STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 REVIEW REPORT STATE OF GEORGIA FLOYD COLl.EGE ROME, GEORGIA YEAR ENDED JUNE 30, 1994 FLOYD COLLEGE - TABLE OF CONTENTS - SECTION I 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 6 D NOTES TO THE FINANCIAL STATEMENTS 7 SUPPLEMENTARY INFORMATION E COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED 18 F COMBINING STATEMENT OF CHANGES IN FUND BALANCES CURRENT FUNDS - UNRESTRICTED 19 G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, AND OTHER CHANGES UNRESTRICTED 21 SCHEDULES SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 1 RESIDENT INSTRUCTION 22 2 LOTTERY FOR EDUCATION 24 3 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS AGENCY FUNDS 25 4 CASH AND CASH EQUIVALENTS 26 5 ACCOUNTS RECEIVABLE 27 6 CHANGES IN INVESTMENT IN PLANT 28 7 SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS 30 FLOYD COLLEGE - TABLE OF CONTENTS - SECTION I FINANCIAL SUPPLEMENTARY INFORMATION SCHEDULES 8 SCHEDULE OF REVENUES CURRENT FUNDS 32 SCHEDULES OF EXPENDITURES BY OBJECT 9 CURRENT FUNDS 33 10 PLANT FUNDS 34 SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTION I FINANCIAL CLAUDE L VICKERS STATE AUDIIDR (404) 656-2174 TAX RATIO (404) 656-0494 ;!0epartment nf J\units 254 WASHINGIDN STREET. SW ROOM 214 J\ihmta, &Jorgia 30334-8400 August 24, 1994 FINANCIAL AUDITS (404) 656-2180 PROGRAM AUDITS (404) 656-2006 Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe Board ofRegents ofthe University System of Georgia and Honorable H. Lynn Cundiff, President Floyd 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) of Floyd College as of and for the year ended June 30, 1994, 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 of the management of Floyd College. A review consists principally of inquiries 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 of any 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 described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the College to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the financial statements of this departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material. 94ARL-57 As described in Note I 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. 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 of the 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, d:-/~ Claude L. Vickers State Auditor CLV:gp 94ARL-57 FINANCIAL STATEMENTS - 1- FLOYD COLLEGE COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30, 1994 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Investment in Plant CURRENT FUNDS UNRESTRICTED RESTRICTED ENDOWMENT FUND $1,062,047.75 18,218.96 $ 267,871.36 $ 252,493.04 20,000.00 Total Assets $1,348,138.07 $ 252,493.04 $ 20,000.00 LIABILITIES AND FUND BALANCES Liabi 1ities Cash Overdraft Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Deposits Held for Others Total Liabilities Fund Balances Endowment Net Investment in Plant Restricted Unrestricted Total Fund Balances Total Liabilities and Fund Balances $ 199,745.90 $ 443,635.03 1,440.68 343,839.39 ------------- ------------- $ 788,915.10 $ 199,745.90 ------------- ------------- $ 20,000.00 $ 52,747.14 $ 559,222.97 ------------- ------------- ------------- $ 559,222.97 $ 52,747.14 $ 20,000.00 ------------- ------------- ------------- $1,348,138.07$ 252,493.04 $ 20,000.00 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" UNEXPENDED PLANT FUNDS RENEWALS AND REPLACEMENTS INVESTMENT IN PLANT AGENCY FUNDS TOTAL (Memorandum Only) $ 34,480.53 $ 252,111.34 $ 111,049.73 $1,479,689.35 94,043.94 364,755.94 267,871.36 $14,470,651.54 14,470,651.54 $ 128,524.47 $ 252,111.34 $14,470,651.54 $ 111,049.73 $16,582,968.19 $ 122,216.00 $ 267.87 ------------- ------------- $ 122,216.00 $ 267.87 ------------- ------------- $ 199,745.90 $ 38,892.03 605,010.93 1,440.68 343,839.39 72,157.70 72,157.70 ------------- ------------- $ 111,049.73 $ 1,222,194.60 ------------- ------------- $14,470,651.54 $ 6,308.47 $ 251,843.47 ------------- ------------- ------------- $ 6,308.47 $ 251,843.47 $14,470,651.54 ------------- ------------- ------------- $ 20,000.00 14,470,651.54 52,747.14 817,374.91 ------------- $15,360,773.59 ------------- $ 128,524.47 $ 252,111.34 $14,470,651.54 $ 111,049.73 $16,582,968.19 cascscsacc c============ ============= ============= ============= - 3- FLOYD COLLEGE COMBINED STATEMENT OF CHANGES IN FUND BALANCES ALL FUND GROUPS YEAR ENDED JUNE 30. 1994 REVENUES AND OTHER ADDITIONS Unrestricted Current Fund Revenues State Appropriations - Lottery Proceeds Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Investment Income Endowment Other Adjustments Prior Years' Expenditures/Accounts Payable 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 Non-Capitalized Disposals/Deletions/Adjustments Total Expenditures and Other Deductions TRANSFERS BETWEEN FUNDS Nonmandatory Renewals and Replacements Capital Projects Total Transfers Between Funds Net Increase/(Decrease) for the Year FUND BALANCES JULY 1, 1993 FUND BALANCES JUNE 30, 1994 CURRENT FUNDS UNRESTRICTED RESTRICTED $ 9,306,248.49 $1,522,128.91 410,346.25 13,169.02 425,021.16 794.97 4,764.37 $ 9,311,012.86 $ 2,371,460.31 $ 8,949,381.00 $ 2,354,059.53 245,713.48 12,907.63 4,608.26 $ 9,199,702.74 $ 2,366,967.16 $ -55,608.77 -1,239.00 $ -56 847.77 $ 54,462.35 $ 504,760.62 4,493.15 48,253.99 $ 559.222.97 $ 52 747.14 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- EXHIBIT "B" ENDOWMENT FUND UNEXPENDED PLANT FUNDS RENEWALS AND REPLACEMENTS INVESTMENT IN PLANT TOTAL (Memorandum Only) $ 0.00 $ 0.00 $ 9,306,248.49 $ 140,807.00 140,807.00 1,522,128.91 410,346.25 13,169.02 $1,144,500.00 1,569,521.16 15.