Review report, state of Georgia, Dalton College, Dalton, Georgia, year ended June 30, 1996

GA A.?Joo .R \ D35 \995-96
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA DALTON COLLEGE DALTON, GEORGIA YEAR ENDED JUNE 30, 1996

DALTON COLLEGE -TABLE OF CONTENTS-

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXIIlBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALL FUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

ALL FUND GROUPS

.

4

C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

6

D NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

E COMBININGBALANCESHEET

CURRENT FUNDS - UNRESTRICTED

20

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

21

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

23

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

24

2

LOTTERY FOR EDUCATION

26

3 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

27

4 CASH AND CASH EQUIVALENTS

28

5 ACCOUNTS RECENABLE

29

6 CHANGES IN INVESTMENT IN PLANT

30

7 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

32

8 SCHEDULE OF REVENUES

CURRENT FUNDS

34

SCHEDULES OF EXPENDITURES BY OBJECT

9

CURRENT FUNDS

36

10

PLANT FUNDS

38

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
October 25, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe Board ofRegents ofthe University System of Georgia
and Honorable James A. Burran, President Dalton College
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through D) ofDalton College as of and for the year ended June 30, 1996, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation ofthe management ofDalton College.
A review consists principally ofinquiries of College personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, with the exception of the matters described in the fourth and fifth paragraphs, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.
As disclosed in Note 1 to the financial statements, generally accepted accounting principles require encumbrances to be recorded as a reservation of fund balance. However, in accordance with Georgia Law and State budgetary policy, management recorded encumbrances as expenditures and liabilities. The effects ofthis departure from generally accepted accounting principles on the financial statements were not reasonably determinable.

96ARL-67

As disclosed in Note 1 to the :financial statements, the College did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles. Ifcompensated absences were reported, liabilities would be increased and fund balance would be decreased by $347,855.70 as ofJune 30, 1996, and the net change in fund balance for the year ended June 30, 1996, would be decreased by $31,611.29.
Our review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 10) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review ofthe :financial statements, and except for the effects of the matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto.
Respectfully submitted,

CLV:cm 96ARL-67

Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

DALTON COLLEGE COMBINED BALANCE SHEET
ALL FUND GROUPS JUNE 30. 1996

ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant

CURRENT FUNDS UNRESTRICTED RESTRICTED UNEXPENDED

$ 1,038,608.21

$ 680,656.90

88,307.95 $ 321,148.82

20,000.00

197,919.53

1,267.00

319,231.97

Total Assets

$ 1,645,334.66 $ 321,148.82 $ 700,656.90

LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Deferred Revenue Tuition and Fees Other Deposits Held in Custody for Others Due to Other Fund Groups
Total Liabilities
Fund Balances Net Investment in Plant Restricted Unrestricted
Total Fund Balances

$

530,347.03

$ 700,259.35

323,507.77 24,236.35

$ 319,231.97

$

878,091.15 $ 319,231.97 $ 700,259.35

$

$

767,243.51

$

767,243.51 $

1,916.85 $
1,916.85 $

397.55 397.55

Total Liabilities and Fund Balances

$ 1,645,334.66 $ 321,148.82 $ 700,656.90

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement. -2-

EXHIBIT"A"

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$

444,642.69

$

_ _ _ _ _ _ $ 20,401,080.74

139,867.91 $ 2,303,775.71 429,456.77 197,919.53 1,267.00 319,231.97
20,401,080.74

$

444,642.69 $ 20,401,080.74 $ 139,867.91 $ 23,652,731.72

$

73,266.63 $ 1,303,873.01

66,601.28

323,507.77 24,236.35 66,601.28 319,231.97

$ 139,867.91 $ 2,037,450.38

$ 20,401,080.74

$

444,642.69

$

444,642.69 $ 20,401,080.74

$ 20,401,080.74 1,916.85
1,212,283.75
$ 21,615,281.34

$

444,642.69 $ 20,401,080.74 $ 139,867.91 $ 23,652,731.72

-3-

DALTON COLLEGE COMBINED STATEMENT OF CHANGES IN FUND BALANCES
ALL FUND GROUPS
YEAR ENDED JUNE 3Q 1996

BraNUES AND Oit:fER ADDmONS
Unreetric:ted Current Fund Revenues State Appropriations
Regular lottery Proceeds Federal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Investment Income Other Adjustments Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Expended for Plant Facilities Current Funds Plant Funds
Unexpended Renewals and Replacementa Georgia State Financing and Investment Commission Other Additions Insurance Recoveries Proceeds from Sale of Plant Assets
Total Revenues and Other Additions
~eENDIIURES AND Qit:fER DEDUCTIONS
Educational and General Expenditures Auxiliary EnterpriNa Expenditures Indirect Coats Recovered
Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Adjustments Prior Years' Revenues/Accounts Receivable
Expended for Plant Facilities Capitalized Noncapitalized
Diapoaals/Deletiona/Adjustrnenta
Total Expenditures and Other Deductions
TRANSFERS BEJWEEN FUNDS
Nonmandatory Renewals and Replacementa
T-otal Transfers Between Funds
Net lncrease/(Decreaae) for the Year
FUND BALANCES JULY 1, 1995

CURRENT FUNDS UNRESTRICTED RESTRICTED

UNEXPENDED

$ 10,860,315.80 $
$ 1,417,714.43 1,861,548.93 354,698.25
-472.99 5,971.03

571,885.00 342,500.00
20,000.00 55,508.48
397.55

$ 10,865,813.84 $ 3,633,961.61 $

8,628.00 2,437.15
1,001,356.18

$ 10,533,765.37 $ 3,606,917.30 197,582.35 27,044.31

1,435.15 1,723.77

$

947,758.63

53,200.00

$ 10,734,506.64 $ 3,633,961.61 $ 1,000,958.63

$

-57,334.84

$

-57,334.84

$

73,972.36 $

693,271.15

0.00 $ 1,916.85

397.55 0.00

FUND BALANCES JUNE 30 1996

$

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.

