For Fiscal Year Ended June 30, 2015

ABRAHAM BALDWIN AGRICULTURAL COLLEGE - TABLE OF CONTENTS -

SECTION I FINANCIAL LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION EXHIBITS A STATEMENT OF NET POSITION - (GAAP BASIS) B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION (GAAP BASIS) C STATEMENT OF CASH FLOWS - (GAAP BASIS) D SELECTED FINANCIAL NOTES

Page
2 3 4 6

SUPPLEMENTARY INFORMATION

1 BALANCE SHEET - (STATUTORY BASIS) BUDGET FUND

24

2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT

(STATUTORY BASIS) BUDGET FUND

25

3 STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET

BY PROGRAM AND FUNDING SOURCE

(STATUTORY BASIS) BUDGET FUND

26

4 STATEMENT OF CHANGES TO FUND BALANCE

BY PROGRAM AND FUNDING SOURCE

(STATUTORY BASIS) BUDGET FUND

28

5 RECONCILIATION OF BUDGET TO GAAP

30

6 RECONCILIATION OF SALARIES AND TRAVEL

31

SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS

SECTION I FINANCIAL

Greg S. Griffin
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
December 7, 2015

Honorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the State Board of Regents of the University System of Georgia
and Dr. David Bridges, President Abraham Baldwin Agricultural College

Ladies and Gentlemen:

As part of our audits of the basic financial statements of the University System of Georgia presented in the Annual Financial Report for the University System of Georgia, the basic financial statements of the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report and the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2015, we have performed certain audit procedures at Abraham Baldwin Agricultural College. Accordingly, the financial statements and compliance activities of Abraham Baldwin Agricultural College were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996.

In addition, we have audited 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 its Federal programs for the year ended June 30, 2015.

This Management Report contains information pertinent to the financial and compliance activities of Abraham Baldwin Agricultural College as of and for the year ended June 30, 2015. Information contained in this report is a by-product of our audits of the basic financial statements of the University System of Georgia and the basic financial statements of the State of Georgia and is the representation of management. Accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided which includes a section on findings and other items reported in accordance with Commission on Colleges regulation 2.11.1 is enumerated in the Table of Contents.

This report is intended solely for the information and use of the management of Abraham Baldwin Agricultural College, members of the Board of Regents of the University System of Georgia and the Southern Association of Colleges and Schools - Commission on Colleges and is not intended to be and should not be used by anyone other than these specified parties.

Respectfully,

GSG:as

Greg S. Griffin State Auditor

SELECTED FINANCIAL INFORMATION - 1 -

ABRAHAM BALDWIN AGRICULTURAL COLLEGE STATEMENT OF NET POSITION - (GAAP BASIS)
JUNE 30, 2015
ASSETS
Current Assets Cash and Cash Equivalents Accounts Receivable, Net (Note 3) Receivables - Federal Financial Assistance Receivables - Other Due from Affiliated Organizations Inventories
Total Current Assets
Noncurrent Assets Notes Receivable, Net Capital Assets, Net (Note 4)
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources Related to Defined Benefit Pension Plans
LIABILITIES
Current Liabilities Accounts Payable Salaries Payable Benefits Payable Advances (Including Tuition and Fees) (Note 5) Deposits Held for Other Organizations Lease Purchase Obligations Compensated Absences
Total Current Liabilities
Noncurrent Liabilities Compensated Absences Net Pension Liability
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources Related to Defined Benefit Pension Plans
NET POSITION
Net Investment in Capital Assets Restricted for:
Expendable Unrestricted
Total Net Position
- 2 -

EXHIBIT "A"

$

7,387,751

372,176 1,175,622
10,134 457,229

9,402,912

283,661 45,563,755
45,847,416
55,250,328

1,670,898

590,655 71,862 64,427
411,528 539,079
14,165 466,204
2,157,920
385,150 11,190,103
11,575,253
13,733,173
3,868,579

45,549,590
662,071 -6,892,187

$

39,319,474

ABRAHAM BALDWIN AGRICULTURAL COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - (GAAP BASIS)
YEAR ENDED JUNE 30, 2015
OPERATING REVENUES
Student Tuition and Fees (Net of Allowance for Doubtful Accounts) Less: Scholarship Allowances
Federal Appropriations Grants and Contracts
Federal Other Sales and Services Rents and Royalties Auxiliary Enterprises Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES
Salaries Faculty Staff
Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Loss
NONOPERATING REVENUES (EXPENSES)
State Appropriations Grants and Contracts
Federal State Other Gifts Investment Income (Endowments, Auxiliary and Other) Interest Expense Other Nonoperating Revenues
Net Nonoperating Revenues
Loss Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts State Special Item - Capital Asset Transfer
Total Other Revenues, Expenses, Gains or Losses
Increase in Net Position
Net Position - Beginning of Year, Restated
Net Position - End of Year

EXHIBIT "B"
$ 12,091,994 -5,319,354
115,573 2,443
140,664 129,313
6,426,052 2,600,053 2,790,276
228,206 488,760 611,964 326,662 264,012
20,896,618
6,200,978 8,452,464 5,163,255
188,880 362,626 2,758,382 1,569,477 14,548,949 4,588,775
43,833,786
-22,937,168
13,884,816
8,369,864 24,639
280,291 743,247
525 -1,729,877
70,999
21,644,504
-1,292,664
959,273 11,087,001
12,046,274
10,753,610
28,565,864
$ 39,319,474

