Gainesville College, Gainesville, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2002

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stATE OF 'GEORG.IA

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DEPARTMENT OF AUDITS ~ND ACCOUNTS

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- GAINESVIL.L.E COLLEGE -
GAINESVILLE, GEORGIA

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REPORT ON' REVIEW

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OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2002 '
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Russell W. Hinton Stat~ Auditor

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GAJNESVILLE COLLEGE - TABLE OF CO:\'TENTS -

FINANCIAL

INDEPENDENT ACCOU1\'TA1'.'T'S COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

3

BASIC FINANCIAL STATEMEl'<'TS

EXHIBITS

A STATEMENT OF NET ASSETS

11

B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

12

C STATEMENT OF CASH FLOWS

I 3

D NOTES TO THE FINANCIAL STATEMENTS

15

SUPPLEMENTARY INFORMATION

SCHEDULES

SCHEDULESOFREVENUESANDEXPENDITURESCOMPAREDTO

BUDGET - (NON-GAAP BASIS)

RESIDENT INSTRUCTION

31

2

LOTTERY FOR EDUCATION

32

3 RECONCILIATIOJ\ or SALARIES AND TRAVEL

33

FINANCIAL

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STATE' AUD1ron r,n.. i f>!i6 2 ~,1

DEPARTl\1ENT OF AUDITS AND ACCOUNTS
2(i4 \\J...,hmg1011 ">1rl'~I ", \\ ~UIIL': 1-l
Atl ..mlJ Gu11~1J 111114-X--lOO
December 12, 2002

Honorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the Umvers1ty System of Georgia
and Honorable Martha T Nesbitt, President Gamesv1lle College
INDEPENDENT ACCOUNTA.NT'S COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY Th.'FORMATION
Ladies and Gentlemen
We have reVIewed the accompanymg basic financial statements (Exhibits A through D) of Gamesv1llc College, an organ1zat1onal umt ofthe State ofGeorgia, as of and for the year ended June 30. 2002, m accordance with Statements on Standards for Accountmg and Rev1e\\ Services issued hy the Amencan Institute of Certified Pubhc Accountants All mformatlon mcluded m these financial statements 1s the representauon of the management ofGamesv1lle College
A review consists pnnc1pally ofmqumes ofGamesv11le College personnel and analytical procedures apphed to financial data It 1s substanually less m scope than an audit m accordance with audnmg standards generally accepted m the Umted States of Amenca, the objective of which 1s the express10n of an opm1on regardmg the financial statements taken as a whole Accordmgly, we do not express such an opm10n
Based on our review, with the exception of the matter discussed m the fourth para1c,>raph, we arc not aware of any material modifications that should be made to the accompanymg financ1dl statements m order for them to be m conformity with accountmg pnnc1ples generally accepted m the Umtcd States of Amenca
As descnbed m Note I to the financial statements, the College did not rccogmze June 30, 2001, encumbrances as expenses m the June 30, 2002, basic financial statements To conform to generally accepted accountmg pnnc1ples, encumbrances should be recogmzed as expenses and hab1ht1e~ m the penod that goods and services arc received The effects on the basic financial statements of this departure from generally accepted accountmg pnnc1ples were not reasonably deterrnmable
02ARL-67

As described in Note 1, Gainesville College adopted the prov1s1ons of Governmental Accounting Standards Board (GASB) Statement '.\lo 35, Basic Fmanual Statemen1s - and Munagc111e111'; D1;cu;;wn and Ana/i;1; -for Public Colleges and Unne,sme;, as amended by GASB Statement No 37, Basic F111ancwl Statements - and Management's D1sc11~swn and Anuhs1s - for State and Local Gol'ernmellls, and GASB Statement No 38, Certam Fmancwl Statements Note DViclosure;, as of July 1, 2001, to implement a new financial reporting model
Management's D1scuss1on and Analysis 1s not a reqmred part of the basic financial statements but 1s supplementary informat10n reqmred by the GASB We have applied certain limited procedures, which consisted pnnc1pally ofmqumes ofmanagement regardmg the methods of measurement and presental!on ofth1s supplementary mformal!on, and we are not aware of any matenal mod1fica11ons that should be made thereto
Our review was made for the purpose of expressrng lumted assurance that there are no matenal mod1fications that should be made to the financial statements m order for them to be m conformity with accounting pnnc1ples generally accepted in the Umted States of Amenca The accompanying supplementary mformal!on (Schedules 1 through 3) 1s presented for add111onal analysis purposes Such rnformal!on has been subjected to the mqumes and analytical procedures applied m the review ofthe financial statements, and we are not aware of any matenal mod1fica11ons that should be made to such data

RWHas 02ARL-67

State Auditor

REQUIRED SUPPLEMENTARY INFORMATION -I-

GAINESVILLE COLLEGE
Management's Discussion and Analysis

lntroductio11

GamesVJllc College 1s one of the 34 mst1tut1ons ofthe Umvers1ty System of Georgia The College, located Just south of Gamesv1lle, was founded m 1965 and has become known for its quahty academic programs supported by state-of-the-art technology and strong academic support with focus on student success In 2001-02 the college opened a center m Athens that serves several hundred students Gamesv1lle College offers associate degrees ma wide vanety of d1sc1plmes and selected career programs and cert1 ficates The mstltutlon's quahty and reputat10n 1s attractmg a lughly qualified faculty and staff and an mcreasmg enrollment of students. The enrollment growth 1s md1cated by the followmg data

FY2002 Summer Fall Spnng
Total

Facultv (Part-Time)

Faculty (Full-Time)

16

65

88

94

....21

94

195

253

Students
1,862 3,688 3,460 9,010

FY2001 Summer Fall Spnng
Total
FY2000 Summer Fall Spnng
Total

15

69

1,714

67

87

3,254

60

80

3.033

142

236

8,001

30

62

1,578

64

89

3,036

..11

87

2.932

165

238

7,546

Overview ofthe Financial Statements and Financial Analysis
Gamesv1lle College 1s proud to present its financial statements for fiscal year 2002 The emphasis of d1scuss1ons about these statements will be on current year data There are three financial statements presented the Statement of Net Assets, the Statement of Revenues, Expenses and Changes m Net Assets, and, the Statement of Cash Flows This d1scuss1on and analysis of the College's financial

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statements provides an oveiv1ew of its financial acllnt1es for the year Gamesv11le College has elected to not restate pnor penods for purposes of prov1dmg the comparauve data for this Management's D1scuss1on and Analysis However, m future years, when pnor penod mfomiauon 1s available, a comparal!ve analysis will be presented