The notes to the financial statements are an integral part of this statement.
-4 -

767,243.51 $

1,916.85 $

397.55

EXHIBIT"B"

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

$

0.00

$ 10,860,315.80

571,885.00

342,500.00

1,417,714.43

1,881,548.93

$

10,800.50

385,498.75

55,508.48

-75.44 5,971.03

1,089,4n.n 1,089,4n.n

947,758.63 1,n1.oo
188,772.59

947,758.63 1,n1.oo
188,772.59

8,628.00 2,437.15

$

0.00 $ 2,244,531.49 $ 17,745,663.12

$ 14,140,682.67 197,582.35 27,044.31

1,435.15

1,723.n

$

1,n1.oo

955,485.63

880.88

54,080.88

$ 210,920.04

210,920.04

$

8,607.88 $ 210,920.04 $ 15,588,954.80

$

57,334.84

$

0.00

$

57,334.84

$

0.00

$

48,726.96 $ 2,033,611.45 $ 2,156,708.32

395,915.73 18,367,469.29 19,458,573.02

$

s s 4441642.69 201401,oao.14 21 1e1s12a1.34

-5-

QALTON COLLEGE STATEMENT OF CURRENT FUNDS REVENUES, EXPl;NDITURES,
AND OTHER CHANGES YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

REVENUES
State Appropriations Tuition and Fees Federal Grants and Contracts state Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues
EXPENDITURES
Educational and General Instruction Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships
Auxiliary Enterprises Food Services Stores and Shops
Total Expenditures
OTHER TRANSFERS AND ADDITIONS/<DEDUCTIONS)
Excess of Restricted Receipts over Transfers to Revenues Transfers for Renewals and Replacements Prior Period Adjustments (Net) Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Total other Transfers and Additions/(Deductions)

UNRESTRICTED RESTRICTED

TOTAL (Memorandum
Only)

$ 7,411,228.00

$ 7,411,228.00

2,700,076.32

2,700,076.32

9,180.31 $ 1,408,534.12 1,417,714.43

17,864.00 1,843,684.93 1,861,548.93

354,698.25

354,698.25

31,041.70

31,041.70

300,762.90

300,762.90

390,162.57

390,162.57

$ 10,860,315.80 $ 3,606,917.30 $ 14,467,233.10

$ 5,904,666.49 $ 1,371,841.01 $ 7,276,507.50

1,176.86

1,176.86

911,503.01

26,804.96

938,307.97

1,094,220.40

142,825.16 1,237,045.56

1,529;202.16

34,075.24 1,563,277.40

1,037,017.45

1,037,017.45

55,979.00 2,031,370.93 2,087,349.93

99,299.27 98,283.08

99,299.27 98,283.08

$ 10,731,347.72 $ 3,606,917.30 $ 14,338,265.02

$

$

-57,334.84

3,774.27

-1,435.15

$

-54,995.72 $

0.00 $

0.00 -57,334.84
3,774.27

0.00 $

-1,435.15 -54,995.72

Net lncrease/(Decrease) in Fund Balances

$

73,972.36 $

o.oo s_ _1_3_,9_12_._36_

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement. -6-

DALTON COLLEGE NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30, 1996

EXIIlBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Dalton College is one ofthirty-four (34) 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 ofDalton College as a separate reporting entity.
The Board ofRegents 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. Dalton College does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Dalton 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 Acco~nting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING In order to ensure observarice oflimitations and restrictions placed on the use ofthe resources available to the College, the accounts ofthe College are maintained in accordance with the principles offund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group.
Within each fund group, the College's fund balance allocations and designations represent those portions of the fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies.
Fund groups and funds presented in the accompanying financial statements are as follows:
CURRENT FUNDS
UNRESTRICTED - The fund used to account for those economic resources over which the College retains full control to use for purposes ofperforming the primary functions ofthe College, e.g., instruction, public service, auxiliary enterprises, and student activities.
RESTRICTED - The fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes.

- 7-

DALTON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
ruNE 30, 1996

EXIIlBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
PLANT FUNDS
UNEXPENDED - The fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes.
RENEWALS AND REPLACEMENTS - The fund used to account for resources set aside for the renewal and replacement ofinstitutional properties.
INVESTMENT IN PLANT - The fund which shows the total amounts representing the book value ofall physical properties owned by the College. Net Investment in Plant is an equity account showing the total book value ofphysical properties belonging to the College less the amount ofany indebtedness to others.
AGENCY FUNDS
The fund used to account for resources held by the College as custodian or fiscal agent for individual students, faculty, staff members, and organizations.
BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis ofaccounting applicable to colleges and universities prescribed in the American Institute ofCertified Public Accountants' audit guide reporting model. The modified accrual basis ofaccounting is defined as that method ofaccounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures ofthe fiscal period.
Contractual obligations for goods and services which have not been received at the end ofthe fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Compensated absences represent obligations of the College relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability of $347,855.70 and the related current year expenditure of $31,611.29 have not been reported in the current funds as required by generally accepted accounting principles.
- 8-

DALTON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING Prior period adjustments and certain other items are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations of the State ofGeorgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation of the financial statements.

