u U STATE OF GEORGIA LJ c;A- f. AC6DO L;;aI . R \ LJ G3J.... LJ ~ooo~~oo I. 00 00000 0 0 1776 GAINESVILLE COLLEGE GAINESVILLE, GEORGIA REPORT ON REVIEW OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 Russell W. Hinton State Auditor GAINESVILLE COLLEGE -TABLEOFCONTENTS- Page FINANCIAL INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION EXHffiITS FINANCIAL STATEMENTS A COMBINED BALANCE SHEET ALL FUND GROUPS 2 B COMBINED STATEMENT OF CHANGES IN FUND BALANCES ALL FUND GROUPS 4 C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, AND OTHER CHANGES 7 D NOTES TO THE FINANCIAL STATEMENTS 8 SUPPLEMENTARY INFORMATION E COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED 20 F COMBINING STATEMENT OF CHANGES IN FUND BALANCES CURRENT FUNDS - UNRESTRICTED 22 G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, AND OTHER CHANGES UNRESTRICTED 24 SCHEDULES SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 1 RESIDENT INSTRUCTION 26 2 LOTTERY FOR EDUCATION 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 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 August 16,2001 Honorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the University System of Georgia and Honorable Martha T. Nesbitt, President Gainesville 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 Gainesville 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 Gainesville College. A review consists principally ofinquiries of College personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opm IOn. Based on our review, with the exception ofthe matters described in the fourth and fifth paragraphs, we are not aware 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 $568,654.90 as of June 30, 2001, and the net change in fund balance for the year ended June 30, 2001, would be decreased by $17,756.64. 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 Sta e Auditor FINANCIAL STATEMENTS - 1- GAINESVILLE 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 FUNDS $ 1,017,698.89 $ 10,722.50 260,951.03 $ 127,731.38 84,939.94 471,026.12 98,505.09 $ 1,933,121.07 $ 127,731 .38 $ ==1~0~,7,;o;22;;;.;.5~0~ LIABILITIES AND FUND BALANCES Liabilities Accounts Payable Salaries Payable Deferred Revenue Tuition and Fees Deposits Held in Custody for Others Due to Other Fund Groups Total Liabilities Fund Balances Endowment Net Investment in Plant Restricted Unrestricted Total Fund Balances $ 445,750.96 30,048.15 670,308.18 _ _ _ _ _ _ $ _--::9:.:::8~,5:::;05::.:..0::..:9::... $ 1,146,107.29 $ _--::9:.:::8.z;::,5;.:.05~..::.;09::... $ $ _ _...;7"-==8:.:..7 0.:.,:13::.:,.7~8::... z..:::' $ 787,013.78 $ $ 29,226.29 10,722.50 29,226.29 $ _ _1.:.;:0:J.:,7~2=2.:.:::5.::...0 Total Liabilities and Fund Balances $ 1,933,121.07 $ 127,731.38 $ ==1;,;;:0.7,,;;2:=;2.~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. - 2- EXHIBIT "A" UNEXPENDED PLANT FUNDS RENEWALS AND REPLACEMENTS INVESTMENT IN PLANT AGENCY FUNDS TOTAL (Memorandum OnlY}L_ _ $ 359,375.18 $ 735,975.34 $ 248,837.80 $ 2,372,609.71 10,318.66 399,001.07 84,939.94 471,026.12 98,505.09 _ _ _ _ _ _ $ 33,461,684.71 33,461,684.71 $ 359,375.18 $ 735,975.34 $ 33,461,684.71 $ 259,156.46 $ 36,887,766.64 $ 359,375.14 $ _--::.;35:.::9..:.;:,3;.;,.75=.,.:..:,..14.:.-. $ 0.04 $ $ 0.04 $ $ 54,663.93 $ 859,790.03 30,048.15 204,492.53 670,308.18 204,492.53 98,505.09 $ 259,156.46 $ 1,863,143.98 $ 33,461,684.71 7;:.,;:3:.: 5. :.;:,9;.;,.75=..,:.;:..34.:.-. 