GA A'aOO c RI GLt3i ICia z; _ CI( , ...) '1,;" STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 AUDIT REPORT STATE OF GEORGIA BOARD OFREGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) YEAR ENDED JUNE 30, 1996 BOARD OFREGENTS OFTHE UNNERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) - TABLE OF CONTENTS- SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ONFINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION EXHIBITS FINANCIAL STATEMENTS A COMBINED BALANCE SHEET ALLFUND GROUPS 2 B COMBINED STATEMENT OF CHANGES INFUND BALANCES ALLFUND GROUPS 4 C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, AND OTHER CHANGES 5 D NOTES TO THE FINANCIAL STATEMENTS 6 SUPPLEMENTARY INFORMATION E COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED 24 F COMBINING STATEMENT OF CHANGES INFUND BALANCES CURRENT FUNDS - UNRESTRICTED 25 COMBINING STATEMENTS OF CURRENT FUNDS REVENUES, EXPENDITURES, AND OTHER CHANGES G UNRESTRICTED 26 H RESTRICTED 27 SCHEDULES SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 1 "A" RESIDENT INSTRUCTION 28 2 "B" REGENTS CENTRAL OFFICE AND OTHER ORGANIZED ACTIVITIES 30 3 "D" LOTTERY FOREDUCATION 31 SCHEDULES OF APPROVED BUDGET 4 "A" RESIDENT INSTRUCTION 32 5 "B" REGENTS CENTRAL OFFICE AND OTHER ORGANIZED ACTIVITIES 34 6 "D" LOTTERY FOREDUCATION 35 SCHEDULES OF BUDGET TRANSFERS TO OTHER UNITS 7 "A" RESIDENT INSTRUCTION 36 8 "B" REGENTS CENTRAL OFFICE AND OTHER ORGANIZED ACTIVITIES 40 9 "D" LOTTERY FOREDUCATION 42 BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) - TABLE OF CONTENTS - SECTION I FINANCIAL SUPPLEMENTARY INFORMATION SCHEDULES 10 SCHEDULE OF OPERATIONS ENDOWMENT AND SIMILAR FUNDS 44 11 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS AGENCY FUNDS 45 12 CASH AND CASH EQUIVALENTS 47 13 INVESTMENTS 48 14 ACCOUNTS RECEIVABLE 50 15 CHANGES IN INVESTMENT IN PLANT 51 16 SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS 52 17 SCHEDULE OF REVENUES CURRENT FUNDS 54 SCHEDULES OF ALLOTMENTS TO UNITS OF THE UNIVERSITY SYSTEM OF GEORGIA 18 "A" RESIDENT INSTRUCTION 56 19 "B" OTHER ORGANIZED ACTIVITIES 59 20 "D" LOTTERY FOR EDUCATION 60 SCHEDULES OF EXPENDITURES BY OBJECT 21 CURRENT FUNDS 62 22 PLANT FUNDS 66 23 SCHEDULE OF GOVERNOR'S EMERGENCY FUND 67 24 SCHEDULE OF REGENTS OPPORTUNITY GRANTS 68 25 SCHEDULE OF REGENTS SCHOLARSHIPS 69 26 ANALYSIS OF PRIOR YEAR'S SURPLUS FUNDS COLLECTED FROM INSTITUTIONS AND REDISTRIBUTED TO INSTITUTIONS WITH DEFICITS 70 SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta,Georgia 30334-8400 December 20, 1996 Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members of the Board of Regents ofthe University System of Georgia and Honorable Stephen R. Portch, Chancellor INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Ladies and Gentlemen: We have audited the accompanying financial statements (Exhibits A through D) of the Administrative Central Office (Oversight Unit) of the Board of Regents of the University System of Georgia as of and for the year ended June 30, 1996. These financial statements are the responsibility of the Administrative Central Office's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The financial statements referred to above include only the financial activities of the oversight unit of the Board ofRegents ofthe University System of Georgia. Financial activities of other organizational units (the various State colleges and universities) are not included. As described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the Administrative Central Office to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation offund balance. The effects on the financial statements of this departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material. 96ARL-62X As disclosed inNote 1 to the financial statements, the Administrative Central Office did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles. Ifcompensated absences werereported, liabilities would be increased and fund balance would be decreased by $791,189.27 as ofJune 30, 1996, and the net change in fund balance for the year ended June 30, 1996,would be decreased by $190,702.60. In our opinion, except for the effects on the financial statements of the matters discussed in the fourth and fifth paragraphs, the financial statements referred to above present fairly, in all material respects, the financial position of the Administrative Central Office (Oversight Unit) of the Board of Regents of the University System of Georgia as of June 30, 1996, and the changes in fund balances and the current operating funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibits E through H and Schedules 1 through 26) is presented for purposes of additional analysis and is not a required part of the financial statements of the Administrative Central Office (Oversight Unit) of the Board of Regents of the University System of Georgia. Such information hasbeen subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, except for the effects of the matters discussed in the fourth and fifth paragraphs, such information isfairly presented in all material respects in relation to the financial statements taken as a whole. