Floyd College, Rome, 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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FLOYD COLLEGE

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ROME, GEORGIA
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REPORT ON REVIEW

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OF THE FINANCIAL STATEMENTS ;1

FOR THE FISCAL YEAR ENDED JUNE 30, 2001

Russell W. Hinton State Auditor

FLOYD COLLEGE - TABLE OF CONTENTS -

Page

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

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

29

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

FLOYD COLLEGE -TABLE OF CONTENTS-

SECTIONll

AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

S

Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION III CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL


RUSSELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-X400
November 20,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members of the Board ofRegents of the University System of Georgia
and Honorable J. Randy Pierce, 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) ofFloyd College as of and 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 Floyd 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

OpInIOn.
Based on our review, with the exception ofthe 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 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 $513,447.32 as ofJune 30, 2001, and the net change in fund balance for the year ended June 30, 2001, would be decreased by $27,130.85.
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 1 through 5) are presented for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review ofthe financial statements, and except for the effects of the matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto.
Respectfully submitted,

RWH:gp
01ARL-67

Ru ell W. Hinton State Auditor

FINANCIAL STATEMENTS - 1-

FLOYD 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

ENDOWMENT FUND

$

150,607.78

$ 27,209.37

505,117.36 $ 243,919.85

278,692.92

314,360.12

140,976.84

$ 1,389,755.02 $ 243,919.85 $ =====27.,2;,;;;0=9.=3.7....

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

$

667,310.51

68,713.08

1,483.20

658,792.11 _ _ _ _ _ _ $ 238,043.01

$ 1,396,298.90 $ 238,043.01

$ 27,209.37

$

5,876.84

$

--=6.c::,5:..:.:43:::.:..~88::._

$

-6,543.88 $

5,876.84 $ _ _2:.:7....L:,2=0=9.=37:.....

Total Liabilities and Fund Balances

$ 1,389,755.02 $ 243,919.85 $ ===2=7:5,2=0=9.::;37=

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.L)_ _

$ 584,017.92 $

157,190.43

$ 327,955.46 $ 1,246,980.96
749,037.21

278,692.92

314,360.12

97,066.17

238,043.01

______ $ 33,800,246.87

33,800,246.87.

$ 584,017.92 $

157,190.43 $ 33,800,246.87 $ 425,021.63 $ 36,627,361.09

$ 585,345.00
$ 585,345.00

$ 287,074.83 $

1,539,730.34 68,713.08 1,483.20

137,946.80

658,792.11 137,946.80 238,043.01

$ 425,021.63 $ 2,644,708.54

$ 33,800,246.87

$

-1 ,327.08 $ _ _..:.:15~7..L..1:~'90::..:..4~3:...

$

-1,327.08 $

157,190.43 $ 33,800,246.87

$

27,209.37

33,800,246.87

5,876.84

149,319.47

$ 33,982,652.55

$ 584,017.92 $

157,190.43 $ 33,800,246.87 $ 425,021.63 $ 36,627,361.09

-3-

FLOYD COLLEGE COMBINED STATEMENT OF CHANGES IN FUND BALANCES
ALL FUND GROUPS YEAR ENDED JUNE 30, 2001

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues State Appropriations
Regular Federal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Investment Income
Endowment Other Net Increase in Fair Value of Investments Adjustments Prior Years' Expenditures/Accounts Payable Funded by the Board of Regents of the University System of Georgia
Prior Year's Unrestricted Fund Balance (Deficit) 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)
Adjustments Prior Years' Revenues/Accounts Receivable
Expended for Plant Facilities Capitalized
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

ENDOWMENT FUND

$ 16,694,884.58

$ 1,555,508.68
1,841,930.23 119,102.35
1,133.80
$
8,203.73

556.54

$ 16,703,088.31 $ 3,517,675.06 $ _ _-:5::,:5::::;6.:,::.54-,-

$ 16,412,002.22 $ 3,583,019.72 $

0.00

337,635.70

12,905.38

11,607.67 53,310.47

$ 16,814,556.06 $ 3,595,925.10 $

;:.:0.;:.:00"-

$ _----=-:::!:56~,3:!::9:=2.:.!.:74~ $ -167,860.49 $
161,316.61

-78,250.04 $
84,126.88

556.54 26,652.83

FUND BALANCES JUNE 30, 2001

$

-6,543.88 $

5,876.84 $ =~27~,2~0~9.~37~

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"