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS)
YEAR ENDED JUNE 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Federal Appropriations Grants and Contracts (Exchange) Sales and Services Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Loans Issued to Students and Employees Auxiliary Enterprise Charges: Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Other Receipts Other Payments
Net Cash Used by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts (Expenses)
Net Cash Flows Provided by Noncapital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Grants and Gifts Received Proceeds from Sale of Capital Assets Purchases of Capital Assets Principal Paid on Capital Debt and Leases Interest Paid on Capital Debt and Leases
Net Cash Used by Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments
Net Increase in Cash
Cash and Cash Equivalents - Beginning of Year
Cash and Cash Equivalents - End of Year

EXHIBIT "C"

$

6,916,924

262,658 140,664 -22,354,042 -14,602,186 -2,758,382
2,694

6,847,248 2,709,418 2,823,715
230,145 494,542 623,681 324,702 538,832 -15,667

-17,815,054

13,884,816 165,637
9,295,541 76,058
23,422,052

959,273 68,374
-1,701,568 -1,324,912 -1,729,877
-3,728,710

525 1,878,813 5,508,938

$

7,387,751

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS)
YEAR ENDED JUNE 30, 2015
RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating Loss Adjustments to Reconcile Operating Income (loss) to Net Cash
Provided (Used) by Operating Activities Depreciation Change in Assets and Liabilities: Receivables, Net Inventories Prepaid Items Notes Receivable, Net Accounts Payable Salaries Payable Advances (Including Tuition and Fees) Other Liabilities Compensated Absences Change in Deferred Inflows/Outflows of Resources: Deferred Inflows of Resources Deferred Outflows of Resources Net Pension Liability
Net Cash Used by Operating Activities
NONCASH ACTIVITY Special Item - Capital Asset Transfer

EXHIBIT "C"

$

-22,937,168

4,588,775
944,808 105,693
1,309 2,694 -83,842 17,400 -31,972 -44,991 43,556
3,868,579 -557,621
-3,732,274

$

-17,815,054

$

11,087,001

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Abraham Baldwin Agricultural College is one of thirty (30) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Abraham Baldwin Agricultural College as a separate reporting entity.
The Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. Abraham Baldwin Agricultural College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Abraham Baldwin Agricultural College is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards.
FINANCIAL STATEMENT PREPARATION The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as prescribed by the GASB and are presented as required by these standards to provide a comprehensive, entity-wide perspective of the College's assets, deferred outflows, liabilities, deferred inflows, net position, revenues, expenses, changes in net position and cash flows.
BASIS OF ACCOUNTING For financial reporting purposes, the College is considered a special-purpose government engaged only in business-type activities. Accordingly, the College's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraph. Under the accrual basis, revenues, are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra-College transactions have been eliminated.
NEW ACCOUNTING PRONOUNCEMENTS In fiscal year 2015, the College adopted Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this Statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. Implementation of this statement requires a restatement to beginning net position. The adoption of this statement has a significant impact on the College's financial statements.
In fiscal year 2015, the College adopted Governmental Accounting Standards Board (GASB) Statement No. 69, Government Combinations and Disposals of Government Operations. This statement provides specific accounting and financial reporting guidance for combinations in the governmental environment. This statement also requires that disclosures be made by governments about combination arrangements in which they engage and for disposals of government operations. The adoption of this statement does not have a significant impact on the College's financial statements.

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

In fiscal year 2015, the College adopted Governmental Accounting Standards Board (GASB) Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB No. 68. The objective of this statement is to improve accounting and financial reporting by addressing an issue in Statement No. 68, Accounting and Financial Reporting for Pensions, concerning transition provisions related to certain pension contributions made to defined benefit pension plans prior to implementation of statement. This statement amends paragraph 137 of Statement No. 68 which limited recognition of pension-related deferred outflows of resources and deferred inflows of resources at the transition to circumstances in which it is practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions. Adoption of this statement in conjunction with GASB No. 68 had a significant impact on the College's financial statements.
PENSIONS For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teachers' Retirement System of Georgia (TRS) and Employees' Retirement System (ERS), additions to/deductions for TRS's and ERS's fiduciary net position have been determined on the same basis as they are reported by TRS and ERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
NET POSITION The College's net position is classified as follows:
Net Investment in Capital Assets: This represents the College's total investment in capital assets, net of outstanding debt obligations and deferred inflows, or resources related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of the net investment in capital assets.
Restricted - expendable: Restricted expendable net position includes resources in which the College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties.
Unrestricted: Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of Investment in Capital Assets. Included in the net deficit reported is the College's Net Pension liability of $11.2 million which is required for financial reporting and will not impact the economics of the plan or affect budgets or cash flows.
SPECIAL ITEM TRANSFER On May 14, 2015, Abraham Baldwin Agricultural College transferred Abraham Baldwin Agricultural College Place dormitory building with a reported gross book balance value of $33,247,420 and accumulated depreciation of $13,021,906, for a net book value loss of $20,225,514 to the University System Office. The College also retired a capital lease for Place dormitory building with a book balance of $24,630,239 due to the transfer of the dormitory to the University System Office. The net effect of this transfer and retirement of the capital lease for this asset of $4,404,725 is noted as a Special Item Transfer on the Statement of Revenue, Expenses and Changes in Net Position.

