Dalton State College, Dalton, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2001

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STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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DALTON STATE COLLEGE
DALTON, GEORGIA REPORT ON REVIEW OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2001
Russell W. Hinton State Auditor

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DALTON STATE COLLEGE - TABLE OF CONTENTS -

Page

FINANCIAL

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

EXHIBITS


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

7

D NOTES TO THE FINANCIAL STATEMENTS

8

SUPPLEMENTARY INFORMATION

E COMBINING BALANCE SHEET

CURRENT FUNDS - UNRESTRICTED

20

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

22

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

24

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

26

2

LOTTERY FOR EDUCATION

28

3 CHANGES IN INVESTMENT IN PLANT

30

4 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

32

5 RECONCILIATION OF SALARIES AND TRAVEL

34



,
FINANCIAL

RUSSELl. W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-X400
October 18, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly o,f Georgia Members of the Board of Regents of the University System of Georgia
and Honorable James A. Burran, President Dalton State College
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY ~'FORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through D) of Dalton State College as ofand for the year ended June 30, 2001, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute ofCertified Public Accountants. All information included in these financial statements is the representation of the management of Dalton State College.
A review consists principally ofinquiries ofCollege personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, 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
opm ion.
Based on our review, with the exception ofthe 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 accounting principles generally accepted in the

United States of America.
As disclosed in Note 1 to the financial statements, accounting principles generally accepted in the United States of America 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 of this departure from accounting principles generally accepted in the United States of America on the financial statements were not reasonably determinable.
01ARL-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 accounting principles generally accepted in the United States of America. If compensated absences were reported, liabilities would be increased and fund balance would be decreased by $440,443.24 as of June 30, 2001, and the net change in fund balance for the year ended June 30, 2001, would be decreased by $19,373.65.
Our review was made for the purpose of expressing 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 accounting principles generally accepted in the United States ofAmerica. The accompanying combining statements (Exhibits E through G) and the financial schedules (Schedules 1through 5) are presented for supplementary analysispurposes. 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, weare not aware of any material modifications which should be made thereto.
.----.;.R_e..s..:pectfully submitted,

RWH:gp 01ARL-67

L(J.
Ru ell W. Hinton Sta e Auditor

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FINANCIAL STATEMENTS

- 1-

"

DALTON STATE COLLEGE

COMBINED BALANCE SHEET

ALL FUND GROUPS

JUNE 30, 2001

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

CURRENT FUNDS UNRESTRICTED RESTRICTED

UNEXPENDED

$

1,191,498.94

$

681,002.18

493,391.08 $ 359,159.66

253,197.90

5,024.00

476,906.36



476,906.36

$

2,420,018.28 $ 836,066.02 $ = __68""1","0";0,2;;.,1;8:;~

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

$

342,214.18

266,673.87

$

514,115.47

538,360.50

------$_...:::.8:3:2,:92:9=.5=1 ~

166,886.71

$

1,147,248.55 $ 832,929.51 $ _---"="6-8'=1;,;0.;0..2:".,1:;8...

$

3,136.51

- - - - - 1,272,769.73

$----0=.00~

$

1,272,769.73 $

3,136.51 $

0=.0~ 0

Total Liabilities and Fund Balances

$

2,420,018.28 $ _ _8.3.6,066.02 $ _ .....6.8..1..,002.18

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.
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EXHIBIT "A"

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Onl~./-)_ _

$

16,420.33

522,909.86 ______ $

$ 35.653,818.10

152,662.69 $

2,041,584.14 852,550.74 253,197.90 481,930.36 999,816.22
35,653,818.10

$

539.330.19 $ 35.653,818.10 $ 152,662.69 $ 40,282.897.46

$

856,329.65

266,673.87

$ 152,662.69

538,360.50 152,662.69 999,816.22

$ 152,662.69 $ 2.813,842.93

$ 35,653,818.10

539,330.19

$

539,330.19 $ 35,653,818.10

$ 35,653,818.10 3,136.51
1.812,099.92
$ 37,469,054.53

$

539.330.19 $ 35,653,818.10 $ 152,662.69 $ 40,282,897.46

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, DALTON STATE COLLEGE
COMBINED STATEMENT OF CHANGES IN FUND BALANCES ALL FUND GROUPS
YEAR ENDED JUNE 3D, 2001