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:gp 96ARL-62X FINANCIAL STATEMENTS - 1- BOARDOF REGENTS OF THE UNIVERSrrx SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNJD COMBINED BALANCE SHEET ALL FUNDGROUpS JUNE 30,1996 ASSETS Cashand Cash Equivalents Investments AccountsReceivable Prepaid Items Investment in Plant TotalAssets LIABILITIES AND FUND BALANCES Liabilities Accounts Payable Allotments Dueto OtherUnits Benefits Payable Deposits Heldin Custody for Others Capital Lease Obligations Total Liabilities FundBalances Endowment Quasi-Endowment - Restricted Net Investment in Plant Restricted Unrestricted TotalFund Balances Total Liabilities and FundBalances CURRENT FUNDS UNRESTRICTED RESTRICTED ENDOWMENT AND SIMILAR FUNDS $ 20,184,263.78 $ 25,105,n4.22 34,518,044.93 349.00 1,541,n2.49 $ 5,113,389.11 $ 79,808,431.93 $ =========== 1,541,n2.49 $ 5,113,389.11 $ 813,835.76 34,164,000.00 19,600,000,00 $ 54,5n,835,76 $ $ 25,230,596,17 $ 25,230,596,17 $ $ 1,541 , n 2 , 4 9 1,541,n2,49 $ 3,612,043.20 1,501,345.91 5,113,389,11 $ 79,808,431,93 $ 1,541,n2,49 $ =====5=,1=1=3=,3=8=9=,1=1= The notesto the financial statements are an integral partof this statement. 2 PLANT FUNDS INVESTMENT UNEXPENDED IN PLANT AGENCY FUNDS TOTAL (Memorandum Only) $ 11,482,589.30 9,500,000.00 ------$ $ 98,034,090.85 156,802.62 $ 3,869,681.79 38,478,817.30 28,975,456.01 44,018,044.93 349.00 98,034,090.85 $ 20,982,589.30 $ 98,034,090.85 $ 4,026,484.41 $ 209,506,758.09 $ 15,302,n4.31 2,6n,348.2O $ $ 17,980,122.51 $ $ 76,738.65 76,738.65 $ $ 97,957,352.20 $ 3,002,466.79 $ 3,002,466.79 $ 97,957,352.20 $ 4,026,484.41 4,026,484.41 $ 16,116,610.07 36,841,348.20 19,600,000.00 4,026,484.41 76,738.65 76,661,181.33 $ 3,612,043.20 1,501,345.91 97,957,352.20 1,541,n2.49 28,233,062.96 $ 132,845,576.76 $ 20,982,589.30 $ 98,034,090.85 $ 4,026,484.41 $ 209,506,758.09 3 BOARD OF REGENTS OF THE UNIVERSITY SYSTEMOF GEORGIA ADMINISTRATIVE CENTRAL OFFICE(OVERSIGHT UNID STATEMENTOF CURRENTFUNDS REVENUES, EXPENDITURES, AND OTHER CHANGES YEAR ENDED JUNE 30,1996 EXHIBITC REVENUES StateAppropriations Federal Grantsand Contracts StateGrantsand Contracts Private Grantsand Contracts Endowment Income Other Sources Total Revenues EXPENDITURES AND MANDATORY TRANSFERS Educational and General Instruction Public Service Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers for: Investment Income for Endowment Principal StateAppropriations for Restricted Quasi-Endowment Fund Total Expenditures and Mandatory Transfers OTHERTRANSFERSAND ADDITIONS/(DEDUCTIONS) Excessof Restricted Receipts overTransfers to Revenues Transferof Endowment Principal for Object of Trust Administrative Fees Prior Period Adjustments (Net) Realized Loss on Investments Remittance of Uncommitted Regents Scholarships from Units of the University System of Georgia Remittance of Surplus from Units of the University System of Georgia YearEnded June 30,1995 Unrestricted Fund Balance (Surplus) Returned to Officeof Treasury and FiscalServices YearEnded June 30,1995 Total OtherTransfersand Additions/(Deductions) UNRESTRICTED RESTRICTED TOTAL (Memorandum Only) $ 43,215,911.00 $ 144,558,624.91 $ 187,n4,535,91 $ $ 150,840.06 20,000.00 1,814.47 96,000,00 268,654.53 $ 43,215,911.00 150,840.06 20,000.00 1,814.47 96,000.00 144,558,624,91 188,043,190.44 $ 140,041.19 16,202,504.50 157,152,954.98 $ 257,795.30 1,875,990.62 1,500,000.00 $ 1n,129,286.59 $ $ $ 29,792.93 5,584.00 1,718,366.86 -1,767,278.32 $ -13,534.53 $ $ 39,654.53 229,000.00 140,041.19 16,202,504,50 157,192,609.51 257,795.30 2,104,990,62 18,583.83 18,583.83 1,500,000.00 287,238.36 $ 1n,416,524.95 160,182.09 $ 338,325.92 -27,785.15 -8.09 160,182.09 338,325.92 -27,785.15 29,792.93 -8.09 5,584.00 1,718,366.86 470,714.n $ -1,767,278.32 457,180.24 Net Increase/(Decrease) in Fund Balances s $ 10,631,714.79 452,130.94 $ 11,083,845.73 The notesto the financial statements are an integral partof this statement. - 5- BOARD OF REGENTS OF THEUNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THEFINANCIAL STATEMENTS JUNE 30. 1996 EXHIBIT"D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY TheBoard ofRegents ofthe University System of Georgia, an organizational unit of the State of Georgia, was created by the "Reorganization Act of 1931". As ofJune 30, 1996, the Board ofRegents ofthe University System of Georgia was composed of 34 institutions (4 research university level, 2 regional university level, 13 State university/colleges and 15 associate degree colleges), Skidaway Institute of Oceanography and an administrative central office, which is the oversight unit, responsible for implementation ofBoard policies and administrative support. The Board of Regents, which is composed of sixteen members appointed by the Governor and confirmed by the Senate, has constitutional authority to govern, control, and manage the University System, as reaffirmed in the approval of the revised State Constitution in 1982. These powers include the authority for program approval or discontinuance, internal reallocation of the budget, facilities construction, and decisions concerning adding new institutions, upgrading or downgrading the level of an institution, or closure or merger ofinstitutions. The Chancellor is appointed by the Board ofRegents