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

On May 14, 2015, the Abraham Baldwin Agricultural College transferred Lakeside dormitory building with a reported gross book balance value of $18,935,452 and accumulated depreciation of $7,337,488, for a net book value loss of $11,597,964 to the University System Office. The College also retired a capital lease for Lakeside dormitory building with a book balance of $18,280,240 due to the transfer of the dormitory to the University System Office. The net effect of this transfer and retirement of the capital lease for this asset of $6,682,276 is noted as a Special Item Transfer on the Statement of Revenue, Expenses and Changes in Net Position.
These dormitories were included in Public-Private Partnership (P3) master agreement between the University System of Georgia and the vendor established during fiscal year 2015. To help facilitate consistent accounting treatment throughout the life of the 65 year P3 agreement and since the agreement affects nine institutions within the University System of Georgia, the service concession arrangement including the capital assets are being reflected on the University System Office's accounting records. See the service concession arrangement note disclosure within the University System Office's financial statements for more information.
RESTATEMENT NOTE DISCLOSURE For fiscal year 2015, the College made prior period adjustments due to the adoption of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date, which require the restatement of the June 30, 2014, net position. The result is a decrease in Net Position at July 1, 2014 of $13,809,100 attributable to a Net Pension Liability of $14,922,377 less plan contributions of $1,113,277 made during fiscal year 2014. This change is in accordance with generally accepted accounting principles.
NOTE 2: DEPOSITS
DEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the College) cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 5017-59:
1. Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United States or of the State of Georgia.
2. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia.
3. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

5. Bonds, bills, certificates of indebtedness, notes or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association and the Federal National Mortgage Association.
6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. The Treasurer of the Board of Regents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia.
At June 30, 2015, the carrying value of deposits was $7,378,571 and the bank balance was $8,008,078. Of the College's deposits, $7,639,239 were uninsured. Of these uninsured deposits, $7,639,239 were collateralized with securities held by the financial institution, by its trust department or agency, but not in the College's name.
NOTE 3: ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following at June 30, 2015.

Student Tuition and Fees

$

Auxiliary Enterprises and Other Operating Activities

Federal Financial Assistance

Georgia State Financing and Investment Commission

Due from Affiliated Organizations

Other

Less Allowance for Doubtful Accounts

Net Accounts Receivable

$

388,958 638,402 372,176 122,500
10,134 280,767
1,812,937 255,005
1,557,932

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

NOTE 4: CAPITAL ASSETS Following are the changes in the College's capital assets for the year ended June 30, 2015:

Beginning Balance July 1, 2014

Special Item Transfer

Capital Assets, Not Being Depreciated:

Land

$

517,110

Construction Work-In-Progress

676,519 $

0$

Total Capital Assets, Not Being Depreciated

1,193,629

0

Capital Assets, Being Depreciated: Building and Building Improvements Facilities and Other Improvements Equipment Capital Leases Library Collections Capitalized Collections

63,436,799 1,926,032 3,813,695
52,338,446 2,810,189 1,700,234

-52,182,872

Total Assets Being Depreciated
Less: Accumulated Depreciation: Building and Building Improvements Facilities and Other Improvements Equipment Capital Leases Library Collections Capitalized Collections

126,025,395
21,930,896 1,104,465 2,870,328
18,044,477 2,674,370 33,345

-52,182,872 -20,359,394

Total Accumulated Depreciation

Total Capital Assets, Being Depreciated, Net

Capital Assets, Net

$

46,657,881 79,367,514 80,561,143 $

-20,359,394 -31,823,478 -31,823,478 $

Additions

Reductions

Ending Balance June 30, 2015

356,080 $ 356,080
1,255,553 529,023 14,662
1,799,238

$ 667,019 667,019
121,125 68,376 2,029
191,530

517,110 365,580
882,690
64,692,352 1,926,032 4,221,593 87,198 2,822,822 1,700,234
75,450,231

1,764,023 47,769
371,721 2,362,482
41,441 1,339
4,588,775
-2,789,537
-2,433,457 $

116,067 2,029
118,096 73,434
740,453 $

23,694,919 1,152,234 3,125,982 47,565 2,713,782 34,684
30,769,166
44,681,065
45,563,755

A comparison of depreciation expense for the last three fiscal years is as follows:

Fiscal Year

Depreciation Expense

2015 2014 2013

$

4,588,775

$

4,768,348

$

4,935,743

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

NOTE 5: ADVANCES Advances consisted of the following at June 30, 2015.