REVENUES AND OTHER ADDITIONS

Unrestricted 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 Replacements

Georgia State Financing and Investment Commission

Other Additions

Proceeds from Sale of Plant Assets

Total Revenues and Other Additions

EXPENDITURES AND OTHER DEDUCTIONS

Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Expended for Plant Facilities Capitalized Noncapitalized
Disposals/Deletions/Adjustments

Total Expenditures and Other Deductions

TRANSFERS BETWEEN FUNDS

Nonmandatory Renewals and Replacements

Net Increase/(Decrease) for the Year

FUND BALANCES JULY 1, 2000

CURRENT FUNDS UNRESTRICTED RESTRICTED
$ 15,046,598.11
$ 2,427,157.02
3,803.819.19 420.130.71
116.99 14.777.56

$ 15,061,492.66 $ 6,651.106.92
$ 14,642,016.51 $ 6,614.920.82
214,181.47 36,659.71
392.44
$ 14.856,590.42 $ 6.651.580.53

1.128.327.61

-473.61 3.610.12

FUND BALANCES JUNE 3D. 2001

$ _....:.l1.:=.:27~2.769.73 $

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-

3,136.51_



EXHIBIT "B"

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only),--_

$

$

583,500.00

165,902.00

80,663.00 179,996.63

2,094.36
$ 1,012,155.99 $

0.00
0::.:.0:::.::0:.. $

$ 15,046,598.11

275.00

583,500.00 165,902.00 2,427,157.02 3,803,819.19 501,068.71

179,996.63

116.99 14,777.56

1,489,535.03

1,489,535.03

896,451.01 48,096.18
988,118.84

896,451.01 48,096.18
988,118.84

2,094.36

3,422,476.06 $ 26,147,231.63

$ 21,256,937.33
214,181.47 36,659.71

$

50.00

442.44

896,451.01 $

48,096.18

115,704.98

4,373.42

- - - - - - $_-..98:1:,4:93=.9=6~

944,547.19 120,078.40 981,493.96

$ 1,012,205.99 $

52,469.60 $

981,493.96 $ 23,554,340.50

$

6=0z,.4.6=0,.-1,=2 -

$---......:0:.0;0;~

$

-50.00 $

7,990.52 $ 2,440,982.10 $ 2,592,891.13

50.00 _ _""""",,53;;..;,;1,339.67

33,212,836.00 ---"34"",,,,876,163.40

$

0.00 $

539,330.19 $ 35,653,818.10 $ 37,469,054.53

-5-



DALTON STATE COLLEGE

STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

YEAR ENDED JUNE 30, 2001

EXHIBIT "C"

UNRESTRICTED RESTRICTED

TOTAL (Memorandum
Only)~_

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

$ 10,393,452.00

$ 10,393,452.00

3,661,677.41

3,661,677.41

14,065.71 $ 2,411,930.93

2,425,996.64

22,594.00

3,782,859.18

3,805,453.18

420,130.71

420,130.71

39,798.36

39,798.36

343,869.77

343,869.77

571 ,140.86 .

571,140.86

$ 15,046,598.11 $ 6,614,920.82 $ 21,661,518.93

EXPENDITURES

Educational and General Instruction Research 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