as chief executive officerand servesat the pleasure ofthe Board. TheBoardofRegents ofthe University System of Georgiadoes not have authority to determine the amount of funding it will receive from the State of Georgiafor any givenfiscal year. Such authority is vested in the General Assembly of Georgia. TheBoardof Regents also does not have authority to retain unexpended State appropriations (surplus) for anygiven fiscal year. Accordingly, the Board ofRegents of the University System of Georgia is included within the State of Georgia reporting entityfor financial reporting purposes because of the significance of its legal, operational and financial relationships with the State of Georgia. These reporting entityrelationships are defined in Section 2100 ofthe Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. The Administrative Central Office of the Board of Regents of the University System of Georgia is the "Oversight Unit" ofthe Boardof Regents andperforms administrative functions and providesguidance to the thirty-four (34) State colleges and universities and Skidaway Institute of Oceanography which are organizational units of the Board ofRegents of the University System of Georgia. The accompanying financial statements represent onlythe financial position and results ofoperations of the Administrative Central Office of the Board ofRegents of the University System of Georgia. The financial position and results of operations of otherorganizational units ofthe Board ofRegents (various State colleges and universities) are not included in these financial statements. FUND ACCOUNTING In orderto ensure observance of limitations andrestrictions placed on the use of the resources available to the Board of Regents, the accounts of the Administrative Central Office are maintained in accordance with the principles of fund accounting. This is the procedureby 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 eachfund; however, inthe 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. - 6- BOARD OF REGENTS OF THEUNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THE FINANCIAL STATEMENTS JUNE 30.1996 EXHIBIT"D" NOTE 1: SlTh1MARY OF SIGNIFICANT ACCOUNTING POLICIES FUND ACCOUNTING Within eachfund group, the Administrative Central Office's fund balance allocations and designations represent those portions of the fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies. Fund groups and funds presented in the accompanying financial statements are as follows: CURRENT FUNDS UNRESTRICTED - The fund used to account forthoseeconomic resources over whichthe Administrative Central Office retains full control to use for purposesof performing its primary functions. 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. ENDOWMENT AND SIMILAR FUNDS The fund usedto account for endowment funds andquasi-endowment funds. Endowment funds are subject to the restrictions ofgift instruments requiring that the principal be invested in perpetuity and income only be utilized. While quasi-endowment funds havebeen established by the Administrative Central Office for the same purposes as endowment funds, any portion of quasi-endowment funds may be expended. Restricted quasi-endowment funds may be expended only for the purposes established by the source of such funds. PLANT FUNDS UNEXPENDED - The fund used to account for financial resources utilized to acquire or to construct physical propertiesfor institutional purposes. INVESTMENT IN PLANT - The fund which shows the total amounts representing the book value of all physical properties owned by the Administrative Central Office. Net Investment in Plant is an equity account showing the totalbookvalue of physical properties belonging to the Administrative Central Office less the amount of any indebtedness to others.. AGENCY FUNDS The fund used to account for resources held by the Administrative Central Office as custodian or fiscal agent for individuals and organizations. - 7- BOARD OF REGENTS OFTHE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 EXHffiITID" NOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES 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 sameas the accrual basis of accounting applicable to colleges and universities prescribed inthe American Institute of Certified Public Accountants' audit guide reporting model. Themodified accrual basis of accounting is defined as that method ofaccounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures of the fiscal period. Contractual obligations for goods and services which havenot 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 forgoodsand services. Therecognition 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 generally accepted accounting principles, which provide for the recording ofencumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles. Compensated absences represent obligations of the Administrative Central Office relating to employees' rights to receive compensation for future absences based upon services already rendered. Thisobligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability of$791,189.27 and the related current year expenditure of$190,702.60 have not been reported in the currentfunds as required by generally accepted accounting principles. 