Prepaid Tuition and Fees Other - Advances

$

376,488

35,040

Total Advances

$

411,528

NOTE 6: LONG-TERM LIABILITIES

The College's Long-Term liability activity for the year ended June 30, 2015 was as follows:

Beginning Balance July 1, 2014 (Restated)

Special Item Transfer

Additions

Reductions

Ending Balance June 30, 2015

Current Portion

Leases Lease Obligations

$ 44,249,556 $ -42,910,479 $

0 $ 1,324,912 $

14,165 $

14,165

Other Liabilities Compensated Absences Pension Liability

807,799 14,922,377

0

633,016

589,461

851,354

466,204

3,732,274

11,190,103

Total

15,730,176

0

Total Long-Term Obligations $ 59,979,732 $ -42,910,479 $

633,016 633,016 $

4,321,735

12,041,457

5,646,647 $ 12,055,622 $

466,204 480,369

NOTE 7: NET POSITION Changes in Net Position for the year ended June 30, 2015 are as follows:

Beginning Balance July 1, 2014 (Restated)

Additions

Reductions

Ending Balance June 30, 2015

Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position Total Net Position

$

36,311,587 $

41,801,934 $

32,563,931 $

45,549,590

660,346

8,681,757

8,680,032

662,071

-8,406,069

36,553,573

35,039,691

-6,892,187

$

28,565,864 $

87,037,264 $

76,283,654 $

39,319,474

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

The amounts within each category at June 30, 2015 were as follows:

June 30, 2015

Net Investments in Capital Assets

$

45,549,590

Restricted for Expendable Organized Activities Federal Loans Institutional Loans

-107 633,309
28,869

Total Expendable

662,071

Unrestricted R & R Reserve Reserve for Encumbrances Other Unrestricted

4,532,706 847,842
-12,272,735

Total Unrestricted

-6,892,187

TOTAL NET POSITION

$

39,319,474

NOTE 8: LEASE OBLIGATIONS

Abraham Baldwin Agricultural College is obligated under various operating leases for the use of equipment, and also is obligated under capital leases and installment purchase agreements for the acquisition of equipment.

CAPITAL LEASES Capital leases are generally payable in installments ranging from monthly to annually and have terms expiring between 2015 and 2016. Payments for fiscal year 2015 were $3,054,789 of which $1,729,877 represented interest. Total principal paid on capital leases was $1,324,912 for the fiscal year ended June 30, 2015. Interest rates range from 4.0 percent to 8.399 percent.

The following is a summary of the carrying values of assets held under capital lease at June 30, 2015:

Net Capital Assets Outstanding

Held Under

Balances per

Accumulated

Capital Lease Lease Schedules

Description

Gross Amount

Depreciation

at June 30, 2015 at June 30, 2015

(+)

(-)

(=)

Equipment

$

87,198 $

47,565 $

39,633 $

14,165

Certain capital leases provide for renewal and/or purchase options. Generally purchase options at bargain prices of one dollar are exercisable at the expiration of the lease terms.

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

The following capital lease schedule lists the pertinent information for each lease including the equipment, lessor, total principal amount, lease term, lease begin date, lease end date, and remaining long-term debt as of June 30, 2015.

Description

Lessor

CAPITAL LEASE SCHEDULE

Original Principal

Lease Term

Begin

Outstanding

Principal Balance

End

at June 30, 2015

Toro Reelmaster Toro Reelmaster 31000

Jerry Pate Turf & Irrigation $ Jerry Pate Turf & Irrigation

43,718 32,653

36 months 11/30/12 11/30/15 $

36 months

4/1/13 4/1/16

5,358 8,807

Total Leases

$

76,371

$

14,165

OPERATING LEASES Abraham Baldwin Agricultural College's noncancellable operating leases provide for renewal options for periods from one to three years at their fair rental value at the time of renewal. All agreements are cancelable if the State of Georgia does not provide adequate funding, but that is considered a remote possibility. In the normal course of business, operating leases are generally renewed or replaced by other leases. Operating leases are generally payable on a monthly basis. Examples of property under operating leases are copiers, other small business equipment, and buildings.

Abraham Baldwin Agricultural College fiscal year 2015 expense for rental of equipment under operating leases was $5,694.

FUTURE COMMITMENTS Future commitments for capital leases (which here and on the Statement of Net Position includes other installment purchase agreements) having remaining terms in excess of one year as of June 30, 2015, were as follows:
Capital
Leases

Year Ending June 30: 2016

14,526

Less: Interest

361

Principal Outstanding

$

14,165

NOTE 9: RETIREMENT PLANS
Abraham Baldwin Agricultural College participates in various retirement plans administered by the State of Georgia under two major retirement systems: Teachers' Retirement System of Georgia (TRS) and Employees' Retirement System of Georgia (ERS). These two systems issue separate publicly available financial reports that include the applicable financial statements and required supplementary information. The reports may be obtained from the respective administrative offices.

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

The significant retirement plans that Abraham Baldwin Agricultural College participates in are described below. More detailed information can be found in the plan agreements and related legislation. Each plan, including benefit and contribution provisions, was established and can be amended by State law.
Teachers' Retirement System of Georgia and Employees' Retirement System of Georgia
General Information about the Teachers' Retirement System
P lan description: All teachers of the College as defined in 47-3-60 of the Official Code of Georgia Annotated (O.C.G.A.) are provided a pension through the Teachers' Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. TRS issues a publicly available financial report that can be obtained at www.trsga.com/publications.
Benefits provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2015. The College's contractually required contribution rate for the year ended June 30, 2015 was 13.15% of annual College payroll. College contributions to TRS were $1,232,543 for the reporting period (fiscal year ended June 30, 2015) and $1,078,797 for the measurement period (fiscal year ended June 30, 2014).
General Information about the Employees' Retirement System
P lan description: - ERS is a cost-sharing multiple-employer defined benefit pension plan 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. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs.
Benefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to 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 modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