$ 7,826,597.56 $ 2,617,124.31 $ 10,443,721.87

14,000.00

14,000.00

7,245.03

7,245.03

1,388,548.47

3,507.56

1,392,056.03

1,539,462.98

38,183.00

1,577,645.98

2,377,711.87

168,404.01

2,546,115.88

1,353,340.60

1,353,340.60

135,110.00

3,787,701.94

3,922,811.94

113,840.35 100,341.12

113,840.35 100,341.12

$ 14,856,197.98 $ 6,614,920.82 $ 21,471,118.80

OTHER TRANSFERS ~ND ADDITIONS/(DI;DUCTIONSl

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) $

$
-60,460.12 14,894.55
-392.44
-45,958.01 $

-473.61 $

-473.61 -60,460.12 14,894.55

-392.44
-473.61 $ _-..-4:6.,4=3~1.=62-

Net Increasel(Decrease) in Fund Balances

$ _ _1.4..4..,442.12 $

-473.61 $ _....:.1~4;3;,,9;6;;8:.;5:1;~

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.
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DALTON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
Dalton State College is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System ofGeorgia, an organizational unit ofthe State of Georgia. The accompanying financial statements reflect the operations of Dalton State
,
College as a separate reporting entity.
The Board of Regents has constitutional authority to govern, control and manage the University System ofGeorgia. 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 State College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Dalton State 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 ofits legal, operational, and financial relationships with the Board ofRegents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING In order to ensure observance of limitations and restrictions placed on the use of the resources
available to the College, the accounts ofthe College are maintained in accordance with the principles of fund 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 ofthe 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 fmancial 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 of performing the primary functions of the College, e.g., instruction, research, public service, etc.
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.
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DALTON STATE COLLEGE

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2001

EXHIBIT liD"

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 of institutional properties.
INVESTMENT IN PLANT - The fund which shows the total amounts representing the book value of all physical properties owned by the College. Net Investment in Plant is an equity account showing the total book value of physical properties belonging to the College less the amount of any 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 of accounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute of Certified 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 of the 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 accounting principles generally accepted in the United States ofAmerica, which provide for the recording ofencumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with accounting principles generally accepted in the United States of America.

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DALTON STATE COLLEGE

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2001

EXHffiIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING 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 $440,443.24 and a related net current year expenditure of $19,373.65 have not been reported in the current funds as required by accounting principles generally accepted in the United States of America.
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 ofthe State ofGeorgia, but differs from accounting principles generally accepted in the United States ofAmerica in that immaterial adjustments should be reported as current period revenues and expenditures. The effect ofthis departure is deemed to be immaterial to the fairpresentation ofthe 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 ofthe 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 ofRegents ofthe University System ofGeorgia - Administrative Central Office receives State appropriation allotments for units of the University System of Georgia. The appropriated budget is adopted at the Board level and represents appropriations provided by the Amended Appropriations Act of2000-2001. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The allocation ofthe appropriated budget is made to the College by the Administrative Central Office. In addition, the College receives Federal funds and other funds directly and includes 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, and cashmanagement pools that have the general characteristics of demand deposit accounts.
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DALTON STATE COLLEGE

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 200 I

EXHIBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ACCOUNTS RECEIVABLE Accounts receivable consist ofallotments due from the Board ofRegents ofthe 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.

INVENTORIES

.

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

PREPAID ITEMS Prepaid items are payments made to vendors in advance ofthe receipt ofgoods and services that will benefit periods subsequent to the balance sheet date.

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 AND INVESTMENTS

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 depositorymay pledge as collateral anyone or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:

(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations ofthe United States or of the State of Georgia.

(2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.

(3) Bonds of any public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.

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DALTON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES
(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia.

(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, 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 of accounts provided by the Federal Deposit Insurance Corporation.

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 of Regents of the University System of Georgia) the option of exempting demand deposits from the collateral requirements.

The treasurer ofthe Board ofRegents is responsible for all details relative to furnishing the required depository protection for all units of the 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 ofJune 30, 2001, are categorized below in order to provide information 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 fair value) held by the College or by its agent in the College's name.

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

Category 3 - Amounts collateralized with securities (at fair 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 Categ"",on..'.e..". ,-s

_

I

2

3

$~,1:U.282..8Q $ 2,OQQ,1l7,92 $ 100.0.oo $.-14673 73,55 $ 43,3A0.4.37

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I

DALTON STATE COLLEGE

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2001

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS
At June 30, 2001, the carrying amount of the College's total investments was $901,326.34 and consisted entirely of funds in the State Investment Pool administered by the State of Georgia Office of Treasury and Fiscal Services which are not required to be categorized since the College did not own any specific identifiable securities in the pool.