Statement ofNet Assets

The Statement of Net Assets presents the assets, hab1h1Ies, and net assets ofthe College as ofthe end of the fiscal year The Statement ofNet Assets 1s a pomt ofl!me financial statement The purpose of the Statement of Net Assets 1s to present to the readers of the financial statements a fiscal snapshot of Gainesville College The Statement of Net Assets presents end-of-year data concerning Assets (current and non-current), L1ab1ht1es (cU1Tent and non-current), and Net Assets (assets minus hab1ht1es) The difference between current and non-current assets will be discussed in the notes to the financial statements

From the data presented, readers of the Statement of Net Assets are able to determine the assets available to continue the operations ofthe ins1Itut10n They are also able to determine how much the institution owes vendors, investors and lending inslltullons

Finally, the Statement ofNet Assets provides a picture ofthe net assets (assets minus hab1ht1es) and thelf ava1lab1hty for expenditure by the 1nst1tul!on Net assets are d1v1ded into three maJor categones The first category, invested in capital assets, net ofdebt, provides the inst1tu1Ion's eqmty in property, plant and eqmpment owned by the inslltuuon The next asset category 1s restncted net assets, nonexpendable The corpus of nonexpendable restricted resources 1s only available for investment purposes The final category 1s unrestricted net assets Unrestncted assets are available to the inst1tut1on for any lawful purpose of the inst1tut10n

Statement of Net Assets, Condensed (thousands of dollars)
Assets Current Assets Capital Assets, Net Other Assets
Total Assets
Liabilities Current Liab1h11es Non-Current L1ab1h1Ies
Total Liabilities
Net Assets Invested m Capilal Assets, Net of Debt Restncted - Nonexpendable Unrestncted
Total Net Assets

s 3,087
18,664 I I
s 21,762
$ 1,470 142
$ 1,612
5 18,664
11 1 475
s 2Q, 1sn

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Statement ofReve11ues, Expenses and Changes in Net Assets

Change~ m total net w,sets as presented on the Statement of l\:et Assets are based on the actmty presented m the Statement of Revenues, Expenses and Changes m Net Assets The purpose of the statement ts to present the revenues received by the inst1tu1Ion, both operating and nonoperating, and the expenses paid by the ms1Itut1on, operating and nonoperating, and any other revenues, expenses, gains and losses received or spent by the mstltutwn Generally speaking opcratmg revenues arc received for providing goods and services to the vanous customers and const1tuenc1es of the mst1tu1Ion Operatmg expenses are those expenses paid to acquire or produce the goods and services provided m return for the operating revenues, and to carry out the m1sswn of the inst1tuuon Nonoperatmg revenues are revenues received for which goods and services are not provided For example state appropnatlons are nonoperatmg because they are provided by the Legislature to the ins!Itutlon without the Legislature directly rece1vmg commensurate goods and services for those revenues

Statement of Revenues, Expenses and Changes m Net Assets, Condensed (thousands of dollars)

Operating Revenues Operatmg Expenses

$ 8,666 20,861

Operatmg Loss

$-12,195

Nonoperating Revenues and Expenses

11,552

Decrease m Net Assets

S -643

Net Assets at Begmrung of Year, as Ongmally Reported

$ 35,025

Cumulative Effect of Changes m Accountmg Pnnc1ple

-14,232

Net Assets at Begmning of Year Restated

$ 20,793

Net Assets at End of Year

$ 20.) 50

The Statement of Revenues, Expenses and Changes m Net Assets reflects a decrease m the net assets at the end of the year Some h1ghhghts of the infonnat1on presented on the Statement of Revenues, Expenses and Changes m Net Assets are as follows

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Revenue By Source (thousands of dollars) For The Ycar Ended lune 30, 2002
Operatmg Revenue Tmtlon and Fees Grants and Contracts Sales and Services of Educational Departments Auxiliary Other
Total Operatmg Revenue
Nonoperatmg Revenue State Appropnat1ons Grants and Contracts Investment Income Other
Total Nonoperatmg Revenue
Total Revenues
Expenses (thousands of dollars) For The Year Ended June 30, 2002
Operatmg Expenses Instruction Pubhc Service Academic Support Student Services lnst1tut1onal Support Plant Operations and Mamtenancc Scholarships and Fellowslups Aux1hary Enterpnses Unallocated Depreciation
Total Operatmg Expenses

$ 4,306 2.401 463 1,443 53
$ 8,666
$ I 1.258 237 43 14
$ 11,552
$ 2Q,~j~
$ 8,854 138
2,337 1.665 2,557 1,959
995 I, 173 I, 183
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Statement of Ca~I, Flows

The final statement presented by the College 1s the Statement of Cash Flm,, The Statement of Cash Flows presents detailed mformauon about the cash act1nty of the msutut1on dunng the year The statement 1s d1v1ded mto five parts The first part deals with operatmg cash flows and shows the net cash used by the operatmg ac1Iv11Ies of the mslltullon The second secllon reflects cash flows from non-capital financmg ac1Iv11Ies This secllon reflects the cash received and spent for nonoperatmg, non-mvestmg, and non-capital financmg purposes The third secllon reflects the cash flows from mvestmg act1v1t1es and shows the purchases, proceeds, and mterest received from mvestmg act1vit1es The fourth section deals with cash flows from capital and related financmg acllvmes This section deals with the cash used for the acqu1sillon and construction ofcapital and related ncms The fifth section reconciles the net cash used to the operatmg mcome or loss reflected on the Statement of Revenues, Expenses and Changes m Net Assets

Cash Flows for the Year Ended June 30, 2002, Condensed (thousands of dollars)

Cash Provided (Used) By Operatmg Act1v1t1es Non-Capital Fmancmg Ac1Iv1t1es Invcstmg Activities Capital and Related Fmancmg Act1v111es

$ -11.882 11.464 43 -6

Net Change m Cash Cash, Begmmng of Year
Cash, End of Year
Capital Assets

S -381 2,373
s 1,992

The College had no s1gmficant capital asset add1t1ons for fac1hlles m fiscal year 2002 For addlllonal mformatlon concemmg Capital Assets, see Notes I and 5 m the notes to the financial statements

Economic Outlook

The College 1s not aware of any currently known facts, dec1s1ons, or conditions that are expected to have a s1gmficant effect on the financial pos1t1on or results of operations dunng this fiscal year beyond those unknown vanallons havmg a global effect on virtually all types ofbusmcss operations The College's overall financial position 1s strong The College ant1c1patcs the current fiscal year will be much hke last and will mamtam a close watch over resources to mamtam the College's ab1hty to react to unknown mtemal and external issues