UNEXPENDED

PLANT FUNDS RENEWALS AND
REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
OnIV_ _

$ $ 960,345.00
19,683.71 22,312.49
129.00 12,266.76
4,231.43
$ 1,018,968.39 $

0.00

$ 16,694,884.58

960,345.00 1,555,508.68 1,841,930.23
138,786.06

1,133.80 22,312.49
556.54

8,332.73

12,266.76

$ 3,161,420.08

3,161,420.08

1,008,028.71 6,837.23
49,240.43

1,008,028.71 6,837.23
49,240.43

4,231.43
~O.~OO~ $ 4,225,526.45 $ 25,465,814.75

$ 19,995,021.94
337,635.70 12,905.38

$ 1,008,028.71 $

6,837.23

-----$

$ 1,008,028.71 $

6,837.23 $

11,607.67

53,310.47

456,168.37

1,014,865.94 456,168.37

456,168.37 $ 21,881,515.47

$ _ _....:5~6:c:,3~92~.7!.::4~

$

~O.~OO~

$

10,939.68 $

-12,266.76

49,555.51 $ 3,769,358.08 $ 3,584,299.28

107,634.92

30,030,888.79

30,398,353.27

$

-1,327.08 $

157!190.43 $ 33,800,246.87 $ 33,982,652.55

-5-

FLOYD COLLEGE STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES YEAR ENDED JUNE 30, 2001

EXHIBIT "C"

UNRESTRICTED RESTRICTED

TOTAL (Memorandum
OnIV:.....-_

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

$ 11,632,975.00

$ 11,632,975.00

4,119,087.94

4,119,087.94

9,205.38 $ 1,646,195.22

1,655,400.60

1,776,867.42

1,776,867.42

159,957.08

159,957.08

463,139.19

463,139.19

318,136.34 .

318,136.34

152,340.73

152,340.73

$ 16,694,884.58 $ 3,583,019.72 $ 20,277,904.30

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

$ 6,741,516.82 $ 244,413.32 $ 6,985,930.14

1,488,776.38

404,172.30

1,892,948.68

1,176,118.89

1,176,118.89

5,225,253.70

117,964.10

5,343,217.80

1,616,939.24

1,616,939.24

163,397.19 2,816,470.00

2,979,867.19

25,700.35 211,779.98 100,155.37

25,700.35 211,779.98 100,155.37

$ 16,749,637.92 $ 3,583,019.72 $ 20,332,657.64

OTHER TRANSFERS AND ADDITIONS/{DEDUCTIONSl

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) $

$
-56,392.74 -45,106.74

-78,250.04 $

-78,250.04 -56,392.74 -45,106.74

-11 ,607.67
-113,107.15 $

-78,250.04 $

-11 ,607.67 -191,357.19

Net Decrease in Fund Balances

$

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, 2001

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY Floyd College is one of thirty-four (34) State supported member institutions ofhigher 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 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. Floyd College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Floyd 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 offund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group.

Within each fund group, the College's fund balance allocations and designations represent those portions 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 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, e.g., instruction, 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.

-7-

FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
ENDOWMENT FUNDS
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 replaceJ,llent 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 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 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
- 8-

FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHffiIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
as a reservation offund 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.
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 $513,447.32 and a related net current year expenditure of $27,130.85 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 fair presentation 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 of the College. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on physical plant and equipment.
The Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to present the results of operations or the net income or loss for the period as would a statement of income or a statement of revenues and expenses.
BUDGET
The Board 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 of 2000-2001. 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.
-9-

FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET
A comparison of anticipated funds available and budgeted expenditures by budget unit object class
indicates that the following object classes were overspent by the amounts identified below:

Resident Instruction Personal Services: Sponsored Operations Operating Expenses: Educational, General and Departmental Services Sponsored Operations Capital Outlay

$ 26,758.07
$ 166,539.81 $ 982,729.65 $ 54,520.94

These overexpenditures of budget constitute a violation of Board of Regents policy, but do not constitute statutory violations of budget authority. Statutory violations of budget authority are reported at the Board object class level.

