
6,07
5
2,0
58
,73
7
Net
cas
h pr
ovid
ed b
y (u
sed
in)
oper
atin
g ac
tiviti
es$
4,72
6,36
4
45,8
84
5,83
9,65
6
(4,8
77,0
99)
(6
,507
,154
)
(2,4
46,4
68)
17
,660
,586
1
4,4
41
,76
9
See
acc
ompa
nyin
g no
tes
to b
asic
fina
ncia
l sta
tem
ents
.
23
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
(1) Summary of Significant Accounting Policies
(a) Organization
The Georgia Environmental Finance Authority (the “Authority”) was created by an Act of the State of Georgia (the “State”) in 1986 as the successor agency to the Georgia Development Authority Environmental Facilities Program. The primary mission of the Authority is to provide funding to eligible municipalities, counties, water and sewer authorities, and solid waste authorities in the state for construction and expansion of public water, sewer, and solid waste facilities.
The Governor of the State of Georgia appoints eight members of the Authority’s Board and three ex-officio members are designated by the Authority’s enabling legislation. Due to the extent of its fiscal dependency on the State, the Authority is considered a component unit of the State.
The Authority has control over the Division of Energy Resources (the “DOER”), which provides administration for statewide energy conservation programs including weatherization of homes for low income citizens and retrofitting of HVAC systems for schools and other state facilities.
Additionally, the Authority has control over the Clean Water and Drinking Water State Revolving Loan Fund (the “SRF”), which was previously administered by the Georgia Environmental Protection Division (the “EPD”). EPD retained compliance responsibility for capitalization grants issued by the United States Environmental Protection Agency (the “EPA”) applicable to Federal fiscal years 1988-1993 until such grants were fully expended. The Authority is the recipient of and is responsible for the administration of capitalization grants applicable to Federal fiscal years 1994 and beyond. The Authority and EPD have signed a reciprocal agreement concerning technical and financial administration of the SRF. This agreement places ownership of the fund with the Authority in accordance with Sections 12-5-38.1 and 50-23-5 of the Official Code of Georgia Annotated (the “OCGA”). As a result, the full amount of assets, liabilities, and net assets of the fund are included in the financial statements of the Authority in the Clean Water SRF and in the Drinking Water SRF.
The SRF was initially established for the purpose of making loans to local governments for construction of publicly owned wastewater treatment facilities and was funded through capitalization grants from EPA under the authority of the Clean Water Act. In 1996, the U.S. Congress passed the Safe Drinking Water Act and added a Drinking Water SRF program. The program was established for the purpose of making loans to local governments for construction of publicly owned water supply facilities and is funded through capitalization grants from the EPA under the authority of the Safe Drinking Water Act. To receive capitalization grants from both of these programs, a recipient state must agree to provide state funds for qualifying projects equal to 20% of the capitalization grant amount. In order to provide the matching requirement for the Clean Water SRF program, the Authority has dedicated qualifying loans from its existing state funded loan portfolio and certain interest earnings on loan repayments and transferred these loans and interest earnings to the SRF. In some instances, the matching requirement is met by amounts appropriated, and paid, by the state, the Authority’s current method for meeting the 20% match requirement. The results of these transactions are displayed on the financial statements of the major enterprise funds – the Clean Water State Revolving
(continued)24
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
Loan Fund, the Clean Water State Match Revolving Loan Fund, the Drinking Water State Revolving Loan Fund and the Drinking Water State Match Revolving Loan Fund.
Effective July 1, 1995, the Fuel Storage Tank Management Group (the “FST”) formerly part of the EPD was brought under the control of the Authority. This unit is engaged in the disposal and/or remediation of state owned fuel tanks to mandated EPA standards. Therefore, local governments do not benefit directly from this program. Pursuant to the bond issuance from which the proceeds to fund FST remediation efforts were derived, the Authority is not authorized to receive and expend bond funds for the program. Thus, the Authority has entered into an agreement with the Georgia State Financing and Investment Commission (the “GSFIC”) and the Georgia Building Authority (the “GBA”) to act as agents to receive and expend funds under this program. However, the Authority administers this program and determines fund recipients. GSFIC and GBA only act as receiving and paying agents. Therefore, the only activity reflected on the Authority’s books is for the cost of the operation of the unit. FST bond funds received by GSFIC and expended by GBA were not accounted for on the Authority’s books prior to fiscal year 2009. Effective fiscal year 2009, the Authority began reporting activity of the FST and that activity is reflected in the nonmajor enterprise fund – Storage Tank Maintenance Fund.
In 2010, the Authority’s governing legislation was amended to provide for the creation of subsidiary corporations to carry out any of its corporate purposes and to permit it to transfer to the State of Georgia any funds not needed for its corporate purposes. In July 2010, the Authority created the Georgia Environmental Loan Acquisition Corporation (the “Corporation”) as a subsidiary organization pursuant to such provisions of law for the purpose of acquiring a portion of the Authority’s loan portfolio and issuing bonds secured by the acquired loans to finance their purchase.
Reporting Entity – Component units are legally separate organizations for which the State’s or Authority’s elected or appointed officials are financially accountable. In accordance with criteria in GASB Statements Nos. 14 and 39, the Authority qualifies for treatment as a component unit of the State of Georgia; therefore, the Authority’s financial statements are included in the State of Georgia’s combined financial statements as a discretely presented component unit.
Discretely Presented Component Unit
Financial accountability is the ability of the Authority to appoint a voting majority of an organization’s governing board and to impose its will upon the organization or when there exists the potential for the organization to provide specific financial benefits or impose specific financial burdens on the primary government. When the Authority does not appoint a voting majority of organization’s governing body, GASB standards require inclusion in the financial reporting entity if an organization is fiscally dependent upon the Authority, its resources are held for the direct benefit of the Authority or can be accessed by the Authority, or the relationship is such that it would be misleading to exclude it. In accordance with GASB Statement No. 14, the Corporation qualifies for treatment as a component unit because it is a legally separate, tax-exempt organization, the majority of whose board is appointed by the Authority, for which the Authority can impose its will on the Corporation by virtue of having the same management personnel, and whose economic resources are directly accessible by the
(continued)25
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
Authority. As such, the Authority presents within these statements the Corporation as a discretely presented component unit.
The Statement of Net Assets and the Statement of Revenues, Expenses, and Changes in Net Assets of the Corporation are reported discretely in the Authority’s financial statements for fiscal year 2012 as required by government accounting standards. Complete separate financial statements for the Corporation may be obtained by contacting the Authority’s Controller at 233 Peachtree Street, NE, Harris Tower, Suite 900, Atlanta, GA 30303-1506.
(b) Government-Wide and Fund Financial Statements
The Authority presents government-wide financial statements which are prepared using the accrual basis of accounting and the economic resources measurement focus. Government-wide financial statements (i.e. the statement of net assets and the statement of activities) do not provide information by fund, but distinguish between the Authority’s governmental activities and business type activities. Significantly, the statement of net assets includes noncurrent assets and liabilities and the government-wide statement of activities reflects depreciation expenses on the Authority’s capital assets and changes in long-term liabilities. Also, for the most part, the effect of the interfund activity is removed from these statements. Net assets in the statement of net assets are distinguished between amounts invested in capital assets (net of any related debt), amounts that are restricted for use by third parties or outside requirements, and amounts that are unrestricted.
The statement of activities demonstrates the degree to which direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use, or benefit from the services provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment, and 3) interest income that is restricted for use on a particular function or segment. Unrestricted interest income and other items not properly included among program revenues are reported as general revenues.
In addition to the government-wide financial statements, the Authority has prepared separate financial statements for governmental funds and proprietary funds. Governmental fund financial statements use the modified accrual basis of accounting and the current financial resources measurement focus and proprietary fund financial statements use the accrual basis of accounting and the economic resources measurement focus.
(c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met.
(continued)26
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are considered measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Authority considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Exceptions to this rule are: (1) administrative fees received on loans which are paid within one year of the initial construction loan contract, and as a result, those revenues are considered available to pay the related costs in establishing the loan if collected within one year of the current fiscal period and (2) revenues associated with the American Recovery and Reinvestment Act (ARRA) grant programs. Due to compliance requirements of ARRA, the Authority considers revenues to be available if they are collected within 90 days of the end of the current fiscal year. An additional 30 days were determined a reasonable period for ARRA programs because all grants were not accustomed to additional compliance measures such as Davis Bacon Act (DBA) reporting requirements, Buy American Act provisions of the ARRA award and other internally mandated oversight requirements on the subrecipients. Expenditures generally are recorded when a liability is incurred, as under usual accrual accounting. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant certifications and requirements have been met.
The Authority reports the following major governmental funds:
General Fund – The General Fund is the general operating fund of the Authority. It is used to account for all financial resources except those required to be accounted for in another fund.
Weatherization Assistance Program Fund – This fund is used to account for the Authority’s grants to local governments and nonprofit entities to be used for the weatherization of low and moderate income citizen’s homes, as well as provide assistance in paying utility bills for these citizens. Part of this program is known as the Integrated Resources Program (the “IRP”) and is funded by contributions from the Georgia Power Company and Atlanta Gas Light Company pursuant to an order of the Georgia Public Service Commission. Other financing is provided by Federal grants from the Department of Energy and the Department of Health and Human Services and petroleum violation escrow funds.
ARRA-State Energy Program Fund – This fund is used to account for the Authority’s grants restricted to state agencies, local governments and nonprofit entities for a variety of energy efficiency and renewable energy projects. This program is funded by Federal grants related to the American Recovery and Reinvestment Act (ARRA) from the U.S. Department of Energy.
ARRA-Weatherization Assistance Program Fund – This fund is used to account for the Authority’s grants restricted to local governments and nonprofit entities to be used for the weatherization of low and moderate income citizen’s homes, as well as provide assistance in
(continued)27
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
paying utility bills for these citizens. Financing is provided by federal grants from the United States Department of Energy under ARRA.
ARRA-Energy Efficiency Conservation Block Grant Fund - This fund is used to account for the Authority’s grants restricted to local governments, private businesses and nonprofit entities for a variety of energy efficiency and renewable energy projects. This program is funded by Federal grants related to the American Recovery and Reinvestment Act (ARRA) from the U.S. Department of Energy.
The Authority reports the following major enterprise funds:
Georgia Fund – This fund is used to account for loans to local governments for water, sewer, and solid waste improvements. Its revenues are derived from interest income on loans receivable and interest income on investments. The original funding for these loans is provided through state appropriations or general obligation bonds.
Georgia Reservoir & Water Supply Fund - This fund is used to account for activities and monies associated with grants and loans to governments specific to the construction of reservoirs and other eligible water supply operations and systems. Its revenues are derived from the interest income on loans receivable and interest income on investments. The original funding for these grants and loans is provided through state appropriations or general obligation bonds.
Clean Water State Revolving Loan Fund – This fund is used to account for loans to local governments for wastewater treatment projects. The original funding for these loans is provided through federal capitalization grants. The fund’s revenues are derived from interest income on loans receivable and interest income on investments.
Clean Water State Match Revolving Loan Fund – This fund is used to account for the state’s matching portion to provide for loans for wastewater treatment projects similar to the Clean Water State Revolving Loan Fund. The federal government requires the state to match 20% of the funds contributed to the Clean Water SRF in order to receive the full funding available for wastewater treatment projects. The original funding for these loans is provided by the State. The fund’s revenues are derived from interest income on loans receivable and interest income on investments.
Drinking Water State Revolving Loan Fund – This fund is used to account for loans to local governments for water supply projects. These loans are intended to primarily fund projects which promote compliance with the Safe Drinking Water Act. The original funding for these loans is provided through federal capitalization grants. The fund’s revenues are derived from interest income on loans receivable and interest income on investments.
(continued)28
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
Drinking Water State Match Revolving Loan Fund - This fund is used to account for the state’s matching portion to provide for loans for drinking water treatment projects similar to the Drinking Water State Revolving Loan Fund. The federal government requires the state to match 20% of the funds contributed to the Drinking Water State Revolving Loan Fund in order to receive the full funding available for drinking water treatment projects. The original funding for these loans is provided by the state. The fund’s revenues are derived from interest income on loans receivable and interest income on investments.
Private-sector standards of accounting and financial reporting issued prior to November 30, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the GASB. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The Authority has elected not to follow subsequent private-sector guidance.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements, except for the net activity between the governmental and business-type activities.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with the proprietary fund’s principal ongoing operations. The principal operating revenue of each of the Authority’s enterprise funds is interest income on loans outstanding and fee charges for providing training and technical assistance to UST and AST operators. Operating expenses for the enterprise funds include direct general and administrative expenses of administering the programs. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. General administrative overhead expenses are recorded in the general government function within the governmental activities.
When multiple resources are available for use, it is the Authority’s policy to use resources in the following order: (1) restricted, (2) committed, (3) assigned, and (4) unassigned, for those items recorded within the governmental funds. For net assets, restricted resources are used when available, prior to unrestricted resources. Nonspendable resources are utilized in accordance with requirements for those resources to be expended, i.e. billing terms, normal consumption or payment schedules.
(d) Cash Equivalents
For purposes of the statement of cash flows, all investments with original maturity dates of three months or less are considered cash equivalents.
(e) Loans Receivable
Loans receivable are stated at their unpaid principal balance less undisbursed portion of loans in process. Additionally, certain loan programs utilized by the Authority allow for forgiveness of a certain portion of the principal amount of the loan or provide a subsidized portion of the loan to communities
(continued)29
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
who meet eligibility criteria to qualify as “disadvantaged” communities under federal poverty guidelines. The expected forgiven amount or subsidized portion has been expensed by the Authority as the overall loans are disbursed and this amount is not included in the loans receivable at year end.
The evaluation of the need for an allowance for loan losses is based on management’s evaluation of the loan portfolio, current economic conditions, payment history and other such factors which, in management’s judgment, deserve recognition in estimating loan losses. As of June 30, 2012, the Authority does not have a basis for establishing such a provision based on these criteria.
(f) Interfund Activity
All outstanding balances between funds are reported as due from/to other funds in the fund financial statements. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
(g) Due from Other Governments
Due from other governments includes approximately $1,273,129 due from the United States EPA, $3,417,466 due from the United States Department of Energy, $22,435,388 due from various state entities, $874,260 due from local governments and authorities within the state and $363,350 due from contractual funders of energy programs.
(h) Due to Other Governments
Due to other governments includes approximately $14,865 due to the United States Department of Energy for refunds received from subrecipients and $17 due to the Georgia Department of Transportation for a vendor refund.
(i) Capital Assets
Capital assets, which include various types of computer equipment and furniture and fixtures, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Authority as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost. Donated capital assets are recorded at their estimated fair value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets lives are not capitalized.
Capital assets of the Authority are depreciated using the straight line method over the following estimated useful lives:
Asset Years
Computer equipment - purchased 5
Computer equipment - leased Life of leaseFurniture and fixtures 5
(continued)30
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
(j) Investments
Investments consist of funds on deposit in the Georgia Fund 1, the State of Georgia investment pool. The Georgia Fund 1 is an external investment pool, managed by the State of Georgia's Office of the State Treasurer, which is not registered with the Securities and Exchange Commission (SEC) but does operate in a manner consistent with SEC’s Rule 2a7 of the Investment Company Act of 1940. Accordingly, the Authority’s investments in the Georgia Fund 1 have been determined based on the pool’s share price. Other investments are stated at fair value based on quoted market prices.
(k) Income Taxes
The Authority is exempt from Federal income taxes as an integral part of a state government. Accordingly, no provision for income taxes has been recorded in the accompanying financial statements.
(l) Compensated Absences
It is the Authority’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. No liability is reported for unpaid accumulated sick leave because the payment of the benefits is contingent upon any future illness of an employee. No cash payments for accumulated sick leave are made to employees upon their retirement or termination of employment. Vacation pay is reported as an expense and a liability in the government-wide financial statements, but is not a liability in the governmental fund statements as it was not due for payment during the current period.
(m) Risk Management
The Authority is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; workers’ compensation; and natural disasters.
The Authority is a member of the State of Georgia Insurance Fund, a public entity risk pool currently operating as a common risk management and insurance program for various State agencies. The Authority pays an annual premium to the State for its insurance coverage. For the year ended June 30, 2012, the Authority paid premiums totaling $15,709.
(n) Fund Equity
(1) Government-wide statements – Equity is classified as net assets and displayed in three components:
(a) Invested in capital assets, net of related debt – Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other debt attributable to the acquisition, construction or improvement of those assets.
(continued)31
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
(b) Restricted net assets – Consists of net assets with constraints placed on the use either by (a) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (b) law through constitutional provisions or enabling legislation.
(c) Unrestricted net assets – All other assets that do not meet the definition of “restricted” or “invested in capital assets, net of related debt.”
(2) Fund financial statements - Governmental fund equity is classified as fund balance. Fund balance can have one of five primary classifications: (1) nonspendable, (2) restricted, (3) committed, (4) assigned or (5) unassigned. Nonspendable fund balance includes amounts that cannot be spent and are, therefore, not included in the current year appropriation. Restricted fund balance includes amounts that are restricted to very specific purposes and cannot be redeployed for other purposes. The Authority considers restricted and unrestricted amounts spent when expenditures have been incurred for purposes for which both restricted and unrestricted fund balance is available. These restrictions are either externally imposed by outside parties or by constitutional provisions or enabling legislation. Committed fund balance represents amounts that have internally imposed restrictions mandated by formal action of the Authority’s Board. Assigned fund balance represents amounts that are constrained by the Authority’s intent that they will be used for specific purposes which may be so designated by the Authority’s Executive Director or governing Board. The Authority fund equity balances are comprised of restricted and unassigned amounts. Amounts restricted represent appropriated amounts provided by the State to execute certain grant programs of the Authority and general obligation bond proceeds of the state provided to be a match resource to the federally funding state revolving loan funds. Unassigned fund balance represents residual amounts that are available for further appropriation and expenditure for general governmental purposes. Unassigned fund balance is only available for the Authority’s General Fund. Proprietary fund equity is classified the same as in the government-wide statements.
(o) Management Estimates
The preparation of financial statements in conformity with accounting principles generally accepted within the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amount of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
(p) Future Accounting Pronouncements
The Authority and its component unit will adopt the following new accounting pronouncements in future years, if applicable:
Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, effective for the Authority’s year ending June 30, 2013.
(continued)32
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
Statement No. 61, The Financial Reporting Entity: Omnibus – an amendment of GASB Statements No. 14 and No. 34, effective for the Authority’s year ending June 30, 2013.
Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, effective for the Authority’s year ending June 30, 2013.
Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, effective for the Authority’s year ending June 30, 2013.
Statement No. 65, Items Previously Reported as Assets and Liabilities, effective for the Authority’s year ending June 30, 2014.
Statement No. 66, Technical Corrections-2012-an amendment of GASB Statements No. 10 and No. 62, effective for the Authority’s year ending June 30, 2013.
Statement No. 67, Financial Reporting for Pension Plans-an amendment of GASB Statement No. 25, effective for the Authority’s year ending June 30, 2014.
Statement No. 68, Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27, effective for the Authority’s year ending June 30, 2015.
Management is in the process of determining the effect, if any, that the adoption of these Statements will have on the Authority’s or its component unit’s financial position or the disclosures in its financial statements.
(2) Budgetary Information
The Authority does not adopt an annual budget since it is included in the State of Georgia’s budget as a one-line appropriation within the Department of Community Affairs budget under the Authority’s enabling legislation. However, the Authority’s management does utilize a budget for its General Fund to be used for financial analysis purposes throughout the year. The Authority received a state appropriation of $56,033,495 for fiscal year 2012 which was collected in its entirety, with the exception of $20,750,000 for the Georgia Reservoir and Water Supply Fund which was received in July 2012, and expended or obligated as follows: (1) $55,750,000 in general obligation bonds provided for the state and federal loan programs, (2) $283,495 in cash appropriations for the operating expenses of the Georgia Rural Water Association program which is included in the General Fund.