Martha T Nesbitt, President Gamesv1lle College
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BASIC FINANCIAL STATEMENTS
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GAINESVILLE COLLEGE STATEMENT OF NET ASSETS
JUNE 30, 2002

EXHIBIT"A"

ASSETS
Current Assets Cash and Cash Equivalents Accounts Receivable, Net Federal Financial Assistance Other Prepaid Items lnventones
Total Current Assets
Noncurrent Assets Cash and Cash Equivalents Caprtal Assets, Net /See Note 5)
Total Noncurrent Assets
Total Assets
LIABILITIES
Current L1ab1lrtJes Payroll Withholdings Accounts Payable Deferred Revenue Funds Held for Others Compensated Absences Other L1ab1lrtJes
Total Curren1 L1ab1hhes
Noncurrent L1ab1l1t1es Compensated Absences
Total L1ab1ht1es
NET ASSETS
Invested in Capital Assets, Net of Related Debt Restncted Unrestncted

$ 1,981 774 53
134,255 04 325,749 21 502 100 49 143,559 78
$ 3,087.439 05

s

10,722 50

18 663,896 12

$ 18 674,618 62

$ 21,762,057 67

s

13,81174

54,488 43

778,589 94

165,328 44

453,802 60

4,349 17

$ 1,470,370 32

142 076 80 $ 1612.44712

s 18,663 896 12
10,722 50 1 474,991 93

Total Net Assets

$ 20 149 610 55

See Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary lnforrnauon
The notes to the financial statements are an integral part of this statement - 11 -

GAINESVILLE COLLEGE STATEMENT OF REVENUES EXPENSES AND CHANGES IN NET ASSETS
YEAR ENDER JUNE 30 2002

EXHIBIT ''B"

OPERATING REVENUES
Student Turt1on and Fees Less Scholarship Allowances
Grants and Contracts Federal Stale Lacer
Sales and Services of Educational Departments Auxiliary Enterpnses
Bookstore Food SeMces Park1ng!Transportat10n Other Organizations Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES
Salanes Faculty Staff
Employee Benefits
Travel Scholarships and Fellowships Ublrttes Supplies and Other Services Oepreoat1on
Total ()perabng Expenses
Operabng Income (Loss)
NONOPERATING REVENUES !EXPENSES}
State Appropnet1ons Grants and Contracts
Federal State
Local Interest and Other Investment Income Other Nonoperatmg Revenues
Net Nonoperatmg Revenues
lncrease/(Deaease) m Net Assets
NelAssels Net Assets - Beginning of Year as Onglnally Reported Cumulative Effect of Changes m Accounting Principle
Net Assets - Begmnmg of Year Restated
Net Assets - End of Year
See Independent Accountants Combined Report on Review of Basic Fmanaal Statements and Supplementary lnformat1on
The notes to the flnancial statements are an integral part of this statement - 12 -

s 4 780 032 15
-474 014 05
2 09146715 109 850 00 199 464 32 463,368 75
1,409 394 05 27,368 03 6,252 75 132 25 52 468 87
$ 8 665 784 27

$ 5 482 690 14 5,56805119 2,972 358 84 12891347 1085,18015 63741326 3,803,057 64 1 182 782 32
s 20 860 447 01
s -12 194 662 74

$ 1125819705

1611203 11926159 101,529 04 43 181 28
1361699
s 1155189798

$

-642 764 76

$ 35 024 622 66 -14,232,247 35
s 20,792,375 31

S 2014961055

GAINESYILLE COLLEGE STATEMENT OF CASH FLOWS YEAR ENPEP JUNE 30 2002
CASH FLOWS FROM OPERATING ACTMTIES Turtton end Fees Grants and Contracts Sales and ServlC8S of Educat1onal Departments Payments to Suppliers Payments to Employees Payments tor Scholarships and FellOW5h1ps Auxiliary Enterpnse Charges Bookstore Food SeMCeS ParkrngfT ransportat1on OtherOrgaruzabons 01her Receipts (Payments)
Net Cash Provided (Used) by Openmng ActJv1lles
CASH FLOWS FROM NONCAPITAL FINANCING ACTMTIES StateAppropnat1ons Agency Funds TransactlOM
Gifts and Grants RecelV8d for Other than Caprtal Purposes
Net Cash Flows Provided (Uaed) by Nonceprtal Fmancmg ActMI.Jes
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTMTIES Proceeds from Sale of Capital Assets Purchases of Caprt.el Assets
Net Cash PrcMded (Used) by Capital end Related F1nancmg Actrvrt.Jes
CASH FLOWS FROM INVESTING ACTMTIES Interest on Investments
Net lncrease/(Decrease) m Cash
Cash and Cash Equrvalents - Beginning of Year
Cash end Cash EQUM1lents - End of Year
RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operabng Income (Loss) AdJustments to Reconole Net Income (Loss) to Ne1 Cash
Provided (Used) by Operating ActMbes Deprec:1abon Change 1n Assets and L.iab1hl1es Accounts Receivables Net lnventones Prepaid Items 01her Assets Accounts Payable Selanes Payable Payroll Withholdings Defarrad Revenue Other LLabil1t1es Compensated Absences
Ne1 Cash Provided (Used) by Operating ActMtJes
See Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary lnformabon
The notes to the f1nanoal statements are en integral pan of this statement
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EXHIBIT"C"

s 4,417,11693
2 328 402 77 463 368 75
-8 416 730 03 -11 084 639 35
-1 085 180 15
1 -409 394 05 27 368 03 6 252 75 132 25 52 468 87
s -1188204513

s 11258,19705
-39 164 09 24546111
s 11464494 07

s

43 586 30

-49 329 20

s

-5 742 90

s

43 181 28

s

-38011268

2 372 609 71

S - - - ' - ...2.......1..0.._, _

s -12 194 662 74
1,182 782 32
-61 003 18 -58 619 84 -31 074 37
98 sos 09
-834 527 89 -30 048 15 13 811 74 99 723 31 -94 155 92
27 224 so
s -11882045 13

GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 2002

EXHIBIT "D"