~69.15 794.97 15,469.15 4,764.37 337,038.32 337,038.32 157,615.87 38,281.87 103,831.30 157,615.87 38,281.87 103,831.30 2,065.30 2,065.30 $ 0.00 $ 158,341.45 $ 0.00 $ 1,781,267.36 $13,622,081.98 $ 0.00 $11,303,440.53 245,713.48 12,907.63 $ 1,605.40 6,213.66 157,615.87 $ 3,680.00 38,281.87 8,071.67 $ 71,026.10 195,897.74 11,751.67 71,026.10 $ 0.00 $ 162,901.27 $ 46,353.54 $ 71,026.10 $11,846,950.81 $ 55,608.77 $ 1,239.00 $ 0.00 0.00 $ 1,239.00 $ 55,608.77 $ 0.00 $ 0.00 $ -3,320.82 $ 9,255.23 $ 1,710,241.26 $ 1,775,131.17 20,000.00 9,629.29 242,588.24 12,760,410.28 13,585,642.42 $ 20 000.00 $ 6 308.47 $ 251 843.47 $14.470.551.54 $15.360,773.59 - 5- FLOYD COLLEGE STATEMENT OF CURRENT FUNDS REVENUES. EXPENDITURES, AND OTHER CHANGES YEAR ENDED JUNE 30. 1994 EXHIBIT "C" UNRESTRICTED RESTRICTED TOTAL (Memorandum Only) REVENUES State Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Endowment Income Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources Total Revenues $ 6,008,523.00 $ 6,008,523.00 2,785,460.51 2,785,460.51 4,862.63 $ 1,515,907.34 1,520,769.97 8,045.00 407,165.65 415,210.65 12,589.14 12,589.14 417,728.40 417,728.40 669.00 669.00 20,725.10 20,725.10 333,171.93 333,171.93 145,460.32 145,460.32 ------------- ------------- ------------- $9,306,248.49$ 2,354,059.53 $11,660,308.02 EXPENDITURES Educational and General Instruction Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Auxiliary Enterprises Food Services Stores and Shops Other Service Units Total Expenditures OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS) $ 4,825,818.98 $ 494,429.08 $ 5,320,248.06 686,336.74 686,336.74 779,825.16 24,521.04 804,346.20 1,482,359.19 40,680.13 1,523,039.32 1,147,005.93 1,147,005.93 28,035.00 1,794,429.28 1,822,464.28 122,463.92 122,463.92 122,780.51 122,780.51 469.05 469.05 ------------- ------------- ------------- $ 9,195,094.48 $ 2,354,059.53 $11,549,154.01 ------------- ------------- ------------- Excess of Restricted Receipts over Transfers to Revenues Transfers for Renewals and Replacements Transfers for Capital Projects 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) $ $ -55,608.77 -1,239.00 4,764.37 4,493.15 $ 4,493.15 -55,608.77 -1,239.00 4,764.37 -4,608.26 -4,608.26 ------------- ------------- ------------- $ -56,691.66 $ 4,493.15 $ -52,198.51 ------------- ------------- ------------- Net Increase in Fund Balances $ 54,462.35 $ 4,493.15 $ 58,955.50 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- FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "D" NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY Floyd College is one of thirty-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 of Floyd College as a separate reporting entity. The Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. Floyd College does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Floyd College is considered an organizational unit ofthe Board ofRegents ofthe University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. FUND ACCOUNTING In order to ensure observance oflimitations 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 of the fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies. 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 of performing the primary functions of the College, i.e., 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- FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIIlBIT "D" NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FUND ACCOUNTING ENDOWMENT FUND The fund used to account for gifts to the Floyd, Polk, Chattooga Medical Society Scholarship Fund. This endowment fund is subject to the restrictions of gift instruments requiring that the principal be invested in perpetuity and income only be utilized. 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 of all 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 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 ofaccounting, 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 Industry Audit Guide, Audits ofColleges and Universities. The modified accrual basis of accounting is defined as that method of accounting 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 services which have not been performed and for goods which have not been delivered at the end of the 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 of this nature 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 - 8- FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXI-IlBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING principles, which provide for the recording of encumbrances as a reservation of fund 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 leave in which payment is probable and can be reasonably estimated. The compensated absences liability of$300, 147.33, salary-related fringe benefits liabilities of approximately $22,961.27, and the related current year expenditure, which was not reasonably determinable, have not been reported in the current funds as required by generally accepted accounting