To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided

are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment

in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds

and also include expenditures made for plant facilities expended by the Georgia State Financing and Investment

Commission on behalf of the College. Donated fixed assets are recorded at fair market value on the date

donated. Disposals are deleted at recorded values. No depreciation has been provided on physical plant and

equipment.



The Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to present the results of operations or the net income or loss for the period as would a statement of income or a statement of revenues and expenses.

BUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units ofthe University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 19951996. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The budget allocation and disbursement ofthese funds is made to the various organizational units by the Administrative Central Office. In addition, the organiz.ational units receive Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office.

CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits, certificates of deposit and temporary investments in authorized financial institutions.

ACCOUNTS RECEIVABLE Accounts receivable consist of allotments due from the Board of Regents of the University System of Georgia - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. No provision has been made for an allowance for doubtful accounts within the accompanying financial statements.

- 9-

DALTON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the first-in, first-out method.

Inventories ofgoods for resale are valued at cost using the first-in, first-out method.

MEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES

Funds belonging to the State ofGeorgia 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 ofthe following securities as enumerated in the Official Code of Georgia

Annotated Section 50-17-59:.



(I) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations ofthe United States or ofthe State ofGeorgia.

(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities ofthe State ofGeorgia.

(3) Bonds ofany public authority created by the laws ofthe 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 ofthe State of Georgia.

(5) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or 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 ofaccounts provided by the Federal Deposit Insurance Corporation.

- 10 -

DALTON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which includes organizational units of the Board ofRegents of the University System of Georgia) the option of exempting demand deposits from the collateral requirements.

The treasurer ofthe Board ofRegents is respoI1S1ble for all details relative to furnishing the required depository protection for all units ofthe University System of Georgia.

CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 1996, are categorized below in order to provide infonnation about the extent to which such deposits are exposed to custodial credit risk:

Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the College or by its agent in the College's name.

Category 2 - Amounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the College's name.

Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution, or by its trust department or agent but not in the College's name, and amounts uncollateralized.

Cash Deposits

Carrying
Amount

Bank Balances

Risk Categories

1

2

3

S 2,300 750 71 S 2 983 895 08 $ 100 000 00 $ 2.883.895,08 $=====0,..,00...,

NOTE 3: INVESTMENT IN PLANT

The following is a summary ofInvestment in Plant fixed assets as ofJune 30, 1996:

Land Buildings Improvements Other Than Buildings Eguipment Library Books and Collections
Total Investment in Plant

$ 72,465.30 11,779,676.92
1,585,615.20 4,242,565.52 2,720,757.80
$20,401,080.74

- 11 -

DALTON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIIlBIT "D"

NOTE 4: RISK MANAGEMENT
Dalton College is a participant in the Board ofRegents ofthe University System of Georgia Health Benefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees of the University System of Georgia. The College and participating employees and retirees pay premiums to the Health Benefits Plan for this health insurance coverage. The Health Benefits Plan is included in the audit report ofthe Board ofRegents ofthe University System ofGeorgia - Administrative Central Office. All units ofthe University System ofGeorgia share the risk ofloss for claims ofthe Health Benefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of $1,000,000.00 per person and dental coverage up to an annual maximum of $1,000.00 per person. The Board ofRegents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the Health Benefits Plan as established by the Board ofRegents.
The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia ofmaking 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 ofcommercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The 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 ofRegents of the University System ofGeorgia under powers authorized by the Official Code ofGeorgia 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 ofthe performance oftheir duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund.
NOTE 5: DEFERRED COMPENSATION PLAN
The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees ofthe State of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the State of Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor ofthe State of

- 12 -

DALTON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIDBIT "D"

NOTE 5: DEFERRED COMPENSATION PLAN
Georgia in an amont equal to the fair market value of the deferred account for each participant. Financial information relative to the plan will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
NOTE6: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Dalton College participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multipleemployer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The College's payroll for the year ended June 30, 1996, for employees covered by TRS was $5,445,567.15. The College's total payroll for all employees was $7,120,857.61.
Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number of years of creditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or fraction thereofby which the member has less than 30 years of service. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary c:,n the member's death.
Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date of death or up to the time ofdisability.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.

- 13 -

DALTON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIIlBIT "D"

NOTE6: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Contributions Required and Contributions Made
Employees ofthe College who are covered by TRS are required to pay 5% oftheir gross earnings to TRS. The College makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. For fiscal year 1996, the employer contribution rate was 11. 81 % for covered employees. In addition, the College contributed 4.87% to the TRS on behalfof employees electing to participate in the Regents Retirement Plan. The interest rate assumption (rate of return on investments) was 7.50%.

Total contnbutions to the plan made during fiscal year 1996 amounted to $965,075.60, ofwhich $692,795.43 was made by the College and $272,280.17 was made by employees. These contributions represented 12. 72% (College) and 5% (employees) ofcovered payroll.

Funding Status and Progress
Pension Benefit Obligation The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. S ofthe Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardiz.ed measurement is the actuarial present value ofcredited projected benefits. This pension valuation method reflects the present value ofestimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers ofthe PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS.