Under the old plan, the 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 the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also 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.
Contributions: 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 state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state 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 College's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2015 was 21.96% of annual covered payroll for old and new plan members and 18.87% for GSEPS members. The College's contributions to ERS totaled $62,365 for the reporting period (fiscal year ended June 30, 2015) and $34,480 for the measurement period (fiscal year ended June 30, 2014). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2015, the College reported a liability for its proportionate share of the net pension liability for TRS and ERS totaling $11,190,103. The net pension liability was measured as of June 30, 2014. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 was determined using standard roll-forward techniques. The College's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2014. At June 30, 2014, the College's TRS proportion was 0.086111%, which was an increase of 0.002233% from its proportion measured as of June 30, 2013. At June 30, 2014, the College's ERS proportion was 0.008295%, which was an increase of 0.001974% from its proportion measured as of June 30, 2013.

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

For the year ended June 30, 2015, the College recognized pension expense of $817,749 for TRS and $55,843 for ERS. At June 30, 2015, the College reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

TRS

ERS

Deferred

Deferred

Deferred

Deferred

Outflow of

Inflows of

Outflow of

Inflows of

Resources

Resources

Resources

Resources

Net difference between projected and actual earnings on pension plan investments

$

3,792,646

$

75,933

Changes in proportion and differences between College contributions and proportionate share of contributions $

317,042

$

58,948

College contributions subsequent to the measurement date

1,232,543

62,365

Total

$

1,549,585 $

3,792,646 $

121,313 $

75,933

College contributions subsequent to the measurement date of $1,232,542 for TRS and $62,365 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ending June 30:

TRS

ERS

2016 2017 2018 2019 2020

$ -876,106 $

$ -876,106 $

$ -876,106 $

$ -876,107 $

$

28,821 $

17,859 3,122
-18,983 -18,983
0

Actuarial assum ptions: The total pension liability as of June 30, 2014 was determined by an actuarial valuation as of June 30, 2013 using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers' Retirement System:

Inflation Salary increases Investment rate of return

3.00% 3.75% - 7.00%
7.50%

average, including inflation net of pension plan investment expense
including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females set back two years for males and set back three years for females.

The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004 - June 30, 2009.

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

Employees' Retirement System:

Inflation Salary increases Investment rate of return

3.00% 5.45% - 9.25%
7.50%

average, including inflation net of pension plan investment expense
including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table for the periods after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement.

The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004 - June 30, 2009.

The long-term expected rate of return on TRS and ERS pension plan investments was determined

using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of pension plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target

asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Target

Long-Term Expected

Asset Class

Allocation Real Rate of Return *

Fixed Income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities

30.00% 39.70%
3.70% 1.60% 18.90% 6.10%

3.00% 6.50% 10.00% 13.00% 6.50% 11.00%

100.00%
* Rates shown are net of the 3.00% assumed rate of inflation
Discount rate: The discount rate used to measure the total TRS and ERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and ERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the College's proportionate share of the net pension liability to changes in the discount rate: The following presents the College's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the College's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate:

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

Teachers' Retirement System:
College's proportionate share of the net pension liability

1% Decrease (6.50%)

Current Discount Rate
(7.50%)

1% Increase (8.50%)

$ 20,048,517 $ 10,878,989 $ 3,328,073

Employees' Retirement System:
College's proportionate share of the net pension liability

1% Decrease (6.50%)

Current Discount Rate
(7.50%)

1% Increase (8.50%)

$

453,666 $

311,114 $

189,769

P ension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and ERS financial reports which are publically available at www.trsga.com/publications and www.ers.ga.gov/formspubs/formspubs, respectively.

Regents Retirement Plan

Plan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan that was created/established by the Georgia General Assembly in O.C.G.A. 47-21-1 et.seq. and administered by the Board of Regents of the University System of Georgia. O.C.G.A. 47-3-68(a) defines who may participate in the Regents Retirement Plan. An "eligible university system employee" is a faculty member or all exempt full and partial benefit eligible employees, as designated by the regulations of the Board of Regents. Under the Regents Retirement Plan, a plan participant may purchase annuity contracts from three approved vendors (VALIC, Fidelity, and TIAA-CREF) for the purpose of receiving retirement and death benefits. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts.
Funding Policy Abraham Baldwin Agricultural College makes monthly employer contributions for the Regents Retirement Plan at rates adopted by the Teachers' Retirement System of Georgia Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2015, the employer contribution was 9.24% for the participating employee's earnable compensation. Employees contribute 6% of their earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times.
Abraham Baldwin Agricultural College and the covered employees made the required contributions of $296,816 (9.24%) and $192,737 (6%), respectively.
VALIC, Fidelity, and TIAA-CREF have separately issued financial reports which may be obtained through their respective corporate offices.