NOTE 1 SUMMARY OF SIG"t\'IFICANT ACCOUNTING POLICIES
NATURE OF OPERATIONS Gamesv11le College serves the state, and national commumt1es by prov1dmg its students with academic mstruc!Ion that advances fundamental knowledge, and by d1ssemmatmg knowledge to the people of Georgia and throughout the country
REPORTING ENTITY Gamesv11le College 1s one of thirty-four (34) State supported member mstitutions of higher education m Georgia which compnse the Umvers1ty System ofGeorgia, an orgaruza!Ional urut ofthe State of Georgia The accompanymg financial statements reflect the operat10ns of Gamesv11le College as a separate reportmg entity
The Board of Regents has cons!Itutlonal authonty to govern, control and manage the Umvers1ty System of Georgia Tlus authonty mcludes but 1s not hmited to the power to designate management, the ab1hty to s1gruficantly mfluence opera!Ions, the authonty to control mst1tut1ons' budgets, the power to determme allotments of State funds to member mst1tut1ons and the authonty to prescnbe accountmg systems and adm1rustra!Ive pohc1es for member 1nstitutions Gamesv11le College does not have authonty to retam unexpended State appropnat10ns (surplus) for any given fiscal year Accordmgly, Gamesv11le College 1s considered an organ1zat1onal unit of the Board ofRegents ofthc Uruvers1ty System of Georgia reportmg entity for financial reportmg purposes because of the Slh'llificance of1ts legal, operational, and financial rela!Ionslups with the Board ofRegents as defined m Section 2100 of the Governmental Accounting Standards Board (GASB) Cod1ficat1on of Governmental Accountmg and Fmanc1al Reportmg Standards
FINANCIAL STATEMENT PRESENTATION In June 1999, the GASB issued Statement No 34, Basic Financial Statements and Management Discusswn and Ana(vsisfor State and Local Governments Th.is was followed m November 1999 by GASB Statement No 35, Basic Financial Statements and Management's Dzscusswn and Analv~is for Public Colleges and Umvers1t1es The State of Georgia 1s reqmred to implement GASB Statement No 34 as of and for the year ended June 30, 2002 As an organ1za!Ional umt of the State of Georgia. the College 1s also reqmred to adopt GASB Statements '.'lo 34 and No 35 as amended by GASB Statements No 37 and No 38 The financial statement presentation required by GASB Statements No 34 and No 35 as amended by GASB Statements No 37 and No 38 provides a comprehensive, entity-wide perspective of the College's assets, hab1ht1es. net assets, revenues, expenses, changes m net assets, cash flows, and replaces the fund group perspective previously reqmred
The College has elected to not restate its 2001 financial statements to conform with the new financial statement presentat10n. therefore comparative financial mformat1on will not be presented for fiscal year 2002 S1gn1ficant accountmg changes made m order to comply with the new requirements mclude ( 1) adopllon ofdeprec1a1Ion on capital assets, and (2) recogn111on ofcompensated absences Generally Accepted Accountmg Pnnc1ples (GAAP) reqmres that the reportmg of summer school
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GAINESVILLE COLLEGE NOTES TO THE FNANCIAL STATEMENTS
JUNE 30, 2002

EXHIBIT "D"

NOTE I SUMMARY OF SIGNIFICAr-..'T ACCOUNTING POLICIES
FINANCIAL STATEMENT PRESENTATION revenues and expenses be between fiscal years rather than m one fiscal year Due to the lack of matenahty, Inst1tut1ons of the University System ofGeorgia will contmue to report summer revenues and expenses m the year m which the predommate activity takes place
At June 30, 2001, encumbrances (contractual obhgallons for goods and services not received at fiscal year end) were recorded as expenditures by the College mstead of reservations of fund balance as required by generally accepted accountmg pnnc1ples For fiscal year 2002, the College changed its method ofrecordmg encumbrances such that encumbrances at June 30. 2002 were not recorded as expenses This change 1s m accordance with generally accepted accountmg pnnc1ples
No ad1ustments however. have been made on the financial statements to restate the fund balance at July 1, 2001 forthe June 30, 2001 encumbrances recorded as expenditures m fiscal year 2001 The net effect of the above accountmg treatment resulted m an understatement of expenses on the accompanymg financial statements for pnor year encumbrances which should have been reflected as expenses in the penod when goods and services were received
BASIS OF ACCOUNTING For financial reportmg purposes, the College 1s considered a special-purpose government engaged only m busmess-type act1v11les Accordingly, the College's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraph Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obhgallon has been mcurred All significant intra-college transactions have been ehminatcd
The College has the option to apply all Financial Accountmg Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB The College has elected to not apply FASB pronouncements issued after the applicable date
RESTATEMENT OF NET ASSETS - BEGINNING OF YEAR As a result of the adoption ofGASB Statement No 34, the College was also required to make certain changes m accounting pnnc1plcs, specifically (I) adoption of depreciation on capital assets, and (2) record mg of compensated absences GASB Statement No 34 requires certam summer semester revenues be recognized between fiscal years rather than the fiscal year in which the semester was predommantly conducted The University System of Georgia has chosen to contmue to record summer revenue m the year m which the semester was predommantly conducted Net assets at July I, 2001 were reduced by $14,232,247 35 for the cumulative effect of these changes

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GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 2002

EXHIBIT "D"

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS Cash and Cash Eqmvalents consist of petty cash. demand deposits and time deposits in authonzed financial inslltullons. and cash management pools that have the general charactensllcs of demand deposit accounts
ACCOUNTS RECEIVABLE Accounts receivable consists oftmt10n and fee charges to students and aux1hary enterpnse services provided to students, faculty and staff, the maJonty of each residing in the State of Georgia Accounts receivable also mclude amounts due from the Federal government, state and local governments, or pnvate sources. m connecllon with reimbursement ofallowable expenditures made pursuant to the College's grant and contracts. Accounts receivable are recorded net of estimated uncollecl!ble amounts.
INVENTORIES Consumable supphes are earned at the lower of cost or market on either the first-m, first-out ("FIFO") basis
Resale Inventones are valued at cost usmg the average-cost basis
NON-CURRE:NT CASH Cash that 1s externally restncted and cannot be used to pay current hab1ht1es 1s classified as noncurrent assets m the statements of net assets
CAPITAL ASSETS Capital assets are recorded at cost at the date of acqms111on, or fa1r market value at the date of donation m the case of gifts For eqmpment, the College's cap1tahza11on pohcy includes all items with a umt cost of $5,000 00 or more. and an esllmated useful hfe of greater than one year Renovat10ns to bu1ldmgs. mfrastructure. and land improvements that exceed SI 00.000 00 and s1gmficantly mcrease the value or extend the useful hfe of the structure are cap1tahzed Routme repa1rs and mamtenance are charged to operating expense m the year in which the expense was mcurred Depreciallon 1s computed using the straight-line method over the esllmated useful hves of the assets. generally 40 to 60 years for bmldmgs. 20 to 25 years for infrastructure and land improvements. 10 years for hbrary books, and 3 to 7 years for equipment
To obtam the total picture of plant additions in the Umvers1ty System. 1I 1s necessary to look at the acllv1!Ies of the Georgia State Fmancing and Invesnnent Comm1ss1on (GSFIC) - an organ1zat1on that 1s external to the System GSFIC issues bonds for and on behalfofthe State ofGcorgia, pursuant to powers granted to 1t m the Cons1Itut1on of the State of Georgia and the Act creating the GSFlC The bonds so issued conslltute d1rect and general obhgallons of the State of Georgia. to the payment of which the full faith. credit and taxmg power of the State are pledged