The total unfunded pension benefit obligation ofTRS as ofJune 30, 1995, which was the latest information available, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

l S,857,066,000.00

Unfunded pension benefit obligation

$ 1,585,541,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available for benefits were valued as ofthe same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

- 14 -

DALTON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE6: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress
Retirement System Contributions Total contnbutions from all employers to TRS for the year ended June 30, 1996, were $607,274,559.00. The College's contribution for the year ended June 30, 1996, of $692,795.43 was actuarially determined and represented .1141% oftotal contributions made by all participating employers.
Trend Information
Historical trend information is presented in the TRS June 30, 1996, financial report. This information gives an indication ofthe progress made in accumulating sufficient assets to pay benefits when due.
REGENTS RETIREMENT PLAN
The State of Georgia provides optional pension benefits for eligible faculty and principal administrators through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings.
State legislation requires that the employer contribute 4% and the employee contribute 5% of the participating employee's eamable compensation. Amounts attributable to all plan contributions are fully vested and nonfotfeitable at all times. The College's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1996, was $1,019,993.91. The College's total payroll for all employees was $7,120,857.61.
The College and the covered employees made the required contributions of$41,147.46 (4%) and $51,435.23 (5%), respectively.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description
Dalton 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. The College's payroll for the year ended June 30, 1996, for employees covered by GDCP was $235,666.50. The College's total payroll for all employees was $7,120,857.61.

- 15 -

DALTON COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIIlBIT "D"

NOTE6: RETIREMENTPLANS

GEORGIA DEFINED CONTRIBUTION PLAN

Benefits
A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. If a member has less than$ 3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu ofmaking 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.

Contributions and Vesting

Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer

contributions. Earnings are credited to each member's account in a manner established by the Board of

Trustees. Upon tennination ofemployment, the amount ofthe member's account is refundable upon request

by the member.





Total contributions made by employees during fiscal year 1996 amounted to $17,675.43 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan.

NOTE 7: LEAVE POLICIES

Employees earn annual leave ranging from one and one-quarter days to one and three-quarter-days each month depending upon the employees' length ofcontinuous State service with maximum accumulation offorty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment.
See Note 1 - Basis of Accounting (Compensated Absences)

Employees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.

NOTES: 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 expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the College expects such amounts, ifany, to be immaterial to its overall :financial position.

Litigation, claims and assessments filed against Dalton College (as an organizational unit of the Board of Regents ofthe University System ofGeorgia), ifany, are generally considered to be actions against the State ofGeorgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30,
1996.

- 16 -

DALTON COLLEGE NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE 9: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS

Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board ofRegents ofthe University System ofGeorgia has established group health and life insurance programs for regular employees ofthe University System ofGeorgia. It is the policy of the Board ofRegents to permit employees ofthe University System ofGeorgia eligible for retirement or that become permanently and totally disabled to continue as members ofthe group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System of Georgia and who have at least ten years of service with the University System of Georgia are eligible for these postemployment 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.

As of June 30, 1996, there were 34 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1996, Dalton College recognized as incurred $49,584.00 ofexpenditures, which was net of$18,482.45 of participant contributions.

NOTE 10: BONDING INFORMATION

The President and all employees ofDalton College are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-02-110723, on which the premium was paid to October 1, 1996. Under this agreement, the public employee dishonesty coverage insures Dalton College to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the College to a maximum of$1,000,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment.

All employees of Dalton College are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 011675 2 and 626 012294 4, on which the premiums were paid to October 1, 1996. Under these additional public employee dishonesty coverages, the policies insure the College to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees and from failure ofits employees to perform faithfully.

NOTE 11: ENROLL:MENT

The equivalent full-time student enrollment ofDalton College was as follows:

Regular Term Fall Quarter, 1995 Winter Quarter, 1996 Spring Quarter, 1996

2,149 1,996 1,812

Average

1,986

Summer School, 1995

- 17 -

SUPPLEMENTARY INFORMATION - 19 -

DALTON COLLEGE
COMBINING BALANCE SHEET
CURRENT FUNDS - UNRESTRICTED
JUNE 30, 1996

EXHIBIT e-

ASSETS
cash and cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups
Total Assets

RESIDENT LOTTERY FOR AUXILIARY STUDENT INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES

TOTAL

$ 488,611.22 $ 51,053.45 25,282.37 1,267.00
319,231.97

108.44 $

501,103.09 $ 36,582.00 172,637.16

48,785.46 $ 1,038,608.21

672.50

88,307.95

197,919.53

1,267.00

319,231.97

$ 8851446.01 $

108.44 $ 7101322.25 $ 491457.96 $ 116451334.66

UABILJTJES AND FUND BALANCES

Liabilities

Accounts Payable

$

Deferred Revenue

Tuition and Fees

Other

Tctal Liabilities

$

Fund Balances Unrestricted

517,503.25 $ 316,787.n
24,236.35 858,527.37 $
26,918.64

108.44 $ 108.44 $

12,735.34 $
12,735.34 $

$ 530,347.03

6,720.00

323,507.n 24,236.35

6,720.00 $ 878,091.15

0.00

697,586.91

42,737.96

767,243.51

Total Liabilities and Fund Balances

$ 885,446.01 $

108.44 $ 7101322.25 $ 49,457.96 $ 116451334.66

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-20-

DALTON COLLEGE COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED
VEAR ENDED JUNE 30, 1996

EXHIBIT P

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues Adjustments
Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided
Total Revenues and Other Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Adjustments Prior Years' Revenues/Accounts Receivable
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements
Total Transfers Between Funds
Net lncrease/(Decrease) for the Year
FUND BALANCES JULY l. 1995