principles. Prior period adjustments are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with the State budgetary basis of accounting, 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. Fixed assets donated to the College are recorded at fair market value at the date ofthe gift and disposals are deleted at recorded cost. Depreciation on physical plant and equipment is not recorded. It is the policy ofFloyd College to record assets acquired through capital leases as additions to Investment in Plant as payments are made by the College. The liability for such leases at fiscal year-end is not recorded on the Combined Balance Sheet. This presentation differs from generally accepted accounting principles in that the assets and the related liability resulting from capital leases should be recorded in Investment in Plant at the inception ofthe agreement at the net present value of the minimum lease payments, not to exceed the fair value ofthe leased property. The effect of this departure is deemed to be immaterial to the fair presentation of the financial statements. 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. - 9- FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriated funds for the organizational 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 1993-1994. 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 organizational 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, and cash management pools that have the general characteristics of demand deposit accounts in that the College may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. Certain amounts reflected as Investments in the fiscal year 1993 financial statements are reflected as Cash and Cash Equivalents in the accompanying financial statements. These funds are invested in the State Investment Pool. ACCOUNTS RECEIVABLE Accounts receivable consists of reimbursements due from Federal, State, local and private grants and contracts, and other receivables disclosed from information available. INVENTORIES Inventories ofconsumable supplies are recorded on the consumption method and are valued at cost based on the first-in, first-out method. Inventories ofgoods for resale are valued at cost based on the weighted average method. MEMORANDUM ONLY -TOTAL COLUMNS The total columns on the financial statements are captioned "Memorandum Only" to indicate that these totals are presented only to facilitate financial analysis. Data in these columns do not present 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 of the data. NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State of Georgia 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 - 10 - FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "D" NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES pledge as collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: (1) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia. (2) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia. (3) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose. (4) Industrial revenue bonds and bonds of development authorities created by the laws of the 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 and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. (6) 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 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. COLLATERALIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, the College's bank balances are categorized below to give an indication of the level of risk assumed by the College at year-end: 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 financial institution's trust department or agent in the College's name. - 11 - FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "D" NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS Category 3 - Amounts collateralized with securities (at market value) held by the financial institution or by its trust department or agent, but not in the College's name, and amounts uncollateralized. Cash Deposits Canying Amount Bank Balances Risk Categories 2 3 s 26388662 s 147885315 s 12151516 s=="""o..,.oo s 135733799 CATEGORIZATION OF INVESTMENTS At June 30, 1994, the carrying amount and market value of the College's total investments was $310,482.76 and consisted entirely offunds in the State Investment Pool administered by the 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 at June 30, 1994: Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections $ 569,490.00 9,653,582.03 753,044.82 2,153,950.14 1,340,584.55 Total Investment in Plant $14 470 651 54 NOTE 4: DEFERRED COMPENSATION PLAN The State of Georgia offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion of their 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 of the State of Georgia in an amount equal to the fair market value of the deferred account for each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board Merit System of Personnel Administration for the year ended June 30, 1994. - 12 - FLOYD COLLEGE NOTES TO THE FINANCIAL STATEJ\.1ENTS JUNE 30, 1994 EXIIlBIT "D" NOTE 5: RETIR.EJ\.1ENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by units of the University System of Georgia are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multipleemployer public employee retirement system (PERS). TRS provides service retirement, disability retirement and survivors 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 of 55 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 by7% for each year or fraction thereof by 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 on 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 of disability. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. The College's payroll for employees covered by TRS for the year ended June 30, 1994, was $4,636,570.51; total payroll was $6,039,756.30. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the College who are covered by TRS are required to pay 6% of their gross earnings to TRS. The College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994, the employer contribution rate was 11.81% for covered employees. In addition, the College contributed 5.60% to the TRS on behalf of employees electing to participate in the Regents Retirement Plan. The interest rate assumption (rate of return on investments) was 7.50%. Total contributions made during fiscal year 1994 amounted to $857,624.15, of which $579,429.71 was made by the College and $278,194.44 was made by employees. These contributions represented 12.50% (College) and 6% (employees) of covered payroll. - 13 - FLOYD COLLEGE NOTES TO THE FINANCIAL STATE:MENTS JUNE 30, 1994 EXlilBIT "D" NOTE 5: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated 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. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of 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 other PERS and among other employers. Total unfunded pension benefit obligation of TRS as of June 30, 1993, which was the latest information available, was as follows: Total pension benefit obligation $ 13,912,014,000.00 Net assets available for benefits, at cost 12,821,722,000.00 Unfunded pension benefit obligation $ I 090 292 000 00 The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $507,582,176.00. The College's contribution for the year ended June 30, 1994, of $579,429.71 was actuarially determined and represented .1142% of total contributions made by all participating employers. Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. TRS RELATED-PARTY INVEST:MENTS During the fiscal year 1994 and as ofJune 30, 1994, the TRS held no securities issued by the College or other related parties. 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. - 14 - FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIIlBIT "D" NOTE 5: RETIREMENT PLANS REGENTS RETIREMENT PLAN State legislation requires that the employee contribute 6% and the employer contribute 4% of the participating employee's eamable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The College's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1994, was $568,773.70; total payroll was $6,039,756.30. The College and the covered employees made the required contributions of $22,989.64 (4%) and $34,376.31 (6%), respectively. GEORGIA DEFINED CONTRIBUTION PLAN 1be State ofGeorgia provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Teachers Retirement System of Georgia through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% of their gross salary, with no matching contribution by the employer. 1be College's payroll for employees covered by the Georgia Defined Benefit Plan for the year ended June 30, 1994, was $394,958.89; total payroll was $6,039,756.30. Total contributions from the covered employees of the College during fiscal year 1994 amounted to $29,622.34 (7.5%). Amounts attributable to the plan are fully vested and a member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of 65 with the option of receiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board ofTrustees of the Employees' Retirement System of Georgia. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994. 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. 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. - 15 - FLOYD COLLEGE NOTES TO THE FINANCIAL STATE:MENTS JUNE 30, 1994 EXHIBIT "D" NOTE 7: CONTINGENCIES The amount of expenditures which may be disallowed by the granter 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 Floyd College (as a unit of the Board of Regents of the University System of Georgia), if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program ofpurchased insurance and self-insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994. NOTE 8: BONDING INFORMATION The President and all employees ofFloyd College are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-00-110723, on which the premium has been paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures Floyd 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 $100,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment. All employees ofFloyd College are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626011675 2, on which the premium has been paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the College to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. NOTE 9: ENROLL:MENT The equivalent full-time student enrollment of Floyd College was as follows: Regular Term Fall Quarter, 1993 Winter Quarter, 1994 Spring Quarter, 1994 1,971 1,936 1,801 Average .L2Q1 Summer School, 1993 - 16 - SUPPLEMENTARY INFORMATION - 17 - FLOYD COLLEGE COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED JUNE 30. 