735,975.34 $ 33,461,684.71 $ 10,722.50 33,461,684.71 29,226.29 1,522,989.16 $ 35,024,622.66 $ 359,375.18 $ 735,975.34 $ 33,461,684.71 $ 259,156.46 $ 36,887,766.64 - 3- GAINESVILLE 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 Local Grants and Contracts Private Gifts, Grants, and Contracts Investment Income Endowment Other Adjustments Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Expended for Plant Facilities Current Funds Plant Funds Unexpended Georgia State Financing and Investment Commission 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 Noncapitalized Disposals/Deletions/Adjustments Total Expenditures and Other Deductions TRANSFERS BETWEEN FUNDS Nonmandatory Renewals and Replacements Net Increase/(Decrease) for the Year FUND BALANCES JULY 1, 2000 CURRENT FUNDS UNRESTRICTED RESTRICTED ENDOWMENT FUNDS $ 16,640,906.36 $ 1,500,815.93 1,842,422.33 99,693.04 630.81 $ 0.00 2,043.47 875.00 $ 16,643,824.83 $ 3,443,562.11 $ $ 16,235,849.59 $ 3,453,177.65 $ 168,532.25 9,224.85 1,313.50 2,218.68 -'0::.:,.0::.:0'0.00 $ 16,407,914.02 $ 3,462,402.50 $ 0:::,.:.::::00::,.. $ _ _.....:-~68!!1.,7~6~2.::!.4~9 $ 167,148.32 $ 619,865.46 -18,840.39 $ 48,066.68 0.00 10,722.50 FUND BALANCES JUNE 30, 2001 $ 787,013.78 $ 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- 29,226.29 $ = ......1.=o0?22.50 EXHIBIT "B" UNEXPENDED PLANT FUNDS RENEWALS AND REPLACEMENTS INVESTMENT IN PLANT TOTAL (Memorandum Onl:tll...-_ $ $ 602,000.00 54,078.24 0.04 $ 656,078.28 $ 0.00 $ O~.~OO~ $ $ 16,640,906.36 3,840.00 602,000.00 1,500,815.93 1,842,422.33 99,693.04 3,840.00 630.81 54,078.24 2,043.51 875.00 751,240.95 751,240.95 521,796.24 2,909,735.19 521,796.24 2,909,735.19 4,186,612.38 $ 24,930,077.60 $ 19,689,027.24 168,532.25 9,224.85 1,313.50 2,218.68 $ 521,796.24 $ 0.00 134,282.00 _ _ _ _ _ _ $ _--::2:.::;96~,O~0:::.4.~5.:...1 521,796.24 134,282.00 296,004.51 $ 656,078.24 $ 0.00 $ 296,004.51 $ 20,822,399.27 $ ..:::.68~,.:..:76~2:.::.4~9~ $ O~.O~O~ $ 0.04 $ 68,762.49 $ 3,890,607.87 $ 4,107,678.33 0.00 667,212.85 29,571,076.84 30,916,944.33 $ 0.04 $ 735,975.34 $ 33,461,684.71 $ 35,024,622.66 -5- GAINESVILLE COLLEGE STATEMENT OF CURRENT FUNDS REVENUES. EXPENDITURES, AND OTHER CHANGES YEAR ENDED JUNE 30, 2001 EXHIBIT "C" UNRESTRICTED RESTRICTED TOTAL (Memorandum Only) REVENUES State Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources Total Revenues $ 11,379,599.00 $ 11,379,599.00 4,095,012.63 4,095,012.63 9,224.85 $ 1,491,591.08 1,500,815.93 1,861,893.53 1,861,893.53 197,481.99 99,693.04 297,175.03 72,639.60 72,639.60 382,588.94 382,588.94 504,359.35 . 504,359.35 $ 16,640,906.36 $ 3,453,177.65 $ 20,094,084.01 EXPENDITURES Educational and General Instruction Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Auxiliary Enterprises Food Services Stores and Shops Other Service Units Total Expenditures OTHER TRANSFERS AND ADDITIONS/{DEDUCTIONS) $ 7,703,836.50 $ 377,227.78 $ 8,081,064.28 95,382.33 18,862.14 114,244.47 2,288,825.20 64,693.00 2,353,518.20 1,518,353.74 1,518,353.74 2,771,264.52 41,536.79 2,812,801.31 1,755,644.30 1,755,644.30 102,543.00 2,950,857.94 3,053,400.94 42,022.99 114,726.84 11,782.42 42,022.99 114,726.84 11 ,782.42 $ 16,404,381.84 $ 3,453,177.65 $ 19,857,559.49 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) $ $ -68,762.49 699.79 -18,840.39 $ -18,840.39 -68,762.49 699.79 -1,313.50 -69,376.20 $ -1,313.50 -18,840.39 $ _ _-~8~8,~2~16~.5~9~ Net Increase/(Decrease) in Fund Balances $ 167,148.32 $==-1;,;;8,840.39 $==1,;,;;4;,:;;8,307.93 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. -7- GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2001 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY Gainesville College is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System ofGeorgia, an organizational unit ofthe State of Georgia. The accompanying financial statements reflect the operations of Gainesville 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 po.. wer 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. Gainesville College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Gainesville College is considered an organizational unit ofthe Board ofRegents ofthe 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, research, public service, etc. RESTRICTED - The fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes. - 8- GAINESVILLE 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 endowment funds. Endowment funds are 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 of institutional properties. INVESTMENT IN PLANT - The fund