NOTE 3: INVESTMENT IN PLANT

The following is a summary of Investment in Plant fixed assets as of June 30, 2001:

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

$ 72,465.30 21,469,489.84 2,147,559.74 8,085,643.11 3,878,660.11

Total Investment in Plant

$35.653.$l8) Q

NOTE 4: RISK MANAGEMENT

Dalton State College is a participant in the Board of Regents of the University System of Georgia Health Benefits Plan, which is a self-insurance program ofhealth 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 financial statements of the Board of Regents of the University System of Georgia - Administrative Central Office. All units of the University System of Georgia 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$2,000,000.00 per person and dental coverage up to an annual maximum of$1 ,000.00 per person. Blue Cross Blue Shield ofGeorgia processes medical and dental claims in accordance with the Health Benefits Plan as established by the Board of Regents. As of January 1, 2001, Express Scripts, Incorporated was contracted with to process pharmacy drug claims in accordance with the Pharmacy Benefit Program portion of the Health Benefits Plan.

The Department ofAdministrative Services (DOAS) has the responsibility for the State ofGeorgia ofmaking and carrying out decisions that will minimize the adverse effects ofaccidental 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. The College, as an organizational unit of the

- 13 -

DALTON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 4: RISK MANAGEMENT

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 SelfInsurance Fund.

NOTE 5: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description
Dalton State College participates in the Teachers Retirement System of Georgia (TRS), a costsharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State ofGeorgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System ofGeorgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

Funding Policy
Employees ofthe College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The College makes monthly employer contributions to TRS at rates
adopted by the TRS Board of Trustees in accordance with State statute and as advised by their
independent actuary. For fiscal year 2001, the employer contribution rate was 11.29% for covered employees. In addition, the College contributed 2.33% to the TRS on behalf of employees electing
to participate in the Regents Retirement Plan. Employer contributions for the current fiscal year and
the preceding two fiscal years are as follows:

Fiscal Year

2001 2000 1999

Percentage Contributed
100% 100% 100%

Required Contribution
$ 880,099.95 $ 864,793.12 $ 909,918.04

- 14-

DALTON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHffiIT "D"

NOTES: RETffiEMENTPLANS
REGENTS RETIREMENT PLAN
Plan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan established and administered by the Board of Regents of the University System of Georgia, under which it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators. 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 Member contribution requirements are established by the Board of Trustees of the Teachers Retirement System. Employer contributions are established by statute and may be amended onlyby the General Assembly ofthe State ofGeorgia. The employer contributes 8.81 % ofthe participating employee's earnable compensation. Employees contribute 5% of their earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times.
The College and the covered employees made the required contributions of$155,887.96 (8.81 %) and $88,632.53 (5%), respectively.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Dalton State 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 ofproviding retirement coverage for State employees who are temporary, seasonal, and parttime 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 ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees.. Ifa member has less than $ 3,500.00 credited to hislher account, the Board ofTrustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death ofa member, a lump sum distribution equaling the amount credited to hislher account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute.

Contributions and Vesting Member contributions are seven and one-halfpercent (7.5%) ofgross 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.
- 15 -



DALTON STATE COLLEGE

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2001

EXHIBIT "D"

NOTE 5: RETffiEMENTPLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Contributions and Vesting Total contributions made by employees during fiscal year 2001 amounted to $30,655.35 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
NOTE 6: 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 of continuous State service with maximum accumulation of forty-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, except as noted in the subsequent paragraph.
Certain employees who retire with a minimum of three months of unused sick leave are entitled to additional service credit in the Teachers Retirement System of Georgia.
NOTE 7: 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 ofexpenditures which may be disallowed by the grantor cannot be determined at this time although the College expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Dalton State College (an organizational unit ofthe Board ofRegents ofthe University System ofGeorgia), ifany, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State ofGeorgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2001.
NOTE 8: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Pursuant to the general powers conferred by the Official Code ofGeorgia Annotated Section 20-331, 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 ofthe Board ofRegents to permit employees ofthe University System ofGeorgia eligible for retirement or that become permanently and totally disabled to continue as members of the group health and life
- 16-

f

DALTON STATE COLLEGE

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2001

EXHIBIT "D"

NOTE 8: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS

insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System ofGeorgia and who have at least ten years ofservice 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 ofJune 30, 2001, there were 40 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 2001, Dalton State College recognized as incurred $65,626.03 of expenditures, which was net of $35,831.98 of participant contributions.