RESIDENT LOTTERY FOR AUXILIARY

STUDENT

INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES

TOTAL

$ 10,338,635.03 $ 119,435.00 $

-472.99 51893.19
$ 10.344.055.23 $

119.435.00 $

318,848.88 $ 83,396.89 $ 10,860,315.80

14.84 318 863.12 ,
1

63.00

-472.99 51971.03

83.459.89 $ 1018651813.84

$ 10,337,ne.57 $ 119,435.00 $

$ 76,553.80 $ 10,533,765.37

197,582.35

197,582.35

1,435.15 110.02

1.613.75

1,435.15 11723.n

$ 10.339.321.74 $ 119.435.00 $ 199.196.10 $ 76j553.80 $ 1o.734.506.64

$

4,733.49 $

22.185.15

s
$ 0.00 $ 0.00

-57.334.84

s

-57.334.84

$

62,332.78 $ 6,906.09 $

635.254.13

35.831.87

-57.334.84 -57.334.84 73,972.36 693.271.15

FUND MLANCES JUNE 30 1996

s

26,918.64 $

0.00 $ 697,586.91 S 42,737.96 $ 767,243.51

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-21 -

B l'-v1 k
fJ 22-

DALIQt!I QQLLl;!:21; QQM!illtllltll!:2 UAil;Mi;HI QE Q!.!BBl;tl!I E!.!t!IDS Bl;)ll;tll!.!l;S ~el;HDII!.!Bl;S,
AHD Qil:fl;B Ql:fAf:!1!:zl;S !.!HBl;SIBIQil;D
YEAB l;t!IDl;D J!.!f:!11; 30, 1996

EXHIBITG

Bl;Yl;t!l!.!l;S
State Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues
l;XPEf:!IPITURES
Educational and General Instruction Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships
Auxiliary Enterprises Food Services Stores and Shops
Total Expenditures
QTl:f ER IRAt!ISFERS AHP APPITIQt!ISl <PEPUCTIQNS}
Transfers for Renewals and Replacements Prior Period Adjustments (Net) Remittances to the Board of Regents
of the University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Total Other Transfers and Additions/(Deductions)

RESIDENT LOTTERY FOR AUXILIARY

STUDENT

INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES

TOTAL

$ 7,291,793.00 $ 2,635,659.32 9,180.31 17,864.00 31,041.70
353,096.70
$ 10,338,635.03 $

119,435.00
$ 119,435.00 $

$
300,762.90 18,085.98

$ 64,417.00
18,979.89

7,411,228.00 2,700,076.32
9,180.31 17,864.00 31,041.70 300,762.90 390,162.57

318,848.88 $ 83,396.89 $ 10,860,315.80

$ 5,814,666.49 $ 1,176.86
902,064.64 1,000,109.97 1,529,202.16 1,037,017.45
53,539.00

90,000.00 9,438.37 19,996.63
$

$ 101337,ns.57 s 119,435.00 $

$ 5,904,666.49

1,176.86

911,503.01

$ 74,113.80

1,094,220.40

1,529,202.16

1,037,017.45

2,440.00

55,979.00

99,299.27 98,283.08

99,299.27 98,283.08

197,582.35 $ 76,553.80 $ 10.731,347.72

$

5,310.18

-1,435.15

$

3,875.03

$

-57,334.64

-1,598.91 $

$ 63.00

-57,334.84 3,n4.27

$

-58,933.75 $

-1,435.15 63.00 $ -54,995.72

Net lncrease/(Decrease) in Fund Balances

$

4,733.49 $

0.00 $

6,906.09 $

73,972.36

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-23-

DALTON COLLEGE
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET RESIDENT INSTRUCTION
YEAR ENDED JUNE 30, 1996

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

$ 7,291,793.00

$ 571,885.00

3,046,842.03 S 3,606,917.30

aa,573.63 s _ _ _ _"""""'o.=oo~

- - - - - - $ 10,338,635.03 $ 3,606,917.30 $ 658,458.63 $

0.00

EXPENDITURES
Personal Services: Education, General and Departmental Services $ Sponsored Operations
Operating Expenses: Education, General and Departmental Services Sponsored Operations
Capital Outlay Special Funding Initiative

7,861,918.22 $ 1,063,638.49

2,433,926.35 41,932.00

2,543,278.81
$

658,458.63 $

8,607.88

s $ 10,331.ne.57 $ 3,606,917.30

658,458.63 s _ _ _ _s_.,_so_1_.BB_

Excess of Revenues over Expenditures

$

858.46 $

0.00 $

0.00 $ _ _ _ _-8,.,60_7._BB_

(1) To eliminate tuition waivers not budgeted and 1D reclassify current year transfers budgeted as revenues.

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-24-

TOTAL

ADJUSTMENTS

TOTAL

(1)

(Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 7,863,678.00 6,740,332.96 $