- 17 -

GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 2002

EXHIBIT "D"

NOTE I SUMMARY OF SIGNIFICANT ACCOIDJTING POLICIES
CAPITAL ASSETS Effective July I, 200 I, the GSFIC retams construcllon m progress on their books throughout the construction penod and transfers the entire proJect to Gamesv1lle College when complete
DEFERRED REVENUES Deferred revenues include amounts received for tmt10n and fees and certam aux1hary act1v111es pnor to the end of the fiscal year but related to the subsequent accountmg penod Deferred revenues also mclude amounts received from grant and contract sponsors that have not yet been earned
COMPENSATED ABSENCES Employee vacal!on pay 1s accrued at year-end for financial statement purposes The hab1hty and expense mcurred are recorded at year-end as accrued vacation payable m the Statement of Net Assets, and as a component of compensation and benefit expense m the Statements of Revenues, Expenses, and Changes m Net Assets Gamesv1lle College had accrued hab1hty for compensated absences m the amount of $568,654 90 as of July 1, 2001 For Fiscal Year 2002, $481,027 10 was earned m compensated absences and employees were paid $453,802 60, for a net mcrcase of $27,224 50
NON-CURRENT LIABILITIES Non-current hab1ht1es include (I) hab1hlles that will not be paid withm the next fiscal year, (2) capital lease obhgat1ons with contractual matuntles greater than one year, and (3) other hab1h1Ies that, although payable withm one year, are to be paid from funds that arc classified as non-current assets
NET ASSETS The College's net assets are classified as follows
Invested zn capual assets, net of related debt This represents the College's total mvestment m capital assets, net of outstandmg debt obligations related to those capital assets To the extent debt has been mcurred but not yet expended for capital assets, such amounts arc not mcluded as a component ofmvested m capital assets, net of related debt (The term "debt obhgat1ons" as used m this defimt10n docs not mclude debt of the GSFIC as discussed above)
Restricted net assets - nonexpendable Nonexpendable restncted net assets consist of endo\\ment and s1m1lar type funds m which donors or other outside sources have stipulated, as a cond111on ofthe gift mstrument, that the pnnc1pal 1s to be mamtamed mv1olate and m perpetuity, and mvested for the purpose of producmg present and future mcome, which may either be expended or added to pnnc1pal The College may accumulate as much of the annual net mcome of an mstltutlonal fund as 1s prudent under the standard estabhshed by Code Section 44- 15-7 of Annotated Code of Georgia

- 18 -

GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 2002

E\:HIBIT "D''

NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NET ASSETS Unrestncted net assets Unrestncted net assets represent resources denved from student tuition and fees, state appropnat1ons, and sales and services of educational departments and aux1hary enterpnses These resources are used for transact10ns relating to the educational and general operat10ns of the College, and may be used at the discretion ofthe governing board to meet current expenses for those purposes, except for unexpended state appropnatlons (surplus) of $4.448 83 Unexpended state appropnat1ons must be refunded to the Board ofRegents ofthe Uruvers1ty System of Georgia - Adm1rustrat1ve Central Office for remittance to the Office of Treasury and Fiscal Services These resources also include aux1hary enterpnses. which are substantially self-supporting act1v1t1es that provide services for students. faculty and staff
When an expense 1s incurred that can be paid using either restncted or unrestncted resources, the College's pohcy 1s to first apply the expense towards unrestncted resources, and then towards restncted resources
INCOME TAXES Gainesville College, as a pohucal subcl1v1s1on of the State of Georgia, 1s excluded from Federal income tai..es under Section 115(1) of the Internal Revenue Code, as amended
CLASSIFICATION OF REVENUES The College has classified its revenues as either operating or nonoperating revenues in the Statement of Revenues, Expenses, and Changes in Net Assets according to the following cntena
Operating revenues Operating revenues include act1v1t1es that have the charactenstlcs of exchange transactions. such as (I) student tmtlon and fees, net ofscholarship allowances, (2) sales and services of aux1hary enterpnses, (3) most Federal, state and local grants and contracts and Federal appropnat10ns, and (4) interest on 1nst1tullonal student loans
Nonoperatmg revenues Nonopcrating revenues include act1v11Jes that have the charactenstlcs of non-exchange transactions, such as gifts and contnbut1ons, and other revenue sources that are defined as nonoperating revenues by GASB No 9, Reporting Cash F/01,s of Propnetan and NoneJ.pendable Tn,st Funds and Governmental En/Illes That Use Proprietary Tund Accoummg, and GASB No 34, such as state appropnat1ons and investment income
SCHOLARSHIP ALLO\\'ANCES Student tmuon and fee revenues, and certain other revenues from students, are reported at gross with a contra revenue account of scholarship allowances in the Statement of Revenues, Expenses, and Changes in Net Assets Scholarship allowances are the difference between the stated charge for goods and services provided by the College, and the amount that 1s paid by students and/or third parties making payments on the students' behalf Certain governmental grants, such as Pell grants,

- I9 -

GAl1\'ESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2002

EXHIBIT "D"

NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SCHOLARSHIP ALLO\\'ANCES and other Federal, state or nongovernmental programs. are recorded as either operating or nonoperating revenues in the College's financial statements To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges. the College has recorded contra revenue for scholarship allowances
NOTE 2 CASH AND CASH EOUNALENTS AND OTHER DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State of Georgia (and thus Gainesville College) cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State In heu of a surety bond, the depository may pledge as collateral any one or more of the following secunt1es as enumerated in the Official Code of Georgia Annotated Section 50-17-59
Bonds, bill, certificates of indebtedness, notes, or other direct obligations ofthe Umted States or of the State of Georgia
2 Bonds, bills, certificates of indebtedness, notes, or other obhgat1ons of the counties or mumc1paht1cs of the State of Georgia
3 Bonds ofanypubhc authontycreated by the laws of the State of Georgia, providing that the statute that created the authonty authonzed the use of the bonds for this purpose
4 Industnal revenue bonds and bonds of development authonues created by the laws of the State of Georgia
5 Bonds, bills. certificates of mdebtedness, notes, or other obhgat1ons of a subs1d1ary corporation of the Umted States government, which are fully guaranteed by the Umted States government both as to pnnc1pal and interest, or debt obhgat10ns issued by the Federal Land Bank, the Federal Home Loan Bank, The Federal Intermediate Credit Bank, the Central Bank for Cooperauves, the Fann Credit Banks, the Federal Home Loan Mortgage Assoc1at1on. and the Federal National Mortgage Assoc1auon
6 Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation
As authonzed in the Official Code of Georgia Annotated Sect10n 50-17-53, the State Depository Board has adopted pohc1es which allow agencies of the State of Georg1d (and thus Gainesville College), the opuon of exemptmg demand deposits from the collateral requirements
The Treasurer of the Board of Regents 1s responsible for all detruls relative to fum1slung the required depository protection for all umts of the Umvers1ty System of Georgia
- 20 -

GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2002

EXHIBIT"D"

NOTE 2 CASH AND CASH EOUTVALENTS AND OTHER DEPOSITS

CATEGORIZATION OF DEPOSITS The College's cash deposits are categonzed by nsk as follows

Category I - Amounts covered by depository insurance or collaterahzed with secunlles (at fair value) held by the College or by its agent in the College's name

Category 2 - Amounts collaterahzed with secunlles (at fair value) held by the pledging financial insUtullon's trust department or agent in the College's name

Category 3 - Amounts collateral1zed with secunlles (at fair value) held by the pledging financial insUtut1on, or by its trust department or agent but not in the College's name, and amounts uncollaterahzed

Cash Deposits as of June 30, 2002 are as follows

Cash Deposits

Carrymg
Amount

Bank Balances

S,.L291 067 03 S 2 765 356 60

Risk Categones S 404 622.J.J. S2 360 527 49 S,_ _ _o"',oo""

NOTE 3 ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following at June 30, 2002

Student Tmtlon and Fees Aux1hary Enterpnses and Other Operating ActlVJtles Federal, State, and Pnvate Funds Other
Net Accounts Receivable

$ 216,955 55 26,073 29
204,015 14 12.960 27
s ~6Q QQ~.~~

NOTE 4 INVENTORIES

Inventones consisted of the following at June 30, 2002

Bookstore

$ l 43.559,18

NOTE 5 CAPITAL ASSETS

The balance at July L 2001 was adJusted for accounting changes requ1red in implementing GASB Statements 34 and 35 as disclosed in Note 1 Following are the changes in capital assets for the year ended June 30, 2002

- 21 -

GAI'IESVILLE COLLEGE NOTES TO THE FINANCIAL STA.TEMENTS
JU'IE 30 2002

EXHIBIT "D"

NOTE 5 CAPIT A.L ASSETS

Adjusted Balance Julv l 2001

.A..dd111om

B~uct10n~

8Jlancc June "\fl 2QQ2

Capital Assets f\ot Bcmg Depreciated

Land and Land Improvements

s IQ~ 849 29

s 102 49 29

CJp1tal Assets, Bemg Depreciated Infrastructure
Bu1ldmg and Building lmpro\'emcnts Fac1l1ues and Other Improvements Equipment Library Collccuons

s 1,810,085 Oil
25,117,160 00
1,094,105 00
s 1,857,813 52 I 242172 oo

$ na,B,932 22 s

49,329 20 s
42 J"2 2(1 $

$ I SI0,085 00 25,117 16000 1,094,105 00
2,690 00 1,904,452 71
40 896 10 1,90 a12 7~
43 586 30 $ ~ 1,834,678 42

Less Accumulated Deprcc1at1on

lnfr.iStrUcture

s

Bu1ldmgs and Bu,ldmg Improvements

Fac1ln1es and Other Improvements

Equipment

Library Collcct1ons

s 1,416 071 14
7,040,05191 897,275 54
1,113,009 57
1,641 028 IQ

81,419 77 775,840 79
55,090 87 193,263 89 $ 77,167QQ

s $ 12, I 07,466 2~ f,182 782 J:l s

$
179 34 1341762

1,497 490 91 7,615,892 70
952,366 41 1,306,094 12 1,704,787 4<

s n 1361699

':.76 631 59

Total Capital Assets, Bemg Depreciated,

Net

s 19,7JI 4~2 26 $ -lJ1J42J12 $

Capital Assets, Net

s 19 827 'HS 55 $-=-1 J3l 4'n J2 s

22 269 l I $ 18,5 ' 04~ ~3
'2.2.62,.ll S.,lb 664.896 i6

NOTE6 DEFERRED REVENUE

Deferred revenue consisted of the followmg at June 30, 2002

Prepaid Tuition and Fees Other Deferred Revenue

$ 742.063 50 36.526 44

Totals

$ 778 589 94

NOTE 7 LONG-TERM LIABILITIES

Long-term hab1hty activity for the year ended June 30, 2002, was as follows

Other L1ab1lit1ec; CompenSJtcd Absences

8J.l.mcc
Jui) I, 2001

Add!ll!;!:D:i:

Reduction<.

B.113ncc J1me Jfl 20QJ

Current PQ!:llQ

s ~~s ~"~ 22 $ ~I 02Z IQ s ~~~ SIP ,111 $ ~2" sz~ ~o s ~5\gi ~Q

- 22 -

GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2002

EXHIBIT "D"

NOTE 8 RETIREME:t,.'T PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description Gainesville College part1c1pates in the Teachers Retirement System ofGeorgia (TRS), a cost-shanng multiple-employer defined benefit pension plan established by the General Assembly ofGeorgia for the purpose of prov1dmg retirement allowances and other benefits for teachers of the State of Georgia TRS provides service retirement, d1sab1hty retirement, and survivor's benefits for its members m accordance with State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts

Funding Policy

Employees of Gamesv1lle College who are covered by TRS are reqmred by State statute to contnbute

5% ofthe1r gross earmngs to TRS Gainesville College makes monthly employer contnbut10ns to

TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised

by their mdependent actuary For fiscal year 2002, the employer contnbut1on rate was 9 24% for

covered employees Employer contnbut1ons for the current fiscal year and the preceding two fiscal

years are as follows

Percentage

Reqmred

Fiscal Year

Contnbuted

Contnbutlon

2002 2001 2000

100% 100% 100%

S 722,567 71 S 893,967 57 S 852.405 94

REGENTS RETIREMENT PLAN

Plan Description The Regents Retirement Plan, a smgle-employer defined contnbutlon plan, 1s an optional retirement plan cstabhshed and adm1mstered by the Board of Regents of the Umvers1ty System of Georgia, under which 1t may purchase annuity contracts for the purpose of prov1dmg retirement and death benefits for ehg1ble faculty and pnnc1pal adm1mstrators Benefits depend solely on amounts contnbuted to the plan plus mvestment earnings Benefits are payable to part1c1pating employees or their benefic1anes m accordance with the terms of the annuity contracts