1994 EXHIBIT "E" ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Total Assets RESIDENT AUXILIARY STUDENT INSTRUCTION ENTERPRISES ACTIVITIES TOTAL ------------- ------------- ------------- ------------- $ 760,706.05 $ 225,710.98 $ 75,630.72 $ 1,062,047.75 16,138.14 1,009.56 1,071.26 18,218.96 20,666.45 247,204.91 267,871.36 ------------- ------------- ------------- ------------- $ 797,510.64$ 473,925.45$ 76,701.98$ 1,348,138.07 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Total Liabilities Fund Balances Unrestricted $ 437,519.97 $ 5,933.71 $ l,440.6B 181.35 $ 443,635.03 1,440.68 334,583.39 9,256.00 343,839.39 ------------- ------------- ------------- ------------- $ 772,103.36 $ 7,374.39 $ 9,437.35 $ 78B,915.10 25,407.28 466,551.06 67,264.63 559,222.97 ------------- ------------- ------------- ------------- Total Liabilities and Fund Balances$ 797,510.64$ 473,925.45$ 76,701.98$ 1,348,138.07 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 18 - FLOYD COLLEGE COMBINING STATEMENT OF CHANGES IN FUND BALANCES CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30. 1994 EXHIBIT "F" RESIDENT INSTRUCTION AUXILIARY ENTERPRISES STUDENT ACT I VITI ES TOTAL REVENUES AND OTHER ADDITIONS Unrestricted Current Fund Revenues $ 8,856,448.39 $ Adjustments Prior Years' Expenditures/Accounts Payable 3,407.57 354,816.51 $ 1,353.43 94,983.59 $ 9,306,248.49 3.37 4,764.37 Total Revenues and Other Additions $8,859,855.96$ 356,169.94 $ 94,986.96 $ 9,311,012.86 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 $ 8,857,304.82 $ $ 245,713.48 92,076.18 $ 8,949,381.00 245,713.48 4,608.26 4,608.26 ------------- ------------- ------------- ------------- Total Expenditures and Other Deductions $ 8,861,913.08 $ 245,713.48 $ 92,076.18 $ 9,199,702.74 ------------- ------------- ------------- ------------- TRANSFERS BETWEEN FUNDS ----------------------- Nonmandatory Renewals and Replacements Capital Projects $ -55,608.77 $ -55,608.77 $ -1,239.00 -1,239.00 ------------- ------------- ------------- Total Transfers Between Funds $ -55,608.77 $ -1,239.00 $ -56,847.77 ------------- ------------- ------------- Net Increase/(Decrease) for the Year $ -2,057.12 $ 54,847.69 $ 1,671.78 $ 54,462.35 FUND BALANCES JULY 1. 1993 -------------------------- 27,464.40 411,703.37 65,592.85 504,760.62 ------------- ------------- ------------- ------------- FUND BALANCES JUNE 30, 1994 $ 25,407.28 $ 466,551.06 $ 67,264.63 S 559,222.97 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 19 - C)\aJl f0'?0 FLOYO COLLEGE COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, AND OTHER CHANGES UNRESTRICTED YEAR ENDED JUNE 30, 1994 EXHIBIT "G" RESIDENT AUXILIARY STUDENT INSTRUCTION ENTERPRISES ACTIVITIES TOTAL REVENUES State Appropriations $ 6,008,523.00 Tuition and Fees 2,695,921.51 Federal Grants and Contracts 4,862.63 Private Gifts, Grants, and Contracts 8,045.00 Sales and Services of Educational Activities 20,725.10 Sales and Services of Auxiliary Enterprises $ Other Sources 118,371.15 $ 333,171.93 21,644.58 $ 6,008,523.00 89,539.00 2,785,460.51 4,862.63 8,045.00 20,725.10 333,171.93 5,444.59 145,460.32 Total Revenues $ 8,856,448.39 $ 354,816.51 $ 94,983.59 $ 9,306,248.49 EXPENDITURES Educational and General Instruction Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Auxiliary Enterprises Food Services Stores and Shops Other Service Units $ 4,825,818.98 686,336.74 687,748.98 1,482,359.19 1,147,005.93 28,035.00 $ $ 122,463.92 122,780.51 469.05 $ 4,825,818.98 686,336.74 92,076.18 779,825.16 1,482,359.19 1,147,005.93 28,035.00 122,463.92 122,780.51 469.05 Total Expenditures $ 8,857,304.82 $ 245,713.48$ 92,076.18$ 9,195,094.48 OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS) Transfers for Renewals and Replacements Transfers for Capital Projects Prior Period Adjustments (Net) $ Remittances to the Board of Regents of the University System of Georgia Prior Year's Unrestricted Fund Balance Surplus $ -55,608.77 $ 3,407.57 1,353.43 -4,608.26 $ -55,608.77 -1,239.00 -1,239.00 3.37 4,764.37 -4,608.26 Total Other Transfers and Additions/(Deductions) $ -1,200.69 $ -54,255.34 $ -1,235.63 $ -56,691.66 Net lncrease/(Decrease) in Fund Balances $ -2,057.12 $ 54,847.69 $ 1,671.78 $ 54,462.35 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 21 - FLOYD COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET RESIDENT INSTRUCTION YEAR ENDED JUNE 30, 1994 REVENUES State Appropriations Other Revenues Retained CURRENT FUNDS UNRESTRICTED RESTRICTED PLANT FUNDS UNEXPENDED RENEWALS AND REPLACEMENTS $ 6,008,523.00 2,847,925.39 $2,354,059.53$ 17,534.45 $ 0.00 $ 8,856,448.39 $2,354,059.53$ 17,534.45 $ 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 $ 7,092,535.97 $ 424,560.92 1,724,836.56 39,932.29 1,929,498.61 $ 13,912.70 $ 46,353.54 $ 8,857,304.82 $ 2,354,059.53 $ 13,912.70 $ 46,353.54 Excess of Revenues over Expenditures $ -856.43 $ 0.00 $ 3,621.75 $ -46,353.54 (1) To eliminate tuition waivers not budgeted and to reclassify current year transfers and prior year reserves budgeted as revenues. See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 22 - SCHEDULE "1" TOTAL ADJUSTMENTS TOTAL (1) (Budget Basis) BUDGET VARIANCE FAVORABLE (UNFAVORABLE) $ 6,008,523.00 5,219,519.37 $ $ 6,008,523.00$ 6,008,523.00$ 0.00 19,557.54 5,239,076.91 5,448,069.00 -208,992.09 $11,228,042.37 $ 19,557.54 $11,247,599.91 $11,456,592.00$ -208,992.09 $ 7,092,535.97 424,560.92 $ 7,092,535.97 $ 7,109,561.00$ 424,560.92 434,087.00 17,025.03 9,526.08 1,724,836.56$ -28,035.00 1,929,498.61 60,266.24 39,932.29 ------------- ------------- 1,696,801.56 1,929,498.61 60,266.24 39,932.29 -------------- 1,704,590.00 1,791,706.00 376,648.00 40,000.00 ------------- 7,788.44 -137,792.61 316,381.76 67.71 ------------- $11,271,630.59 $ -28,035.00 $11,243,595.59 $11,456,592.00$ 212,996.41 $ -43,588.22 $ 47,592.54 $ 4,004.32 ======== ============ ============== $ 4,004.32 - 23 - FLOYD COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET LOTTERY FOR EDUCATION YEAR ENDED JUNE 30. 