(3) Deposits and Investments
Deposits
Custodial Credit Risk – Custodial credit risk is the risk that, in the event of bank failure, the Authority’s deposits may not be returned to it. The Authority has a formal deposit policy with its selected custodian, or an agent acting on behalf of the custodian, for custodial credit risk as required by the State of Georgia which
(continued)33
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
insures balances over the FDIC insurance at 110% of that overage. The Authority’s bank balances of $23,176,199 with a carrying value of $23,176,144 at June 30, 2012 were entirely insured by FDIC insurance or collateralized by investment securities held by the Authority’s agent in the Authority’s name.
Investments
Credit Risk - Statutes authorize the Authority to invest in obligations of the State of Georgia, obligations of the U.S. Treasury and U.S. Agencies, certificates of deposit, repurchase agreements, reverse repurchase agreements, rate guarantee agreements, and State operated investment pools. The State operated investment pool is authorized to invest in the same types of securities.
As shown below, the Authority’s investments at June 30, 2012 were categorized by credit risk as follows:
Interest Rate Risk – Interest rate risk is associated with changes in interest rates that adversely affect an investment’s fair value. Since the price of a bond fluctuates inversely with market interest rates, the price of the bond held in a portfolio will decline if market interest rates rise. At June 30, 2012, interest rate risk is represented in the above table as “Maturities” for each investment classification. The Authority’s Investment Policy has been developed around those policies set forth by the State of Georgia. The Authority has structured its investment portfolio with investments having maturity dates at or prior to the time cash is prudently projected to be required to meet disbursement needs, thereby avoiding the need to sell securities prior to their maturity. This structure has been achieved by providing investments in the Georgia Fund 1. The Authority’s investment policy further outlines that the portfolio for investments in U.S. Treasuries and U.S. Agencies are limited to maturities with a maximum of five years from the date of purchase, although the Authority did not have any long-term investments at June 30, 2012.
(4) Loans Receivable
Loans receivable at June 30, 2012 are summarized as follows:
At June 30, 2012, the Authority had commitments to fund projects, excluding the unfunded portion of loans in process, totaling $69,359,322. In accordance with certain loan programs, the Authority expensed a forgiven portion of loans in the amount of $867,083 in the ARRA-Clean Water State Revolving Loan Fund and ($119,863) in the ARRA Drinking Water State Revolving Loan Fund (non-major enterprise funds); $251,976
Investment Rating Maturities Fair Value
Georgia Fund 1 AAAm 48-day WAM 420,953,933$
Amount
Water and wastewater facility and conservation loans $ 1,469,511,143
Undisbursed portion of loans in process (171,634,611)
Unpaid principal balance $ 1,297,876,532
(continued)34
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
in the Clean Water SRF Administration Fund (non-major governmental fund); $4,059,202 in the Clean Water State Revolving Loan Fund; $1,500,000 in the Clean Water State Match Revolving Loan Fund; and $4,904,692 in the Drinking Water State Revolving Loan Fund during fiscal year 2012. The Authority had negative principal forgiveness expense in its ARRA-Drinking Water State Revolving Loan Fund because principal forgiveness at the onset of ARRA was given upfront in an effort to meet federal guidelines over the amount to provide as principal forgiveness. However, each award had a specific percent to be provided and some communities did not use their entire award and thus the principal forgiveness for those loans was adjusted and the balance of their loan increased to ensure no community received a higher percentage of principal forgiveness than what was stated within its contract.
Additionally, the Authority provided a subsidized portion of loans in the amount of $1,247,070 in the Drinking Water State Revolving Loan Fund and $311,768 in the Drinking Water State Match Revolving Loan Fund. As these amounts are expensed and forgiven or subsidized, they are not included in the unpaid principal balance above.
Based on management’s evaluation of the loan portfolio, current economic factors, past payment history and other relevant factors, including the borrower’s ability to repay and the Authority’s remedies to enforce repayment, a provision for potential loan losses has not been provided. Such remedies include the ability of the Authority to compel rate and fee increases and/or the full faith and credit pledge of the borrower to be used at the Authority’s discretion.
Future Commitments
The Authority has entered into contractual agreements to fund three Clean Water State Revolving Loan Fund loans with resources from the Georgia Fund in the amount of $40,995,874. It is anticipated that balloon payments on these loans will become due in full between February 1, 2027 and February 1, 2028. The Authority plans to designate funds at a proportionate amount annually to accumulate adequate resources at the time the loans become payable to each of their respective funds beginning with fiscal year 2013.
(5) Bonds Payable and Other Long-Term Liabilities
Primary Government
Capital Leases:
Over the past five fiscal years, the Authority entered into five noncancelable three-year lease agreements to lease office equipment in the amount of $74,870 to be expended from resources of governmental funds. The lease agreements qualify as capital leases for accounting purposes and have been recorded at the present value of future minimum lease payments as of the date of its inception. During the 2012 fiscal year, the remaining leases were bought out and the related debt was adjusted to zero as reflected in the government-wide financial statements. The $6,978 balance of the two leases with interest rates of 3.6% and 4.2% was fully satisfied with agreements to purchase the equipment at no additional penalty to the Authority.
(continued)35
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
The following is an analysis of capital leases as of June 30, 2012:
Compensated Absences:
The Authority had $124,716 in additions to compensated absences representative of vacation pay earned by employees or addition of new staff and reductions of $176,818 to compensated absences due to employee terminations or vacation hours used by employees. Compensated absences are liquidated by those funds that have salary and wage expenditures, typically the General Fund.
The Authority’s long-term liabilities activity for the year ended June 30, 2012, was as follows:
Component Unit
The Corporation issued two series of local government loan securitization bonds: CCMWA Loans (Series 2011) issued on February 17, 2011 with a maturity date of February 15, 2036 and the Loan Pool (Series 2011) issued on March 30, 2011 with a maturity date of March 15, 2031. The proceeds of the sales of the Series 2011 Bonds were used to acquire certain local government loans from the Authority, to establish a debt service reserve, and to pay the costs of issuing the Series 2011 Bonds. The Series 2011 Bonds are payable primarily from and secured primarily by a pledge of repayments on the local government loans to be received over the duration of the bonds’ maturity. The bonds bear interest rates between .54 and 5.25%. The below table summarizes bonds payable outstanding:
Governmental
Activities
Equipment 74,870$
Less accumulated depreciation (74,870)
Carrying value -$
Balance Balance Amount due June 30, June 30, within
Description 2011 Additions Reductions 2012 one yearGovernmental activities Capital leases $ 6,978 — 6,978 — — Compensated absences 556,370 124,716 176,818 504,268 126,067
Total Governmental activities $ 563,348 124,716 183,796 504,268 126,067
(continued)37
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
The Corporation has engaged the services of a trustee, Bank of New York Mellon, which is managing the debt service of the bonds. As a condition of trustee services, the Corporation has on deposit adequate debt service reserves as stipulated by bond resolutions. A portion of the cash with fiscal agent constitutes the debt service reserve. As of June 30, 2012, the trustee had on hand for the CCMWA Loan. Series 2011 and the Loan Pool, Series 2011 $520,987 and $10,304,062 respectively as the debt service reserve amounts. These amounts are automatically adjusted and returned to the Corporation as principal amounts are proportionally reduced. The balance of cash with fiscal agent, $9,499,758, was held by the trustee for the payment of principal and interest at their schedule due dates. In addition to these requirements, the bond resolutions require other areas of compliance such as the filing of a monthly debt servicer’s report and the timely completion of an annual audit. As of June 30, 2012, the Corporation believes it has complied with all of the necessary requirements of the bond issuances. Future debt service requirements are as follows:
Originalissue Interest Carrying
amount rates valueCCMWA Loans, Series 2011 29,255,000$ .65 - 5.25% 28,505,000 Less bond discount (209,368) Subtotal 28,295,632
Loan Pool, Series 2011 202,755,000$ .54 - 5.125% 160,290,000 Less bond discount (465,132) Subtotal 159,824,868
Total bond series 188,795,000 Less bond discount (674,500)
Outstanding principal, June 30, 2012 188,120,500$
Principal Interest Principal Interest Total
Year ending June 30:2013 750$ 1,266 10,015 7,667 19,698 2014 755 1,258 - 7,596 9,609 2015 770 1,247 - 7,383 9,400 2016 790 1,231 180 7,243 9,444 2017 810 1,212 12,365 6,737 21,124
Thereafter 24,630 16,068 137,730 68,640 247,068 Total 28,505$ 22,282 160,290 105,266 316,343
CCMWA Loans, Series 2011 Loan Pool, Series 2011Future debt service requirements (in thousands)
(continued)37
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
As a requirement of the Corporation’s issuances, any principal retired early by the local governments constitutes a mandatory redemption of principal on its outstanding debt. Therefore, in fiscal year 2012, the Corporation retired $33,820,000 more than its anticipated retirement of debt. The early retirement of debt by the Corporation is predicated on local governments’ decisions to pay off their outstanding debt and is undeterminable as of June 30, 2012 as well as any reduction in interest amounts to be paid. Amounts due in 2013 above include known prepayments subsequent to June 30, 2012 which will be paid in FY 2013. Any reduced interest payments as a result of the early retirements of debt will be considered a cost savings to the Corporation and are not reflected in the above table.
For the year ended June 30, 2012, the Corporation had the following activity within its long-term liabilities:
The unamortized bond discounts for both issuances were deferred and amortized over the life of the bonds using the effective interest method.
(6) Interfund Receivables, Payables and Transfers
Interfund activity as of June 30, 2012, is as follows:
Due from/to other funds:
Amounts dueJune 30, June 30, within
2011 Additions Reductions 2012 one yearCCMWA Loans, Series 2011 $ 29,255,000 - 750,000 28,505,000 750,000 Unamortized Bond Discount (214,299) - (4,931) (209,368) -
Loan Pool, Series 2011 196,865,000 - 36,575,000 160,290,000 10,015,000 Unamortized Bond Discount (508,663) - (43,531) (465,132) - Total $ 225,397,038 - 37,276,538 188,120,500 10,765,000
Description
(continued)38
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
The outstanding balances between funds result mainly from the time lag between the dates that (1) Interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”.
Receivable Fund Payable Fund AmountGeneral Fund ARRA-State Energy Program $ 91,564
Nonmajor governmental funds 19,807
Georgia Fund 480,523
Clean Water State Revolving Loan Fund 52,174
Nonmajor enterprise funds 164,918
Weatherization Assistance Program Nonmajor governmental funds 831,589
Nonmajor governmental funds General Fund 533,332
Weatherization Assistance Program 1,960,745
Nonmajor governmental funds 59,399
Georgia Fund 14,658
Clean Water State Revolving Loan Fund 25,917
Nonmajor enterprise funds 8,251
Clean Water State Revolving Loan Fund General Fund 2,472
Nonmajor enterprise funds 19,814
Clean Water State Match Revolving Loan Fund General Fund 271,230
Drinking Water State Revolving Loan Fund General Fund 1,360
Drinking Water State Match Revolving Loan Fund General Fund 1,204,254
Total $ 5,742,007
(continued)39
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
Interfund transfers:
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them or (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary operations, including amounts provided as matching funds for various grant and loan programs.
In addition, for loan activity originally funded with ARRA funds in the ARRA-Clean Water State Revolving Loan Fund or the ARRA-Drinking Water State Revolving Loan Fund, EPA has not imposed any requirements that loans originated by these activities should permanently remain within its original accounting fund established solely as a requirement to segregate monies from the Authority’s other funds. As such, when loans are closed and placed into a permanent repayment status, they are transferred into their corresponding federal program, the Clean Water State Revolving Loan Fund or the Drinking Water State Revolving Loan.
Transfers-in Fund Transfers-out Fund AmountGeneral Fund Nonmajor governmental funds $ 18,060
Georgia Fund 2,966,950 Nonmajor enterprise funds 423,631
Nonmajor governmental funds Nonmajor governmental funds 79,470 Georgia Fund 75,486
ARRA-Weatherization Assistance Program Georgia Fund 157,785 Clean Water State Revolving Loan Fund Nonmajor enterprise funds 20,177,681 Clean Water State Match Revolving Loan Fund General Fund 10,369,562 Drinking Water State Revolving Loan Fund Drinking Water State Match Revolving Loan Fund 92,330
Nonmajor enterprise funds 4,719,776 Drinking Water State Match Revolving Loan Fund General Fund 6,028,946 Total $ 45,109,677
(continued)40
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
(7) Capital Assets
The Authority’s capital asset activity for the year ended June 30, 2012 was as follows:
Depreciation expense of $19,431 was charged to the general government function.
(8) Retirement Plans
The Authority participates in various retirement plans administered by the State of Georgia under the Employees’ Retirement System of Georgia (ERS System). The ERS System issues separate publicly available financial reports that include the applicable financial statements and required supplementary information. The reports may be obtained from the ERS System office. The significant retirement plans that the Authority participates in are described below. More detailed information can be found in the plan agreements and related legislation. The ERS plan, including benefit and contribution provisions, was established and can be amended by State law. The ERS System covers all employees who elect to participate in the plan which is solely voluntary. The payroll for employees who have elected to be covered by the ERS System and the total payroll of the Authority was $3,259,554 for the year ended June 30, 2012.
Employees’ Retirement System of Georgia
The ERS System is comprised of individual retirement systems and plans covering substantially all employees of the State of Georgia except for teachers and other employees covered by the Teachers Retirement System of Georgia. One of the ERS System plans, the Employees’ Retirement System of Georgia (ERS), is a cost-sharing multiple-employer defined benefit pension plan that was established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation. ERS acts pursuant to statutory direction and guidelines, which may be amended prospectively for new hires but for existing members and beneficiaries may be amended in some aspects only subject to potential application of certain constitutional restraints against impairment of contract.
Balance BalanceJune 30, June 30,
Asset category 2011 Additions Deletions 2012Cost:
Computer equipment $ 194,957 — — 194,957 Total cost 194,957 — — 194,957
Accumulated depreciation:
Computer equipment 140,202 19,431 — 159,633 Total accumulated
depreciation 140,202 19,431 — 159,633 Total net capital assets $ 54,755 19,431 — 35,324
(continued)41
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
On November 20, 1997, the Board created the Supplemental Retirement Benefit Plan (SRBP-ERS) of ERS. SRBP-ERS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of the SRBP-ERS is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC Section 415. Beginning January 1, 1998, all members and retired former members in ERS are eligible to participate in the SRBP-ERS whenever their benefits under ERS exceed the limitation on benefits imposed by IRC Section 415.
The benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an “old plan” member subject to the plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are “new plan” members subject to the modified plan provisions. Effective January 1, 2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the “old” or “new” plan, are members of the Georgia State Employees’ Pension and Savings Plan (GSEPS). Members of the GSEPS plan may also participate in the GSEPS 401(k) defined contribution component described below. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to the GSEPS plan.
Under the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member’s highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member’s age at retirement. Post-retirement cost-of-living adjustments may be made to members’ benefits provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member’s monthly pension, at reduced rates, to a designated beneficiary upon the member’s death. Death and disability benefits are also available through ERS.
Member contribution rates are set by law. Member contributions under the old plan are 4% of annual compensation up to $4,200 plus 6% of annual compensation in excess of $4,200. Under the old plan, the Authority pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these Authority contributions are included in the members’ accounts for refund purposes and are used in the computation of the members’ earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The Authority is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These Authority contributions are not at any time refundable to the member or his/her beneficiary.
(continued)42
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
Employer contribution rates required for fiscal year 2012 were based on the June 30, 2009 actuarial valuation as follows: 11.63% (6.88% exclusive of contributions paid by the State on behalf of old plan members) [Old Plan], 11.63% [New Plan], and 7.42% [GSEPS]. The Authority’s total employer contribution requirement as determined by the actuarial valuation equals its annual pension cost. The annual required contribution (ARC) and Annual Pension Cost (APC), as determined by GASB statement No. 27, for the current year and each of the two preceding years are summarized in the table below. Please note costs were adjusted to segregate GSEPS portions originally reported as ERS contributions:
Members become vested after 10 years of service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions; the member forfeits all rights to retirement benefits.
Historical trend information showing the ERS System’s progress in accumulating sufficient assets to pay benefits when due is presented in the ERS System’s annual report which can be obtained from the following address: Employees’ Retirement System of Georgia, Two Northside 75, Suite 300 Atlanta, Georgia 30318-7778.
GSEPS 401(k) Defined Contribution Component
In addition to the ERS defined benefit pension described above, GSEPS members may also participate in the Peach State Reserves 401(k) defined contribution plan and receive an employer matching contribution. The 401(k) plan is administered by the ERS System and was established by the State of Georgia Employee Benefit Plan Council in accordance with State law and Section 401(k) of the Internal Revenue Code. The GSEPS segment of the 401(k) plan was established by State law effective January 1, 2009. Plan provisions and contribution requirements specific to GSEPS can be amended by State law. Other general 401(k) plan provisions can be amended by the ERS Board of Trustees as required by changes in Federal tax law or for administrative purposes. The State was not required to make significant contributions to the 401(k) plan prior to GSEPS because most members under other segments of the plan either were not State employees or were not eligible to receive an employer match on their contributions.
The GSEPS plan includes automatic enrollment in the 401(k) plan at a contribution rate of 1% of salary, along with a matching contribution from the State. The State will match 100% of the employee’s initial 1% contribution. Employees can elect to contribute up to an additional 4% and the State will match 50% of the
Annual
Employer Required % ofContribution ARC
Year (ARC) contributed$ 342,738 100%
330,893 100% 335,222 100%
201220112010
(continued)43
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
additional 4% of salary. Therefore, the State will match 3% against the employee’s 5% total savings. Contributions greater than 5% do not receive any matching funds.
GSEPS employer contributions are subject to a vesting schedule, which determines eligibility to receive all or a portion of the employer contribution balance at the time of any distribution from the account after separation from all State service. Vesting is determined based on the following schedule:
Less than 1 year 0%
1 year 20%
2 years 40%
3 years 60%
4 years 80%
5 or more years 100%
Employee contributions and earnings thereon are 100% vested at all times. The 401(k) plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) plan on approval of the 401(k) plan administrator. Such rollovers are 100% vested at the time of transfer. Participant contributions are invested according to the participant’s investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle fund based on the participant’s date of birth.
The participants may receive the value of their vested accounts upon attaining age 59.5, qualifying financial hardship, or retirement or other termination of service (employer contribution balances are only eligible for distribution upon separation from service). Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Distributions are made in installments or in a lump sum.
The Authority’s employer and employee GSEPS contributions for the year ending June 30, 2012, 2011 and 2010 are reported in the table below:
(9) Other Post-employment Benefits
The Authority participates in two State of Georgia other post-employment benefit plans, the Georgia State Employees’ Post-employment Health Benefit Fund (administered by the Department of Community Health)
Annual AnnualEmployer Employee
Year Contribution Contribution$ 21,120 $ 47,993
21,313 47,946 11,488 18,326 2010
20122011
(continued)44
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
and the State Employees’ Assurance Department – OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective system offices.
Georgia State Employees Post-employment Health Benefit Fund
The Georgia State Employees Post-employment Health Benefit Fund (State OPEB Fund) is a cost-sharing multiple-employer defined benefit postemployment healthcare plan that covers eligible former employees of State organizations (including technical colleges) and other entities authorized by law to contract with the Department of Community Health for inclusion in the plan. The State OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board).
The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy.
Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected “pay-as-you-go” financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The combined active and retiree contribution rates established by the Board for employers participating in the State OPEB Fund were as follows for the fiscal year ended June 30, 2012:
(continued)45
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
No additional contribution was required by the Board for fiscal year 2012 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other postemployment benefits and are subject to appropriation.