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ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

Georgia Defined Contribution Plan
Plan Description Abraham Baldwin Agricultural College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $3,500 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute.
Contributions Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 2015 amounted to $31,090.85 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
The Georgia Defined Contribution Plan issues a financial report each fiscal year, which may be obtained from the ERS offices.
NOTE 10: RISK MANAGEMENT
The University System of Georgia offers its employees and retirees access to four different healthcare plan options. For the University System of Georgia's Plan Year 2015, the following healthcare plan options were available:
BlueChoice HMO Comprehensive Care Plan Consumer Choice HSA Plan Kaiser Permanente HMO
Abraham Baldwin Agricultural College and participating employees and retirees pay premiums to the healthcare plan options to access benefits coverage. The respective health plan options are included in the financial statements of the Board of Regents of the University System of Georgia - University System Office. All units of the University System of Georgia share the risk of loss for claims associated with the self-insured plans; including the BlueChoice HMO, Comprehensive Care Plan and Consumer Choice HSA Plan.
The reserves for these plans are considered to be a self-sustaining risk fund. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to serve as the claims administrator for the self-insured healthcare plans. In addition to the self-insured healthcare plan options offered to the employees of the University System of Georgia, a fully insured HMO healthcare plan option is also offered to System employees through Kaiser Permanente.
- 19 -

ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

The Department of Administrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. Abraham Baldwin Agricultural College, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment.
A self-insured program of professional liability for its employees was established by the Board of Regents of the University System of Georgia under powers authorized by the Official Code of Georgia Annotated Section 45-9-1.
The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out of the performance of their duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund.
NOTE 11: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditure disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although Abraham Baldwin Agricultural College expects such amounts, if any, to be immaterial to its overall financial positions.
Litigation, claims and assessments filed against Abraham Baldwin Agricultural College (an organizational unit of the Board of Regents of the University System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2015.
NOTE 12: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board of Regents of the University System of Georgia has established group health and life insurance programs for regular employees of the University System of Georgia. It is the policy of the Board of Regents to permit employees of the University System of Georgia eligible for retirement or that become permanently and totally disabled to continue as members of the group health and life insurance programs. The policies of the Board of Regents of the University System of Georgia define and delineate who is eligible for these post-employment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals. With regard to life insurance, the employer covers the total cost for $25,000 of basic life insurance. If an individual elects to have supplemental, and/or, dependent life insurance coverage, such costs are borne entirely by the employee.

- 20 -

ABRAHAM BALDWIN AGRICULTURAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2015

EXHIBIT "D"

The Board of Regents Retiree Health Benefit Plan is a single-employer, defined benefit plan. Financial statements and required supplementary information for the Plan are included in the publicly available Consolidated Annual Financial Report of the University System of Georgia. The College pays the employer portion of health insurance for its eligible retirees based on rates that are established annually by the Board of Regents for the upcoming plan year. For the 2015 plan year, the employer rate was between 70-75% of the total health insurance cost for eligible retirees and the retiree rate was between 25-30%.
As of June 30, 2015, there were 181 employees who had retired or were disabled that were receiving these post-employment health and life insurance benefits. For the year ended June 30, 2015, Abraham Baldwin Agricultural College recognized as incurred $864,774 of expenditures, which was net of $455,685 of participant contributions.
NOTE 13: AFFILIATED ORGANIZATIONS
Abraham Baldwin Agricultural College Foundation, Inc. is a legally separate, tax-exempt organization whose activities primarily support Abraham Baldwin Agricultural College, a unit of the University System of Georgia. Because the University System of Georgia is an organizational unit of the State of Georgia, this affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statements 61, 39 and 14. Therefore, the financial statements of this affiliated organization are not included in these financial statements. Copies of the financial statements may be obtained from Abraham Baldwin Agricultural College.

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SUPPLEMENTARY INFORMATION - 23 -

ABRAHAM BALDWIN AGRICULTURAL COLLEGE BALANCE SHEET (STATUTORY BASIS) BUDGET FUND JUNE 30, 2015
ASSETS
Cash and Cash Equivalents Accounts Receivable
Federal Financial Assistance Other Prepaid Expenditures Other Assets
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities Accrued Payroll Encumbrances Payable Accounts Payable Deferred Revenue
Total Liabilities
Fund Balances Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Uncollectible Accounts Receivable Tuition Carry-Over Unreserved Surplus
Total Fund Balances
Total Liabilities and Fund Balances

SCHEDULE "1"

$

1,207,296.08

197,349.09 677,715.80
5,221.29 10,133.66

$

2,097,715.92

$

60,101.52

745,157.73

133,281.23

342,013.77

1,280,554.25

135,927.42 187,034.63 195,913.14
65,308.95 228,042.28
4,935.25
817,161.67

$

2,097,715.92

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.
- 24 -

ABRAHAM BALDWIN AGRICULTURAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30, 2015

SCHEDULE "2"

REVENUES State Appropriation State General Funds Other Funds Total Revenues
CARRY-OVER FROM PRIOR YEARS Transfers from Reserved Fund Balance Total Funds Available
EXPENDITURES Teaching Excess of Funds Available over Expenditures
FUND BALANCE JULY 1 Reserved
ADJUSTMENTS Prior Year Payables/Expenditures Prior Year Receivables/Revenues Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