1994 SCHEDULE "2" REVENUES State Appropriations EXPENDITURES Equipment, Technology and Construction Trust Fund Distant Learning - Satellite Dishes Excess of Revenues over Expenditures PLANT FUNDS ------------UNEXPENDED BUDGET VARIANCE FAVORABLE (UNFAVORABLE) $ 140,807.00$ 140,807.00$ 0.00 ------------- ============= ------------- $ 140,883.17 $ 134,307.00$ 6,500.00 6,500.00 -6,576.17 0.00 $ 147,383.17$ 140,807.00$ -6,576.17 ------------- ============= ------------- $ -6,576.17 ============= $ -6,576.17 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 24 - FLOYD COLLEGE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS AGENCY FUNDS YEAR ENDED JUNE 30, 1994 SCHEDULE "3" FUND PAYROLL DEDUCTIONS F. I.C.A. Federal Income Tax State Income Tax Retirement Group Insurance United Fund Garnishments Credit Union Floyd College Foundation Misce11 aneous EMPLOYER'S CONTRIBUTIONS F. I .C.A. Retirement Group Insurance OTHER FUNDS Alumni Association Athletic Events Club Accounts Baptist Student Union Black Awareness Club Deaf Awareness Club Health, Physical Education and Recreation Club Mental Health Club Student Nursing Club Course Participation Fees Environmental Awareness GANS-GA Association of Nursing Students Literary Meet Loan and Matching, Floyd College Nursing Class of 1993 Nursing Class of 1994 Police Academy Reserve Officer Training Public Services - Coordinator of Services Retired Employees Group Insurance Scholarships Regents' Scholarship Fund Other Scholarships (List on File) Small Business Development Center Special Funds Student Government Association Visual Impulse Performers BALANCE JULY 1, 1993 RECEIPTS BALANCE DISBURSEMENTS JUNE 30, 1994 $ 401,336.45 $ 401,336.45 661,207.00 661,207.00 231,825.11 231,825.11 $ 114.25 342,193.09 342,307.34 8,875.81 222,344.51 216,797.55 $ 14,422.77 3,528.50 3,528.50 3,814.78 3,814.78 251,564.11 251,564.11 5,664.50 5,664.50 93,643.65 93,410.10 233.55 $ 8,990.06 $ 2,217,121.70 $ 2,211,455.44 $ 14,656.32 $ 401,336.45 $ 401,336.45 $ 224.88 602,592.68 602,817.56 25,375.72 639,333.76 640 473.77 $ 24,235.71 $ 25,600.60 $ 1,643,262.89 $ 1,644,627.?B s 24,235.71 $ 420.64 s 420.64 1,469.67 $ 39,021.31 $ 34,285.90 6,205.08 19.34 419.92 -18.51 50.00 18.51 8.27 252.91 61.07 419.92 -252.91 8,040.83 155.22 285.33 357.00 20.75 55.20 306.72 13,646.65 1,219.27 65.00 14,228.96 972.31 7,219.22 1,876.66 14,435.80 100.00 1,432.30 818.98 3,687.14 15,225.00 6,121.43 11,667.65 8,361.61 1,935.19 14,792.80 3.80 100.00 0. 45 1,905.56 1,357.00 1,285.00 6,644.29 12,070.14 6,898.44 155.22 226.80 20.75 51.40 306.72 15,078.50 132.69 2,395.14 28,168.96 -522.86 569.82 1,450.00 7,429.94 3,100.00 107,066.29 3,950.00 106,228.46 600.00 8,267.77 1,528.09 14.05 1 425.00 12.59 1,528.09 14.05 1,41~.41 $ 52,086.38 $ 213,265.29 $ 193 193.97 s 72 157.70 s 86 677.04 $ 4 1 073 I 649. 88 $ 4 049 277.19 $ 111.049.73 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 25 - FLOYD COLLEGE CASH AND CASH EQUIVALENTS JUNE 30 1 1994 SCHEDULE "4" INTEREST BEARING ACCOUNTS Home Federal Savings Bank, Rome, Georgia Certificate of Deposit (3.80%) $ Insured Honey Market Account (2.79%) State of Georgia - Office of Treasury and Fiscal Services State Investment Pool local Government Investment Pool (4.237%) Trust Company Bank of Northwest Georgia, Rome, Georgia N.O.W. Accounts (2.02%) 20,000.00 1,515.16 $ 21,515.16 310,482.76 942,371.53 $1,274,369.45 OTHER Cash on Hand Petty Cash 5,574.00 $ 1,279,943.45 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 26 - FLOYD COLLEGE ACCOUNTS RECEIVABLE JUNE 30. 1994 SCHEDULE "5" Federal Grants and Contracts Research and Instruction Student Aid State Grants and Contracts Research and Instruction Student Aid local Grants and Contracts Student Aid Private Gifts, Grants, and Contracts Research and Instruction Student Aid Other Georgia State Financing and Investment Commission Returned Checks Student Accounts Other CURRENT FUNDS UNRESTRICTED RESTRICTED PLANT FUNDS UNEXPENDED TOTAL $ 49,675.19 106,441.90 52,665.27 35,633.37 3,027.85 2,114.79 2,934.67 $ 49,675.19 106,441.90 52,665.27 35,633.37 3,027.85 2,114.79 2,934.67 $ 6,894.92 5,421.04 5,903.00 $ 94,043.94 94,043.94 6,894.92 5,421.04 5,903.00 $ 18,218.96 $ 252,493.04 $ 94,043.94 $ 364,755.94 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 27 - FLOYD COLLEGE CHANGES IN INVESTMENT IN PLANT YEAR ENDED JUNE 30, 1994 Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections BALANCE JULY 1, 1993 CURRENT FUNDS UNRESTRICTED RESTRICTED $ 169,490.00 8,783,631.30 709,880.62$ 1,865,629.04 1,231,779.32 30,490.50 190,242.27 $ 108,805.23 7,500.32 $12,760,410.28$ 329,538.00$ 7,500.32 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 