The following table summarizes the Authority’s contributions to the health insurance plans for the years ending June 30, 2012, 2011 and 2010:
(10) Lease Commitments
The Authority is obligated under certain noncancelable operating leases for office space. The following is a schedule of future minimum lease payments by year required under these leases as of June 30, 2012:
Total expenses for rental of office space for the year ended June 30, 2012 were $388,324.
RequiredContribution
Months Paid (Coverage Periods) RateJune 2011 (July 2011) 22.667%July 2011 - November 2011 (August 2011 - December 2011) 27.363%December 2011 - April 2012 (January 2012 - May 2012) 34.063%May 2012 - June 2012 (June 2012 - July 2012) 27.363%
Required %Year Contribution contributed
$ 970,839 100% 866,306 100% 677,973 100% 2010
20122011
Year ending
June 30 Amount
2013 $ 398,016
2014 407,917
2015 418,131
2016 211,671
Total $ 1,435,735
(continued)46
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Basic Financial Statements
June 30, 2012
(11) Contingencies and Commitments on Liabilities & Violations of Finance-Related Legal or Contractual Provisions
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the Authority expects such amounts, if any, to be immaterial.
The Authority reviews all outstanding claims and judgments to determine if any estimated liabilities should be accrued at year-end. Based on management’s past experience of the review of claims and judgments, it has been determined that there were no material claims and judgments outstanding at June 30, 2012. In addition, management believes there were no material violations of finance-related legal or contractual provisions by the Authority during the current fiscal year.
(12) Change in Accounting Principle
In previous years, the Authority has reported revenue received from the federal and state agencies for its environmental loan programs as appropriation (for general obligation bond proceeds received) or capital contributions (for grant funds received) for outlays made in the construction of capital assets not owned by the Authority. These amounts are reported within the General Fund, Georgia Fund, Georgia Reservoir and Water Supply Fund, Clean Water State Revolving Loan Fund and Drinking Water State Revolving Loan Fund. Because the capital assets constructed are not directly owned by the Authority and consistent with GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, the Authority has classified these revenues for fiscal year 2012 as nonoperating revenues.
47
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted for specified purposes.
State Energy Program Fund
This fund is used to account for the Authority’s grants to other government agencies for projects working on the development of alternative sources of energy. Financing is provided through federal grants and petroleum violation fees.
Energy Investments Fund
This fund is used to account for the Authority’s monies from previous years required to be used in each of the other energy related special revenue funds. Financing is provided through interest income on investments held by the Authority from collections of petroleum violation fees and public utility contributions in previous years.
ARRA – Miscellaneous Grants Fund
This fund is used to account for the Authority’s grants to provide rebates to consumers for the upgrade of energy efficient appliances and for small grants to universities for research in industrial energy efficiency modifications. These programs are funded by Federal grants related to the American Recovery and Reinvestment Act (ARRA) from the U.S. Department of Energy.
State Land Conservation Fund
This fund is used to account for money awarded to recipients of funding to permanently protect land and water, or interests therein, that is undeveloped, natural state or that has been developed only to an extent that does not interfere with its conservation value. Original funding for these types of projects will be derived from state and private contributions restricted for these purposes.
Clean Water SRF Administration Fund
This fund is used to account for assets held by the Authority for the future administration of the Clean Water State Revolving Loan Fund program. The assets were collected from loan origination fees and are to be used to administer the monitoring of projects funded by loans to local governments for waste water treatment plants.
Drinking Water SRF State Program Setasides Fund
This fund is used to account for the Authority’s “set-aside” grants used for various safe drinking water projects. Financing is provided through the Federal Drinking Water capitalization grant. States are allowed to use 10% of their capitalization grants to provide funding for certain activities that provide assistance to state programs such as administration of the Public Water Supervision Program (the “PWSS”).
Drinking Water SRF Local Assistance Setasides Fund
(continued)48
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Nonmajor Governmental Funds
Special Revenue Funds
This fund is used to account for the Authority’s “set-aside” grants used for various safe drinking water projects. Financing is provided through the Federal Drinking Water capitalization grant. States may provide assistance, including technical assistance, to public water systems as part of a capacity development strategy under Section 1420 (c) of the Act. States may use up to 15% of the capitalization grant amount for these activities, provided not more than 10% of the capitalization grant amount is used for any one activity. This fund accounts for local assistance to various private and public contractors.
Drinking Water SRF Small PWS Technical Assistance Fund
This fund is used to account for the Authority’s “set-aside” grants used for various safe drinking water projects. Financing is provided through the Federal Drinking Water capitalization grant. States may provide assistance, including technical assistance, to public water systems as part of a capacity development strategy under Section 1420 (c) of the Act. States may use up to 2% of the capitalization grant amount for these activities. This fund accounts for technical assistance to smaller communities only.
Drinking Water SRF Administration Fund
This fund is used to account for assets held by the Authority for the future administration of the Drinking Water State Revolving Loan Fund program. The assets were collected from loan origination fees and are to be used to administer the monitoring of projects funded by loans to local governments for water supply projects.
49
GE
OR
GIA
EN
VIR
ON
ME
NT
AL
FIN
AN
CE
AU
TH
OR
ITY
(A C
ompo
nent
Uni
t of
the
Sta
te o
f G
eorg
ia)
Com
bini
ng B
alan
ce S
heet
- N
onm
ajor
Gov
ernm
enta
l Fun
ds
June
30,
201
2
Stat
e En
ergy
Ener
gyA
RR
A-M
isce
llane
ous
Stat
e La
nd
Ass
ets
Prog
ram
Inve
stm
ents
Gra
nts
Fund
Con
serv
atio
n Fu
nd
Cas
h$
137,
137
—
—
—
Inve
stm
ents
—
2,
558,
727
—
1,40
3,53
4
Due
from
oth
er g
over
nmen
ts66
,933
—
46,6
80
—
Due
from
oth
er fu
nds
59,8
90
1,97
4,91
2
—
8,
249
T
otal
ass
ets
$26
3,96
0
4,53
3,63
9
46,6
80
1,41
1,78
3
Li
abili
ties
and
Fund
Bal
ance
s
Liab
ilitie
s:
Acco
unts
pay
able
and
acc
rued
liab
ilitie
s$
70, 7
56
—
46
, 680
—
Due
to o
ther
fund
s—
890,
988
—
—
T
otal
liab
ilitie
s70
, 756
89
0,98
8
46, 6
80
—
Fund
bal
ance
s:
Res
trict
ed fo
r gra
nt p
rogr
ams
193,
204
3,
642,
651
—
1,41
1,78
3
Res
trict
ed fo
r loa
n pr
ogra
ms
—
—
—
—
T
otal
fund
bal
ance
s19
3,20
4
3,64
2,65
1
—
1,
411,
783
Tot a
l lia
bilit
ies
and
fund
bal
ance
s$
263,
960
4,
533,
639
46
, 680
1,
411,
783
(con
tinue
d)
50
GE
OR
GIA
EN
VIR
ON
ME
NT
AL
FIN
AN
CE
AU
TH
OR
ITY
(A C
ompo
nent
Uni
t of
the
Sta
te o
f G
eorg
ia)
Com
bini
ng B
alan
ce S
heet
- N
onm
ajor
Gov
ernm
enta
l Fun
ds
June
30,
201
2
Tota
l
Non
maj
or
Cle
an W
ater
Drin
king
Wat
er S
RF
Drin
king
Wat
er S
RF
Drin
king
Wat
er S
RF
Smal
lD
rinki
ng W
ater
Gov
ernm
enta
l
SRF
Adm
inis
trat
ion
Stat
e Pr
ogra
m S
etas
ides
Loca
l Ass
ist S
etas
ides
PWS
Tech
nica
l Ass
ista
nce
SRF
Adm
inis
trat
ion
Fund
s
2,90
1
—
—
—
15
,142
15
5,18
0
23,1
89,4
62
—
—
—
3,
897,
578
31
,049
,301
430,
717
28
0,26
3
414,
560
17
7,10
1
87,7
46
1,50
4,00
0
559,
251
—
—
—
—
2,
602,
302
24,1
82,3
31
280,
263
41
4,56
0
177,
101
4,
000,
466
35
,310
,783
92,4
60
280,
263
41
4,56
0
177,
101
—
1,08
1,82
0
19,8
07
—
—
—
—
910,
795
112,
267
28
0,26
3
414,
560
17
7,10
1
—
1,
992,
615
—
—
—
—
—
5,
247,
638
24,0
70,0
64
—
—
—
4,
000,
466
28
,070
,530
24, 0
70,0
64
—
—
—
4,
000,
466
33
, 318
,168
24,1
82,3
31
280,
263
41
4,56
0
177,
101
4,
000,
466
35
,310
,783
51
GE
OR
GIA
EN
VIR
ON
ME
NT
AL
FIN
AN
CE
AU
TH
OR
ITY
(A C
ompo
nent
Uni
t of
the
Sta
te o
f G
eorg
ia)
Com
bini
ng S
tate
men
t of
Rev
enue
s, E
xpen
ditu
res,
and
Cha
nges
in F
und
Bal
ance
s -
Non
maj
or G
over
nmen
tal F
unds
Yea
r en
ded
June
30,
201
2
Stat
e En
ergy
Ener
gyA
RR
A-M
isce
llane
ous
Stat
e La
ndC
lean
Wat
er
Prog
ram
Inve
stm
ents
Gra
nts
Fund
Con
serv
atio
n Fu
ndSR
F A
dmin
istr
atio
n
Rev
enue
s:Ad
min
istra
tive
fees
$—
—
—
—
1,
158,
097
G
rant
reve
nues
522,
607
—
463,
974
—
—
Pu
blic
don
atio
ns—
—
—
55,9
09
—
In
tere
st in
com
e on
inve
stm
ents
—
2,
529
—
2,19
4
36,1
07
Mis
cella
neou
s18
,868
—
—
—
—
Tota
l rev
enue
s54
1,47
5
2,52
9
463,
974
58
,103
1,
194,
204
E xpe
nditu
res:
Cur
rent
:W
ater
and
was
tew
ater
pro
gram
s—
—
—
—
1,
267,
994
La
nd c
onse
rvat
ion
prog
ram
s—
—
—
59,0
61
—
En
ergy
pro
gram
s67
7,56
3
—
46
3,97
4
—
—
Tota
l exp
endi
ture
s67
7,56
3
—
46
3,97
4
59,0
61
1,26
7,99
4
E xce
ss o
f rev
enue
s ov
er o
r (un
der)
expe
nditu
res
(136
,088
) 2,
529
—
(958
) (7
3,79
0)
Oth
er F
inan
cing
Use
s:Tr
ansf
ers
in15
4,95
6
—
—
—
—
Tran
sfer
s ou
t—
(79,
470)
—
(18,
061)
—
Tota
l oth
er fi
nanc
ing
sour
ces
and
(use
s)15
4,95
6
(79,
470)
—
(18,
061)
—
Net
cha
nge
in fu
nd b
alan
ces
18,8
68
(76,
941)
—
(19,
019)
(7
3,79
0)
F und
bal
ance
s –
July
11 7
4,33
6
3 ,71
9,59
2
—
1 ,
430,
802
2 4
,143
,854
Fund
bal
ance
s –
June
30
$19
3,20
4
3,64
2,65
1
—
1,
411,
783
24
,070
,064
(con
tinue
d)
52
GE
OR
GIA
EN
VIR
ON
ME
NT
AL
FIN
AN
CE
AU
TH
OR
ITY
(A C
ompo
nent
Uni
t of
the
Sta
te o
f G
eorg
ia)
Com
bini
ng S
tate
men
t of
Rev
enue
s, E
xpen
ditu
res,
and
Cha
nges
in F
und
Bal
ance
s -
Non
maj
or G
over
nmen
tal F
unds
Yea
r en
ded
June
30,
201
2
Tota
l Non
maj
or
Drin
king
Wat
er S
RF
Drin
king
Wat
er S
RF
Drin
king
Wat
er S
RF
Smal
lD
rinki
ng W
ater
Gov
ernm
enta
l
Stat
e Pr
ogra
m S
etas
ides
Loca
l Ass
ist S
etas
ides
PWS
Tech
nica
l Ass
ista
nce
SRF
Adm
inis
trat
ion
Fund
s
—
—
—
14
5,24
0
1,30
3,33
7
1,51
9,07
4
3,48
3,09
3
418,
987
—
6,40
7,73
5
—
—
—
—
55,9
09
—
—
—
5,
710
46
,540
—
—
—
—
18
,868
1,51
9,07
4
3,48
3,09
3
418,
987
15
0,95
0
7,83
2,38
9
1,51
9,07
4
3,48
3,09
3
418,
987
11
2,45
3
6,80
1,60
1
—
—
—
—
59,0
61
—
—
—
—
1,14
1,53
7
1,51
9,07
4
3,48
3,09
3
418,
987
11
2,45
3
8,00
2,19
9
—
—
—
38
,497
(1
69,8
10)
—
—
—
—
154,
956
—
—
—
—
(9
7,53
1)
—
—
—
—
57,4
25
—
—
—
38
,497
(1
12,3
85)
—
—
—
3 ,
961,
969
3 3
,430
,553
—
—
—
4,
000,
466
33
,318
,168
53
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Nonmajor Proprietary Funds
Enterprise Funds
Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises – where the intent of the Authority is that the cost of providing services to the general public on a continuing basis be financed or recovered primarily through user charges, or where the Authority has decided that periodic determination of net income is appropriate for accountability purposes.
The following are nonmajor enterprise funds maintained by the Authority:
Storage Tank Maintenance Fund
This fund is used to account for activities and monies associated with collection of fees charged state agencies for the ongoing preventative maintenance of fuel storage facilities. In addition, funding passed through the Georgia State Financing and Investment Commission for the removal or upgrading of the same such facilities. Its revenues are derived from the direct funding as mentioned and interest earnings on investments.
ARRA-Clean Water State Revolving Loan Fund
This fund is used to account for loans to local governments for wastewater treatment projects. The original funding for these loans is provided through federal capitalization grants under ARRA. The fund’s revenues are also derived from interest income on loans receivable.
ARRA-Drinking Water State Revolving Loan Fund
This fund is used to account for loans to local governments for water supply projects. These loans are intended to primarily fund projects which promote compliance with the Safe Drinking Water Act. The original funding for these loans is provided through federal capitalization grants under ARRA. The fund’s revenues are also derived from interest income on loans receivable.