$ 13,884,816.00 $ 13,884,816.00 $

22,231,696.00

21,850,801.88

36,116,512.00

35,735,617.88

0.00 -380,894.12
-380,894.12

0.00 36,116,512.00

806,669.29 36,542,287.17

806,669.29 425,775.17

36,116,512.00

$

0.00

35,591,353.34 950,933.83 $

525,158.66 950,933.83

877,319.82

105.00 -204,527.69 -806,669.29

$

817,161.67

SUMMARY OF FUND BALANCE
Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Uncollectible Accounts Receivable Tuition Carry-Over
Total Reserved
Unreserved Surplus
Total Fund Balance

$

135,927.42

187,034.63

195,913.14

65,308.95

228,042.28

812,226.42

4,935.25

$

817,161.67

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.
- 25 -

ABRAHAM BALDWIN AGRICULTURAL COLLEGE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE
(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2015

Teaching State Appropriation State General Funds Other Funds
Total Operating Activity

Original Appropriation

Amended Appropriation

Final Budget

Current Year Revenues

$

13,884,816.00 $

13,884,816.00 $

13,884,816.00 $ 13,884,816.00

22,045,669.00

22,045,669.00

22,231,696.00

21,850,801.88

$

35,930,485.00 $

35,930,485.00 $

36,116,512.00 $ 35,735,617.88

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.
- 26 -

SCHEDULE "3"

Funds Available Compared to Budget

Prior Year

Adjustments and

Total

Carry-Over

Program Transfers Funds Available

Variance Positive

Expenditures Compared to Budget

Variance

Actual

Positive

Excess of Funds Available
Over Expenditures

$

0.00 $

806,669.29

0.00 $ 13,884,816.00 $

0.00 $ 13,884,816.00 $

0.00 $

0.00

22,657,471.17 425,775.17

21,706,537.34 525,158.66

0.00 950,933.83

$ 806,669.29 $

0.00 $ 36,542,287.17 $ 425,775.17 $ 35,591,353.34 $ 525,158.66 $

950,933.83

- 27 -

ABRAHAM BALDWIN AGRICULTURAL COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE
(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2015

Teaching State Appropriation State General Funds Other Funds
Total Operating Activity
Prior Year Reserves Not Available for Expenditure Uncollectible Accounts Receivable

Beginning Fund Balance July 1

Fund Balance Carried Over from
Prior Period as Funds Available

Return of Fiscal Year 2014
Surplus

Prior Period Adjustments

$

0.00 $

806,669.29

806,669.29

0.00 $ -806,669.29
-806,669.29

0.00 $

0.00

-204,422.69

0.00

-204,422.69

70,650.53

0.00

0.00

0.00

Budget Unit Totals

$

877,319.82 $

-806,669.29 $

0.00 $ -204,422.69

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.
- 28 -

SCHEDULE "4"

Other Adjustments

Early Return Fiscal Year 2015
Surplus

Excess of Funds Available
Over Expenditures

Ending Fund Balance June 30

Analysis of Ending Fund Balance

Reserved

Surplus

Total

$

0.00 $

5,341.58

5,341.58

0.00 $ 0.00
0.00

0.00 $ 950,933.83
950,933.83

0.00 $ 751,852.72
751,852.72

0.00 $ 746,917.47
746,917.47

0.00 $ 4,935.25
4,935.25

0.00 751,852.72
751,852.72

-5,341.58

0.00

0.00

65,308.95

65,308.95

0.00

65,308.95

$

0.00 $

0.00 $

950,933.83 $

817,161.67 $ 812,226.42 $

4,935.25 $

817,161.67

Summary of Ending Fund Balance Reserved
Department Sales and Services Indirect Cost Recoveries Technology Fees Uncollectible Accounts Receivable Tuition Carry-Over Unreserved Surplus
Total Ending Fund Balance - June 30

$ 135,927.42 187,034.63 195,913.14 65,308.95 228,042.28
$
$ 812,226.42 $

$
4,935.25 4,935.25 $

135,927.42 187,034.63 195,913.14
65,308.95 228,042.28
4,935.25
817,161.67

- 29 -

ABRAHAM BALDWIN AGRICULTURAL COLLEGE RECONCILIATION OF BUDGET TO GAAP YEAR ENDED JUNE 30, 2015

SCHEDULE "5"

Presented below is a reconciliation of the fund balance of the Budget Fund, as reported on Schedule 1, to Net Position of business-type activities, as reported on Exhibit A.

Total Fund Balances - Budget Fund - Non-GAAP Basis (Schedule "1")

$

817,161.67

Amounts reported for Business-Type Activities in the Statement of Net Position are different because:

Capital Assets used in Business-Type Activities are not reported in the Budget Fund.

45,563,755.20

Uncollectible accounts receivable are reported as an asset and reserved fund balance in the Budget Fund and as a contra-asset account on the Statement of Net Position.

