CAFR - sdcera

F I N A N C I A L / N O T E S T O T H E B A S I C F I N A N C I A L S T A T E M E N T S
Allocation of contributions to the various reserve accounts of net assets are depicted in the
following table.
Fiscal Year End June 30,
Reserve 2007 2006
Reserve for Member Contributions:
Active $ 295,217 $ 258,805
Deferred 34,150 31,534
Unlocated Separated Members 0 0
Subtotal 329,367 290,339
Reserve for County Contributions 2,479,460 1,850,020
Reserve for Retirement Allowances 3,924,551 3,645,788
Total 6,733,378 5,786,147
Reserve for Health Benefits 164,865 207,339
Reserve for Star Cost-of-Living Allowance 0 54,448
Reserve for Undistributed Earnings 20,704 0
Reserve for Unrealized Earnings 0 0
Reserve for Contingencies 84,445 73,300
Reserve for Smoothed Market Value Transition 517,026 476,872
Reserve for Market Stabilization 905,221 722,800
Total Retirement Fund 8,425,639 7,320,906
Health Benefits 401(h) Account 18,866 10,042
Total Fund $ 8,444,505 $ 7,330,948
7. ADMINISTRATIVE EXPENSES
SDCERA’s Board of Retirement annually adopts an administrative expense budget based on the
total asset base at fair value on December 31 of the preceding year. By statute, the administrative
expenses are charged against SDCERA’s investment earnings and are limited to eighteen hundredths
of one percent of the total assets of the retirement system as set forth under Government Code
Section 31580.2.
SDCERA’s Administrative Expenses
For the year ended June 30, 2007
Total Asset Base, at fair value
(December 31, 2006) $ 9,244,792,103
Maximum Allowable for Administrative
Expenses (.0018 X 9,244,792,103) $ 16,640,626
Actual Administrative
Expenses for the Fiscal Year $ 10,249,109
Excess of Allowance over
Actual Administrative Expenses $ 6,391,517
Actual Administrative Expenses
as a Percentage of Total Assets Base 0.11%
36 COMPREHENSIVE ANNUAL FINANCIAL REPORT 2007