$ 7,863,678.00 $ -7,863,678.00 $

-44,931.12

6,695,401.84

-6,930,998.00

0.00 -235.596.16

$ 14,604,010.96 $

-44,931.12 $ 14,559,079.84 $ -14,794,676.00 $ _ _ _-_235......_;.,59_ 6.1_6

$ 7,861,918.22 1,063,638.49
2,433,926.35 $ 2,543,278.81
667,066.51 41,932.00

$ 7,861,918.22 $ 1,063,638.49

-53,539.00

2,380,387.35 2,543,278.81
667,066.51 41,932.00

7,919,636.00 $ 1,111,sn.oo
2,394,900.00 2,579,218.00
741,013.00 41,932.00

57,717.78 54,338.51
14,512.65 35,939.19 73,946.49
0.00

$ 14,611,760.38 $

-53,539.00 $ 14,558,221.38 $ 14,794,676.00 $ _ _ _236......;_.,454_.62_

$

-7,749.42 $

s ao1.BB s_ _ _858_.46_ 1

s _ _ _ _8_58_.46_

-25-

DALTON COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1996

SCHEDULE'T

REVENUES State Appropriations

CURRENT FUNDS PLANT FUNDS

TOTAL

UNRESTRICTED UNEXPENDED (Budaet Basis}

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE}

$

119,435.00 $ 342,500.00 $ 461,935.00 $ 461,935.00 $

0.00

EXPENDITURES

capital Outlay

$

60,000.00 $ 60,000.00 $ 60,000.00 $

0.00

Equipment, Technology and Construction

Trust Fund

282,500.00

282,500.00 282,500.00

0.00

Special Funding Initiatives

$

119,435.00

119,435.00

119,435.00

0.00

$

119,435.00 $ 342,500.00 $ 461,935.00 $ 461,935.00 $

0.00

Excess of Revenues over Expenditures

$

0.00 $

0.00 $

0.00

$

0.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-26-

DALTON COLLEGE
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS AGENCY FUNDS
YEAR ENDED JUNE 30, 1996

SCHEDULE "3"

FUND
PAYROLL DEDUCTIONS
Federal Income Tax State Income Tax F.I.C.A. Group Insurance Retirement Georgia Defined Contribution Plan Tax Deferred Annuities Credit Union
u. s. Savings Bonds
United Fund Miscellaneous
EMPLOYER'S CONTRIBUTIONS
F.I.C.A. Retirement Group Insurance
OTHER FUNDS
Academic Committee - Business Administration Alumni Affairs American Red Cross Baptist Student Union Browne, Russell A. Memorial Fund Circle K International College Bowl Continuing Education Faculty - Staff Christmas Fund Georgia Academy of Sciences Georgia Adult Education Association Georgia Student Service Symposium . Georgia Youth Science and Technology Nursing Insurance and Testing Program Phi Theta Kappa Regent's Global Center - Studies Abroad Retired Employees' Insurance Roadrunner Tip-off Club Scholarships and Grants
Other Scholarship (List on File) Six Flags Over Georgia Tickets Vocational Technical Insurance Volunteer Tutor - Literacy White WatM Tickets

BALANCE JULY 111995

RECEIPTS

BALANCE DISBURSEMENTS JUNE 3011996

$ 808,063.57 $

287,799.52

496,116.79

$

14,039.11

251,904.53

323,805.32

17,675.43

7,093.16

139,164.96

145,483.85

3,100.00

6,742.00

60.00

41155.50

808,063.57 287,799.52 496,116.79 251,239.09 $ 323,805.32
17,675.43 135,929.96 145,483.85
3,100.00 6,742.00 41155.50

14,704.55 10,328.16
60.00

$

211192.27 $ 214641011.47 $

214801111.03 $

251092.71

$ 496,116.85 $

732,524.68

$

321609.00

6671580.80

496,116.85 731,941.76 $ 6521598.80

582.92 471591.00

$

321609.00 $ 118961222.33 $

118801657.41 $

481173.92

$

656.00

$

5,473.29

1,098.00 $

1,016.00

252.23

410.00

27.50

2,440.28

2,310.00

3,176.18

25,284.93

431.39

187.15

215.46

875.61

350.00

42.89

207.00

677.27

2,100.00

2,220.40

957.00

7.30

3,925.25

28,980.59

1,722.13

33,980.53 219.75 570.00
1,021.32 407.70

72,948.94 3,216.00 1,830.14 172.00 958.90

$

591382.79 $ 1401986.34 $

656.00 $
944.00 204.19
1,660.81 26,121.39
287.70 208.44 133.63
207.00 1,935.00
967.00 7.30
27,168.28
67,113.93 3,200.00 1,450.00 853.23 649.95
133.767,85 $

5,473.29 1,170.00
48.04 410.00
27.50 3,089.47 2,339.72
330.64 7.02
1,091.98 42.89
642.27 2,210.40
5,737.56 1,722.13
39,815.54 235.75 950.14 340.09 716.65
661601.28

$ 113,164.06 $ 4,521,220.14 $
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-27-

139,867.91

DALTON COLLEGE CASH ANO CASH EQUIVALENTS
JUNE 30, 1996

SCHEDULE "4"

INTEREST BEARING ACCOUNTS
Wachovia Bank of Georgia, Dalton, Georgia
Certificates of Deposit (4.64% - 5.59%) N.O.W. Accounts (Variable) Passbook Savings Account (2.00%)
OTHER
Cashon Hand Petty Cash

$ 2,090,217.90 208,741.31 1,791.50 $ 2,300,750.71
3,025.00

$ 2,303,775.71

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-28-

DALTON COLLEGE
ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "5"

CURRENT FUNDS

PLANT FUND

UNRESTRICTED RESTRICTED UNEXPENDED

State Appropriations Allotment from the Board of Regents of the University System of Georgia