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.
ACCOUNTS RECEIVABLE
Accounts receivable consist ofreimbursements 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

- 10-

FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
comparable to a consolidation. Interfund eliminations have not been made in the aggregation oftms 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 depository may 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 ofthe 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 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.
- 11 -

FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS
For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 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 Categories

I

2

3

$ 841.835.M $ 891.955.52 $ 2QO.OQO,OO $,===Qg,;.Q~Q $ 691,955.52

CATEGORIZATION OF INVESTMENTS
At June 30, 2001, the carrying amount of the College's total investments was $397,180.32, which consisted entirely offunds in the Board ofRegents' Pooled Investment Accounts ($369,970.95 in the Short-Term Fund and $27,209.37 in the Balanced Income Fund). These funds are not required to be categorized since the College does not own any specific identifiable securities in the pooled accounts.

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

$ 569,490.00 18,199,220.80 1,844,579.13 11,255,785.45 1,931,171.49

Total Investment in Plant

$33,800,246.87

- 12-

FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 4: OPERATING LEASES

Floyd College has entered into certain agreements to lease buildings and equipment which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date ofthe original term ofthe lease, the College has the option of renewing the lease on a year-to-year basis. Future minimum lease payments for .operating leases as of June 30,2001, are listed below. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised.

Fiscal Year Ending June 30

2002

$ 56,796.00

Expenditures for rental of buildings and equipment under operating leases for the year ended June 30, 2001, totaled $145,196.00.

NOTE 5: DEFICIT FUND BALANCE

On June 30, 2001, the Auxiliary Enterprises, a part ofUnrestricted Current Funds, had a deficit fund balance of$100,208.29 which is not readily apparent from the financial statements.

NOTE 6: RISK MANAGEMENT

Floyd College is a participant in the Board ofRegents ofthe University System of Georgia Health Benefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees ofthe University System ofGeorgia. 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 ofthe University System ofGeorgia share the risk of loss for claims of the Health Benefits Plan. The Health Benefits Plan is considered a selfsustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of$2,000,000.00 per person and dental coverage up to an annual maximum of$I,OOO.OOperperson. Blue Cross Blue Shield of Georgia processes medical and dental claims in accordance with the
Health Benefits Plan as established by the Board ofRegents. As ofJanuary 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'

- 13-

FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 6: RISK MANAGEMENT

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 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 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description
Floyd College participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly ofGeorgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia 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
$ 719,331.94
$ 781,263.50 $ 819,711.90

- 14-

FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIDIT "D"

NOTE 7: RETrnEMENTPLANS
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 only by 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$156,449.26 (8.81 %) and $88,791.36 (5%), respectively.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description
Floyd College participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly ofGeorgia for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia.
Benefits
A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. If a member has less than $ 3,500.00 credited to his/her account, the Board 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 his/her 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 -

FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 7: RETffiEMENTPL~S
GEORGIA DEFINED CONTRIBUTION PLAN
Contributions and Vesting
Total contributions made by employees during fiscal year 2001 amounted to $32,785.16 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
NOTE 8: LEAVEPOUCrnS
Employees earn annua11eave 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 ofthree months of unused sick leave are entitled to additional service credit in the Teachers Retirement System of Georgia.
NOTE 9: CONTINGENCrnS
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 Floyd College (an organizational unit ofthe Board of Regents of the University System ofGeorgia), ifany, are generally considered to be actions against the State ofGeorgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2001.
NOTE 10: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Pursuant to the general powers conferred by the Official Code ofGeorgia Annotated Section 20-331, the Board of Regents 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-

FLOYD COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 10: 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 postemp1oyment 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 59 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 2001, Floyd College recognized as incurred $151,966.57 of expenditures, which was net of $52,734.56 of
participant contributions.