28 - SCHEDULE "6" ADDITIONS PLANT FUNDS GEORGIA STATE ---------------------------- FINANCING AND RENEWALS AND INVESTMENT UNEXPENDED REPLACEMENTS COMMISSION PRIVATE GIFTS DEDUCTIONS ------------- DISPOSALS/ DELETIONS/ ADJUSTMENTS ------------- BALANCE JUNE 30, 1994 ------------- $ 400,000.00 $ 569,490.00 $ 21,619.43 $ 103,831.30 744,500.00 9,653,582.03 $ 12,673.70 753,044.82 144,942.17 16,662.44 $ 71,026.10 2,153,950.14 ------ "---- 1,340,584.55 ------------- $ 157,615.87 $ 38,281.87 $ 103,831.30 $1,144,500.00$ 71,026.10 $14,470,651.54 - 29 - FLOYD COLLEGE SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS JUNE 30, 1994 NET INVESTMENT IN PLANT Investment in Plant Facilities RESTRICTED Designated for Subsequent Years' Expenditures UNRESTRICTED Designated For Bus Replacement Reserve For Inventory Reserve For Prior Year Local Funds For Renewals and Replacements Reserve For Subsequent Years' Expenditures For Uncollectible Accounts Undesignated Surplus/Deficit Regular Lottery for Education RESIDENT INSTRUCTION CURRENT FUNDS UNRESTRICTED AUXILIARY ENTERPRISES STUDENT ACTIVITIES $ 20,000.00 $ 247,204.91 2,856.14 219,346.15$ 67,264.63 2,551.14 $ 25,407.28 $ 466,551.06 $ 67,264.63 $ 25,407.28$ 466,551.06 $ 67,264.63 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 30 - SCHEDULE "7" RESTRICTED PLANT FUNDS UNEXPENDED REGULAR LOTTERY FOR RENEWALS AND EDUCATION REPLACEMENTS INVESTMENT IN PLANT TOTAL $14,470,651.54 $14,470,651.54 $ 52,747.14 $ 52,747.14 $ 8,023.89 $ 371.10 251,472.37 $ 371.10 267,204.91 8,023.89 251,472.37 286,610.78 2,856.14 4,860.75 $ -6,576.17 $ 12,884.64 $ -6,576.17 $ 251,843.47 7,411.89 -6,576.17 $ 817,374.91 s 52,747.14 $ 12,884.64 $ -6,576.17 $ 251,843.47 $14,470,651.54 $15,340,773.59 - 31 - FLOYD COLLEGE SCHEDULE OF REVENU~S CURRENT FUNDS YEAR ENDED JUNE 30, 1994 SCHEDll.E "8" State Appropriations Allotments fran the Board of Regents of the University System of Georgia Regular Special Funding Initiative Other Revenues Retained Tuition and Fees Matriculation Other UNRESTRICTED RESTRICTED ------------------------------------------------------ ------------ RESIDENT AUXILIARY STUDENT RESIDENT INSTRUCTION ENTERPRISES ACTIVITIES TOTAL INSTRUCTION TOTAL ------------ ------------ ------------ ------------ ------------ ------------- $5,968,523.00 40,000.00 ------------ $6,008,523.00 ------------ $2,689,252.01 6,669.50 $5,968,523.00 40,000.00 ------------ $6,008,523.00 ------------ $2,689,252.01 $ 89,539.00 96,208.50 $ 5,968,523.00 40,000.00 ------------- $ 6,008,523.00 ------------- $ 2,689,252.01 96,208.50 Federal Grants and Contracts Research and Instruction Student Aid Contract Overhead 4,862.63 $ 214,906.98 214,906.98 1,301,000.36 1,301,000.36 4,862.63 4,862.63 State Grants and Contracts Research and Instruction Student Aid Contract Overhead 8,045.00 8,045.00 134,516.22 272,649.43 134,516.22 272,649.43 8,045.00 Local Grants and Contracts Research and Instruction Student Aid 4,114.12 8,475.02 4,114.12 8,475.02 Private Gifts, Grants, and Contracts Research and Instruction Student Aid 206,092.93 211,635.47 206,092.93 211,635.47 EndCM111ent Incane Student Aid 669.00 669.00 Sales and Services of Educational Activities 20,725.10 20,725.10 20,725.10 Sales and Services of Auxiliary Enterprises $ 333,171.93 333,171.93 333,171.93 Other Sources Cash Over-Short Cannissions Extension and Public Service Interest Earned Rents Other 24.10 93,238.72 3,600.00 21,508.33 ------------ 12,468.84 7,395.37 1,780.37 ------------ 1,858.19 -----3-,5--8-6-.4--0 24.10 12,468.84 93,238.72 9,253.56 5,380.37 ----2-5-,0--9-4-.7--3 ------------ 24.10 12,468.84 93,238.72 9,253.56 5,380.37 25,094.73 ------------- $2,847,925.39 ------------ $--3--5-4-,8--1-6-.5-1- $ 94,983.59 ------------ $3,297,725.49 ------------ $2,354,059.53 ------------ $ 5,651,785.02 ------------- $8,856,448.39 $ 354,816.51 $ 94,983.59 $9,306,248.49 $2,354,059.53 $11,660,308.02 ========== ========= ========= ============ ssz=z=~-=== zc======au::=== See acccmpanying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Infonnation. - 32 - FLOYD COLLEGE SCHEDULE OF EXPENDITURES BY OBJECT CURRENT FUNDS YEAR ENDED JUNE 30, 1994 SCHEDULE "9" UNRESTRICTED RESIDENT AUXILIARY STUDENT INSTRUCTION ENTERPRISES ACTIVITIES TOTAL RESTRICTED RESIDENT INSTRUCT ION TOTAL PERSONAL SERVICES Salaries and Wages $5,496,514.85 $ Efr4:)loyer's Contributions for: F.I.C.A. 365,904.34 Group Insurance 579,892.24 Retirenent 551,613.54 Liability Insurance 28,275.00 Un~loyment COIT1)ensation Insurance 4,615.00 Workers' COIT1)ensation Insurance 65,721.00 153,070.34 $ 10,347.21 29,877.38 16,202.85 11,792.12 $5,661,377.31 $ 348,804.99 $ 6,010,182.30 113.53 3,048.09 149.49 376,365.08 612,817.71 567,965.88 28,275.00 22,982.00 21,641.07 31,132.86 399,347.08 634,458.78 599,098.74 28,275.00 4,615.00 65,721.00 4,615.00 65,721.00 $7,092,535.97 $ 209,497.78 $ 15,103.23 $7,317,136.98 $ 424,560.92 $ 7,741,697.90 OPERATING EXPENSES Travel Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Tuition and Scholarships College Work-Study Program Scholarships, Fellowships, Prizes, Awards and Other Other Operating Expenses Publications and Printing Equipment Purchases Non-Inventory Canputer Charges Software Real Estate Rentals TelecOOlllJnications Per Diem, Fees and Contracts Per Diem and Fees Contracts Equipment Purchases Motor Vehicle Equipment Purchases Inventory $ 85,581.91 $ 18,905.75 309,543.66 114,617.00 306,730.08 11,478.03 10,196.90 13,545.46 28,035.00 105,532.28 48,045.83 133,796.04 1,428.40 21,515.78 8,400.00 68,091.49 66,519.93 74,309.55 22,822.00 275 741.47 2,175.15 $ 199.67 9,988.91 2,536.15 8,543.95 63.47 156.10 2,216.28 $ 2,860.91 27,854.80 678. 