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 of the State ofGeorgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation of the financial statements. To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment inPlant reflect the accumulated expenditures made for plant facilities through Current Funds and PlantFunds and also include expenditures made for plant facilities expended bythe Georgia State Financing and Investment Commission on behalfof the Administrative Central Office. 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. It isthe policy of the Administrative Central Office to record assets acquired through capital leases as additions to Investment in Plant when received at the total acquisition cost including interest. The liability for such leases at fiscal year-end is recorded in Investment in Plantincluding interest. This presentation differs from - 8- BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THEFINANCIAL STATEMENTS JUNE 30. 1996 EXHIBIT"D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING generally accepted accounting principles inthat the assets and the related liability resulting from capital leases should be recorded in Investment in Plant at the inception ofthe agreement at the net present value ofthe future minimum lease payments, not to exceed the fair value of the leased property. The effect of this departureis deemed to be immaterial to the fair presentation ofthe financial statements. The Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to presentthe 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 Appropriation allotments to the Board of Regents of the University System of Georgia are on the basis of budgets submitted bytheBoardof Regents and approved by the Legislature and the Governor. The budgets are compiled inthe same manner as all State departments and expenditures are classified by budget unit object classes as provided in ActNo. 476 of Georgia Laws 1995 (as approved April 21, 1995) and amended by Act No. 513 of Georgia Laws 1996 (as approved February 16, 1996). This budget is considered to be an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1995-1996. This appropriated budget is adopted at the departmental level and coverscurrentfunds and plant funds with the exception of the Employee HealthBenefits Plan. The budget allocation and disbursement ofthe current and plant funds is made to the various organizational units of the University System of Georgia by the Administrative Central Office. A comparison of anticipated funds available and budgeted expenditures by budget unit object classindicates that the following object classes were overspent by the amounts identified below: "B" Regents Central Office and Other Organized Activities Capital Outlay "D" Lottery for Education Georgia Research Alliance Capital Outlay - Albany State College $ 8,779,141.41 $15,834,723.10 $12.434,559.60 CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of demand deposits, certificates of deposit and temporary investments in authorized financial institutions, and cash management poolsthat have the general characteristics of demand deposit accounts. - 9- BOARD OFREGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 EXHIBIT"D" NOTE 1; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS Investments are recorded at cost or in the case of gifts at fair market value on the date of the gift. Funds received bythe Administrative Central Office as endowments or for restricted purposes are invested according to conditions stipulated by the donor, grantor, or in accordance with the Board of Regents authorizing resolutions. Gains andlosses on investment transactions are accounted for in the funds where such assetsare recorded. ACCOUNTS RECEIVABLE Accounts receivable consist of appropriation allotments due from the Office of Treasury and Fiscal Services, and other receivables disclosed from information available. INVENTORIES No inventories of supplies are reported in these financial statements. Expendable supplies are recorded as expenditures at the time of purchase. MEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned "Memorandum Only" because they do not represent consolidated financial information and arepresented only to facilitate financial analysis. The columns do not presentinformation 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 madein the aggregation of this data. NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS STATE OF GEORGIA COLLATERALIZAnON STATUTES AND POLICIES Funds belonging to the Stateof Georgia cannot be placed in a depository paying interest longerthan 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 of thefollowing 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 of the 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 bythe laws ofthe Stateof Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. (4) Industrial revenue bondsand bondsof development authorities created by the laws of the State of Georgia. - 10 - BOARD OF REGENTS OF THEUNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THEFINANCIAL STATEMENTS JUNE30. 