-65,308.95

Agency Fund activities are not reported as a component of the Budget Fund. Assets Liabilities Total Net Effect of Agency Fund Activity

$

965,580.27

-989,552.68

-23,972.41

Auxiliary Enterprises Fund activities are not reported as a component of the Budget Fund. Assets Liabilities Total Net Effect of Auxiliary Enterprises Fund Activity

$ 5,382,622.53 -84,873.46

5,297,749.07

Loan Fund activities are not reported as a component of the Budget Fund. Assets Liabilities Total Net Effect of Loan Fund Activity

$

655,057.72

0.00

655,057.72

Student Activities Fund activities are not reported as a component of the Budget Fund. Assets Liabilities Total Net Effect of Student Activity Fund Activity

$

655,214.08

-13,918.33

641,295.75

The budgetary basis of accounting implemented by the State of Georgia recognizes expenditures when encumbered. The following adjustments were made to eliminate this activity for reporting on the Statement of Net Position. Payables reported in the Budget Fund that are based on encumbrances are eliminated for GAAP reporting. Payables for goods and services provided in the current fiscal year reported in the Budget Fund as encumbrances payable are reported as accounts payable for GAAP reporting. Reimbursement from grantors reported as revenues in the Budget Fund that are for expenditures based on encumbrances are deferred for GAAP reporting. Total Net Effect of Encumbrance Activity

$

745,157.73

-59,028.88 -29,000.00

657,128.85

Certain Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the Budget Fund. Capital Leases Payable Compensated Absences Payable Deferred Loss on Benefit Pension Plan Deferred Gain on Benefit Pension Plan Net Pension Liability Total Liabilities

$

-14,164.75

-851,355.17

1,670,898.06

-3,868,579.00

-11,190,103.00

-14,253,303.86

Grant Receivables are not due and receivable in the current period and therefore are not reported as receivables in the Budget Fund.

29,911.79

Net Position of Business-Type Activities (Exhibit "A")
The supplementary information presented on Schedules 1, 2, 3 and 4 was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework. The information was derived from, and relates directly to, the same information used to prepare the financial statements. However, the budgetary statutes and regulations of the State of Georgia require reporting of certain information that is not in accordance with generally accepted accounting principles. Presented on this schedule is a reconciliation of the fund balance of the Budget Fund, as reported on Schedule 1, to Net Position of business-type activities, as reported on Exhibit A.
- 30 -

$ 39,319,474.83

ABRAHAM BALDWIN AGRICULTURAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2015

SCHEDULE "6"

Totals per Annual Supplement
Accruals June 30, 2015 June 30, 2014
Compensated Absences June 30, 2015 June 30, 2014
Adjustments Shared Services on Jointly Staffed Personnel Coastal College of Georgia Buehrer, Danielle Darton State College Buhrer, Danielle Slack, Eugene Snead, Shavecca Georgia Southwestern State University Ellis, Diantha Story-Huffman, Mary Middle Georgia State College Allen, Saylor University of Georgia Dent, Christina Diffie, Stan Elad, Renata Price, Randi University of West Georgia Arrington, Brandi Brown, Joseph Cofer, Rebecca Giles, Sandra Gunnels, Bridgette Hall, Cynthia Lishman, Lisa Milford, Joe Newberry, Jeff Perry, Keith Ray, Brian Reynolds, Billy Rivers, Jewrell Rogers, Catherine Schmeisser, Hans Shippey, Herbert Urquhardt, Amanda Valdosta State University Betts-Barfield, Jennifer
Travel Adjustments
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SALARIES

$

14,753,468 $

TRAVEL 356,633

71,862 -60,006

790,855 -750,394

-4,331
6,000 2,100 2,100
-11,000 2,625
-12,000
-3,020 6,300 -4,500 4,200
-3,600 -11,200
-3,600 -7,200 -14,400 -12,400 -7,200 -16,200 -3,600 -7,850 -5,267 -10,800 -9,300 -3,600 -10,800 -10,800 -7,200
4,200

5,993

$

14,653,442 $

362,626

SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS

ABRAHAM BALDWIN AGRICULTURAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS
YEAR ENDED JUNE 30, 2015
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
No matters were reported.
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
OTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION)
Untimely Enrollment Reporting Observation: Our testing of ten students who withdrew during the Fall 2014 and Spring 2015 semesters revealed that seven of the ten student's withdrawn enrollment statuses were reported to the National Student Loan Data System (NSLDS) in an untimely manner.
Recommendation: The College should implement policies and procedures to ensure that all changes in student enrollment statuses are reported in a timely manner.
Reconciliation of Federal Direct Loan Program Observation: The College failed to perform monthly reconciliations for the Direct Loan Program. Though entity personnel perform a reconciliation of amounts reported in Banner and PeopleSoft, there is no evidence that a reconciliation of amounts disbursed by student per the Direct Loan Common Origination and Disbursement (COD) system and Banner was performed at any time during the fiscal year.
Recommendation: The College should establish procedures and assign responsibility for the monthly and yearly reconciliation of the Federal Direct Loan Program. The College should ensure it follows guidelines detailed in the Federal Direct Loan School Guide to ensure compliance with Federal Direct Loan Program requirements.
Inadequate Separation of Duties and Password Settings Observation: Our review of the established internal control structure associated with significant financial applications at the College revealed design deficiencies in logical access controls intended to protect information from unauthorized access, manipulation and corruption. The details related to these deficiencies have been provided to management of the College in accordance with Official Code of Georgia 50-6-9.
Recommendation: Management should review and enhance their policies and procedures to ensure the integrity and accuracy of the information used within the financial statements and as part of awarding financial assistance to students. Additionally, management should ensure proper separation of duties as it relates to financial and student financial assistance processes.