54
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NAN
CE
AUTH
OR
ITY
(A C
ompo
nent
Uni
t of t
he S
tate
of G
eorg
ia)
Com
bini
ng S
tate
men
t of N
et A
sset
s - N
onm
ajor
Ent
erpr
ise
Fund
s
June
30,
201
2
Tota
l
Non
maj
or
Stor
age
Tank
AR
RA
-Cle
an W
ater
Sta
teA
RR
A-D
rinki
ng W
ater
Sta
teEn
terp
rise
A
sset
sM
aint
enan
ce F
und
Rev
olvi
ng L
oan
Fund
Rev
olvi
ng L
oan
Fund
Fund
s
Cur
rent
ass
ets:
C
ash
$—
19,8
14
—
19
,814
In
v est
men
ts1,
443,
840
—
—
1,
443,
840
D
ue fr
om o
ther
gov
ernm
ents
59,8
91
—
—
59,8
91
A c
crue
d in
tere
st re
ceiv
able
—
10
2,85
7
—
10
2,85
7
Tot
al c
urre
nt a
sset
s1,
503,
731
12
2,67
1
—
1,
626,
402
Non
curre
nt a
sset
s:
Lo
ans
rece
ivab
le—
6,68
8,38
0
—
6,
688,
380
Tot
al n
oncu
rrent
ass
ets
—
6,
688,
380
—
6,68
8,38
0
Tota
l ass
ets
1,50
3,73
1
6,81
1,05
1
—
8,
314,
782
Li
abili
ties
Acco
unts
pay
able
and
acc
rued
liab
ilitie
s13
2,63
5
—
—
132,
635
Due
to o
ther
fund
s17
3,16
9
19,8
14
—
19
2,98
3
Due
to o
ther
gov
ernm
ents
17
—
—
17
Une
arne
d re
venu
e6,
075
—
—
6,
075
T
otal
liab
ilitie
s31
1,89
6
19,8
14
—
33
1,71
0
Net
Ass
ets
Res
trict
ed fo
r loa
n pr
ogra
ms
—
6,
791,
237
—
6,79
1,23
7
Unr
estri
cted
1,19
1,83
5
—
—
1,19
1,83
5
T
otal
net
ass
ets
$1,
191,
835
6,
791,
237
—
7,98
3,07
2
55
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NA
NC
E A
UTH
OR
ITY
(A C
ompo
nent
Uni
t of t
he S
tate
of G
eorg
ia)
Com
bini
ng S
tate
men
t of R
even
ues,
Exp
ense
s, a
nd C
hang
es in
Net
Ass
ets
- Non
maj
or E
nter
pris
e Fu
nds
Year
end
ed J
une
30, 2
012
Tota
lN
onm
ajor
Stor
age
Tank
AR
RA
-Cle
an W
ater
Sta
teA
RR
A-D
rinki
ng W
ater
Sta
teEn
terp
rise
Mai
nten
ance
Fun
dR
evol
ving
Loa
n Fu
ndR
evol
ving
Loa
n Fu
ndFu
nds
Ope
ratin
g R
even
ues:
Cha
rges
for s
ervi
ces
– in
tere
st in
com
e on
loan
s re
ceiv
able
$—
323,
850
44
,610
36
8,46
0
Adm
inis
trativ
e an
d pr
even
tativ
e m
aint
enan
ce fe
es70
0,71
0
—
—
700,
710
St
ate
cont
ract
reve
nues
521,
757
—
—
52
1,75
7
Mis
cella
neou
s36
0,39
3
—
—
360,
393
Tota
l ope
ratin
g re
venu
e1,
582,
860
32
3,85
0
44,6
10
1,95
1,32
0
Ope
ratin
g Ex
pens
es:
Wat
er a
nd w
aste
wat
er p
rogr
ams
—
86
7,08
3
(119
,863
) 74
7,22
0
Stor
age
tank
mai
nten
ance
pro
gram
s1,
357,
477
—
—
1,
357,
477
Tota
l ope
ratin
g ex
pens
es1,
357,
477
86
7,08
3
(119
,863
) 2,
104,
697
Ope
ratin
g in
com
e (lo
ss)
225,
383
(5
43,2
33)
164,
473
(1
53,3
77)
Non
oper
atin
g R
even
ues
Fede
ral g
rant
con
tribu
tions
—
4,
251,
127
1,
504,
919
5,
756,
046
In
tere
st in
com
e on
inve
stm
ents
2,19
6
—
—
2,19
6
Tota
l non
oper
atin
g re
venu
e2,
196
4,
251,
127
1,
504,
919
5,
758,
242
Inco
me
befo
re tr
ansf
ers
227,
579
3,
707,
894
1,
669,
392
5,
604,
865
Tr
ansf
ers
out
(423
,629
) (2
0,17
7,68
2)
(4,7
19,7
76)
(25,
321,
087)
Cha
nges
in n
et a
sset
s(1
96,0
50)
(16,
469,
788)
(3
,050
,384
) (1
9,71
6,22
2)
Tota
l net
ass
ets
(def
icit)
– J
uly
11,
387,
885
23
,261
,025
3,
050,
384
27
,699
,294
Tota
l net
ass
ets
(def
icit)
– J
une
30$
1,19
1,83
5
6,79
1,23
7
—
7,
983,
072
56
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NA
NC
E A
UTH
OR
ITY
(A C
ompo
nent
Uni
t of t
he S
tate
of G
eorg
ia)
Com
bini
ng S
tate
men
t of C
ash
Flow
s - P
ropr
ieta
ry F
und
Type
s - N
onm
ajor
Ent
erpr
ise
Fund
s
Year
end
ed J
une
30, 2
012
To
tal
No
nm
ajo
rS
tora
ge
Tan
kA
RR
A-C
lean
Wat
er S
tate
AR
RA
-Dri
nki
ng
Wat
er S
tate
En
terp
rise
Mai
nte
nan
ce F
un
dR
evo
lvin
g L
oan
Fu
nd
Rev
olv
ing
Lo
an F
un
dF
un
ds
Cas
h flo
ws
from
ope
ratin
g ac
tiviti
es:
Inte
rest
pay
men
ts r
ecei
ved
on lo
ans
rece
ivab
le$
—
52
2,48
5
115,
953
63
8,43
8
Adm
inis
trat
ive
fee
paym
ents
706,
785
—
—
70
6,78
5
Sta
te c
ontr
act
paym
ents
521,
757
—
—
52
1,75
7
Pay
men
ts t
o se
rvic
e pr
ovid
ers
(1,3
58,1
62)
(8
67,0
83)
(2
8,97
4)
(2,2
54,2
19)
In
tern
al a
ctiv
ity –
pay
men
ts f
rom
oth
er f
unds
143,
768
12
,924
,328
4,78
0,73
5
17,8
48,8
31
In
tern
al a
ctiv
ity –
pay
men
ts t
o ot
her
fund
s—
(150
,843
)
(310
,332
)
(461
,175
)
Mis
cella
neou
s re
ceip
ts51
1,33
2
—
14
8,83
7
660,
169
Net
cas
h pr
ovid
ed b
y op
erat
ing
activ
ities
525,
480
12
,428
,887
4,70
6,21
9
17,6
60,5
86
Cas
h flo
ws
from
non
capi
tal f
inan
cing
act
iviti
es:
Fed
eral
gra
nt c
ontr
ibut
ions
—
4,
251,
127
1,
504,
919
5,
756,
046
T
rans
fers
out
(423
,629
)
(20,
177,
682)
(4
,719
,776
)
(25,
321,
087)
Net
cas
h us
ed in
non
capi
tal f
inan
cing
act
iviti
es(4
23,6
29)
(1
5,92
6,55
5)
(3,2
14,8
57)
(1
9,56
5,04
1)
Cas
h flo
ws
from
inve
stin
g ac
tiviti
es:
Inte
rest
inco
me
on in
vest
men
ts2,
196
—
—
2,
196
O
rigin
atio
ns o
f an
d ad
vanc
es o
n lo
ans
rece
ivab
le—
(4,2
51,1
27)
(1
,500
,704
)
(5,7
51,8
31)
P
rinci
pal p
aym
ents
rec
eive
d on
loan
s re
ceiv
able
—
3,
918,
272
9,
344
3,
927,
616
Net
cas
h pr
ovid
ed b
y (u
sed
in)
inve
stin
g ac
tiviti
es2,
196
(3
32,8
55)
(1
,491
,360
)
(1,8
22,0
19)
Net
incr
ease
or
(dec
reas
e) in
cas
h an
d ca
sh e
quiv
alen
ts10
4,04
7
(3,8
30,5
23)
—
(3,7
26,4
76)
Cas
h an
d ca
sh e
quiv
alen
ts a
t be
ginn
ing
of y
ear
1,33
9,79
3
3,85
0,33
7
—
5,
190,
130
Cas
h an
d ca
sh e
quiv
alen
ts a
t en
d of
yea
r$
1,44
3,84
0
19,8
14
—
1,46
3,65
4
Rec
onci
liatio
n to
the
sta
tem
ent
of n
et a
sset
s:C
ash
$—
19,8
14
—
19,8
14
In
vest
men
ts1,
443,
840
—
—
1,
443,
840
$1,
443,
840
19
,814
—
1,
463,
654
Rec
onci
liatio
n of
ope
ratin
g in
com
e (lo
ss)
to n
et c
ash
prov
ided
by o
pera
ting
activ
ities
:O
pera
ting
inco
me
(loss
)$
225,
383
(5
43,2
33)
16
4,47
3
(153
,377
)
Adj
ustm
ents
to
reco
ncile
ope
ratin
g in
com
e (lo
ss)
to n
et c
ash
prov
ided
by
oper
atin
g ac
tiviti
es:
Cha
nge
in a
sset
s an
d lia
bilit
ies:
Due
fro
m o
ther
gov
ernm
ents
150,
940
—
148,
837
29
9,77
7
Acc
rued
inte
rest
rec
eiva
ble
—
19
8,63
5
71,3
43
26
9,97
8
Due
fro
m o
ther
fun
ds14
3,76
8
12,9
24,3
28
4,
780,
735
17
,848
,831
Due
to
othe
r fu
nds
—
(1
50,8
43)
(3
10,3
32)
(4
61,1
75)
A
ccru
ed li
abili
ties
(686
)
—
(1
48,8
37)
(1
49,5
23)
U
near
ned
reve
nue
6,07
5
—
—
6,07
5
Net
cas
h pr
ovid
ed b
y op
erat
ing
activ
ities
$52
5,48
0
12,4
28,8
87
4,
706,
219
17
,660
,586
57
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY Statistical Section
This part of the Georgia Environmental Finance Authority's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Authority's overall financial health. This information has not been audited by the independent auditor. Contents Page Financial Trends
These schedules contain trend information to help the reader understand how the Authority's financial performance and well-being have
changed over time. 58-64 Revenue Capacity
These schedules contain information to help the reader assess the Authority's most significant own-source revenue, interest income on
loans receivable. 65-67 Debt Capacity
This schedule presents information to help the reader assess the affordability of the Authority's current levels of outstanding debt and the
Authority's ability to issue additional debt in the future. 68 Demographic and Economic Information
This schedule offers demographic and economic indicators to help the reader understand the environment within which the Authority's
financial activities take place for its most significant programs, the environmental loan programs. 69
Operating Information
Theses schedules contain information about the Authority's operations and resources to help the reader understand how the Authority's
financial information relates to the services the Authority provides and the activities it performs. 70-72
Sources
Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Gov
ernm
enta
l Act
iviti
es
Inve
sted
in c
apita
l ass
ets,
net
of r
elat
ed d
ebt
35,3
24$
47,7
77$
20,8
62$
15,4
43$
13,6
64$
15,9
05$
10,8
35$
16,2
06$
17,5
82$
23,9
12$
Res
trict
ed fo
r:
L
oan
prog
ram
s36
,997
,885
39
,745
,561
33,5
97,3
08
27,9
92,6
9029
,638
,879
31,4
26,7
6423
,468
,034
18,8
94,8
6524
,136
,532
25,9
21,1
94
G
rant
pro
gram
s25,
347,
638
5,
505,
452
5,86
0,69
8
13,8
19,8
0427
,817
,070
10,2
01,2
305,
159,
330
4,42
6,76
04,
817,
821
1,95
2,25
6
U
nres
trict
ed3,
324,
198
4,
806,
058
4,88
1,71
3
5,04
1,28
24,
282,
969
4,08
7,75
13,
960,
770
3,12
3,74
73,
548,
289
3,84
7,38
8
Subt
otal
Gov
ernm
enta
l Act
iviti
es N
et A
sset
s45
,705
,045
$
50
,104
,848
$
44
,360
,581
$
46
,869
,219
$
61
,752
,582
$
45
,731
,650
$
32
,598
,969
$
26
,461
,578
$
32
,520
,224
$
31
,744
,750
$
Bus
ines
s-ty
pe A
ctiv
ities
Res
trict
ed fo
r:
D
ebt s
ervi
ce o
r loa
n pr
ogra
ms3
1,25
4,22
9,70
1$
1,15
4,32
6,56
6$
1,52
5,47
7$
9,43
8,69
2$
13,9
49,7
04$
22,3
04,5
28$
26,1
62,5
31$
18,2
30,8
23$
23,7
62,4
96$
4,51
3,36
8$
U
nres
trict
ed44
0,29
2,30
2
39
2,12
9,64
2
1,
802,
640,
645
1,
685,
999,
999
1,
527,
148,
580
1,39
4,45
9,77
31,
266,
531,
453
1,12
2,12
8,07
61,
017,
085,
189
955,
590,
511
Subt
otal
Bus
ines
s-ty
pe A
ctiv
ities
Net
Ass
ets
1,69
4,52
2,00
3$
1,54
6,45
6,20
8$
1,80
4,16
6,12
2$
1,69
5,43
8,69
1$
1,54
1,09
8,28
4$
1,41
6,76
4,30
1$
1,29
2,69
3,98
4$
1,14
0,35
8,89
9$
1,04
0,84
7,68
5$
960,
103,
879
$
Net
Ass
ets
Inve
sted
in c
apita
l ass
ets,
net
of r
elat
ed d
ebt
35,3
24$
47,7
77$
20,8
62$
15,4
43$
13,6
64$
15,9
05$
10,8
35$
16,2
06$
17,5
82$
23,9
12$
Res
trict
ed fo
r:
L
oan
prog
ram
s36
,997
,885
39,7
45,5
6133
,597
,308
27,9
92,6
9029
,638
,879
31,4
26,7
6423
,468
,034
18,8
94,8
6524
,136
,532
25,9
21,1
94
G
rant
pro
gram
s5,
347,
638
5,50
5,45
25,
860,
698
13,8
19,8
0427
,817
,070
10,2
01,2
305,
159,
330
4,42
6,76
04,
817,
821
1,95
2,25
6
D
ebt s
ervi
ce o
r loa
n pr
ogra
ms
1,25
4,22
9,70
11,
154,
326,
566
1,52
5,47
79,
438,
692
13,9
49,7
0422
,304
,528
26,1
62,5
3118
,230
,823
23,7
62,4
964,
513,
368
U
nres
trict
ed44
3,61
6,50
039
6,93
5,70
01,
807,
522,
358
1,69
1,04
1,28
11,
531,
431,
549
1,39
8,54
7,52
41,
270,
492,
223
1,12
5,25
1,82
31,
020,
633,
478
959,
437,
899
Tota
l Net
Ass
ets
1,74
0,22
7,04
8$
1,59
6,56
1,05
6$
1,84
8,52
6,70
3$
1,74
2,30
7,91
0$
1,60
2,85
0,86
6$
1,46
2,49
5,95
1$
1,32
5,29
2,95
3$
1,16
6,82
0,47
7$
1,07
3,36
7,90
9$
991,
848,
629
$
Not
es:
2 The
sign
ifica
nt d
ecre
ases
in g
rant
pro
gram
s ne
t ass
ets
durin
g fis
cal y
ear 2
009
and
2010
wer
e la
rgel
y du
e to
the
Land
Con
serv
atio
n gr
ant p
rogr
am's
heav
y ut
ilizat
ion
of p
rior y
ear r
emai
ning
fund
s he
ld in
inve
stm
ents
.
Thes
e fu
nds
wer
e us
ed to
cov
er p
rogr
am c
osts
unf
unde
d by
cur
rent
yea
r Sta
te o
f Geo
rgia
app
ropr
iatio
ns.
bala
nces
as
"unr
estri
cted
" bec
ause
a d
efic
it im
plie
s th
at th
ere
is n
othi
ng to
rest
rict.
Thi
s ch
ange
beg
an in
200
4.
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NA
NC
E A
UTH
OR
ITY
Gove
rnm
ent-w
ide N
et A
sset
s by C
ateg
ory1
Last
Ten
Fisc
al Ye
ars
(acc
rual
basis
of a
ccou
nting
)
1 Acco
untin
g st
anda
rds
requ
ire th
at n
et a
sset
s be
repo
rted
in th
ree
com
pone
nts
in th
e fin
anci
al s
tate
men
ts:
inve
sted
in c
apita
l ass
ets,
net
of r
elat
ed d
ebt;
rest
ricte
d; a
nd u
nres
trict
ed.
Net
ass
ets
are
cons
ider
ed re
stric
ted
only
whe
n (1
) an
exte
rnal
par
ty, s
uch
as th
e St
ate
of
Geo
rgia
or t
he fe
dera
l gov
ernm
ent,
plac
es a
rest
rictio
n on
how
the
reso
urce
s m
ay b
e us
ed, o
r (2)
ena
blin
g le
gisl
atio
n is
pas
sed
by th
e Au
thor
ity.
3 Def
icit
net a
sset
s w
ere
prev
ious
ly re
porte
d as
rest
ricte
d fo
r deb
t ser
vice
in y
ears
200
2 an
d 20
03.
How
ever
, the
pro
per r
epor
ting
of d
efic
it ne
t ass
ets
requ
ires
repo
rting
thos
e
58
2012
2011
2010
2009
2008
Expe
nses
Prog
ram
Re
venu
esNe
t (Ex
pens
e)/
Reve
nue1
Expe
nses
Prog
ram
Re
venu
esNe
t (Ex
pens
e)/
Reve
nue1
Expe
nses
Prog
ram
Re
venu
esNe
t (Ex
pens
e)/
Reve
nue1
Expe
nses
Prog
ram
Re
venu
esNe
t (Ex
pens
e)/
Reve
nue1
Expe
nses
Prog
ram
Re
venu
esNe
t (Ex
pens
e)/
Reve
nue1
Func
tions
/Pro
gram
s
Gove
rnm
enta
l Act
ivitie
sG
ener
al G
over
nmen
t9,
022,
959
$
19
,458
,277
$
10
,435
,318
$
11
,763
,760
$
8,
187,
693
$
(3,5
76,0
67)
$
9,64
7,65
8$
6,20
4,58
2$
(3
,443
,076
)$
6,
014,
492
$
1,
682,
237
$
(4,3
32,2
55)
$
6,00
3,70
9$
2,67
8,31
8$
(3
,325
,391
)$
Wat
er a
nd w
aste
wat
er p
rogr
ams2
8,79
9,18
46,
950,
325
(1,8
48,8
59)
12,3
82,4
1428
,575
,001
16,1
92,5
8710
,646
,079
20,2
25,9
739,
579,
894
11,8
35,0
9218
,656
,182
6,82
1,09
06,
297,
017
17,2
26,9
0410
,929
,887
Solid
was
te a
nd e
nviro
nmen
tal p
rogr
ams
-
-
-
1,68
01,
680
-
26
7,03
014
5,73
8(1
21,2
92)
10
9,03
210
9,03
2-
153,
078
153,
078
-
Land
con
serv
atio
n pr
ogra
ms3
59,0
6155
,909
(3,1
52)
60,2
1286
,321
26,1
096,
651,
892
61,5
51(6
,590
,341
)12
,654
,192
265,
432
(12,
388,
760)
32,3
63,7
5448
,078
,941
15,7
15,1
87En
ergy
pro
gram
s891
,335
,755
91,0
25,5
43(3
10,2
12)
109,
506,
743
108,
704,
970
(801
,773
)41
,919
,198
41,5
75,4
13(3
43,7
85)
15,7
45,4
9516
,971
,609
1,22
6,11
415
,409
,887
16,8
88,4
901,
478,
603
Inte
rest
on
long
-term
deb
t678
-
(7
8)61
9-
(619
)1,
995
-
(1
,995
)2,
686
-
(2
,686
)2,
442
-
(2,4
42)
Subt
otal
Gove
rnm
enta
l Act
ivitie
s510
9,21
7,03
711
7,49
0,05
48,
273,
017
133,
715,
428
145,
555,
665
11,8
40,2
3769
,133
,852
68,2
13,2
57(9
20,5
95)
46,3
60,9
8937
,684
,492
(8,6
76,4
97)
60,2
29,8
8785
,025
,731
24,7
95,8
44
Busin
ess-
type
Act
ivitie
sW
ater
and
was
tew
ater
pro
gram
s813
,768
,944
13,7
68,9
44-
31
,435
,363
24,5
86,5
64(6
,848
,799
)
59
,286
,970
4,01
0,03
5(5
5,27
6,93
5)
1,97
7,94
91,
977,
949
-
2,
329,
243
2,32
9,24
3-
St
orag
e ta
nk m
aint
enan
ce p
rogr
ams7
1,35
7,47
71,
224,
663
(132
,814
)
1,23
2,59
91,
951,
923
719,
324
2,
135,
141
2,55
9,75
742
4,61
6
3,15
4,26
53,
682,
055
527,
790.
00
-
-
-
Loan
act
iviti
es4
697,
685
135,
757,
916
135,
060,
231
2,31
9,96
911
3,60
4,02
611
1,28
4,05
72,
188,
780
163,
952,
695
161,
763,
915
1,33
0,03
814
6,76
0,06
514
5,43
0,02
71,
636,
294
114,
988,
181
113,
351,
887
Subt
otal
Busin
ess-
type
Act
ivitie
s515
,824
,106
150,
751,
523
134,
927,
417
34,9
87,9
3114
0,14
2,51
310
5,15
4,58
263
,610
,891
170,
522,
487
106,
911,
596
6,46
2,25
215
2,42
0,06
914
5,95
7,81
73,
965,
537
117,
317,
424
113,
351,
887
Tota
l Gov
ernm
enta
l and
Bus
ines
s-ty
pe A
ctivi
ties
125,
041,
143
$
268,
241,
577
$
14
3,20
0,43
4$
168,
703,
359
$
285,
698,
178
$
11
6,99
4,81
9$
132,
744,
743
$
238,
735,
744
$
10
5,99
1,00
1$
52,8
23,2
41$
190,
104,
561
$
13
7,28
1,32
0$
64,1
95,4
24$
20
2,34
3,15
5$
13
8,14
7,73
1$
(con
tinue
d)
GEOR
GIA
ENVI
RONM
ENTA
L FI
NANC
E AU
THOR
ITY
Gove
rnm
ent-w
ide E
xpen
ses,
Prog
ram
Rev
enue
s, an
d Ne
t (Ex
pens
e)/R
even
ue b
y Fun
ction
/Pro
gram
Last
Ten
Fisc
al Ye
ars
(acc
rual
basis
of a
ccou
nting
)
59
GEOR
GIA
ENVI
RONM
ENTA
L FI
NANC
E AU
THOR
ITY
Gove
rnm
ent-w
ide E
xpen
ses,
Prog
ram
Rev
enue
s, an
d Ne
t (Ex
pens
e)/R
even
ue b
y Fun
ction
/Pro
gram
Last
Ten
Fisc
al Ye
ars
(acc
rual
basis
of a
ccou
nting
)20
0720
0620
0520
0420
03
Expe
nses
Prog
ram
Re
venu
esNe
t (Ex
pens
e)/
Reve
nue1
Expe
nses
Prog
ram
Re
venu
esNe
t (Ex
pens
e)/
Reve
nue1
Expe
nses
Prog
ram
Re
venu
esNe
t (Ex
pens
e)/
Reve
nue1
Expe
nses
Prog
ram
Re
venu
esNe
t (Ex
pens
e)/
Reve
nue1
Expe
nses
Prog
ram
Re
venu
esNe
t (Ex
pens
e)/
Reve
nue1
Func
tions
/Pro
gram
s
Gove
rnm
enta
l Act
ivitie
sG
ener
al G
over
nmen
t5,
385,
017
$
2,
642,
634
$
(2,7
42,3
83)
$
4,59
4,23
6$
4,16
8,23
6$
(4
26,0
00)
$
3,
952,
030
$
2,
522,
121
$
(1,4
29,9
09)
$
3,65
5,62
5$
3,15
7,78
5$
(4
97,8
40)
$
3,
351,
706
$
1,
774,
580
$
(1,5
77,1
26)
$
W
ater
and
was
tew
ater
pro
gram
s25,
488,
630
19,3
90,0
9513
,901
,465
4,81
7,93
915
,369
,723
10,5
51,7
843,
996,
672
3,60
9,51
4(3
87,1
58)
3,48
8,87
411
,871
,524
8,38
2,65
04,
568,
719
12,0
80,6
087,
511,
889
Solid
was
te a
nd e
nviro
nmen
tal p
rogr
ams
145,
153
145,
153
-
1,
227,
420
173,
570
(1,0
53,8
50)
377,
389
314,
444
(62,
945)
711,
967
670,
166
(41,
801)
1,83
3,05
31,
597,
985
(235
,068
)La
nd c
onse
rvat
ion
prog
ram
s389
2,03
25,
222,
736
4,33
0,70
4-
-
-
-
-
-
-
-
-
-
-
-
En
ergy
pro
gram
s816
,117
,451
17,9
04,7
241,
787,
273
14,9
63,9
7316
,768
,273
1,80
4,30
014
,392
,369
15,2
77,9
0488
5,53
514
,311
,444
17,7
50,5
263,
439,
082
12,8
22,2
5313
,545
,987
723,
734
Inte
rest
on
long
-term
deb
t6-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Subt
otal
Gove
rnm
enta
l Act
ivitie
s528
,028
,283
45,3
05,3
4217
,277
,059
25,6
03,5
6836
,479
,802
10,8
76,2
3422
,718
,460
21,7
23,9
83(9
94,4
77)
22,1
67,9
1033
,450
,001
11,2
82,0
9122
,575
,731
28,9
99,1
606,
423,
429
Busin
ess-
type
Act
ivitie
sW
ater
and
was
tew
ater
pro
gram
s1,
909,
264
1,90
9,26
4-
1,74
1,19
71,
741,
197
-
3,
400,
793
3,40
0,79
3-
10,8
51,3
6210
,851
,362
-
2,
675,
456
2,67
5,45
6-
Lo
an a
ctiv
ities
51,
959,
268
120,
023,
392
118,
064,
124
2,25
9,75
214
9,08
8,11
114
6,82
8,35
94,
828,
127
113,
551,
327
108,
723,
200
3,76
2,20
673
,669
,356
69,9
07,1
504,
077,
610
65,9
66,8
0561
,889
,195
Subt
otal
Busin
ess-
type
Act
ivitie
s53,
868,
532
121,
932,
656
118,
064,
124
4,00
0,94
915
0,82
9,30
814
6,82
8,35
98,
228,
920
116,
952,
120
108,
723,
200
14,6
13,5
6884
,520
,718
69,9
07,1
506,
753,
066
68,6
42,2
6161
,889
,195
Tota
l Gov
ernm
enta
l and
Bus
ines
s-ty
pe A
ctivi
ties
31,8
96,8
15$
167,
237,
998
$
13
5,34
1,18
3$
29,6
04,5
17$
187,
309,
110
$
15
7,70
4,59
3$
30,9
47,3
80$
138,
676,
103
$
10
7,72
8,72
3$
36,7
81,4
78$
117,
970,
719
$
81
,189
,241
$
29
,328
,797
$
97,6
41,4
21$
68,3
12,6
24$
Note
s:
finan
ce th
at fu
nctio
n or
pro
gram
.