1996 EXHIBIT "0" NOTE 2: CUSTODIAL CREDITRISKS OF CASHDEPOSITS AND INVESTMENTS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (5) Bonds, bills, certificates ofindebtedness, notes, or other obligations of a subsidiary corporationof the United States government, whichare fully guaranteed by the United States government both as to principal andinterest, or debt obligations issuedby the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate CreditBank, 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 GeorgiaAnnotated Section 50-17-53, the State DepositoryBoard has adopted policies which allow agencies of the State of Georgia the option of exempting demand deposits from the collateral requirements. Thetreasurer ofthe Boardof Regents is responsible for all details relative to furnishing the required depository protectionfor 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, 1996, are categorized below in orderto provide information about the extentto which such deposits are exposed to custodial credit risk: Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Administrative Central Office or by its agent in the Administrative Central Office's name. Category 2 - Amounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the Administrative Central Office's name. Category3 - Amounts collateralized with securities (at market value) held by the pledging financial institution, or by its trust department or agent but not in the Administrative Central Office's name, and amounts uncollateralized. Cash Deposits InvestmentPortfolio Accounts TotalCash Deposits Carrying Amount Bank Balances Risk Categories 2 3 s $24,877,718.73 $28,969,854.22 s 110,745.37 989263.17 0.00 0.00 0.00 $28,859,108.85 0.00 0.00 s s $25866981 90 $28 969 854 22 11074537 000 $28 859 108 85 - 11 - BOARD OF REGENTS OFTHEUNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> NOTES TO THEFINANCIAL STATEMENTS JUNE 30. 1996 EXHIBITtlD" NOTE 2: CUSTODIAL CREDITRISKS OF CASHDEPOSITS AND INVESTMENTS CATEGORIZATION OF INVESTMENTS Investments are summarized and classified as to custodial credit risk within the three categories described below: Category 1 - Insured or registered, or securities heldby the Administrative Central Office or its agent in the Administrative Central Office's name. Category2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Administrative Central Office's name. . Category3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Administrative Central Office's name, The carrying amounts of investment balances as of June 30, 1996, are categorized below: Type ofInvestment Risk Categories 2 Common Stock Corporate Bonds U. S. Government Securities 0.00 SI7,204,379.45 S 3,768,798.00 46,875300.76 Investments Not Subjectto Categorizations: Mutual Funds S==~0~ 00 S67 84847821 S TotalInvestments Less: Investments Held for Units of the University Systemof Georgia, Cooperative Organizations and Other Carrying Market 3 Amount Value 0.00 SI7,204,379.45 S27,379,885.53 3,768,798.00 3,755,641.50 46,875.300.76 47,082.292.16 000 S67,848,478.21 S78,217,819.19 14,780,083.06 15,642,005.76 S82,628,561.27 S93 859 824 95 41,041.269.86 $41 587.29141 NOTE 3: INVESTMENT IN PLANT The following isa summary ofInvestment in Plantfixed assets as of June 30, 1996: - 12 - BOARD OF REGENTS OF THEUNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> NOTES TO THE FINANCIAL STATEMENTS JUNE 30.1996 EXHIBIT"D" NOTE 3: INVESTMENT IN PLANT Land Equipment Library Books and Collections Construction in Progress s 2,492,250.00 13,169,102.10 31,384.30 82,341.354.45 Total Investment in Plant $98,034,090.85 NOTE 4: OPERATING LEASES The Administrative Central Office has entered into certain computer software license agreements 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 of the original term of the lease, the Administrative Central Office has the option of renewing the lease on a year-to-year basis. Future minimum lease payments for operating leases as ofJune 30, 1996, are listed below. Amounts are included onlyfor multi-year leases and for cancellable leases for which an optionto renewfor the subsequent fiscal year has been exercised. Fiscal Year Ending June 30 1997 1998 Total Future Minimum Lease Payments s 542,667.96 490,029.97 s 1,032,697.93 Expenditures for computer software license agreements under operating leases for the year ended June 30, 1996, totaled $1,052,568.15. NOTE 5: CAPITAL LEASES TheAdministrative Central Office acquires certain equipment through multi-year capital leases with varying . terms and options. These agreements contain fiscal funding clauses in accordance with Official Code of Georgia Annotated Section 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. Ifrenewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes. As of June 30, 1996, future minimum lease payments under capital leases are as follows: - 13 - BOARD OF REGENTS OF THE QNNERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> NOTES TO THE FINANCIAL STATEMENTS JUNE 30.1996 EXHIBIT"D" NOTE 5: CAPITAL LEASES Fiscal Year Ending June 30 1997 1998 s 62,694.20 14.044.45 Total Future Minimum Lease Payments 76.738,65 NOTE 6: RISK MANAGEMENT The Board ofRegents of the University System of Georgia maintains a self-insured program of health and dental