NOTE 9: ENROLLMENT

The equivalent full-time student enrollment of Dalton State College was as follows:

Regular Term Fall Semester, 2000 Spring Semester, 2001

1,841 1,793

Average Summer School, 2000

l.817 463

- 17 -

,
SUPPLEMENTARY INFORMATION
- 19-

t

DALTON STATE COLLEGE

COMBINING BALANCE SHEET

CURRENT FUNDS - UNRESTRICTED

JUNE 30, 2001

ASSETS

Cash and Cash Equivalents

Accounts Receivable

Inventories

Prepaid Items

Due from Other Fund Groups



Total Assets

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

$

222,869.93 $

441,953.94

52,720.79

5,024.00

476,906.36

0.00

$ 1,199,475.02 $=====0= .00~

LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Salaries Payable Deferred Revenue Tuition and Fees
Total Liabilities
Fund Balances Unrestricted

$

339,803.62 $

264,638.52

534,969.00

$ 1,139,411.14 $

60,063.88

0.00
0.00 0.00

Total Liabilities and Fund Balances

0.00

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



EXHIBIT "E"

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$

845,105.19 $ 123,523.82 $ 1,191,498.94

51,354.89

82.25

493,391.08

200,477.11

253,197.90

5,024.00

476,906.36

$ 1,096,937.19 $ 123,606.07 $ 2,420,018.28

$

2,410.56

2,035.35

$ 342,214.18 266,673.87

-----$-~ 3,39~ 1.5~ 0 538,360.50

$

4,445.91 $

3,391.50 $ 1,147,248.55

1,092,491.28

120,214.57

1,272,769.73

$ 1,096,937.19 $ 123,606.07 $ 2,420,018.28

- 21 -

DALTON STATE COLLEGE COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30. 2001

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)
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements
Net Increase/(Decrease) for the Year
FUND BALANCES JULY 1, 2000
FUND BALANCES JUNE 30, 2001

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

$ 14,423,277.16 $
116.99 14,777.56
$ 14,438,171.71 $

120,000.00 120,000.00

$ 14,423,213.44 $

120,000.00

392.44
$ 14,423,605.88 $_---:.1:2=0=,0.0::0..:0..0..

$

14,565.83 $

45,498.05

$

60,063.88 $

0.00 0.00
-="0=.'.0.0...

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
- 22-



EXHIBIT "F"

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$

385,289.85 $ 118,031.10 $ 15,046,598.11

116.99 14,777.56



$

385,289.85 $ 118,031.10 $ 15,061,492.66

$ 98,803.07 $ 14,642,016.51

$

214,181.47

214,181.47

392.44

$

214,181.47 $ 98,803.07 $ 14,856,590.42

$ --==-:6.0.,.4:6.0..:1.2..

$

110,648.26 $

981,843.02

$ 19,228.03 $ 100,986.54

-60,460.12 144,442.12 1,128,327.61

$ 1,092,491.28 $ 120,214.57 $ 1,272,769.73



- 23-

.

DALTON STATE COLLEGE

COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

YEAR ENDED JUNE 30, 2001

REVENUES
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
EXPENDITURES
Educational and General Instruction Research 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)
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 INSTRUCTION

LOTIERYFOR EDUCATION

$ 10,273,452.00 $
3,559,111.78 14,065.71 22,594.00 39,798.36

120,000.00

514,255.31

$ 14,423,277.16 $_---1-2:0.:,0=0=0.=00_

$ 7,826,597.56
14,000.00 7,245.03
1,268,548.47 $
1,440,659.91 2,377,711.87 1,353,340.60
135,110.00

120,000.00


$ 14,423,213.44 $_---1-2:0.:,0=0=0.=00_

$

14,894.55

-392.44
$--~=.:1.4.,5:0.2..1.1.