NOTE 11: ENROLLMENT

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

Regular Term Fall Semester, 2000 Spring Semester, 2001
Average
Summer School, 2000

1,686 1,618
1,952
556

- 17 -

SUPPLEMENTARY INFORMATION
- 19-

FLOYD COLLEGE COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED
JUNE 3D, 2001

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

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

$

79,537.01 $

0.00

443,117.53

11,985.11

313,960.12

544,531.79

$ 1,393,131.56 $=====,;;;,;O.=OO~

LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Salaries Payable Student Deposits Deferred Revenue Tuition and Fees Due to Other Fund Groups
Total Liabilities
Fund Balances Unrestricted
Total Liabilities and Fund Balances

$ 595,020.96 $

0.00

65,975.82

644,179.62

$ 1,305,176.40 $

0.00

87,955.16

0.00

$ 1,393,131.56 $==-=,;;;,;0.=00;:..

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

EXHIBIT "E"

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$

2,625.00 $ 68,445.77 $ 150,607.78

61,191.46

808.37

505,117.36

266,707.81

278,692.92

400.00

314,360.12

544,531.79

$ 330,524.27 $ 69,654.14 $ 1,793,309.97

$

23,197.15 $ 49,092.40 $ 667,310.51

2,497.26

240.00

68,713.08

1,483.20

1,483.20

403,554.95

14,612.49

658,792.11 403,554.95

$ 430,732.56 $ 63,944.89 $ 1,799,853.85

-100,208.29

5,709.25

-6,543.88

,
$ 330,524.27 $ 69,654.14 $ 1?93,309.97

- 21 -

FLOYD 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
Total Revenues and Other Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the,
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Adjustments Prior Years' Revenues/Accounts Receivable
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements
Net Increase/(Decrease) for the Year
FUND BALANCES JULY 1, 2000
FUND BALANCES JUNE 30, 2001

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

$ 15,446,755.57 $ 818,165.00 6,786.81
$ 15,453,542.38 $ _~8~18~,1~6::::.:5.~00~

$ 15,442,848.57 $ 818,165.00

11,607.67 51,185.21
$ 15,505,641.45 $ _....:8::..:1~8.L..:.1,~65=.:..:::.:00:..

$ -52,099.07 $

0.00

140,054.23

0.00

$

87,955.16 $ ===o=:0:;;,;"O~O~

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

EXHIBIT "F"

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$ 333.741.04 $ 96,222.97 $ 16,694,884.58

1,416.92

8,203.73

$ 335,157.96 $ 96,222.97 $ 16,703,088.31

$ 150,988.65 $ 16,412,002.22

$ 337,635.70

337,635.70

2,102.26

23.00

11,607.67 53,310.47

$ 339,737.96 $ 151,011.65 $ 16,814,556.06

$

-56,392.74

$

-56,392.74

$

-60,972.74 $ -54,788.68 $ -167,860.49

-39,235.55

60,497.93

161,316.61

$ -100,208.29 $

5,709.25 $ ===-,,;;;,6:,5~43;;.;;.8:;:,:;8~

- 23-

FLOYD 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 Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues
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/(DEDUCTIONSl
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

LOTTERY FOR EDUCATION

$ 10,814,810.00 $ 4,025,028.71 9,205.38 463,139.19
134,572.29
$ 15,446,755.57 $

818,165.00 818,165.00

$ 6,741,516.82
1,488,776.38 1,025,130.24
4,407,088.70 $
1,616,939.24 163,397.19

818,165.00

$ 15,442,848.57 $ _~8~18::..L.'1:.:::6.:::.:5..:::.:00~

$

0.00

$

-44,398.40

-11 ,607.67

$

-56,006.07 $

....;O~.~OO~

Net Decrease in Fund Balances

$

-52,099.07 $ = =.......~O~.OO:;:..