$ 20,000.00 $

Federal Grants and Contracts Research and Instruction Student Aid

$ 36,903.96 73,518.43

State Grants and Contracts Research and Instruction Student Aid

35,917.98 159,437.14

Private Gifts, Grants, and Contracts Research and Instruction Student Aid

13,710.31 1,661.00

other Student Accounts Vendor Credit Memos other

$

37,596.17

22,895.21

27,816.57

TOTAL
20,000.00
36,903.96 73,518.43
35,917.98 159,437.14
13,710.31 1,661.00
37,596.17 22,895.21 27,816.57

$

88,307.95 $ 321,148.82 $ 20,000.00 $ 429,456.77

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-29-

DALTON COLLEGE CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30, 1996

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

BALANCE

CURRENT FUNDS

JULY 1, 1995 UNRESTRICTED RESTRICTED

$

72,465.30

10,703,865.69

1,545,113.26

3,444,200.40 $

833,644.02 $ 135,563.83

2,601,824.64

120,264.92

$ . 18,367,469.29 $

953,908.94 $ 135,563.83

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-30-

SCHEDULE ''6''

ADDITIONS
PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

PRIVATE GIFTS

DEDUCTIONS DISPOSALS/ DELETIONS/ ADJUSTMENTS

BALANCE JUNE 30, 1996

$

72,465.30

$

887,436.19

$

188,772.59

$

397.55 11,779,676.92

40,501.94

1,585,615.20

19,820.50 $

7,727.00

$

10,619.00

209,009.23 4,242,565.52

181.50

1,513.26 2,720,757.80

$

947,758.63 $

1,121.00 $

188,772.59 $

10,800.50 $

-31 -

DALTON COLLEGE
SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30, 1996

NET INVESTMENT IN PLANT Investment in Plant Facilities
RESTRICTED Designated for Subsequent Years' Expenditures
UNRESTRICTED Designated For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures Undesignated Surplus Regular Lottery for Education

RESIDENT INSTRUCTION

CURRENT FUNDS UNRESTRICTED LOTTERY FOR AUXILIARY EDUCATION ENTERPRISES

STUDENT ACTIVITIES

$

25,282.37

$ 172,637.16

524,949.75 $

42,737.96

1,636.27

- - - - - $ _ _ _ _0._00_

$

26,918.64 $

0.00 $

697,586.91 $_.......a4=2,.a..;73_7_=.96~

$

26,918.64 $

0.00 $ 697,586.91 s _....4._21_13_1_.96_

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-32-

SCHEDULE '7"

RESTRICTED

PLANT FUNDS

UNEXPENDED

LOTTERY FOR RENEWALS AND

REGULAR

EDUCATION REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 20,401,080.74 $ 20,401,080.74

$ _ _.1..,_. 91_6_.8_5

$ _ _..;.i1,_91;..;;6.;.;;.8~5

$

444,642.69

$ 197,919.53 444,642.69 567,687.71

$

397.55

_ _ _ _ _ $ _ _ _..;;.o=.o_o

$

397.55 $

0.00 $ _ _....;444..;..;..i.,.6..4.2..._.6__9_

2,033.82 0.00
$ 1,212,283.75

$

1,916.85 $

397.55 $

0.00 $

4441642.69 $ 20,401 1080.14 $ 21 1615,281.34

-33-

State Appropriations Allolmenta from the Board of Regents of the University System of Georgia Regular Special Funding Initiative Lottery Proceeds
other Revenues Retained Tuition and Fees Matriculation other
Federal Grants and Contracts Research and Instruction student Aid Contract Overhead
State Grants and Contracts Research and Instruction Student Aid Contract Overhead
Private Gifts, Grants, and Contracts Research and Instruction Student Aid
Sales and Services of Educational Activities
Sales and Services of Auxiliary Enterpriaea
otherSoun:ea Administrative Cost Allowancea c.h C>ver-Short
Extension and Public Service Interest Earned Rents
other

DALTON COLLEGE SCHEDULE Of REVENUES
CURRENT FUNDS
VEAR ENDED JUNE 30. 1996

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

$ 7,249,861.00 41,932.00 $
$ 7,291,793.00 $

119,435.00 119,435.00

$ 2,543,453.07 92,206.25

9,180.31

17,864.00

31,041.70
429.68 -30.55 293,854.10 7,657.86 51,185.61 $ 3,046,842.03

$

300,762.90

-12.86 18,098.84

$

318,848.88

$ 101338,1635.03 $ 1191435.00 $

3181848.88

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-34-

SCHEDULE "8"

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$ 7,249,861.00 41,932.00
119,435.00
$ 7,411,228.00

$ 7,249,861.00 41,932.00
119,435.00
$ 7,411,228.00

$ 2,543,453.07

$ 64,417.00

156,623.25

$ 2,543,453.07 156,623.25

$ 9,1.80.31

448,810.93 959,723.19

448,810.93 959,723.19
9,180.31

17,864.00

802,602.19 1,041,082.74

802,602.19 1,041,082.74
17,864.00

31,041.70 300,762.90

324,133.25 30,565.00

324,133.25 30,565.00
31,041.70
300,762.90

1,499.09 17,480.80

429.68 -43.41 293,854.10 19,597.93 7,657.86 68,666.41

429.68 -43.41 293,854.10 19,597.93 7,657.86 68,666.41

$ 83,396.89 $ 3,449,087.80 $ 3,606,917.30 $ 7,056,005.10

$ 83,396.89 $ 10,860,315.80 $ 3,606,917.30 $ 14,467,233.10

-35-

DALTON CQlLEGE SCHEDULE Of EXPENDITURES BY OBJECT
CURRENT FUNDS YEAR ENDED JUNE 30, 1996

PERSONAL SERYJCES
SalariN and Wages Emflk,r'a Contribuliona for:
FJ.CA Retirement Group lnlluranoe Llablllty lnlluranoe Unemployment Compensation Insurance Wortlera' Compensation Insurance Drug Teating Services
OPERATING EXPENSES
Travel Motor Vehicle Expenses Supplies and Materials Repairs and Mai.,._nce Ulillliea Rents (Other than RI Estate) Insurance and Bonding Tuition and Scholarahlpa
College Work-study Program Scholarships, Fellowships, Prizes, Awards and Other Other Operating Expenses Publlcations and Printing Equipment Non-1,-ntory Software Telecommunications Per Diem, F - and Conlracls Per Diem and FConlracls Equipment Inventory
Qil:!EB
SPECIAL FUNDING INITIATIVES Personal Services Salaries and Wages Emflk,r' Conlribuliona for: FJ.CA
Retl..-it
Group Insurance
OtherC081a Travel Supplies and Materials
Repairs and ~ Other Expenses
Equipment Non-lrwltory
Software Telecommunlcatio Equipment
"-11ory