benefits for its employees andretirees. This plan is funded jointly through premiums paid by participants covered under the plan andemployer contributions paidby the Board ofRegents and its organizational units. All units of the University System of Georgia share the risk ofloss for claims ofthe Employee HealthBenefits Plan. Participants are covered up to a maximum lifetime benefit of $1,000,000.00 per person and dental coverage up to an annual maximum of$I,OOO,OO per person. TheBoardof Regents has contracted with Blue Cross - Blue Shield to process all claims in accordance with medical coverage guidelines as established by the Board of Regents. All claims submitted by program participants are remitted directly to Blue Cross - Blue Shield from the various organizational units for verification of coverage, processing, and payment through a bank account maintained for this purpose by Blue Cross - Blue Shield. Blue Cross - Blue Shield maintains an eligibility file based on information furnished by the various organizational units of the University System of Georgia. A reconciliation oftotal estimated claims liabilities for the fiscal year endedJune 30, 1996, is shownbelow: Unpaid Claims and Claim Adjustments July 1, 1995 s 25,480,000.00 Incurred Claims and Claim Adjustment Expenses - Provisions for Insured Events ofthe Current Year 115,501,489.72 Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events ofthe Current Year and ofPrior Years 121.381.489.72 Unpaid Claims and Claim Adjustments June 30, 1996 s 19,600.00000 - 14 - BOARD OF REGENTS OF THEUNNERSITYSYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THEFINANCIAL STATEMENTS JUNE 30.1996 EXHIBIT"D" NOTE 6: RISK MANAGEMENT TheDepartment ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The Statebelieves it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and lawenforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certainother risks. The Administrative Central Office, as an organizational unit ofthe Board ofRegents ofthe University System of Georgia, is part of the Stateof 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 ofRegents 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 programis administered by DOAS as a Self-Insurance Fund. NOTE 7: DEFERRED COMPENSATION PLAN The Stateof Georgia offers its employees a deferred compensation planin accordance with Internal Revenue CodeSection 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion of their salary until future years. Participation in the plan is optional. Participants choose the option or options inwhich they wishto participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all propertyand rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or madeavailable to the employee or other beneficiary) solely the property and rights of the State of Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor of the State of Georgiain an amount equal to the fair market value of the deferred account for each participant. Financial information relative to the plan will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996. NOTE 8: RETIREMENTPLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Plan Description TheAdministrative Central Office participates in the Teachers Retirement System of Georgia(TRS), a costsharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of - 15 - BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 EXHIBIT"D" NOTE 8: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Plan Description Georgia. The Administrative Central Office's payroll for the yearendedJune 30, 1996, for employees covered by TRS was $5,320,861.64. The Administrative Central Office's total payroll for all employees was $6,355,919.26. Benefits TRSprovides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years of creditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the ageof 55 years and hasat least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears ofcreditable service up to 40 years. Anymember who has between 25 and 30 years ofcreditable service and is at least 55 years of age shall receive a benefit which is reduced bythe lessor of 1/12 of7% for each month the member is below age 60, or by 7% for each yearor fraction thereofbywhich the member has lessthan 30 years of service. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is basedon member's creditable service (minimum of 10 years of service) and compensation up to the date of death or up to the time of disability. Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting of employer contributions occurs, butthe member's contributions are refunded with interest. Contributions Required and Contributions Made Employees of the Administrative Central Office whoare covered byTRS are required to pay 5% of their gross earnings to TRS. The Administrative Central Office makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1996, the employer contribution ratewas 11.81% for covered employees. In addition, the Administrative Central Office contributed 5.60% to the TRS on behalfof employees electing to participate in the RegentsRetirement Plan. The interest rate assumption (rate ofretum on investments) was 7.50%. Total contributions to the plan made during fiscal year 1996 amounted to $941,149.40, of which $675,105.36 was made by the Administrative Central Office and $266,044.04wasmade by employees. These contributions represented 12.69% (Administrative Central Office) and 5% (employees) of coveredpayroll. - 16 - BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATNE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1996 EXHffiITID" NOTE 8: RETmEMENTPLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Funding Status and Progress Pension Benefit Obligation The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value ofcredited projected benefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of the PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made inaccumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS. Thetotal unfunded pension benefit obligation ofTRS as ofJune 30, 1995, which was the latest information available, was as follows: Total pension benefit obligation $ 17,442,607,000.00 Net assets available for benefits, at cost 15,857,066,000.00 Unfunded pension benefit obligation $ 1.585,541.00000 Themeasurement of the total pension benefit obligation isbased on an actuarial valuation as ofJune 30, 1995. Net assets available for benefits werevalued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. Retirement System Contributions Total contributions from all employers to TRSforthe year endedJune 30, 1996, were $607,274,559.00. The Administrative Central Office's contribution for the year ended June 30, 1996, of $675, 105.36 was actuarially determined and represented .1112% of total contributions madeby all participating employers. Trend Information Historical trend information is presented in the TRS June 30, 1996, financial report. This information gives an indication of the progress made in accumulating sufficient assetsto pay benefits when due. REGENTS RETIREMENT PLAN The State of Georgia provides optional pension benefits for eligible faculty and principal administrators through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. - 17 - BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THE FINANCIAL STATEMENTS JUNE 30.1996 EXHIBIT"D" NOTE 8: RETIREMENTPLANS REGENTSRE~MENTPLAN Statelegislation requires that the employer contribute 4% andthe employee contribute 5% ofthe participating employee's earnable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The Administrative Central Office's payroll for employees covered by the Regents Retirement Planfor the yearended June30, 1996, was $959,143.84. The Administrative Central Office's total payroll for all employees was $6,355,919.26. The Administrative Central Office andthe covered employees made the required contributions of$38,365.88 (4%) and $47,957.00 (5%), respectively. NOTE 9: LEAVE POLICIES Employees earnannual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with maximum accumulation offorty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination ofemployment. See Note 1- Basis of Accounting (Compensated Absences) Employees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment. NOTE 10: CONTINGENCIES Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for anyexpenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Board of Regents expects such amounts, if any, to be immaterial to its overall financial position. Litigation, claims and assessments filed against the Board ofRegents of the University System of Georgia (as an organizational unit of the Board of Regents of the University System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the Stateof Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996. NOTE 11: POSTEMPLOYMENT BENEFITS OTHERTHAN PENSION BENEFITS Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board ofRegents of the University System of Georgia hasestablished grouphealth and life insurance programs for regular employees ofthe University System of Georgia. It is the policy of the Board ofRegents to permit employees ofthe University System of Georgia eligible for retirement or that become permanently and totally - 18 - BOARD OFREGENTS OFTHEUNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THE FINANCIAL STATEMENTS JUNE 30,1996 EXHIBIT"D" NOTE 11: POSTEMPLOThffiNT BENEFITS OTHER THAN PENSION BENEFITS disabled to continue as members ofthe group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System of Georgia and who have at least ten years of service with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals. As of June 30, 1996, there were 43 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1996, the Administrative Central Officerecognized as incurred $79,970.32 ofexpenditures, which was net of $34,029.20 of participant contributions. NOTE 12: STATE MEDICAL EDUCATION BOARD The State Medical Education Board, which is administratively attached to the Administrative Central Office ofthe Board ofRegents ofthe University System of Georgia, provides service cancellable loans/scholarships to eligible students who are residents of the State of Georgia and pursuing a degree in medicine. After becominglicensedphysicians, recipients earn service credits by practicing their profession in a State Medical Education Board approved community. Recipients