Funding Policy Member contnbuuon requirements are estabhshed by the Board of Trustees of the Teachers Retirement System Employer contnbut1ons are estabhshed by statute and may be amended only by the General Assembly of the State of Georgia The employer contnbutes 9 62% of the part1c1pating employee's earnable compensat10n Employees contnbute 5% of their earnablc compensation Amounts attnbutable to all plan contnbut1ons are fully vested and non-forfe1table at all llmes

- 23 -

GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2002

EXHIBIT "D"

NOTE 8 RETIRE\1ENT PLANS
REGENTS RETIREMENT PLAN
Funding Policy Gainesville College and the covered employees made the reqmred contnbut1ons of $206,424 96 (9.62%) and $107,290 19 (5%), respectively
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Gainesville College paruc1pates in the Georgia Defined Contnbuuon Plan (GDCP) which 1s a smgleemployer defined contnbut10n plan established by the General Assembly ofGeorgia for the purpose
ofproviding retirernent coverage for State employees who are temporary, seasonal, and part-time and
are not members of a public retirement or pension system GDCP 1s admm1stered by the Board of Trustees of the Employees' Retirement System of Georgia.
Benefits A member may retire and elect to receive penod1c payments after attamment ofage 65 The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees If a member has less than$ 3,500 00 credited to his/her account. the Board ofTrustees has the option ofrequmng a lump sum d1stnbut1on to the member in lieu of making penod1c payments Upon the death of a member, a lump sum d1stnbu11on equaling the amount credited to his/her account will be paid to the member's designated beneficiary Benefit prov1s1ons are established by State statute
Contributions and Vestlng Member contnbuuons are seven and one-halfpercent (7 5%) of gross salary There are no employer contnbuuons Contnbut10n rates are established by State statute Earnings are credited to each member's account in a manner established by the Board of Trustees Upon terrninauon of employment. the amount of the member's account 1s refundable upon request by the member
Total contnbutions made by employees dunng fiscal year 2002 amounted to $38,752 58 which represents 7 5% of covered payroll These contnbutions met the reqmrements of the plan
NOTE 9 RISK MANAGEMENT
Gainesville College 1s a part1c1pant in the Board of Regents of the Umversny System of Georgrn Health Benefits Plan. which 1s a self-insurance program of health and dental benefits for employees and retirees of the Umvers1ty System ofGeorgrn Gamesv1lle College and part1c1patmg employees and rellrees pay premmms to the Health Benefits Plan for this health msurance coverage The Health Benefits Plan 1s included in the financial statements of the Board of Regents of the Umvers1ty System of Georgia - Adm1mstrative Central Office All umts of the Umverslly System of Georgia share the nsk of loss for claims of the Health Benefits Plan The Health Benefits Plan 1s considered
- 24 -

GAINESVILLE COLLEGE NOTES TO THE FINANCIAL STATE\1ENTS
JUNE 30, 2002

EXHIBIT "D"

NOTE 9 RISK MANAGEMENT
a self-sustaining nsk fund that provides health coverage for its members up to a maximum hfeume benefit of$2,000,000 00 per person and dental coverage up to an annual maximum of$1,000 00 per person The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to process clrums in accordance with the Health Benefits Plan as established by the Board of Regents
The Department of Adm1mstra1Jve Services (DOAS) has the responsib1hty for the State of Georgia ofmaking and carry:mg out dec1s1ons that will min1m1ze the adverse effects ofacc1dental losses that involve State government assets The State believes 1t 1s more economical to manage 1ls nsks internally and set aside assets for claim settlement Accordingly, DOAS processes claims for nsk of loss to which the State 1s exposed, including general hab1hty, property and casualty, workers' compensat10n. unemployment compensat10n, and law enforcement officers' indemmficallon L1m1ted amounts of commerc1al insurance are purchased applicable to property, employee and automobile hab1hty. fidelity and certain other nsks Gainesville College. as an organ1zat1onal umt of the Board of Regents of the Umvers1ty System of Georgia, 1s part of the State of Georgia reporting entity, and as such, 1s covered by the State of Georgia nsk management program administered by DOAS Premiums for the nsk management program are charged to the vanous state organ1za11ons by DOAS to provide claims servicing and claims payment
A self-insured program of professional hab1hty for Its employees was established by the Board of Regents of the Umvers1ty System of Georgia under powers authonzed by the Official Code of Georgia Annotated Section 45-9-1 The program insures the employees to the extent that the} .ire not immune from hab1hty agrunst personal hab1hty for damages ansing out of the perfonnance of their duties or in any way connected therewith The program 1s adm1mstered by DOAS as a SelfInsurance Fund
NOTE IO CONTINGENCIES
Amounts received or receivable from grantor agencies are subJect to audit and adJustment by h'l"antor agencies This could result in refunds to the grantor agency for any expendllures which are disallowed under grant tenns The amount of expenditures which may be disallowed by the grantor cannot be determined at this lime although Gainesville College expects such amounts. 1f any, to be immaterial to its overall financial pos11lon
L1t1ga11on, claims and assessments filed against Gainesville College (an organ1zat10nal umt of the Board ofRegents ofthe Umvers1ty System of Georgia), 1fany, are generally considered to be act10ns against the State of Georgia Accordingly, s1gmficant hugauon, 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, 2002

- 25 -

GAINESVILLE COLLEGE NOTES TO THE FINANCIAL ST A.TEMENTS
JUNE 30, 2002

EXHIBIT "D"

NOTE 11 POST-EMPLOYMEl\T BENEFITS OTHER THAJ\. PE1"SION BE"IEFITS
Pursuant to the general powers conferred by the Official Code of Georgia Annotated Secllon 20-331, the Board of Regents of the Umvers1ty System of Georgia has estabhshed group health and hfe insurance programs for regular employees of the Umvers1ty System of Georgia It 1s the pohcy of the Board of Regents to perrmt employees ofthe Umverstty System of Georgia ehg1ble for retirement or that become permanently and totally disabled to continue as members of the group health and hfe msurance programs Employees who are ehgible for rel!rement or d1sab1hty under the cntena established by the Teachers Rellrement System of Georgia and who have at least ten years ofservice with the Umvers1ty System of Georgia arc ehg1blc for these post-employment health and hfc msurance benefits Orgaruzal!onal umts of the Board of Regents of the Umvers1ty System of Georgia pay the employer portion for group msurance for affected md1v1duals
As of June 30, 2002, there were 81 employees who had rel!red or were disabled that were receiving these post-employment health and hfe msurance benefits For the year ended June 30. 2002, Gamesv1lle College recogmzed as mcurred $244,945 50 of expenditures, which was net of $92,109 72 of part1c1pant contnbul!ons