UNRESTRICTED RESIDENT LOTTERY FOR AUXILIARY INSTRUCTION EDUCATION ENTERPRISES

$ 8,027,201.08
468,424.70 829,112.23 123,703.73 54,915.00
2,158.00 55,508.00
197.50
$ 7.881.918.22

$

131,209.75

8,173.28 11,062.96 18,122.67

$

168,568.64

$ 73,785.25 17,830.53
438,415.83 150,781.35 245,841.43
4,203.22 17,051.76
42,327.01 53,539.00 80,694.88 78,020.20
111,174.42 54,628.17 122,297.24
44,512.65 33,769.37
867.254.44
$ 2.433.926.35

$

526.61

295.40

5,458.22

9,887.08

5,448.88

43.02

310.88

3,953.83 1,556.85

1,732.14

$ 27,872.44

2,088.11 3,014.46 4,456.42

$ 37,231.43

1,748.50 $ 2,932.07
20.00

789.19 4,819.72 9,888.47
765.00

2,128.19 3,350.15 11,259.78

86.654.50

$ 41,932.00 $ 119,435.00

$ 10,337,776.57 $ 119,435.00 _ _1_97.,_.,5_82_.35_

See accompanying notes and Independent Accountanra Combined Report on Review of F:nanclal Statements and Supplementary Information.

-36-

SCHEDULE "II"

STUDENT ACTMTIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$ 6,158,410.81 $ 934,774.36 $ 7,093,185.17

476,597.96 840,175.19 641,626.40
54,915.00 2,858.00
55,506.00 197.50

17,429.42 89,335.03 22,099.68

484,027.38 729,510.22 663,926.08 54,915.00
2,858.00 55,506.00
197.50

$ 8.030.486.86 $ 1.063.638.49 $ 9.094.125.35

$

5,117.10 $ 79,428.96 $ 38,249.66 $ 117,678.62

18,125.93

1,468.14

19,594.07

23,896.58

467,771.43

206,331.59

674,103.02

160,468.43

2,089.78

162,55821

251,090.11

251,090.11

483.10

4,729.34

4,729.34

150.00

17,512.64

310.00

17,822.64

2,440.00 8,840.48 1,570.00

42,327.01 55,979.00 93,488.99 79,147.05

31,17524 2,031,370.93
24,463.CM 1,957.62

73,50225 2,087,349.93
117,952.03 81,104.87

436.39

111,174.42 54,628.17 124,465.77

2,698.32 1,83326 15,307.00

113,873.74 56,461.43 138,m.n

11,487.15 22,133.00

55,999.80 55,902.37

12,68820 37,771.00

68,688.00 93,673.37

867~54.44

135.563.83 1.002.81827

$

76.553.80 $ 2.538.493.86 $ 2.543~78.81 $ 510821m.e1

$ 27,672.44
2,088.11 3,014.46 4.456.42
$ 37,231.43
2,537.69 7,751.79 9,668.47
785.00
2,128.19 3,350.15 11,259.78
86.654.50
$ 161.367.00

$

27,872.44

2,088.11 3,014.46 4.456.42

$ 37,231.43

2,537.89 7,751.79 9,668.47
785.00

2,128.19 3,350.15 11,259.78

86.654.50

$ 161.367.00

$ 76,553.80 $ 10,731.347.72 $ 3,606,917.30 $ 14.338.265.02

.37.

DALTON COLLEGE SCHEDULE OF EXPENDITURES BY OBJECT
PLANT FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE "10"

UNEXPENDED

LOTTERY FOR

REGULAR

EDUCATION

RENEWALS AND REPLACEMENTS

CAPITAL OUTLAY

Repairs and Maintenance Equipment
Non-Inventory Per Diem, Fees and Contracts
Per Diem and Fees Contracts Equipment Motor Vehicle Purchases Inventory

$ 122,863.13 38,940.00.
39,835.00 437,000.00 $
19,820.50

$ 60,000.00

$ 880.88
7,727.00

$ 658,458.63 $

60,000.00 $

8,607.88 $

OTHER

EQUIPMENT, TECHNOLOGY AND

CONSTRUCTION TRUST FUND

Other Costs

Repairs and Maintenance

$ 152,317.69

$

Other Expenses

384.31

Equipment

Non-Inventory

14,000.00

Per Diem, Fees and Contracts

Per Diem and Fees

19,868.00

Contracts

95,930.00

$ 282,500.00

$

TOTAL
122,863.13 39,820.88 39,835.00 497,000.00 19,820.50 7,727.00 727,066.51
152,317.69 384.31
14,000.00 19,868.00 95,930.00 282,500.00

$ 658,458.63 $ 342,500.00 $ =======8=,6=0=7=.8=8 $ 1,009,566.51

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-38-