70 1,878.68 89,973.34 $ 21,966.33 347,387.37 117,831.85 317,152.71 11,541.50 10,353.00 3,727.34 $ 15,788.33 22,888.76 3,067.50 2,700.00 4,879.40 217.50 93,700.68 37,754.66 370,276.13 120,899.35 319,852.71 16,420.90 10,570.50 13,545.46 40,680.13 54,225.59 5,987.08 34.80 16,344.67 9,854.00 28,035.00 1,794,429.28 1,822,464.28 127,864.03 17,245.59 145,109.62 57,934.63 97.00 58,031.63 756.09 160.00 2,138.06 1,414.43 400.00 973.06 135,966.56 1,428.40 22,075.78 8,400.00 71,202.61 4,562.23 239.87 3,491.22 140,528.79 1,428.40 22,315.65 8,400.00 74,693.83 2,482.32 993.95 12,013.39 81,015.64 75,303.50 7,984.14 88,999.78 75,303.50 484.03 23,306.03 275 741 .47 7,500.32 23,306.03 283,241.79 $1 I 72 4 I 83 6. 56 $ 36,215.70$ 76,972.95 $1,838,025.21 $1,929,498.61 $ 3,767,523.82 OTHER SPECIAL FUNDING INITIATIVE Personal Services Salaries and Wages $ E"l'.)loyer's Contributions for: F.I.C.A. Group Insurance Retirenent 29,574.00 1,989.37 4,876.20 3 492.72 $ 29,574.00 l, 989. 37 4,876.20 3 492. 72 $ 29,574.00 1,989.37 4,876.20 3 492.72 $ 39,932.29 $ 39,932.29 $ 39,932.29 $8,857,304.82 $ 245 713.48 $ 92 076. 18 $9,195,094.48 $2,354,059.53 $11,549,154.01 See accanpanying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Information. - 33 - FLOYD COLLEGE SCHEDULE OF EXPENDITURES BY OBJECT PLANT FUNDS YEAR ENDED JUNE 30. 1994 SCHEDULE "10" CAPITAL OUTLAY Software Per Diem, Fees and Contracts Contracts Equipment Purchases Motor Vehicle Equipment Purchases Inventory OTHER EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND Other Costs Equipment Purchases Non-Inventory Equipment Purchases Inventory DISTANT LEARNING - SATELLITE DISHES Other Costs Equipment Purchases Inventory UNEXPENDED ---------------------------- REGULAR LOTTERY FOR EDUCATION RENEWALS AND REPLACEMENTS ------------- AUXILIARY TOTAL $ 12,673.70 1,239.00 $ 13,912.70 $ 8,071.67 $ 8,071.67 21,619.43 34,293.13 13,448.00 13,448.00 3,214.44 4,453.44 ------------- ------------- $ 46,353.54 $ 60,266.24 ------------- ------------- $ 3,680.00 137,203.17 $ 140,883.17 $ 6,500.00 $ 147,383.17 $ 3,680.00 137,203.17 $ 140,883.17 $ 6,500.00 $ 147,383.17 $ 13,912.70 $ 147,383.17 $ 46,353.54 $ 207,649.41 ============= s-=-------=-- ============= =-===-------- See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 34 - SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS FLOYD COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30. 1994 STATUS OF PRIOR YEAR FINDINGS AND IlvfPROPER OR QUESTIONED COSTS The status ofthe finding disclosed in the review report for the year ended June 30, 1993, is indicated below: Audit Control Number Status of Finding 573-93-01 See Audit Control Number 573-94-01 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Finding Deleted Audit Control Number 573-94-01 The audit report for the year ended June 30, 1990, called attention to an improper expenditure of $175.00 for seven employees to attend a Secretaries' Day luncheon. This improper cost had not been resolved at June 30, 1994. Reference to this finding will be deleted from review reports in subsequent years. However, Floyd College is not relieved of their responsibility to secure reimbursement for this improper expenditure. CURRENTYEAR BUDGET PREPARATION/EXECUTION Overexpenditure of Budget - Resident Instruction Financial Statements The total approved budget for Resident Instruction of Floyd College provided for expenditures totaling $11,456,592.00. A comparison of anticipated revenues and budgeted expenditures to actual revenues and expenditures is summarized on Schedule "I" ofthis report. This comparison indicates that actual expenditures for Operating Expenses of Sponsored Operations exceeded budgeted expenditures by $137,792.61. BUDGET PREPARATION/EXECUTION Overexpenditure of Budget - Lottery for Education Financial Statements The total approved budget for Lottery for Education of Floyd College provided for expenditures totaling $140,807.00. A comparison of anticipated revenues and budgeted expenditures to actual revenues and expenditures is summarized on Schedule "2" of this report. This comparison indicates that actual expenditures for Equipment, Technology and Construction Trust Fund exceeded budgeted expenditures by $6,576.17. FLOYD COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1994 CURRENT YEAR GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequate Equipment Inventory Records Financial Statements Audit Control Number 573-94-02 An examination ofthe property management records disclosed that the College's equipment inventory records were not reconciled with the general ledger control accounts. As a result of this deficiency, additional work was performed to identify the discrepancies. However, a variance of $14,953.15 between the College!$ subsidiary equipment inventory records and the general ledger could not be identified. Personnel at the College should review the matter and necessary adjustments should be made to reconcile the control accounts and subsidiary records.