2 The
rath
er la
rge
chan
ge in
net
(exp
ense
)/rev
enue
whi
ch o
ccur
red
in y
ears
200
4, 2
005,
and
200
6 ca
n be
exp
lain
ed b
y no
rece
ipt o
f con
tribu
tions
from
the
Stat
e of
Geo
rgia
dur
ing
2005
.
3 The
Auth
ority
did
not
incu
r any
cos
ts a
ssoc
iate
d w
ith la
nd c
onse
rvat
ion
prog
ram
s ot
her t
han
gene
ral a
nd a
dmin
istra
tive
fees
incu
rred
in F
Y 20
06 u
ntil
FY20
07, i
n w
hich
thre
e pr
ojec
t rec
ipie
nts
rece
ived
gra
nt fu
ndin
g.
In F
Y 20
09, t
he S
tate
of G
eorg
ia d
id n
ot a
ppro
pria
te fu
ndin
g to
the
prog
ram
. Int
eres
t ear
ning
s on
inve
stm
ents
and
don
atio
ns fr
om th
e pu
blic
wer
e th
e so
urce
s of
reve
nue.
Cur
rent
yea
r pro
gram
exp
endi
ture
s w
ere
fund
ed
with
prio
r yea
r rem
aini
ng fu
nds.
5 Prog
ram
reve
nues
for g
over
nmen
tal a
ctiv
ities
exp
erie
nced
an
incr
ease
ove
r 200
6 pr
imar
ily d
ue to
fund
ing
prov
ided
by
the
Stat
e of
Geo
rgia
in 2
007,
mor
e sp
ecifi
cally
in a
ssoc
iatio
n w
ith th
e la
nd c
onse
rvat
ion
prog
ram
s.
Prog
ram
reve
nues
for b
usin
ess-
type
act
iviti
es e
xper
ienc
ed a
dec
reas
e fro
m 2
006
prim
arily
due
to a
redu
ctio
n in
fede
ral g
rant
dol
lars
to c
apita
lize
the
fede
ral l
oan
prog
ram
s.
6 The
Auth
ority
ent
ered
into
a c
ompu
ter f
inan
cing
agr
eem
ent i
n fis
cal y
ear 2
008
and
thus
, inc
urre
d in
tere
st e
xpen
se o
n th
ose
leas
es. B
ecau
se th
e go
vern
men
tal f
unds
is b
ased
on
curre
nt re
sour
ces
at th
e go
vern
men
t-wid
e
leve
l, in
tere
st e
xpen
se is
repo
rted
sepa
rate
ly to
dis
tingu
ish
that
ther
e is
a fi
nanc
ing
agre
emen
t (lo
ng-te
rm).
7 In F
Y 20
09, t
he A
utho
rity
ente
red
into
an
inte
rgov
ernm
enta
l agr
eem
ent w
ith th
e G
eorg
ia B
uild
ing
Auth
ority
(GBA
) and
the
Geo
rgia
Sta
te F
inan
cing
and
Inve
stm
ent C
omm
issi
on (G
SFIC
) to
unde
rtake
full
man
agem
ent o
f the
inst
alla
tion,
reno
vatio
n, re
mov
al, a
nd re
med
iatio
n of
sel
ecte
d un
derg
roun
d an
d ab
ove-
grou
nd fu
el s
tora
ge ta
nks.
The
Gen
eral
Ass
embl
y id
entif
ied
GBA
as
the
user
age
ncy
for t
he B
ond
Proc
eeds
, who
aut
horiz
ed G
SFIC
to
adm
inis
ter t
he B
ond
Proc
eeds
for t
hese
pro
ject
s, a
nd m
ake
such
pro
ceed
s av
aila
ble
to th
e Au
thor
ity in
acc
orda
nce
with
GEF
A's
full
man
agem
ent o
f the
se p
roje
cts.
The
Aut
horit
y es
tabl
ishe
d Th
e St
orag
e M
aint
enan
ce F
und
Fund
to a
ccou
nt s
epar
atel
y fo
r the
rece
ipt o
f the
pas
s-th
roug
h of
bon
d pr
ocee
ds fr
om G
SFIC
, as
wel
l as
to a
ccou
nt fo
r oth
er re
late
d St
orag
e Ta
nk M
aint
enan
ce p
rogr
ams.
8 In F
Y 20
10, t
he E
nerg
y an
d W
ater
pro
gram
s ex
perie
nced
a s
igni
fican
t inc
reas
e in
exp
endi
ture
s du
e to
new
act
ivity
and
/or e
xpan
ded
activ
ities
usi
ng fu
nds
awar
ded
unde
r the
Am
eric
an R
ecov
ery
and
Rei
nves
tmen
t Act
of 2
009
(AR
RA)
.
In a
dditi
on to
exp
andi
ng th
e W
eath
eriz
atio
n an
d SR
F lo
an p
rogr
ams,
AR
RA
fund
ing
also
pro
vide
d pr
inci
pal f
orgi
vene
ss s
ubsi
dies
for t
he S
RF
loan
pro
gram
s an
d th
us a
larg
e in
crea
se in
exp
endi
ture
s an
d th
e cr
eatio
n of
four
new
Ene
rgy
prog
ram
s.
4 The
fluct
uatio
ns in
net
(exp
ense
)/rev
enue
is a
ttrib
uted
to v
aria
tions
in in
tere
st e
arni
ngs
rate
exp
erie
nced
ove
r the
pas
t thr
ee y
ears
, rec
eipt
(non
-rece
ipt)
of c
ontri
butio
ns fr
om e
xter
nal f
unde
rs a
nd c
hang
es in
exp
ense
activ
ity le
vels
for s
uppo
rted
prog
ram
s.
1 Net
(exp
ense
)/rev
enue
is th
e di
ffere
nce
betw
een
the
expe
nses
and
pro
gram
reve
nues
of a
func
tion
or p
rogr
am.
It in
dica
tes
the
degr
ee to
whi
ch a
func
tion
or p
rogr
am s
uppo
rts it
self
with
its
own
fees
and
gra
nts
vers
us it
s re
lianc
e up
on fu
ndin
g fro
m g
ener
al re
venu
es o
r oth
er s
ourc
es.
Num
bers
in p
aren
thes
is a
re n
et e
xpen
ses,
indi
catin
g th
at e
xpen
ses
wer
e gr
eate
r tha
n pr
ogra
m re
venu
es a
nd th
eref
ore
gene
ral r
even
ues
wer
e ne
eded
to
60
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Net
(Exp
ense
), To
tal G
over
nmen
tal a
nd B
usin
ess-
type
Act
iviti
es
Gov
ernm
enta
l act
iviti
es8,
273,
017
$
11
,840
,236
$
(9
20,5
95)
$
8,67
6,49
7$
24,7
95,8
44$
17,2
77,0
59$
10,8
76,2
34$
(994
,477
)$
11
,282
,091
$
6,
423,
429
$
Busi
ness
-type
act
iviti
es13
4,92
7,41
710
5,15
4,58
010
6,91
1,59
614
5,95
7,81
711
3,35
1,88
711
8,06
4,12
414
6,82
8,35
910
8,72
3,20
069
,907
,150
61,8
89,1
95
Tota
l Gov
ernm
enta
l and
Bus
ines
s-ty
pe A
ctiv
ities
143,
200,
434
116,
994,
816
105,
991,
001
154,
634,
314
138,
147,
731
135,
341,
183
157,
704,
593
107,
728,
723
81,1
89,2
4168
,312
,624
Gen
eral
reve
nues
and
oth
er c
hang
es in
net
ass
ets
Gov
ernm
enta
l Act
iviti
es:
Unr
estri
cted
inve
stm
ent e
arni
ngs
68,9
1493
,018
106,
246
1,08
9,78
91,
936,
270
1,59
6,12
752
7,31
154
1,71
322
7,49
959
9,48
7
Mis
cella
neou
s32
,922
17,3
3812
,764
71,4
7726
6,21
024
3,58
817
0,54
156
,951
5,68
914
8,25
6
Tran
sfer
s to
bus
ines
s-ty
pe a
ctiv
ities
1(1
2,77
4,65
6)(6
,206
,325
)(1
,707
,053
)(7
,368
,132
)(1
0,97
7,39
2)(5
,984
,093
)(5
,436
,695
)(5
,662
,833
)(1
0,73
9,80
6)(1
,571
,067
)
Subt
otal
Gov
ernm
enta
l Act
iviti
es(1
2,67
2,82
0)(6
,095
,969
)(1
,588
,043
)(6
,206
,866
)(8
,774
,912
)(4
,144
,378
)(4
,738
,843
)(5
,064
,169
)(1
0,50
6,61
8)(8
23,3
24)
Bus
ines
s-ty
pe A
ctiv
ities
:
Mis
cella
neou
s36
3,72
225
,409
108,
782
1,01
4,45
84,
704
22,1
0070
,031
20,1
4596
,846
104,
212
Spec
ial i
tem
s2-
(3
69,0
96,2
28)
-
-
-
-
-
-
-
-
Tran
sfer
s fro
m g
over
nmen
tal a
ctiv
ities
12,7
74,6
566,
206,
325
1,70
7,05
37,
368,
132
10,9
77,3
925,
984,
093
5,43
6,69
55,
662,
833
10,7
39,8
061,
571,
067
Subt
otal
Bus
ines
s-ty
pe A
ctiv
ities
13,1
38,3
78(3
62,8
64,4
94)
1,81
5,83
58,
382,
590
10,9
82,0
966,
006,
193
5,50
6,72
65,
682,
978
10,8
36,6
521,
675,
279
Cha
nges
in N
et A
sset
s
Gov
ernm
enta
l act
iviti
es(4
,399
,803
)5,
744,
267
(2,5
08,6
38)
(14,
883,
363)
16,0
20,9
3213
,132
,681
6,13
7,39
1(6
,058
,646
)77
5,47
35,
600,
105
Busi
ness
-type
act
iviti
es2
148,
065,
795
(257
,709
,914
)10
8,72
7,43
115
4,34
0,40
712
4,33
3,98
312
4,07
0,31
715
2,33
5,08
511
4,40
6,17
880
,743
,802
63,5
64,4
74
Tota
l Cha
nges
in N
et A
sset
s14
3,66
5,99
2$
(2
51,9
65,6
47)
$
106,
218,
793
$
139,
457,
044
$
140,
354,
915
$
137,
202,
998
$
158,
472,
476
$
108,
347,
532
$
81,5
19,2
75$
69,1
64,5
79$
Not
es:
1 Tran
sfer
s to
bus
ines
s-ty
pe a
ctiv
ities
is h
ighl
y dr
iven
by
activ
ity o
f con
stru
ctio
n lo
an p
roje
cts.
The
refo
re, o
n a
year
-to-y
ear b
asis
fluc
tuat
ions
in a
mou
nts
may
occ
ur.
2 The
Auth
ority
pro
vide
d a
plan
ned
one-
time
retu
rn o
f cap
ital t
o th
e St
ate
of G
eorg
ia's
treas
ury
offic
e. I
t is
not e
xpec
ted
that
this
will
happ
en a
gain
in th
e ne
ar fu
ture
. In
add
ition
, the
Aut
horit
y so
ld
a po
rtion
of i
ts lo
ans
rece
ivab
le fr
om th
e G
eorg
ia F
und
to it
s su
bsid
iary
cor
pora
tion,
The
Geo
rgia
Env
ironm
enta
l Loa
n Ac
quis
ition
Cor
pora
tion,
at a
net
loss
. Bo
th o
f the
se fa
ctor
s co
ntrib
uted
to th
e
larg
e ch
ange
in n
et a
sset
s fo
r bus
ines
s-ty
pe a
ctiv
ities
.
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NA
NC
E A
UTH
OR
ITY
Gove
rnm
ent-w
ide G
ener
al Re
venu
es a
nd O
ther
Cha
nges
in N
et A
sset
sLa
st Te
n Fi
scal
Year
s(a
ccru
al ba
sis o
f acc
ount
ing)
61
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Gen
eral
Fun
d
Non
spen
dabl
e fo
r pre
paid
item
s-
$
-
$
6,
624
$
-$
-$
-$
-$
-$
-$
-$
Res
trict
ed fo
r loa
n pr
ogra
ms1
8,92
7,35
5
11,6
39,7
38
3,95
9,42
6
790,
108
3,76
3,13
5
9,13
7,09
6
3,51
2,71
0
-
6,94
5,18
5
11,0
36,9
56
Res
trict
ed fo
r gra
nt p
rogr
ams1
100,
000
180,
722
332,
340
1,50
3,64
9
2,59
8,40
4
892,
625
965,
539
1,15
4,39
2
1,51
8,21
9
1,25
2,89
4
Una
ssig
ned
3,82
8,46
6
5,36
2,42
8
5,32
8,65
8
5,47
7,28
0
4,67
9,80
4
4,38
2,30
5
4,20
8,60
4
3,34
2,10
4
3,77
7,08
8
4,05
7,77
1
Tota
l gen
eral
fund
bal
ance
212
,855
,821
$
17
,182
,888
$
9,
627,
048
$
7,
771,
037
$
11
,041
,343
$
14
,412
,026
$
8,
686,
853
$
4,
496,
496
$
12
,240
,492
$
16
,347
,621
$
Stat
e La
nd C
onse
rvat
ion
Fund
Res
trict
ed fo
r gra
nt p
rogr
ams1
-$
-$
-$
7,88
9,04
9$
20,1
81,8
11$
-$
-$
-$
-$
-$
Tota
l sta
te la
nd c
onse
rvat
ion
fund
bal
ance
-$
-$
-$
7,88
9,04
9$
20,1
81,8
11$
-$
-$
-$
-$
-$
Oil
Ove
rcha
rge
and
Mis
cella
neou
s Fu
nd
Res
trict
ed fo
r gra
nt p
rogr
ams1
-$
-$
-$
171,
128
$
168,
494
$
208,
597
$
11,9
00$
197,
817
$
253,
847
$
699,
362
$
Tota
l oil
over
char
ge fu
nd b
alan
ce-
$
-
$
-
$
17
1,12
8$
16
8,49
4$
20
8,59
7$
11
,900
$
19
7,81
7$
25
3,84
7$
69
9,36
2$
Non
maj
or G
over
nmen
tal F
unds
Res
trict
ed fo
r loa
n pr
ogra
ms1
28,0
70,5
30$
28,1
05,8
23$
29,6
37,8
82$
27,2
02,5
82$
25,8
75,7
44$
22,2
89,6
68$
19,9
55,3
24$
18,8
94,8
65$
17,1
91,3
47$
14,8
84,2
38$
Res
trict
ed fo
r gra
nt p
rogr
ams1
5,24
7,63
8
5,32
4,73
0
5,52
8,35
8
4,25
5,97
8
4,86
8,36
1
9,10
0,00
8
4,18
1,89
1
3,07
4,55
1
3,04
5,75
5
-
Tota
l non
maj
or g
over
nmen
tal f
und
bala
nce
33,3
18,1
68$
33,4
30,5
53$
35,1
66,2
40$
31,4
58,5
60$
30,7
44,1
05$
31,3
89,6
76$
24,1
37,2
15$
21,9
69,4
16$
20,2
37,1
02$
14,8
84,2
38$
To
tal g
over
nmen
tal f
und
bala
nces
46,1
73,9
89$
50,6
13,4
41$
44,7
93,2
88$
47,2
89,7
74$
62,1
35,7
53$
46,0
10,2
99$
32,8
35,9
68$
26,6
63,7
29$
32,7
31,4
41$
31,9
31,2
21$
Not
es:
2 Mon
ies
prov
ided
by
the
Stat
e of
Geo
rgia
are
hel
d in
trus
t unt
il ex
pens
es a
re in
curre
d an
d at
that
tim
e th
e Au
thor
ity tr
ansf
ers
the
nece
ssar
y am
ount
of c
ash
to c
over
thos
e
char
ges.
Flu
ctua
tions
in th
e to
tal g
ener
al fu
nd b
alan
ce m
ay o
ccur
yea
r-to-
year
bec
ause
of t
his
prac
tice.
3 The
Wea
ther
izat
ion
Assi
stan
ce F
und,
a m
ajor
fund
, did
not
hav
e am
ount
s re
porte
d as
fund
bal
ance
for a
ny o
f the
yea
rs p
rese
nted
. In
fisc
al y
ears
201
0 an
d 20
11, A
RR
A-W
eath
eriz
atio
n
Assi
stan
ce P
rogr
am w
as a
maj
or fu
nd, b
ut d
id n
ot h
ave
any
amou
nts
repo
rted
as fu
nd b
alan
ce.
In a
dditi
on, t
he A
RR
A-St
ate
Ener
gy P
rogr
am w
as a
maj
or fu
nd, b
ut d
id n
ot h
ave
any
wer
e de
plet
ed.