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

$ 11,632,975.00

$ 94,059.23

4,119,087.94

9,205.38

463,139.19

$ 318,136.34 15,604.70

2,163.74

318,136.34 152,340.73

$ 333,741.04 $ 96,222.97 $ 16,694,884.58

$ 6,741,516.82

1,488,776.38

$ 150,988.65

1,176,118.89

5,225,253.70



1,616,939.24

163,397.19

$

25,700.35

211,779.98

100,155.37

25,700.35 211,779.98 100,155.37 .

$ 337,635.70 $ 150,988.65 $ 16,749,637.92

$

-56,392.74

-685.34 $

$ -23.00

-56,392.74 -45,106.74

$ -57,078.08 $

-11 ,607.67 -23.00 $ -113,107.15

$ -60,972.74 $ -54,788.68 $ -167,860.49

- 25-

FLOYD 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

$ 10,814,810.00

$ 960,345.00 $

0.00

4,631,945.57 $ 3,583,019.72

46,227.63

$ 15,446,755.57 $ 3,583,019.72 $ 1,006,572.63 $

....;....::;O.;.::.OO=...

EXPENDITURES

Personal Services:
Education, General and Departmental Services $ 10,405,303.07

Sponsored Operations

$ 379,453.07

Operating Expenses: Education, General and Departmental Services
Sponsored Operations Capital Outlay

4,726,676.50

3,203,566.65
$ 1,008,028.71 $

Special Funding Initiative

310,869.00

6,837.23

$ 15,442,848.57 $ 3,583,019.72 $ 1,008,028.71 $ _ _--.:6:.:,:,8:;:3:.:..;7.=2=-3

. Excess of Revenues over Expenditures

$

3,907.00 $

0.00 $

-1 ,456.08 $ ==...;;:;-6~,8~3~7.~23~

(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 (1)

TOTAL (Budget Basis)

BUDGET

VARIANCE FAVORABLE JUNFAVORABLE).

$ 11,775,155.00 8,261,192.92 $

$ 11,775,155.00 $ 11,775,155.00 $

-156,800.46

8,104,392.46

6,901,353.00

0.00 1,203,039.46

$ 20,036,347.92 $ -156,800.46 $ 19,879,547.46 $ 18,676,508.00 $ 1,203,039.46

$ 10,405,303.07 379,453.07
4,726,676.50 $ 3,203,566.65 1,014,865.94
310,869.00

$ 10,405,303.07 $ 10,435,263.00 $

379,453.07

352,695.00

-163,637.69

4,563,038.81 3,203,566.65 1,014,865.94
310,869.00

4,396,499.00 2,220,837.00
960,345.00 310,869.00

29,959.93 -26,758.07
-166.539.81 -982,729.65
-54,520.94 0.00

$ 20,040,734.23 $ -163,637.69 $ 19,877,096.54 $ 18,676,508.00 $ -1,200,588.54

$

-4,386.31 $

6,837.23 $ =~2i;1,;,4~5;:;:;0.~92i=

$ =====~2,450.92

- 27-

FLOYD COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

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

CURRENT FUNDS UNRESTRICTED

BUDGET

VARIANCE FAVORABLE JUNFAVORABLEt

$

818,165.00 $ 818,165.00 $

0:..:..0::..:0:.....

$

135,000.00 $ 135,000.00 $

0.00

50,000.00

50,000.00

0.00

450,000.00 450,000.00

0.00

183,165.00 183,165.00

0.00

$

818,165.00 $ 818,165.00 $

.: :.;0.:.: .00: . . .

$ =========~O.~OO~

$ ====...-=~O.~OO;:..

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


FLOYD COLLEGE CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30, 2001

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections
SUMMARY OF INVESTMENT College Capital Leases

BALANCE JULY 1, 2000

CURRENT FUNDS UNRESTRICTED RESTRICTED

$ 569,490.00

17,518,322.70

1,843,208.09

10,867,091.57 $ . 2,912,364.63 $ 151,741.00

1,834,040.07

97,314.45

$ 32,632,152.43 $ 3,009,679.08 $ 151,741.00

$ 30,030,888.79 $
2,601,263.64

3,009,679.08 $ 151,741.00

3,009,679.08 $ 151,741.00

See accompanying notes and Independent Accountant's 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

DEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS

BALANCE JUNE 30, 2001

$ 569,490.00

$ 631,657.67
1,371.04
375,000.00 $

$ 6,837.23

49,240.43

18,199,220.80

1,844,579.13

$ 3,057,248.98

11,255,785.45

_ _~1~83~.0~3:...