Net Increase/(Decrease) in Fund Balances

$ _ _1.-4,565.83 $ _......._ ....0...0...0...

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

EXHIBIT "G"

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$ 10,393,452.00

$ 102,565.63

3,661,677.41

14,065.71

22,594.00



39,798.36

$

343,869.77

343,869.77

41,420.08

15,465.47

571,140.86

$

385,289.85 $ 118,031.10 $ 15,046,598.11

$ 7,826,597.56

14,000.00

7,245.03

1,388,548.47

$ 98,803.07

1,539,462.98

2,377,711.87

1,353,340.60

135,110.00

$

113,840.35

100,341.12

113,840.35 100,341.12

$

214,181.47 $ 98,803.07 $ 14,856,197.98

$

-60,460.12

-60,460.12

$

-60,460.12

14,894.55

-392.44 $ _ _-.4.5.;,.9.;5;8;;.,0o.1;==~

$

110,648.26 $ _ _1.9.1228.03 $ _ _1.4.4.,442.12

- 25-

"

DALTON STATE COLLEGE

SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

RESIDENT INSTRUCTION

YEAR ENDED JUNE 30, 2001

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

$ 10,273,452.00

$

4,149,825.16 $ 6,614,920.82

583,500.00
262,753.99 $

--0::.0:.0;~

$ 14,423,277.16 $ 6,614,920.82 $
,

846,253.99 $

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

10,794,134.67
s 1,906,882.41

3,477,275.77
137,803.00 14,000.00

4,708,038.41
$

846,253.99 $

~.;0;;.0;;0.... 52,469.60

Excess of Revenues over Expenditures

$ 14,423,213.44 $ 6,614,920.82 $

846,253.99 $ _ _--..:5:.2=,:4.;6;=9;.;6;0.;-.

$

63.72 $

0.00 $

0.00 $ _ _...;-;;5::2;;;,:4,;;6:;;9,;,.;6;;;0..

(1) To eliminate tuition waivers not budgeted and to reclassify prior year fund balances budgeted as revenues.

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


SCHEDULE "1"

TOTAL

ADJUSTMENTS

TOTAL

_ _1.1.:..)'--- -<Budget BasisL

BUDGET

VARIANCE FAVORABLE .JUNFAVORABLEt

$ 10,856,952.00 11,027,499.97 $

$ 10,856,952.00 $ 10,856,952.00 $

-85,743.90

10,941,756.07

13,085,234.00

0.00 -2,143,477.93

$ 21,884,451.97 $

-85,743.90 $ 21,798,708.07 $ 23,942,186.00 $ -2,143,477.93

$ 10,794,134.67 1,906,882.41
3,477,275.77 $
4,708,038.41 898,723.59 137,803.00 14,000.00

$ 10,794,134.67 $ 10,856,625.00 $

1,906,882.41

2.097.260.00

-138,213.50

3,339,062.27 4,708,038.41
898,723.59 137.803.00
14,000.00

3,454.224.00 6,252,209.00 1,130,065.00
137,803.00 14,000.00

62,490.33 190.377.59
115,161.73 1,544,170.59
231,341.41 0.00 0.00

$ 21,936,857.85 $

-138,213.50 $ 21,798,644.35 $ 23,942,186.00 $_--=::.:2.;,1.;4=3.,.5.:4.1..:6.5:.~

$ _...;.:-5~2,405.88 $ _ _5.2.,469.60 $

.:6;:3,;..7:.2:;..

$---~,6:3.;72.