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NA
NC
E A
UTH
OR
ITY
Fund
Bala
nces
, Gov
ernm
enta
l Fun
dsLa
st Te
n Fi
scal
Year
s(m
odifie
d ac
crua
l bas
is of
acc
ount
ing)
1 Due
to a
hig
h de
man
d on
cas
h du
ring
2004
and
the
non-
rece
ipt o
f app
ropr
iatio
ns in
200
5 fro
m th
e St
ate
of G
eorg
ia, 2
005
rese
rves
for m
atch
on
fede
ral l
oan
prog
ram
s
62
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Rev
enu
esS
tate
of
Geo
rgia
app
ropr
iatio
ns1
283,
495
$
15
,286
,358
$
8,09
9,80
8$
8,96
7,32
5$
58,3
23,7
26$
19
,085
,782
$
12,4
00,0
00$
27
5,00
0$
8,30
7,12
5$
8,26
5,00
0$
Sta
te c
ontr
ibut
ions
812
,000
,000
-
-
-
-
-
-
-
-
-
A
dmin
istr
ativ
e fe
es1,
529,
171
3,20
4,81
9
4,
717,
199
4,19
5,87
5
5,
369,
503
5,18
6,03
1
4,
273,
697
2,60
2,12
1
3,
745,
892
1,77
4,58
0
G
rant
rev
enue
s10
3,61
8,95
0
12
6,97
2,56
0
55
,326
,931
24
,213
,231
20
,300
,863
20
,409
,522
19
,527
,095
18
,797
,578
17
,813
,857
18
,216
,527
P
etro
leum
vio
latio
n fe
es2
-
-
-
-
12,7
77
10
6,09
4
193,
517
-
3,
557,
613
743,
053
P
ublic
don
atio
ns55
,909
83,2
28
53
,784
67,7
19
87
,392
191,
223
-
-
-
-
In
tere
st in
com
e on
inve
stm
ents
71,4
43
10
1,71
7
121,
781
1,
330,
131
2,86
7,74
0
1,
922,
817
612,
804
59
0,99
7
253,
013
59
9,48
7
Mis
cella
neou
s32
,922
17,3
38
12
,764
71,4
77
26
6,21
0
243,
588
17
0,54
1
56,9
51
5,
689
16
3,69
4
Tot
al r
even
ues
117,
591,
890
$
14
5,66
6,02
0$
68,3
32,2
67$
38
,845
,758
$
87,2
28,2
11$
47
,145
,057
$
37,1
77,6
54$
22
,322
,647
$
33,6
83,1
89$
29
,762
,341
$
Exp
end
itu
res
Gen
eral
gov
ernm
ent
9,05
5,63
0$
11,6
38,5
93$
9,
600,
005
$
5,
952,
033
$
5,
884,
087
$
5,
332,
039
$
4,
559,
388
$
3,
961,
096
$
3,
630,
878
$
3,
306,
555
$
W
ater
and
was
tew
ater
pro
gram
s8,
799,
184
12,3
82,4
14
10,6
46,0
79
11,8
35,0
92
6,29
7,01
7
5,
488,
630
4,81
7,93
9
3,
996,
672
3,48
8,87
4
4,
568,
719
Sol
id w
aste
and
env
ironm
enta
l pro
gram
s-
1,
680
26
7,03
0
109,
032
15
3,07
8
145,
153
1,
227,
420
377,
389
71
1,96
7
1,83
3,05
3
La
nd c
onse
rvat
ion
prog
ram
s359
,061
60,2
12
6,
651,
892
12,6
54,1
92
32,3
63,7
54
892,
032
-
-
-
-
E
nerg
y pr
ogra
ms4
91,3
35,7
55
109,
506,
743
41,9
19,1
98
15,7
45,4
95
15,4
09,8
87
16,1
17,4
51
14,9
63,9
73
14,3
92,3
69
14,3
11,4
44
12,8
22,2
53
Cap
ital o
utla
y, g
ener
al g
over
nmen
t-
33
,917
9,86
3
33,2
07
24
,640
41,6
36
-
-
-
20
,983
Deb
t S
ervi
ce:
P
rinci
pal r
educ
tions
6,97
8
15,3
64
25
,637
17,8
46
9,
045
-
-
-
-
-
Int
eres
t on
long
-ter
m d
ebt
78
619
1,99
5
2,68
6
2,44
2
-
-
-
-
-
Tot
al e
xpen
ditu
res
109,
256,
686
133,
639,
542
69,1
21,6
99
46,3
49,5
83
60,1
43,9
50
28,0
16,9
41
25,5
68,7
20
22,7
27,5
26
22,1
43,1
63
22,5
51,5
63
Exc
ess
of r
even
ues
over
(un
der)
exp
endi
ture
s8,
335,
204
12,0
26,4
78
(789
,432
)
(7,5
03,8
25)
27
,084
,261
19
,128
,116
11
,608
,934
(4
04,8
79)
11
,540
,026
7,
210,
778
Oth
er F
inan
cin
g S
ou
rces
(U
ses)
Cap
ital l
ease
s-
$
-$
-
$
25,9
77$
18
,585
$
30,3
08$
-
$
-$
-
$
-$
T
rans
fers
in5
3,72
1,38
2
3,
315,
777
3,56
4,71
2
4,
624,
553
3,08
2,38
7
1,
753,
377
2,03
1,58
0
2,
320,
888
2,49
2,06
6
1,
158,
054
Tra
nsfe
rs o
ut5
(16,
496,
038)
(9,5
22,1
02)
(5
,271
,765
)
(11,
992,
685)
(14,
059,
779)
(7,7
37,4
70)
(7
,468
,275
)
(7,9
83,7
21)
(1
3,23
1,87
2)
(2
,729
,121
)
Tot
al o
ther
fin
anci
ng s
ourc
es (
uses
)(1
2,77
4,65
6)
(6
,206
,325
)
(1,7
07,0
53)
(7
,342
,155
)
(10,
958,
807)
(5,9
53,7
85)
(5
,436
,695
)
(5,6
62,8
33)
(1
0,73
9,80
6)
(1
,571
,067
)
Net
cha
nge
in f
und
bala
nces
7(4
,439
,452
)$
5,82
0,15
3$
(2,4
96,4
85)
$
(1
4,84
5,98
0)$
16
,125
,454
$
13,1
74,3
31$
6,
172,
239
$
(6
,067
,712
)$
800,
220
$
5,
639,
711
$
No
tes:
1 In 2
005,
the
Aut
horit
y di
d no
t re
ceiv
e an
y ap
prop
riatio
ns f
rom
the
Sta
te o
f G
eorg
ia f
or m
atch
on
fede
ral l
oan
prog
ram
s. I
n 20
08,
the
Aut
horit
y re
ceiv
ed a
dditi
onal
app
ropr
iatio
ns
in t
he a
men
ded
budg
et f
or t
he S
tate
Lan
d C
onse
rvat
ion
Fun
d in
the
am
ount
of
$47.
3 m
illio
n w
hich
sub
stan
tially
incr
ease
d fu
ndin
g ov
er a
mou
nts
rece
ived
in p
rior
year
s.T
his
incr
ease
in r
even
ues
also
allo
wed
the
Aut
horit
y to
incu
r m
ore
expe
nditu
res
in f
isca
l yea
r 20
08.
3 Due
to
decr
ease
d in
tere
st e
arni
ngs,
the
Aut
horit
y tr
ansf
erre
d fu
nds
from
oth
er f
unds
to
satis
fy a
dmin
istr
ativ
e co
sts.
4 A s
igni
fican
t in
crea
se in
exp
endi
ture
s w
ithin
Ene
rgy
prog
ram
s is
exp
lain
ed b
y on
goin
g ad
min
istr
atio
n of
pro
gram
s as
soci
ated
with
the
Am
eric
an R
ecov
ery
and
Rei
nves
tmen
t A
ct o
f 20
09 (
AR
RA
)
for
fisca
l yea
rs 2
010
and
2011
.
5 Tra
nsfe
rs o
ut a
re b
ased
on
activ
ity e
xper
ienc
ed w
ithin
the
mat
ch lo
an p
rogr
ams.
F
luct
uatio
ns a
re b
ased
on
activ
ity o
n a
year
-to-
year
bas
is.
6 The
rat
io o
f de
bt s
ervi
ce e
xpen
ditu
res
to t
otal
non
capi
tal e
xpen
ditu
res
for
fisca
l yea
rs 2
008
thro
ugh
2012
has
con
sist
ently
bee
n le
ss t
han
1% e
ach
year
..
7 Flu
ctua
tions
may
occ
ur y
ear-
to-y
ear
with
net
cha
nge
in f
und
bala
nce
prim
arily
due
to
loan
pro
gram
dem
and
to m
atch
the
fed
eral
loan
pro
gram
s.
Mon
ies
are
depo
site
d in
to t
he
gene
ral f
und
and
held
unt
il th
e fu
nds
are
need
ed t
o fu
nd p
roje
ct d
isbu
rsem
ents
. I
n ad
ditio
n, t
he le
vel o
f fu
ndin
g pr
ovid
ed b
y th
e S
tate
of
Geo
rgia
for
thi
s sa
me
purp
ose
may
var
yde
pend
ing
upon
app
rove
d le
gisl
atio
n fo
r th
e re
spec
tive
fisca
l per
iod
and
rece
ipt
of t
hose
mon
ies.
8 Prio
r to
fis
cal y
ear
2012
, T
he A
utho
rity
prev
ious
ly r
epor
ted
thes
e am
ount
s as
cap
ital c
ontr
ibut
ions
. H
owev
er,
cons
iste
nt w
ith a
ccou
ntin
g gu
idel
ines
, th
ese
amou
nts
are
now
rep
orte
d as
oper
atin
g gr
ants
bec
ause
the
y ar
e no
t us
ed t
o co
nstr
uct
or o
btai
n ca
pita
l ass
ets
for
the
Aut
horit
y.
upon
the
Fed
eral
gov
ernm
ent
awar
ding
allo
tmen
ts w
hich
is t
ypic
ally
the
res
ult
of a
cou
rt s
ettle
men
t.
GE
OR
GIA
EN
VIR
ON
ME
NT
AL
FIN
AN
CE
AU
TH
OR
ITY
Cha
nges
in F
und
Bala
nces
, Gov
ernm
enta
l Fun
ds6
Last
Ten
Fis
cal Y
ears
(mod
ified
acc
rual
bas
is o
f acc
ount
ing)
2 The
Aut
horit
y ad
just
ed d
efer
red
reve
nue
to e
arne
d re
venu
e in
acc
orda
nce
with
elig
ibili
ty r
equi
rem
ents
und
er G
AS
B 3
3 in
200
4.
Rec
eipt
of
petr
oleu
m v
iola
tion
fees
is c
ontin
gent
63
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Gov
ernm
enta
l Act
iviti
es
Cha
rges
for S
ervi
ces
1,52
9,17
1$
11,3
92,5
12$
10,9
21,7
81$
4,19
5,87
5$
5,36
9,50
3$
5,18
6,03
1$
4,27
3,69
7$
2,60
2,12
1$
3,74
5,89
2$
2,51
7,63
3$
Ope
ratin
g G
rant
s an
d C
ontri
butio
ns2
115,
960,
883
134,
163,
153
57,2
91,4
7633
,488
,617
79,6
56,2
2840
,119
,311
32,2
06,1
0519
,121
,862
29,7
04,1
0926
,481
,527
Subt
otal
Gov
ernm
enta
l Act
iviti
es P
rogr
am R
even
ues
117,
490,
054
145,
555,
665
68,2
13,2
5737
,684
,492
85,0
25,7
3145
,305
,342
36,4
79,8
0221
,723
,983
33,4
50,0
0128
,999
,160
Bus
ines
s-ty
pe A
ctiv
ities
Cha
rges
for S
ervi
ces
38,4
59,3
6044
,905
,397
49,0
14,3
1346
,847
,730
37,3
60,1
6331
,056
,158
33,6
31,4
3025
,301
,762
25,2
30,2
1626
,232
,455
Ope
ratin
g G
rant
s an
d C
ontri
butio
ns11
2,29
2,16
31,
543,
109
2,51
0,02
410
,458
,789
20,5
42,3
1325
,263
,579
15,7
10,1
6510
,308
,595
3,08
7,00
06,
637,
492
Cap
ital G
rant
s an
d C
ontri
butio
ns3
-
93
,694
,007
118,
998,
150
95,1
13,5
5059
,414
,948
65,6
12,9
1910
1,48
7,71
381
,341
,763
56,2
03,5
0235
,772
,314
Subt
otal
Bus
ines
s-ty
pe A
ctiv
ities
Pro
gram
Rev
enue
s15
0,75
1,52
314
0,14
2,51
317
0,52
2,48
715
2,42
0,06
911
7,31
7,42
412
1,93
2,65
615
0,82
9,30
811
6,95
2,12
084
,520
,718
68,6
42,2
61
Gov
ernm
enta
l and
Bus
ines
s-ty
pe A
ctiv
ities
Cha
rges
for S
ervi
ces
39,9
88,5
3156
,297
,909
59,9
36,0
9451
,043
,605
42,7
29,6
6636
,242
,189
37,9
05,1
2727
,903
,883
28,9
76,1
0828
,750
,088
Ope
ratin
g G
rant
s an
d C
ontri
butio
ns22
8,25
3,04
613
5,70
6,26
259
,801
,500
43,9
47,4
0610
0,19
8,54
165
,382
,890
47,9
16,2
7029
,430
,457
32,7
91,1
0933
,119
,019
Cap
ital G
rant
s an
d C
ontri
butio
ns3
-
93
,694
,007
118,
998,
150
95,1
13,5
5059
,414
,948
65,6
12,9
1910
1,48
7,71
381
,341
,763
56,2
03,5
0235
,772
,314
Tota
l Gov
ernm
enta
l and
Bus
ines
s-ty
pe A
ctiv
ities
Pro
gram
Rev
enue
s26
8,24
1,57
7$
28
5,69
8,17
8$
23
8,73
5,74
4$
19
0,10
4,56
1$
20
2,34
3,15
5$
16
7,23
7,99
8$
18
7,30
9,11
0$
13
8,67
6,10
3$
11
7,97
0,71
9$
97
,641
,421
$
Not
es:
2 Dur
ing
FY 2
008,
the
Auth
ority
rece
ived
a s
igni
fican
t inc
reas
e in
ope
ratin
g gr
ants
from
the
Stat
e of
Geo
rgia
for t
he S
tate
Lan
d C
onse
rvat
ion
Fund
. In
FY 2
011,
a s
igni
fican
t inc
reas
e in
ope
ratin
g gr
ants
and
con
tribu
tions
was
due
to in
crea
sed
expe
nditu
re-d
riven
pro
gram
s as
soci
ated
with
the
Amer
ican
Rec
over
y an
d R
einv
estm
ent A
ct o
f 200
9.
3 Due
a c
hang
e in
acc
ount
ing
polic
y fo
r fis
cal y
ear 2
012,
thes
e am
ount
s ar
e re
porte
d as
ope
ratin
g gr
ants
bec
ause
they
are
not
use
d to
con
stru
ct o
r obt
ain
capi
tal a
sset
s fo
r the
Aut
horit
y.
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NA
NC
E A
UTH
OR
ITY
Gove
rnm
ent-w
ide P
rogr
am R
even
ues1
by C
ateg
ory
Last
Ten
Fisc
al Ye
ars
(acc
rual
basis
of a
ccou
nting
)
1 Prog
ram
reve
nues
are
rela
ted
to s
peci
fic a
ctiv
ities
of t
he A
utho
rity.
The
ir so
urce
s ar
e ei
ther
fees
, int
eres
t ear
ning
s, c
harg
es fo
r ser
vice
s or
gra
nts/
inte
rgov
ernm
enta
l rev
enue
s re
stric
ted
to a
spe
cific
pur
pose
.
6 4
Dat
eY
ear
Dat
e
06/2
012
3.13
07/2
012
2.22
06/2
012
06/2
011
3.81
07/2
011
3.95
06/2
011
06/2
010
3.81
07/2
010
06/2
010
06/2
009
3.81
07/2
009
06/2
009
05/2
009
3.81
07/2
008
06/2
008
02/2
009
3.89
07/2
007
06/2
007
06/2
008
4.27
07/2
006
06/2
006
12/2
007
4.10
07/2
005
06/2
005
08/2
007
4.40
07/2
004
06/2
004
06/2
007
4.19
07/2
003
06/2
003
04/2
007
4.19
09/2
006
4.12
06/2
006
4.28
02/2
006
4.10
09/2
005
3.92
08/2
004
4.20
03/2
004
3.82
11/2
003
4.12
06/2
003
3.73
So
urc
es:
The
Aut
horit
y's
Wat
er R
esou
rces
Div
isio
n an
d th
e B
ond
Buy
er a
nd F
eder
al R
eser
ve a
t: w
ww
.fede
ralre
serv
e.go
v/re
leas
es/h
15/d
ata/
mon
thly
/h15
_sl_
y20.
txt .
No
te:
1 Sta
te fu
nd lo
an r
ates
are
est
ablis
hed
at e
ach
stat
e bo
nd s
ale
date
.
2 The
clo
sing
fee
was
est
ablis
hed
to a
ssis
t the
Geo
rgia
Fun
d in
offs
ettin
g ce
rtai
n ge
nera
l and
adm
inis
trat
ive
expe
nses
ass
ocia
ted
with
pro
gram
man
agem
ent,
as w
ell a
s ot
her
cost
s as
soci
ated
with
1.00
2.13
1.00
GE
OR
GIA
EN
VIR
ON
ME
NT
AL
FIN
AN
CE
AU
TH
OR
ITY
Ann
ual L
oan
Pro
gram
Inte
rest
Rat
e H
isto
ryLa
st T
en F
isca
l Yea
rs
Geo
rgia
Fu
nd
Lo
an P
rog
ram
Bo
nd
Bu
yer
Ind
exC
lean
Wat
er S
RF
Rat
e an
d F
ee H
isto
ry
Inte
rest
Rat
e (%
)C
losi
ng
Fee
(%
)2In
tere
st R
ate
(%)
Inte
rest
Rat
e (%
)C
losi
ng
Fee
(%
)
1.00
3.00
2.00
1.00
4.32
3.00
2.00
N/A
4.72
3.00
2.00
N/A
4.68
3.00
2.00
N/A
4.56
3.00
2.00
N/A
4.61
3.00
2.00
N/A
4.31
3.00
2.00
N/A
4.87
3.00
2.00
N/A
4.74
3.00
2.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
orig
inat
ing,
pro
cess
ing,
und
erw
ritin
g an
d se
rvic
ing
loan
s fo
r th
at p
rogr
am.
-1%
0%
1%
2%
3%
4%
5%
6%
Date07/2012
07/2011
07/2010
07/2009
07/2008
07/2007
07/2006
07/200507/2004
07/2003
Interest Rate
Year
GEFA State Loan
Rates
1an
d State Revolving Loan
Fund (SR
F) Rates to 20‐year Bond
Index
(measured in
July of each year)
GE
FA
Sta
te F
und R
ate
Bond B
uyer
Ind
ex
GE
FA
Federa
l F
und R
ate
(S
RF
)
65
BO
RR
OW
ER
PR
INC
IPA
L B
ALA
NC
EO
UTS
TAN
DIN
GR
AN
K
% O
F TO
TAL
PR
INC
IPA
L B
ALA
NC
E
OU
TSTA
ND
ING
PR
INC
IPA
L B
ALA
NC
EO
UTS
TAN
DIN
GR
AN
K
% O
F TO
TAL
PR
INC
IPA
L B
ALA
NC
E
OU
TSTA
ND
ING
HE
NR
Y C
OU
NTY
WS
A4
131,
800,
367
$
310
.16%
43,4
65,9
06$
17.
09%
GA
INE
SV
ILLE
107,
536,
776
48.
29%
39,7
63,7
01
26.
48%
SA
VA
NN
AH
30,4
16,2
49
102.
34%
19,6
26,7
75
43.
20%
CO
LUM
BU
S W
ATE
R W
OR
KS
50,1
63,1
19
73.
87%
26,5
13,6
03
34.
32%
ATL
AN
TA2,
4
146,
233,
375
211
.27%
-
n/
a -
CO
VIN
GTO
N2
-
n/
a -
19,2
86,9
02
53.
14%
CA
LHO
UN
2-
n/a
-15
,287
,309
7
2.49
%
CA
MIL
LA2
-
n/
a -
15,3
82,8
49
62.
51%
CA
RTE
RS
VIL
LE2
-
n/
a -
13,9
30,9
71
82.
27%
TOC
CO
A2
-
n/
a -
12,8
66,4
03
92.