1,931,171.49

$ 1,008,028.71 $

6,837.23 $

49,240.43 $ 3,057,432.01 $ 33,800,246.87

$ 1,008,028.71 $

6,837.23 $

49,240.43 $ 456,168.37 $ 33,800,246.87

2,601,263.64

0.00

$ 1,008,028.71 $

6,837.23 $

49,240.43 $ 3,057,432.01 $ 33,800.246.87

- 31 -


FLOYD COLLEGE SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30, 2001

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

LOTIERY FOR

AUXILIARY

EDUCATION ENTERPRISES

STUDENT ACTIVITIES

NET INVESTMENT IN PLANT Investment in Plant Facilities
RESTRICTED

Designated for Subsequent Years' Expenditures

UNRESTRICTED Designated For Bus Replacement Reserve For Computer Replacement - Information Technology Project For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures For Uncollectible Accounts Surplus/Deficit Regular Lottery for Education

$

60,000.00

9,287.46

17,340.62

$ 266,707.81

-367,965.11 $ 5,428.00

1,049.01

281.25

1,327.08

_ _ _ _ _ $ _ _----:O~.~OO!....

$

87,955.16 $

.:::.:O.~OO:::.... $ -100,208.29 $ 5,709.25

$

87,955.16 $ ===_.-.;O~.O~O~ $ -100,208.29 $ . 5,709.25

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

SCHEDULE "4"

RESTRICTED

UNEXPENDED REGULAR

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 33,800,246.87 $ 33,800,246.87

$ _~5~,8:..:....76~.8~4~

$ _ _~5'L:=:8.:...:67:::.:8. 4::...:....

$

22,930.93

134,259.50

$ 22,930.93
60,000.00 275,995.27 134,259.50 -362,537.11
18,670.88

$

-1,327.08

$

-1,327.08 $ _ _1..!.:5!!.7.Ll,1~90=:.::.4~3:!...

0.00 0.00 $ 149,319.47

$

5,876.84 $

-1,327.08 $

157,190.43 $ 33,800,246.87 $ 33,955,443.18

- 33-

FLOYD COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Totals per Annual Supplement
Prepaid Items June 30, 2001 June 30, 2000
Accruals June 30, 2001 June 30, 2000
Adjustments Shared Services on Jointly Staffed Personnel Georgia Perimeter College Watts, Rob

SALARIES

TRAVEL

$ 8,982,699.43 $ 148,771.69

-267,454.14 242,204.87

68,713.08 -40,397.34

139,602.19
$ 9,125,368.09 $ 148,771.69

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

SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
,

FLOYD COLLEGE AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-573-97-02 FS-573-97-04 FS-573-00-01

Partially Resolved - See Corrective ActionlResponses Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

FUND EQUITIES Deficit Restricted Funds Finding Control Number: FS-573-97-02

Floyd College continues trying to collect the deficit balance of $15,285.55 owed by a private funding agency. The agency is under new management and to date, collection efforts have been unsuccessful.

FUND EQUITIES Deficit to be Funded from Subsequent Years' Operations Finding Control Number: FS-573-00-01

Floyd College continues in their effort to correct the deficit position in the Auxiliary Enterprises. In future periods, expenditure activities will be closely monitored in order to stay within the Budget.



SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS


FLOYD COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
FUND EQUITIES Deficit to be Funded from Subsequent Years' Operations Finding Control Number: FS-573-01-01
At June 30, 2001, the College's Auxiliary Enterprises had a deficit fund balance of $100,208.29. This deficit is a result ofthe College's lack ofsufficient funds to meet obligations on a current basis.
The Board ofRegents' Policy Manual Section 702.2 states that auxiliary enterprises "will be placed on a self-supporting basis and the State will not make an appropriation to finance its operations".
The College should take appropriate action to fund this deficit.