27 -


DALTON STATE COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTIERY FOR EDUCATION YEAR ENDED JUNE 30, 2001

REVENUES State Appropriations
EXPENDITURES Equipment, Technology and Construction
Trust Fund Special Funding Initiatives
Excess of Revenues over Expenditures

CURRENT FUNDS UNRESTRICTED

PLANT FUNDS UNEXPENDED

$

120,000.00 $ _---.,;~..1:;6,.5:;,,:9::0..2:..:0:.0;;~

$

165,902.00

$

..1..2:.0=,:0.r0.:0:.:.:0=0=-



$

120,000.00 $ _-"....;..1.;6.5.;,~9::0..2:..:0:.0;;_

$

0.00

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

/

SCHEDULE "2"

TOTAL (Budget Basis)

BUDGET

VARIANCE FAVORABLE jUNFAVORABLE)

$ 285,902.00 $ 285,902.00 $



$ 165,902.00 $ 165,902.00 $

120,000.00

120,000.00

= 0.0~ 0
0.00 0.00

$ 285,902.00 $ 285,902.00 $

= 0.0~ 0

$==-~,;;;0..0.0.

$ =......._~,;;0;..0.0.

- 29-

,
DALTON STATE COLLEGE CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30, 2001

Land

Buildings

Improvements Other Than Buildings

Equipment



Library Books and Collections

BALANCE JULY 1,2000

CURRENT FUNDS UNRESTRICTED RESTRICTED

$

72,465.30

19,957,557.02

1,980,555.47

7,559,066.78 $

990,312.62 $ 264,028.73

3,643,191.43

194,928.88

40,264.80

$ 33,212,836.00 $ _.....:01,185,241.50 $ _ _3.0.,4,293.53

,

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

,

SCHEDULE "3"

ADDITIONS
PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

PRIVATE GIFTS

DEDUCTIONS DISPOSALS/ DELETIONS/ ADJUSTMENTS

BALANCE JUNE 30, 2001

$

72,465.30

$ 491,153.89 $

44,883.33 $

988,118.84

$

12,223.24

21,469,489.84

175,839.27

8,835.00

2,147,559.74

229,457.85

3,212.85

960,435.72

8,085,643.11

- - - - - - $ 275.00

3,878,660.11

$ 896,451.01 $

48,096.18 $

98-.8,118.84 $ 275.00 $

98-.1,493.96 $ 35,653,818.10

- 31 -

,

.<

DALTON STATE COLLEGE

SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

JUNE 30, 2001

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 For Uncollectible Accounts Surplus Regular Lottery for Education

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

LOTIERY FOR

AUXILIARY

EDUCATION

ENTERPRISES

STUDENT ACTIVITIES

$

52,720.79

$ 200,477.11

6,530.00

892,014.17 $ 120,214.57

813.09

- - - - - $---~ 0.00~

$

60,063.88 $

--'O~.O~O:.. $

1,092,491.28 $ 120,214.57

$_..;6~0!063,88 $

O~.~OO;;.. $ 1,092,491.28 $ 120,214.57

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

SCHEDULE "4"

RESTRICTED

PLANT FUNDS

UNEXPENDED

LOTTERY FOR RENEWALS AND

REGULAR

EDUCATION

REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 35,653,818.10 $ 35,653,818.10

$ --=..:3.,1:3.6:.5:1.~

.

$-_....=3.,1.3.6..:51=~

$

539,330.19

$

253.197.90

539.330.19

1.012.228.74

6,530.00

$

0.00

- - - - $ - - - - - : ;0= .00-

$

0.00 $

0.00 $ __=5=39;:,:3.;3..0;..;1::9...

813.09 0.00
$ 1,812,099.92

$

3,136.51 $

0.00 $

0.00 $

5.,3,;;;j9,330.19 $ 35,653,818.10 $ 37,469,054.53

-33-

.'

DALTON STATE COLLEGE

RECONCILIATION OF SALARIES AND TRAVEL

YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Totals per Annual Supplement Accruals June 30, 2001 June 30, 2000


SALARIES

TRAVEL

I

I

$ 10,407,248.30 $

131,985.02


266,673.87 -223,087.00

$ 10,450,835.17 $ ====13=1,=98~5~.02=

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