10%
WA
YC
RO
SS
2-
n/a
-12
,452
,143
10
2.03
%C
OB
B C
OU
NTY
-MA
RIE
TTY
WA
57,1
57,5
41
54.
40%
-
n/
a -
CO
BB
CO
UN
TY4
165,
049,
589
112
.72%
-
n/
a -
GW
INN
ETT
CO
UN
TY4
53,9
25,4
43
64.
15%
-
n/
a -
HA
LL C
OU
NTY
33,7
88,2
89
92.
60%
-
n/
a -
VA
LDO
STA
444
,950
,177
8
3.46
%-
n/a
-TO
TAL
PR
INC
IPA
L P
AY
ER
S82
1,02
0,92
5$
63
.26%
218,
576,
562
$
35.6
3%
ALL
OTH
ER
PA
YE
RS
476,
855,
606
36
.74%
394,
770,
759
64
.37%
TOTA
L P
AY
ER
S3
1,29
7,87
6,53
2$
100.
00%
613,
347,
321
$
100.
00%
2 Pay
er h
ad a
n ou
tsta
ndin
g pr
inci
pal b
alan
ce fo
r the
yea
rs p
rese
nted
with
an
"n/a
"; ho
wev
er, t
hese
am
ount
s w
ere
not w
ithin
the
top
10 ra
nkin
g. T
here
fore
, pay
er w
as in
clud
ed in
"All
Oth
er P
ayer
s".
3 Loan
s pr
inci
pal b
alan
ce re
pres
ents
prin
cipa
l am
ount
s du
e th
e A
utho
rity.
The
se to
tals
exc
lude
con
stru
ctio
n lo
an o
r con
stru
ctio
n lo
ans
in p
roce
ss b
alan
ces
whi
ch a
re in
incl
uded
in th
e re
porte
d am
ount
per
fund
fina
ncia
l sta
tem
ents
. C
onst
ruct
ion
loan
s an
d co
nstru
ctio
n lo
ans
in p
roce
ss a
re a
djus
ted
at th
e tim
e a
loan
bec
omes
a p
erm
anen
t am
ortiz
ing
loan
.
4 Pro
ject
s fo
r whi
ch lo
an fu
nds
are
disb
urse
d to
war
ds a
re c
lose
d ou
t upo
n ce
rtific
atio
n by
the
Geo
rgia
Env
ironm
enta
l Pro
tect
ion
Div
isio
n. D
urin
g fis
cal y
ear 2
007,
prin
cipa
l bal
ance
s fo
r Hen
ry C
ount
y an
d th
e C
ity o
f Atla
nta
mor
e th
an d
oubl
ed.
The
Aut
horit
y ha
s co
ntra
cted
with
sev
eral
juris
dict
ions
that
hav
e m
ultip
le-p
hase
pro
ject
s to
be
com
plet
ed s
uch
as A
tlant
a, H
enry
Cou
nty
WS
A, a
nd G
aine
sville
. A
s de
mon
stra
ted
here
, the
se ju
risdi
ctio
ns a
re e
xpec
ted
to h
ave
cont
inue
dfin
anci
ng a
gree
men
ts o
ver s
ever
al y
ears
.
1 Con
solid
ated
loan
prin
cipa
l bal
ance
info
rmat
ion
was
not
read
ily a
vaila
ble
until
fisc
al y
ear 2
002
whe
n th
e A
utho
rity
bega
n th
e us
e of
a lo
an s
ervi
cing
sys
tem
. C
ompl
ete
info
rmat
ion
was
not
ava
ilabl
e th
ough
unt
il fis
cal y
ear
GE
OR
GIA
EN
VIR
ON
ME
NTA
L FI
NA
NC
E A
UTH
OR
ITY
Princ
ipal L
oans
Rec
eivab
le Pa
yers
Fisc
al Ye
ar 2
012
and
Nine
Yea
rs P
rior (
2003
)1
2012
2003
66
GEO
RG
IA E
NVI
RO
NM
ENTA
L FI
NA
NC
E A
UTH
OR
ITY
Inte
rest
Reve
nue
by F
und1
Last
Ten
Fisc
al Ye
ars2
(acc
rual
basis
of a
ccou
nting
)
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Geo
rgia
Fun
d
8,96
1,78
9$
16
,617
,343
$
22
,746
,277
$
23
,177
,090
$
18
,826
,064
$
14
,903
,534
$
12
,384
,375
$
12
,426
,940
$
13
,139
,983
$
13
,930
,996
$
Geo
rgia
Res
ervo
ir &
Wat
er S
uppl
y Fu
nd55
,817
-
-
93
-
-
-
-
-
-
Serie
s 19
91-
-
-
-
-
22
5,12
7
239,
387
63
2,35
7
896,
342
1,
097,
785
Cle
an W
ater
Sta
te R
evol
ving
Loa
n Fu
nd23
,052
,731
22,7
46,7
84
21,8
18,5
51
19,7
87,1
06
15,7
43,0
87
13,3
51,9
89
11,9
38,6
45
10,8
55,3
44
10,1
12,4
08
9,90
3,15
4
Cle
an W
ater
Sta
te M
atch
Rev
olvi
ng L
oan
Fund
3
1,80
9,70
215
3,70
9
-
-
-
-
6,27
5,22
2
-
-
-
AR
RA-
Cle
an W
ater
Sta
te R
evol
ving
Loa
n Fu
nd-
51
7,82
2
85,2
52
-
-
-
-
-
-
-
Drin
king
Wat
er S
tate
Rev
olvi
ng L
oan
Fund
3,
003,
892
2,71
9,56
7
-
2,
562,
465
2,23
6,21
6
2,
183,
885
1,67
8,16
1
88
1,65
5
411,
261
28
4,77
0
Drin
king
Wat
er S
tate
Mat
ch F
und
311,
768
-
-
-
-
-
-
-
-
-
ARR
A-D
rinki
ng W
ater
Sta
te R
evol
ving
Loa
n Fu
nd-
-
16
,565
-
-
-
-
-
-
-
Non
maj
or E
nter
pris
e Fu
nds
Ope
ratin
g R
even
ue4
368,
460
628,
296
3,
222,
211
173,
972
55
4,79
6
391,
623
1,
115,
640
505,
466
67
0,22
3
1,01
5,75
0
Tota
l int
eres
t rev
enue
37
,564
,159
$
43
,383
,521
$
47
,888
,855
$
45
,700
,726
$
37,3
60,1
63$
31
,056
,158
$
33,6
31,4
30$
25
,301
,762
$
25,2
30,2
17$
26
,232
,455
$
Sour
ce:
The
Auth
ority
's A
ccou
ntin
g D
ivis
ion.
Not
es:
3 The
Auth
ority
def
ers
reve
nue
for t
he C
lean
Wat
er S
tate
Mat
ch R
evol
ving
Loa
n Fu
nd u
ntil
fede
ral m
atch
elig
ibilit
y cr
iteria
has
bee
n sa
tisfie
d. D
urin
g fis
cal y
ear 2
006,
$6,
275,
222
in p
rior y
ear d
efer
rals
was
app
ropr
iate
ly re
cogn
ized
as
reve
nue
as re
quire
d by
the
guid
elin
es o
ver t
he a
dmin
istra
tion
of th
e fe
dera
l rev
olvi
ng lo
an p
rogr
ams.
Aga
in in
201
1, T
he A
utho
rity
reco
gniz
ed $
153,
709
as re
venu
e un
der t
he s
ame
prin
cipl
es.
4 The
Auth
ority
def
ers
reve
nue
for t
he D
rinki
ng W
ater
Sta
te M
atch
Rev
olvi
ng L
oan
Fund
unt
il fe
dera
l mat
ch e
ligib
ility
crite
ria h
as b
een
satis
fied.
Dur
ing
fisca
l yea
r 200
6, $
727,
044
in p
rior y
ear d
efer
rals
was
app
ropr
iate
ly re
cogn
ized
as
reve
nue
as re
quire
d by
the
guid
elin
es o
ver t
he a
dmin
istra
tion
of th
e fe
dera
l rev
olvi
ng lo
an p
rogr
ams.
1 Inte
rest
reve
nues
are
der
ived
from
cha
rges
for s
ervi
ces
rela
tive
to s
peci
fic a
ctiv
ities
of t
he A
utho
rity.
The
ir so
urce
is in
tere
st in
com
e on
loan
rece
ivab
les.
2 The
Auth
ority
impl
emen
ted
GAS
B St
atem
ent N
o. 3
4 in
fisc
al y
ear 2
002.
The
refo
re, o
nly
nine
yea
rs o
f gov
ernm
ent-w
ide
finan
cial
dat
a is
pre
sent
ed.
67
10-y
ear
tren
d2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Net R
eve
nue
$18,1
14,3
89
$15,3
04,9
32
$15,4
72,5
77
$18,0
12,3
89
$23,7
10,0
75
$24,6
83,5
27
$24,5
19,0
68
$21,8
60,6
73
$14,7
21,9
60
$7,7
18,1
22
Debt S
erv
ice
$8,4
51,5
25
$8,7
19,2
25
$8,7
34,5
50
$8,7
46,6
00
$8,4
04,9
25
$8,4
34,8
25
$8,4
59,6
50
$6,6
98,9
50
$14,4
43,8
77
$0
Co
vera
ge
214%
176%
177%
206%
282%
293%
290%
326%
102%
N/A
$18,0
86,2
63.5
0$15,3
45,8
36
$15,4
60,1
54
$18,0
17,9
96
$23,7
01,8
88.5
0$24,7
14,0
37.2
5$24,5
32,9
85
$21,8
38,5
77
$14,7
32,7
54.5
4$0.0
0
GR
OS
S O
PE
RA
TIN
GA
VA
ILA
BL
E F
OR
FIS
CA
L Y
EA
RR
EV
EN
UE
1E
XP
EN
SE
S1
DE
BT
SE
RV
ICE
PR
INC
IPA
LIN
TE
RE
ST
TO
TA
LC
OV
ER
AG
EO
UT
ST
AN
DIN
G D
EB
T2
2012
9,3
77,0
23
1,6
58,9
01
7,7
18,1
22
-
-
-
0.0
0%
-
2011
16,9
79,6
14
2,2
57,6
54
14,7
21,9
60
14,2
55,0
00
188,8
77
14,4
43,8
77
101.9
3%
-
2010
23,1
09,1
47
1,2
48,4
74
21,8
60,6
73
6,0
35,0
00
663,9
50
6,6
98,9
50
326.3
3%
13,9
09,9
90
2009
24,5
31,5
36
12,4
68
24,5
19,0
68
7,4
60,0
00
999,6
50
8,4
59,6
50
289.8
4%
21,1
39,9
84
2008
24,7
19,2
52
35,7
25
24,6
83,5
27
7,1
15,0
00
1,3
19,8
25
8,4
34,8
25
292.6
4%
28,0
24,9
77
2007
23,7
66,8
80
56,8
05
23,7
10,0
75
6,7
80,0
00
1,6
24,9
25
8,4
04,9
25
282.1
0%
34,5
74,9
70
2006
18,0
72,3
96
60,0
06
18,0
12,3
89
6,8
15,0
00
1,9
31,6
00
8,7
46,6
00
205.9
4%
41,1
59,9
64
2005
16,9
48,1
20
1,4
75,5
43
15,4
72,5
77
6,5
10,0
00
2,2
24,5
50
8,7
34,5
50
177.1
4%
47,4
39,9
57
2004
15,3
60,2
00
55,2
68
15,3
04,9
32
6,2
15,0
00
2,5
04,2
25
8,7
19,2
25
175.5
3%
55,3
64,1
07
2003
18,1
53,7
32
39,3
43
18,1
14,3
89
5,6
80,0
00
2,7
71,5
25
8,4
51,5
25
214.3
3%
61,3
32,6
55
So
urc
e:
Th
e A
uth
ori
ty's
Acc
ou
ntin
g D
ep
art
me
nt.
No
te:
1T
he
re
pa
yme
nt s
tre
am
s o
f th
e G
eo
rgia
Fu
nd
, Se
rie
s 1
99
1 a
nd
Se
rie
s 1
99
2 F
un
ds
are
ple
dg
ed
as
colla
tera
l fo
r d
eb
t se
rvic
e r
etir
em
en
t on
the
Se
rie
s 1
99
7 R
eve
nu
e B
on
ds.
Th
is s
che
du
le s
ho
w
of t
he
se fu
nd
s. A
mo
un
t re
po
rte
d is
ne
t of b
on
d p
rem
ium
am
ort
iza
tion
co
sts.
2O
uts
tan
din
g d
eb
t fo
r 1
99
7 r
efle
cts
two
ou
tsta
nd
ing
issu
es,
the
Se
rie
s 1
99
1 a
nd
Se
rie
s 1
99
2 R
eve
nu
e B
on
ds,
at J
un
e 3
0, 1
99
7 w
hic
h w
ere
su
bse
qu
en
tly d
efe
ase
d d
uri
ng
the
19
98
ye
ar.
Be
cau
cha
ng
e in
ou
tsta
nd
ing
ba
lan
ces
fro
m 1
99
7 to
19
98
wa
s m
inim
al.
In F
Y 2
01
1, t
he
Au
tho
rity
op
ted
for
ea
rly
red
em
ptio
n o
f its
ou
tsta
nd
ing
bo
nd
s.
GE
OR
GIA
EN
VIR
ON
ME
NT
AL
FIN
AN
CE
AU
TH
OR
ITY
Sch
edul
e of
Rev
enue
Bon
d C
over
age
Last
Ten
Fis
cal Y
ears
NE
T R
EV
EN
UE
AV
AIL
AB
LE
FO
R D
EB
T S
ER
VIC
E R
EQ
UIR
EM
EN
TS
214%
176%
17
7%
206%
282%
29
3%
290%
326%
0%
102%
$0
$5
,00
0,0
00
$1
0,0
00,0
00
$1
5,0
00,0
00
$2
0,0
00,0
00
$2
5,0
00,0
00
$3
0,0
00,0
00
$3
5,0
00,0
00
$4
0,0
00,0
00
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Ne
t R
even
ue
De
bt S
erv
ice
Co
vera
ge
68
Year
Stat
e of G
eorg
ia Po
pulat
ion
Estim
ated
Po
pula
tion
Impa
cted
Nu
mbe
r of
Juris
dict
ions
Num
ber o
f Pr
ojec
ts
Clea
n W
ater
Sta
te
Revo
lvin
g Lo
an
Fund
2Pe
rcen
t of
Tota
l
Drin
king
Wat
er S
tate
Re
volv
ing
Loan
Fu
nd3
Perc
ent o
f To
tal
ARRA
4
Clea
n W
ater
Sta
te
Revo
lvin
g Lo
an
Fund
Perc
ent o
f To
tal
ARRA
4
Drin
king
Wat
er S
tate
Re
volv
ing
Loan
Fu
ndPe
rcen
t of
Tota
lGe
orgi
a Fu
ndPe
rcen
t of
Tota
lTo
tals
2012
n/a
1,68
5,77
5
3437
92,9
07,0
41$
73
.87%
14,4
98,6
83$
11
.53%
-$
0.00
%-
$
0.
00%
18,3
71,3
94$
14.6
2%12
5,77
7,11
8$
2011
n/a
2,15
3,04
9
5664
124,
855,
163
64
.52%
33,8
39,9
84
17
.49%
-
--
-
34,8
24,1
07
18.0
1%19
3,51
9,25
4
2010
9,90
8,35
72,
349,
350
92
9774
,731
,476
31.4
1%18
,281
,324
7.68
%81
,686
,310
34.3
4%29
,030
,750
12.2
0%34
,159
,881
14
.37%
237,
889,
741
20
099,
813,
588
2,08
4,22
344
4315
6,59
0,50
0
77.4
4%8,
048,
428
3.98
%n/
a-
n/a
-37
,561
,987
18
.58%
202,
200,
915
20
089,
690,
277
2,04
3,37
071
7386
,657
,300
31.7
3%7,
283,
680
2.67
%n/
a-
n/a
-17
9,14
5,48
0
65.6
0%27
3,08
6,46
0
2007
9,52
6,64
23,
118,
887
7188
122,
584,
000
42
.99%
23,9
81,2
20
8.
41%
n/a
-n/
a-
138,
588,
774
48
.60%
285,
153,
994
20
069,
323,
575
2,82
5,30
185
9491
,204
,759
32.4
6%23
,134
,176
8.23
%n/
a-
n/a
-16
6,64
5,80
4
59.3
1%28
0,98
4,73
9
2005
9,09
0,47
91,
413,
980
6780
87,7
72,1
54
42
.99%
33,8
13,0
03
16
.56%
n/a
-n/
a-
82,5
87,7
31
40.4
5%20
4,17
2,88
8
2004
8,90
7,29
21,
964,
890
7182
37,4
94,7
20
30
.44%
23,6
99,1
47
19
.24%
n/a
-n/
a-
61,9
89,1
56
50.3
2%12
3,18
3,02
3
2003
8,72
7,81
01,
183,
844
6882
86,4
26,6
39
48
.33%
39,4
14,1
01
22
.03%
n/a
-n/
a-
53,0
01,3
11
29.6
4%17
8,84
2,05
1
Sour
ce:
The
Auth
ority
's A
ccou
ntin
g an
d En
viro
nmen
t Dep
artm
ents
. Sta
te o
f Geo
rgia
Pop
ulat
ion
obta
ined
from
the
Stat
e of
Geo
rgia
's C
ompr
ehen
sive
Ann
ual F
inan
cial
Rep
ort a
t: ht
tp://
ww
w.a
udits
.sta
te.g
a.us
.
Note
s:
1 GEF
A is
a c
ompo
nent
uni
t of t
he s
tate
of G
eorg
ia a
nd d
oes
not h
ave
stat
utor
y ta
aut
horit
y. T
here
fore
, the
dem
ogra
phic
and
eco
nom
ic in
form
atio
n co
ntai
ned
in th
e Au
thor
ity's
fina
ncia
l rep
ort d
oes
not
enco
mpa
ss s
tatis
tical
dat
a re
gard
ing
the
geog
raph
ical
are
a it
serv
es; t
his
info
rmat
ion
is c
onta
ined
in th
e St
ate
of G
eorg
ia's
Com
preh
ensi
ve A
nnua
l Fin
anci
al re
port
at: w
ww
.aud
its.s
tate
.ga.
us.
3 Amou
nts
pres
ente
d in
clud
e tw
enty
per
cent
allo
cate
d to
thei
r res
pect
ive
mat
chin
g lo
an p
rogr
ams.
Incl
udes
Lan
d C
onse
rvat
ion
loan
s.
4 In F
Y 20
12, t
he A
utho
rity
did
not e
xecu
te a
ny c
ontra
cts
perta
inin
g to
the
Am
eric
an R
ecov
ery
and
Inve
stm
ent A
ct (A
RR
A).
As a
resu
lt, n
o AR
RA
fund
ing
is d
iscl
osed
.
GEOR
GIA
ENVI
RONM
ENTA
L FI
NANC
E AU
THOR
ITY
Loan
Dem
and
by P
rogr
am1
Last
Ten
Fisc
al Ye
ars2
Loan
Pro
gram
2 Loan
dem
and
info
rmat
ion
was
not
eas
ily v
erifi
able
unt
il 20
02 w
hen
the
Auth
ority
beg
an th
e us
e of
a lo
an s
ervi
cing
sys
tem
.
0
0.2
0.4
0.6
0.81
1.2
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
48.3
3%
30.4
4%42
.99%
32.4
6%42
.99%
31.7
3%
77.4
4%
31.4
1%
64.5
2%73
.87%
22.0
3%
19.2
4%
16.5
6%
8.23
%
8.41
%
2.67
%
3.98
%
7.68
%
17.4
9%11
.53%
34.3
4%
0.00
%0.
00%
12.2
0%0.