26

GAINESVILLE COLLEGE NOTES TO THE FIKANCIAL STATEMENTS
JUNE 30, 2002

EXHlBIT"D"

NOTE 12 NATURAL CLASSIFICATIONS WITH FUNCTIO~AL CLASSlFICATIOJ\:S

The College's operating expenses by functional classdicauon are shown below

~tatement of Opcr.ltmg l::xpcnses - Natural \'S Functional Class1ficat1ons For the F-1scal , car Ended June 30 2002

Natura) tbss1ficat11ln

losqyctmn

Functmnal Class1ficatmn

Public
Service

Acadcm1c
Support

Student
Sen ices

lnslltut1onal ~upnort

Salancs Faculty Slaff
Employee Bcncfils Travel Scholarships and
l-cllowsh1ps Ut1ht1cs Supplies and Other
'iCTVICCS
Deprcciauon
Total Operatmg Expenses

s !i,436,700 25

s s 3861389

s 30000

7,076 00

s 1,082,526 25

109,503 80

1,293 918 55

I 047 6"4 80

1,328,821 77

1,494,359 15

17,843 QI

125,035 20

2l.5,784 2~

0% 941 09

74,990 27

1,565 82

8 930 JQ

16.538 92

25 452 73

101,873 87

22,796 27

212 00 22,267 91

SQ,728 80 16,%5 7J

663,485 14

8 328 35

648,037 70

342 328 14

391,113 19

s 8HSJ 934 91 s !17 241 88 s 211] JJJ.JQ s ~f!.Q.i S ....2.,5,!ib 700 21

Natura:! Class1 GcaUoo
Salanes Facult) Staff
1:.mployec Benefits Travel St..holmh1ps and
l-c:llmi:sh1ps Ulihllcs Supphc:s and Other
~,ces I)c,prec 1at1on
Total Opc:r.nmg Cxpmses

Plant Opcrat1<.ms and
Mamtmance

[!i!IJ~:11!.!IJill Cli~~IUCilllQD

Scholarships and Fellowshms

Auxiliary
t;ntemnses

Unallocated Dc:m::c:c1at1on

Tot:11 Opc..-r.1tmg [xpensq,

s 640,603 84

s

178,800 81

958 28

s 995,239 35
471.224 7.3

64,982 18 23 593 50
417 26
2,284 75

$ 5 482,6()() 14 5,568,051 I 9 2,972,358 R4 128,913 47
1,085,180 15 617,41126

661,21003
s I 2'ii8 Z'il, fl~

s --225.Z.l!Ul

1,081,055 09
s 11zl~Q~z~

$ 11ai1a1 J~
i..Jtl81 Z8l 32

3,803 057 64 1,J82,7B2.J2
s22~::=z21

- 27 -

SUPPLEMENTARY INFORMATION - 29 -

GAINESVILLE COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO
8UDGET - CNON-GAAP BASIS! RESIDENT INSTRUCTION
YEAR ENDED JUNE 30 2002

SCHEDULE "1"

REVENUES State Appropnat1ons Olher Revenues Retained
EXPENDITURES
Personal Services
Educahon, General and Departmental Semces
Sponsored Operations Operabng Expenses
Education, General and Departmental Setvrces Sponsored Operation!. Capital Outlay Specal Funding lmtlatlve
Excess of Revenues over Expenditures

BUDGET

ACTUAL (1)

VARIANCEFAVORABLE {UNFAVORABLE)

$

11,076,584 00 $

9 940,059 00

11,076,584 00 S 7 719 517 56

ODO -2 220 541 44

$

21 016,643 00 $

18 100 101 SG s ___-2~._22_0_5-1~1_44_

s

13,384,711 00 S

483 239 00

2,753,523 00 4,076 051 00
259,250 00 59 869 00

13 300 627 33 S 482,107 35
2,821,087 81 1 873,458 06
256 885 88 59 869 00

84 08367 1,13165
-67 584 81 2 202,592 94
2 364 12 0 00

s 21,016,643 00 $

18 794 035 43 $ ---'2",2~2~2~,6"'0'-7'-57~

$

2 066 13 s _ _ __.2.,oss=.13.,

(1) Actual amounts were prepared on a presalbed basis of accounbng that demonstrates compliance with budgetary statutes emd regulations of the State of Georgia wtud, as a comprehens,ve basas of accounting other than generalty accepted accounting pnnoples

See accompanying notes and Independent Accountant's Combined Report on Review of Bas1c Financial Statements and Supplementary lnformaoon
- 31 -

GAINESVILLE COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO
BUDGET CNON-GAAP BASIS\ LOTTERY FOR EDUCATION YEAR ENDED JUNE 30. 2002

SCHEDULE "2"

REVENUES State Appropnat1ons

BUDGET

ACTUAL (1)

VARIANCE FAVORABLE (UNFAVORABLE)

$

1S4 268 00 $

1S4,2SB oo $ _ _ _ _ _o"-'-oo~

EXPENDITURES

Equipment, Technology and Construction

Trust Fund

$

119,75200 $

119,75200 $

000

Special Funding lnrt1at1ves

64 516 00

64 516 00

0 00

$

18426800 $ 1S4.268 oo s_____o"-'-oo~

Excess of Revenues over Expendrtures

$

0 00 S ~----0.::00.;;.

(1} Actual amounts were prepared on a prescnbed basis of accounting that demonstrates compliance wllh budgetary statutes and regulabons of the State of Georgia. which 1s a comprehensive basis of accounting other than generally accepted accounting principles

See accompanying notes and Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary lnfoITnat,on
- 32 -

GAINESVILLE COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 2002

SCHEDULE "3"

Totals per Annual Supplement
Prepaid Salanes June 30. 2002 June 30. 2001
Accruals June 30, 2001
AdJustments Shared Services on Jointly Staffed Personnel UnNers1ty of Georgia Saindon. Jackie
Compensated Absences June 30, 2002 June 30, 2001

SALARIES $ 11.085.787 35 S

TRAVEL 128,913 47

-433.072 09 400,376 89

-30.048 15

2.407 50 553,534 05 -528,244 22
$ 111050,741 33 $ ___1a,28"==91=3~4=7=

See accompanying notes and Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information
- 33 -