which shows the total amounts representing the book value of all physical properties owned by the College. Net Investment in Plant is an equity account showing the total book value of physical properties belonging to the College less the amount of any indebtedness to others. AGENCY FUNDS The fund used to account for resources held by the College as custodian or fiscal agent for individual students, faculty, staff members, and organizations. BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis of accounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants' audit guide reporting model. The modified accrual basis ofaccounting is defined as that method ofaccounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures ofthe fiscal period. Contractual obligations for goods and services which have not been received at the end ofthe fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with accounting principles generally accepted in the United States ofAmerica, which provide for the recording ofencumbrances - 9- GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2001 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures detennined in accordance with accounting principles generally accepted in the United States of America. Compensated absences represent obligations ofthe 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 $568,654.90 and a related liet current year expenditure of $17,756.64 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 of2000-2001. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The allocation ofthe appropriated budget is made to the College by the Administrative Central Office. In addition, the College receives Federal funds and other funds directly and includes these funds in the budget filed with the Administrative Central Office. - 10- GAINESVILLE 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 class was overspent by the amount identified below: Resident Instruction Operating Expenses: Education, General and Departmental Services $ 347,392.90 . This overexpenditure of budget constitutes a violation of Board of Regents policy, but does not constitute a statutory violation 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. ACCOUNTS RECEIVABLE Accounts receivable consist ofreimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from infonnation available. No provision has been made for an allowance for doubtful accounts within the accompanying financial statements. INVENTORIES 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 infonnation and are presented only to facilitate financial analysis. The columns do not present infonnation that reflects financial position or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the - 11 - GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2001 EXHIBIT "D" NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES 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 of indebtedness, notes, or other direct obligations ofthe United States or of the State of Georgia. (2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. (3) Bonds of any public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. (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 forall details relative to furnishing the required depository protection for all units of the University System of Georgia. CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as 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: - 12 - GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2001 EXHIBIT "D" NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS CATEGORIZATION OF DEPOSITS Category 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the College or by its agent in the College's name. Category 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the College's name. Category 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent but not in the College's name, and amounts uncollateralized. Cash Deposits Carrying Amount Bank Balances Risk Categ.!,!!on..!.!