GEFA 2012 CAFR

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)


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



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


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

VIIIVIII

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



(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



(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



(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



(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



(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



(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



(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



(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



(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



(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



(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



(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


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

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June

30,

201

2

Non

maj

orTo

tal

Wea

ther

izat

ion

AR

RA

-Sta

teA

RR

A-W

eath

eriz

atio

nA

RR

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nerg

y Ef

ficie

ntG

over

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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

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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

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nyin

g no

tes

to b

asic

fina

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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

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ia)

Stat

emen

t of R

even

ues,

Exp

endi

ture

s, a

nd C

hang

es in

Fun

d Ba

lanc

es -

Gov

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l Fun

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Year

end

ed J

une

30, 2

012

Non

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$28

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—

—

—

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28

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5

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—

—

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5,83

4

—

—

—

—

1,30

3,33

7

1,52

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1

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nt re

venu

es7,

174,

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6,

830,

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44

,516

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32

,150

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6,

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6,

407,

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10

3,61

8,95

0

Publ

ic d

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—

—

—

—

—

55

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55

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tere

st in

com

e on

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stm

ents

24,9

03

—

—

—

—

46,5

40

71,4

43

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cella

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s14

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—

—

—

—

18

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32

,922

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l rev

enue

s19

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6,

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44

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32

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6,

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11

7,59

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nditu

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rent

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ener

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over

nmen

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055,

630

—

—

—

—

—

9,05

5,63

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1,99

7,58

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—

—

—

—

6,80

1,60

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8,79

9,18

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Land

con

serv

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n pr

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ms

—

—

—

—

—

59

,061

59

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En

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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

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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)

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l oth

er fi

nanc

ing

sour

ces

and

(use

s)(1

2,98

9,86

6)

—

—

157,

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—

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

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46

,173

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See

acco

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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.


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

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tate

of G

eorg

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Stat

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t of N

et A

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s - E

nter

pris

e Fu

nds

June

30,

201

2

Non

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king

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Fund

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Cur

rent

ass

ets:

C

ash

$8,

439,

732

8,

811

7,

537,

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1,

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890

89

7,11

0

255,

622

19

,814

18

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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

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14

1,44

3,84

0

380,

256,

405

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ue fr

om o

ther

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75,8

33

20,7

50,0

00

—

—

—

—

59,8

91

20,8

85,7

24

D

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s—

—

22

, 286

27

1,23

0

1,36

0

1,20

4,25

4

—

1,

499,

130

A c

crue

d in

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ceiv

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2,39

9,11

1

4,55

1

2,57

8,26

9

626,

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27

0,83

8

127,

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10

2,85

7

6,10

8,74

8

Tot

al c

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s14

0,32

5,43

8

49,8

38,0

64

104,

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027

57

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52

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20

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1,

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7,20

6,62

9

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s:

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ans

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le24

8,22

6,06

9

1,37

1,89

3

744,

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005

12

7,52

2,18

8

135,

240,

552

34

, 493

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6,

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1,

297,

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al n

oncu

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ass

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248,

226,

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1,

371,

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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

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388,

551,

507

51

,209

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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

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ties

Acco

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and

acc

rued

liab

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5,81

6

—

—

—

—

—

13

2,63

5

298,

451

Due

to o

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s49

5,18

1

—

78

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—

—

—

192,

983

76

6,25

5

Due

to o

ther

gov

ernm

ents

—

—

—

—

—

—

17

17

Une

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e—

—

—

24,9

67,3

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—

4,

522,

975

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075

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T

otal

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0,99

7

—

78

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24

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—

4,52

2,97

5

331,

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30

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Net

Ass

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Res

trict

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r loa

n pr

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ms

—

—

849,

108,

941

16

0,15

0,68

9

187,

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069

50

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6,

791,

237

1,

254,

229,

701

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cted

387,

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51

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—

—

—

—

1,

191,

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44

0,29

2,30

2

T

otal

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$38

7,89

0,51

0

51, 2

09,9

57

849,

108,

941

16

0,15

0,68

9

187,

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50

, 662

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7,

983,

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1,

694,

522,

003

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l sta

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.

21

GEO

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RO

NM

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L FI

NA

NC

E A

UTH

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ITY

(A C

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Uni

t of t

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tate

of G

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Stat

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t of R

even

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Net

Ass

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- Ent

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Fund

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Year

end

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30, 2

012

Non

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$8,

961,

789

55

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23

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1,

809,

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3,

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31

1,76

8

368,

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37

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Ad

min

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and

prev

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mai

nten

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fees

194,

491

—

—

—

—

—

700,

710

89

5,20

1

Stat

e co

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ct re

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—

—

—

—

—

52

1,75

7

521,

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334

—

—

—

2,69

5

300

36

0,39

3

363,

722

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e9,

156,

614

55

,817

23

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1,

809,

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3,

006,

587

31

2,06

8

1,95

1,32

0

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44,8

39

Ope

ratin

g Ex

pens

es:

Wat

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aste

wat

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998,

992

—

4,05

9,20

2

1,50

0,00

0

6,15

1,76

2

311,

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74

7,22

0

13, 7

68,9

44

Stor

age

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mai

nten

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pro

gram

s—

—

—

—

—

—

1,

357,

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1,

357,

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G

ener

al a

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tive

659,

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9,

605

—

22,6

85

—

5,

487

—

697,

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g ex

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658,

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9,

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4,

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1,

522,

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151,

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7,25

5

2,10

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15,8

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Ope

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7,71

4

46,2

12

18,9

93,5

29

287,

017

(3

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) (5

,187

) (1

53,3

77)

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20,7

33

Non

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(Exp

ense

s):

Fede

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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

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(3,2

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—

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(28,

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51

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23


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



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



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



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



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



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

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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

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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.

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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.

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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

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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

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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.

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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

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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)

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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

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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


Clean Water State Revolving Loan Fund General Fund 2,472


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

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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

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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

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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.

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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

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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



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



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



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


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


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

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51

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53


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

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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

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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

xing

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


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


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:

S-2


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

S-3

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.

S-4

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

S-5

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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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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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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STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2012

None reported

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GEFA 2012 CAFR

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Transcript of GEFA 2012 CAFR