00%
29.6
4%
50.3
2%40
.45%
59.3
1%48
.60%
65.6
0%
18.5
8%14
.37%
18.0
1%14
.62%
CLE
AN
WA
TER
SR
LFD
RIN
KIN
G W
ATE
R S
RLF
AR
RA
CLE
AN
WA
TER
SR
LFA
RR
A D
RIN
KIN
G W
ATE
R S
RLF
GE
OR
GIA
FU
ND
69
Fu
nct
ion
/Pro
gra
m
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Go
vern
men
tal a
ctiv
itie
s:
Exe
cutiv
e A
dmin
istr
atio
n46
66
56
22
22
2
Ene
rgy
prog
ram
s113
1616
129
98
65
5
Sol
id w
aste
and
env
ironm
enta
l pr
ogra
ms
n/a
n/a
n/a
n/a
11
11
11
Fue
l sto
rage
tank
and
alte
rnat
ive
fuel
s pr
ogra
ms
33.
53.
54.
56
55
54
4
Info
rmat
ion
tech
nolo
gy2
33
44
44
44
31
Acc
ount
ing
supp
ort
33
23.
53
44
44
4
Oth
er a
dmin
istr
ativ
e su
ppor
t5
55
64
54
34
3
Tot
al F
TE
- G
over
nmen
tal A
ctiv
ities
33
3737
3533
30
28
25
23
20
Bu
sin
ess-
typ
e ac
tivi
ties
:
Was
te a
nd w
aste
wat
er p
rogr
ams3
86.
58.
54.
56
65
53
3
Acc
ount
ing
and
finan
ce s
uppo
rt6
65
3.5
43
44
23
Oth
er a
dmin
istr
ativ
e su
ppor
t0
00
22
22
22
2
Tot
al F
TE
- B
usin
ess
Typ
e A
ctiv
ities
1413
1410
1211
11
11
7
8
To
tals
4749
5045
4541
39
36
30
28
So
urc
es:
The
Aut
horit
y's
Hum
an R
esou
rces
and
Acc
ount
ing
Dep
artm
ents
.
No
tes:
2 In
200
3, th
e In
form
atio
n T
echn
olog
y D
epar
tmen
t was
reo
rgan
ized
to in
clud
e a
proj
ect m
anag
emen
t, da
taba
se a
dmin
istr
atio
n an
d fin
anci
al a
naly
sis
unit
to a
ccom
mod
ate
staf
f with
info
rmat
ion
war
ehou
sing
and
fin
anci
al r
epor
ting
need
s. A
sys
tem
s ad
min
istr
ator
was
late
r ad
ded
in 2
005.
3 T
he A
utho
rity
adde
d th
e La
nd C
onse
rvat
ion
prog
ram
in 2
005.
An
Env
ironm
ent D
ivis
ion
Dire
ctor
and
a L
and
Con
serv
atio
n P
rogr
am M
anag
er w
ere
hire
d to
fulfi
ll th
e in
crea
sed
need
s of
the
prog
ram
.
4 In fi
scal
yea
r 20
08, t
he A
utho
rity
was
reo
rgan
ized
to a
Chi
ef E
xecu
tive
stru
ctur
e, w
hich
incl
udes
a C
hief
Ope
ratin
g O
ffice
r to
ove
rsee
all
prog
ram
are
as; a
Chi
ef F
isca
l Offi
cer
to o
vers
ee th
e ar
eas
of A
ccou
ntin
g,
Fin
ance
and
Info
rmat
ion
Tec
hnol
ogy;
a C
hief
Adm
inis
trat
ive
Offi
cer
to o
vers
ee H
uman
Res
ourc
es a
nd g
ener
al a
dmin
istr
ativ
e su
ppor
t; an
d, a
Pub
lic A
ffairs
Dire
ctor
to o
vers
ee P
ublic
Rel
atio
ns, C
omm
unic
atio
ns, a
nd
Mar
ketin
g fo
r th
e A
utho
rity.
6 T
he A
utho
rity
has
posi
tions
that
are
spl
it-fu
nded
and
mul
ti-fu
nctio
nal a
nd th
us s
ome
area
s re
quire
per
cent
age
tabu
latio
ns.
GE
OR
GIA
EN
VIR
ON
ME
NT
AL
FIN
AN
CE
AU
TH
OR
ITY
Full-
time
Equi
vale
nt S
tate
Aut
horit
y Em
ploy
ees
by Id
entif
iabl
e Ac
tivity
Last
Ten
Fis
cal Y
ears F
ull-
Tim
e E
qu
ival
ent
Em
plo
yees
as
of
Jun
e 30
1 The
Div
isio
n of
Ene
rgy
Res
ourc
es in
crea
sed
pers
onne
l in
2005
and
200
6 to
pro
vide
ser
vice
s fo
r 3
new
pro
gram
s: 1
) S
tate
Ene
rgy
Str
ateg
y 2)
Sta
te E
nerg
y D
atab
ase,
and
3)
Sta
te U
tiliti
es P
urch
asin
g P
rogr
am. I
n 20
07, a
n In
form
atio
n C
oord
inat
or w
as a
dded
to c
ondu
ct d
ata
rese
arch
for
Ene
rgy
and
rela
ted
Env
ironm
ent p
rogr
ams.
70
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Func
tion/
Pro
gram
Ene
rgy
prog
ram
s
C
lient
s se
rved
513
,072
9,70
32,
451
4,37
75,
146
4,42
41,
107
3,61
85,
231
5,68
9
H
omes
wea
ther
ized
55,
381
7,27
31,
353
2,57
82,
642
2,75
167
22,
467
2,36
22,
579
C
arbo
n di
oxid
e (C
O2)
redu
ctio
ns (t
ons)
35,
381
7,27
31,
353
2,57
82,
642
2,75
167
22,
467
2,36
22,
579
E
nerg
y sa
ved
(mill
ion
BTU
)516
4,12
023
0,84
542
,944
81,8
2583
,858
n/a
n/a
n/a
n/a
n/a
Loan
act
iviti
es
J
obs
crea
ted
C
onst
ruct
ion
6,28
99,
667
10,0
9310
,500
15,3
9014
,149
14,0
4910
,209
6,15
98,
942
P
erm
anen
t2,
516
3,87
04,
037
4,20
08,
172
5,65
95,
620
4,08
32,
463
3,57
7
P
rivat
e w
ells
elim
inat
ed10
01,
470
9373
51,
350
304
535
1,36
882
540
S
ewer
line
s (li
near
feet
):
A
dded
18,2
5346
,140
772,
360
278,
076
107,
496
153,
237
214,
838
89,1
8911
9,07
857
,810
U
pgra
ded
5,00
013
7,86
029
0,58
510
0,73
514
0,11
416
9,50
338
3,14
523
,739
123,
117
14,2
00
S
eptic
tank
s re
mov
ed52
71,
276
-
360
311
312
728
359
906
2
N
ew c
usto
mer
s ad
ded
17,5
3427
588
,455
80,2
3297
,778
75,0
9848
,604
20,8
9027
,889
343
Sou
rces
:
The
Aut
horit
y's
Ene
rgy
and
Env
ironm
ent D
epar
tmen
ts.
Not
es:
1 Info
rmat
ion
pres
ente
d is
bas
ed o
n es
timat
es.
5 In 2
010,
pro
duct
ion
num
bers
sig
nific
antly
dec
reas
ed in
the
Ene
rgy
prog
ram
due
to a
cou
ple
fact
ors.
Firs
t, in
crea
sed
prod
uctio
n re
quire
men
ts a
ssoc
iate
d w
ith th
e A
mer
ican
Rei
nves
tmen
t and
Rec
over
y A
ct (A
RR
A) c
ause
d a
susp
ensi
on w
ith th
e no
n-A
RR
A c
ontra
ct to
add
ress
pro
duct
ion
wor
k is
sues
. Sec
ondl
y, th
e co
ntra
ct y
ear t
ypic
ally
beg
in in
Apr
il. T
here
was
no
inte
rgov
ernm
enta
l agr
eem
ent w
ith o
ne o
f our
fund
ing
agen
cies
unt
il Ju
ne 2
010,
whi
ch re
sulte
d in
low
ered
pro
duct
ion
num
bers
for t
he la
st th
ree
mon
ths
of th
e fis
cal y
ear.
Ene
rgy
savi
ngs
cont
inue
d to
rise
in F
Y 2
011,
due
to in
crea
sed
effic
ienc
y m
easu
res
prov
ided
by
or e
stim
ated
bec
ause
of t
he
inve
stm
ents
mad
e w
ith A
RR
A fu
nds.
.
4 Indi
cato
rs a
re n
ot a
vaila
ble
for t
he g
ener
al g
over
nmen
t fun
ctio
n. T
he s
olid
was
te a
nd e
nviro
nmen
tal p
rogr
ams
func
tion
has
a si
mila
r foc
us a
s th
e en
ergy
pro
gram
s an
d ex
trapo
latin
g m
etric
s is
not
feas
ible
. S
imila
rly, t
he w
ater
and
was
tew
ater
pro
gram
s ha
ve a
focu
s ak
in to
the
loan
act
iviti
es fu
nctio
n an
d di
stin
guis
hing
per
form
ance
dat
a fro
m is
not
ach
ieva
ble.
GE
OR
GIA
EN
VIR
ON
ME
NTA
L FI
NA
NC
E A
UTH
OR
ITY
Ope
ratin
g In
dica
tors
by
Func
tion
1
Last
Ten
Fisc
al Y
ears
2
2 Dur
ing
2002
, a n
eeds
ass
essm
ent w
as e
ngag
ed to
det
erm
ine
how
the
Aut
horit
y co
uld
begi
n co
llect
ing
perfo
rman
ce d
ata
on it
s pr
ogra
ms.
How
ever
, the
Aut
horit
y di
d no
t beg
in c
olle
ctin
g pe
rform
ance
indi
cato
r dat
a fo
r all
area
s id
entif
ied
until
200
3.
3 Per
U. S
. Dep
artm
ent o
f Ene
rgy
guid
ance
, car
bon
diox
ide
emis
sion
s ar
e re
duce
d by
an
aver
age
of o
ne m
etric
ton
per w
eath
eriz
ed h
ome.
71
GEOR
GIA
ENVI
RONM
ENTA
L FI
NANC
E AU
THOR
ITY
Capit
al As
set S
tatist
ics by
Func
tion
Last
Ten F
iscal
Years
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Func
tion/
Prog
ram
Gene
ral g
over
nmen
t
Com
puter
and p
eriph
eral
equip
ment
Capit
al lea
se ob
ligati
ons2
-15
4343
2815
n/an/a
n/an/a
Comp
uter p
urch
ases
317
7-
55
54
44
4
Moto
r veh
icle1
n/an/a
n/an/a
n/an/a
n/an/a
n/an/a
Sour
ce:
The A
uthor
ity's
Acco
untin
g and
Infor
matio
n Tec
hnolo
gy D
epar
tmen
ts.
Note
s:
1 The A
uthor
ity so
ld its
moto
r veh
icle t
o the
Geo
rgia
Depa
rtmen
t of A
dmini
strati
ve S
ervic
es in
2003
.
3 The A
uthor
ity ch
ose t
he op
tion t
o pur
chas
e the
15 co
mpute
rs on
the c
apita
l leas
es in
2012
, as w
ell as
two a
dditio
nal c
ompu
ters.
2 Beg
inning
fisca
l yea
r 200
7, the
Auth
ority
phas
ed ou
t the p
urch
ase o
f new
comp
uter t
ermi
nals
and t
rans
itione
d to a
capit
al lea
se st
ructu
re as
olde
r com
puter
term
inals
were
deem
ed ou
tdated
or re
quire
d rep
lacem
ent.
The d
ecisi
on to
lea
se st
aff co
mpute
r ter
mina
ls ve
rsus
purc
hasin
g was
mad
e to h
elp ke
ep in
frastr
uctur
e mor
e cur
rent,
in th
at ma
chine
s can
be re
place
d eve
ry th
ree y
ears
with
out th
e nee
d to g
o thr
ough
the s
tanda
rdize
d pro
cure
ment
proc
ess;
to fac
ilitate
stan
dard
izatio
n effo
rts, w
hich l
ower
s sup
port
costs
; and
to pr
ovide
an ef
fectiv
e disp
osal
strate
gy fo
r use
d equ
ipmen
t.
72
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY(A Component Unit of the State of Georgia)
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Pass-through
CFDA Award/ Federal
Federal Grantor/Program Title number Contract Number expenditures
U.S. Department of Energy:
Direct programs:
State Energy Program 81.041 DE-EE0004521 $ 496,036
ARRA-State Energy Program 81.041 DE-EE0000225 45,254,353
Total State Energy Program 45,750,389
Weatherization Assistance for Low-Income Persons 81.042 NT43106 1,440,150
ARRA-Weatherization Assistance for Low-Income Persons 81.042 DE-EE0000109 34,513,359
Total Weatherization Assistance for Low-Income Persons 35,953,509
Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance 81.117 DE-EE0000345 340,083
ARRA-Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance 81.117 DE-EE0001547 274,990
Total Energy Efficient and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance 615,073
State Energy Program Special Projects 81.119 NT05555 88,950
ARRA-Electricity Delivery and Energy Reliability, Research, Development and Analysis 81.122 DE-OE0000081 330,428
ARRA-Energy Efficiency and Conservation Block Grant (EECBG) 81.128 DE-EE0000806 7,141,938
Total U.S. Department of Energy 89,880,287
U.S. Department of Health and Human Services:
Pass-through programs - State of Georgia Department of
Human Resources:
Low-Income Home Energy Assistance Program 93.568 42700-040-0000005169 4,128,500
Total U.S. Department of Health and Human Services 4,128,500
U.S. Environmental Protection Agency:
Direct programs:
State Revolving Funds (Clean Water) 66.458 CS13000110 10,894,245
State Revolving Funds (Clean Water) 66.458 CS13000111 31,526,418
ARRA-State Revolving Funds (Clean Water) 66.458 2F-95423509 4,405,120
Total State Revolving Funds (Clean Water) 46,825,783
State Revolving Funds (Drinking Water) 66.468 FS-98409908 944,130
State Revolving Funds (Drinking Water) 66.468 FS-98409909 11,385,366
State Revolving Funds (Drinking Water) 66.468 FS-98409910 13,803,657
State Revolving Funds (Drinking Water) 66.468 FS-98409911 507,215
ARRA-State Revolving Funds (Drinking Water) 66.468 2F-95423409 1,812,643
Total State Revolving Funds (Drinking Water) 28,453,011
Total U.S. Environmental Protection Agency 75,278,794
Total Federal Expenditures $ 169,287,581
S-1
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Schedule of Expenditures of Federal Awards
June 30, 2012
(1) General
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all Federal financial assistance programs of the Georgia Environmental Finance Authority (the Authority). The Authority receives pass-through financial assistance from the Georgia Department of Human Services.
(2) Reporting Entity
The authoritative criteria for determining the programs, organizations, and functions of government included in the financial statements of the Authority are as follows: oversight responsibility, including selection of governing authority, designation of management, and ability to significantly influence operations; accountability for fiscal matters, including budget, surplus/deficit, debt, fiscal management, and revenue characteristics; scope of public services; and special financing relationships.
Based on above criteria, the State Energy Conservation Program, the Weatherization Assistance for Low-income Persons, Low-Income Home Energy Assistance, Energy Efficiency & Conservation Programs and State Revolving Funds are included in the Authority’s reporting entity.
(3) Basis of Accounting
The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Due to differences in the recording of loan disbursements between the requirements, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
(4) Loans Receivable
At June 30, 2012, the Authority had $751,022,385 in loans receivable outstanding, which were originally funded by the State Revolving Funds (Clean Water) Program and $135,240,552 in loans receivable outstanding, which were originally funded by the State Revolving Funds (Drinking Water) Program. Both amounts are inclusive of funding under the American Recovery and Reinvestment Act of 2009.
(5) Subrecipients
Of the Federal expenditures presented in the Schedule, the Authority provided Federal awards to subrecipients as follows:
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GEORGIA ENVIRONMENTAL FINANCE AUTHORITY (A Component Unit of the State of Georgia)
Notes to Schedule of Expenditures of Federal Awards
June 30, 2012
Federal AmountCFDA provided to
Program Title number subrecipients
State Energy Program 81.041 93,575 Weatherization Assistance for Low-Income Persons 81.042 1,255,901 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance 81.117 340,083 State Energy Program Special Projects 81.119 88,950 Low-Income Home Energy Assistance Program 93.568 4,007,297 State Revolving Funds (Clean Water) 66.458 41,083,231 State Revolving Funds (Drinking Water) 66.468 26,050,171
Direct and pass-thru programs under the American Recovery and Reinvestment Act of 2009:
ARRA-State Energy Program 81.041 44,516,396 ARRA-Weatherization Assistance for Low-Income Persons 81.042 32,159,126 ARRA-Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance 81.117 274,990 ARRA-Electricity Delivery and Energy Reliability, Research, Development an 81.122 188,984 ARRA-Energy Efficiency and Conservation Block Grant (EECBG) 81.128 6,538,836 ARRA-State Revolving Funds (Clean Water) 66.458 4,251,127 ARRA-State Revolving Funds (Drinking Water) 66.468 1,504,920
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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Members of the
Georgia Environmental Finance Authority: We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Georgia Environmental Finance Authority (the “Authority”), a component unit of the State of Georgia, as of and for the year ended June 30, 2012, which collectively comprise the Authority’s basic financial statements and have issued our report thereon dated September 28, 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 the Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of the Authority is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the Authority’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined previously.
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Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority’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. We noted certain matters that we reported to management of the Authority in a separate letter dated September 28, 2012. This report is intended solely for the information and use of management, members of the Authority, federal awarding agencies and pass-through entities, 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.
Atlanta, Georgia September 28, 2012
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REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
The Members of the Georgia Environmental Finance Authority: Compliance
We have audited the Georgia Environmental Finance Authority’s (the “Authority”), a component unit of the State of Georgia, compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the Authority’s major federal programs for the year ended June 30, 2012. The Authority’s major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the Authority’s management. Our responsibility is to express an opinion on the Authority’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Authority’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the Authority’s compliance with those requirements.
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In our opinion, the Authority complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2012. Internal Control Over Compliance
Management of the Authority is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the Authority’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance 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 compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above. This report is intended solely for the information and use of management, members of the Authority, others within the entity, the federal awarding agencies and pass-through entities, 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.
Atlanta, Georgia September 28, 2012
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GEORGIA ENVIRONMENTAL FINANCE AUTHORITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2012
SECTION I
SUMMARY OF AUDITOR’S RESULTS
Financial Statements Type of auditor’s report issued Unqualified Internal control over financial reporting: Material weaknesses identified? ____ yes __X__ no Significant deficiencies identified ____ yes __X__ none reported Noncompliance material to financial statements noted? ____ yes __ X__ no Federal Awards Internal Control over major programs: Material weaknesses identified? ____ yes __ X__ no Significant deficiencies identified not considered to be material weaknesses? ____ yes __ X __ none reported Type of auditor’s report issued on compliance for major programs. Unqualified Any audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section 510(a)? ____ yes _X _ no Identification of major program: CFDA Number Name of Federal Program or Cluster 81.122 Electricity Delivery and Energy Reliability, Research,
Development and Analysis 81.128 Energy Efficiency and Conservation Block Grant 81.041 State Energy Program 81.042 Weatherization Assistance for Low-Income Persons 93.568 Low-Income Home Energy Assistance Program 66.458 State Revolving Funds (Clean Water) 66.468 State Revolving Funds (Drinking Water)
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GEORGIA ENVIRONMENTAL FINANCE AUTHORITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2012
Dollar threshold used to distinguish between Type A and Type B programs: $3,000,000 Auditee qualified as low-risk auditee? ____ yes __ X __ no
SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES
None reported.
SECTION III FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
None reported.
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GEORGIA ENVIRONMENTAL FINANCE AUTHORITY
STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2012
None reported
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