in violation of the loan/scholarship agreement are immediately liable for all funds advanced plus interest at the minimum rate of 12 percent per annum. At June 30, 1996, the balance ofloanslscholarships outstanding was $4,139,642.84. This balance is not-reflected in these financial statements. The State Medical Education Board also administers the "Physicians for Rural Areas Assistance Program". Under this program, the Board provides service cancellable loans to physicians licensed to practice in the State of Georgia. Service credits are earned by physicians practicing in underserved rural areas of Georgia. Recipients in violation ofthe loan agreement are immediately liable for twice the uncredited loan amount. At June 30, 1996, the balance ofloans outstanding was $326,934.19. This balance is not reflected in these financial statements. NOTE 13: SIGNIFICANT TRANSACTIONS ATLANTA COMMITTEE FOR THE OLYMPIC GAMES (ACOG) CONSTRUCTION FUND The Board of Regents ofthe University System of Georgia entered into an agreement with ACOG to share in the 'cost ofconstruction of six dormitories on the campus of Georgia Institute of Technology. Title to the dormitories will vest in the Board ofRegents with ACOG retaining right of use for athletic housing during the Olympic Games ofl996. Cost ofthe six dormitory projects, estimated at $167,700,000.00, will be shared on a basis of$47,000,000.00 from ACOG and $120,700,000.00 from State funding. State funding was obtained from the sale of general obligation bonds through the Georgia State Financing and Investment Commission (GSFIC). Construction contracting and construction management was coordinated by GSFIC. Contract documents required ACOG to transfer their portion of the construction cost representing $47,000,000.00 to the Board of Regents. GSFIC requests transfer of these funds from the Board of Regents as needed for - 19 - BOARD OFREGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1996 EXHIBIT"D" NOTE 13: SIGNIFICANT TRANSACTIONS ATLANTA COMMI'ITEE FOR THE OLYMPIC GAMES (ACOG) CONSTRUCTION FUND payment of construction costs. At June 30,1996, the Board of Regents had $3,869,681.79 on deposit in Agency Funds to be used for funding of ACOG's share of construction costs associated with this project. GEORGIA CENTER FOR ADVANCED TELECOMMUNICATIONS TECHNOLOGY (GCATT) The Board of Regents of the University System of Georgia is administratively responsible for the GCATT construction project located on the Georgia Institute of Technology campus. The Unexpended Plant Fund expenditures to date totaling $31,179,410.00, including $15,834,723.10 of current year expenditures, are capitalized as Construction in Progress in the Investment in Plant Fund of the Administrative Central Office. The Administrative Central Office will continue to record all expenditures related to this project as Construction in Progress. Upon completion, the Administrative Central Office will transfer the appropriate balance of the Construction in Progress account to Georgia Institute of Technology to be recorded in the Institute's Investment in Plant account. ALBANY STATE UNIVERSITY The Board of Regents of the University System of Georgia - Administrative Central Office is recording the cost ofrepairs and reconstruction due to extensive flood damage to the Albany State University's campus in July 1994. These expenditures are included in the Unexpended Plant Fund and are being capitalized as, Construction in Progress in the Investment in Plant Fund of the Administrative Central Office. The Administrative Central Office will continue to record all expenditures related to this project as Construction in Progress. Upon project completion, the Administrative Central Office will transfer the appropriate balance of the Construction in Progress account to Albany State University to be recorded in the University's Investment in Plant account. The expenditures to date totaling $51,161,944.45, which includes $23,503,312.01 of current year expenditures, are funded by insurance recoveries and State lottery appropriations. NOTE 14: BONDINGINFORMATION The Chancellor and all employees of the Board of Regents of the University System of Georgia are bonded under a PublicEmployeesBlanket Bond written by the EmployersInsurance ofWausau, their Bond No. 145002-110723, on which the premium was paid to October 1, 1996. Under this agreement, the public employee dishonesty coverage insures the Board of Regents of the University System of Georgia to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the Board of Regents to a maximum of $1,000,000.00 against loss sustainedfrom failureofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment. - 20 - BOARD OF REGENTS OF THEUNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THEFINANCIAL STATEMENTS JUNE 30.1996 EXHIBIT"D" NOTE 14: BONDINGINFORMATION All employees of theBoardofRegents of the University System of Georgia are also bondedunder Commercial Crime Policies written by the United States Fire Insurance Company, their PolicyNos. 6260122926 and 6260122944, on which the premiums werepaid to October 1. 1996. Under these additional public employee dishonesty coverages, the policies insure the Board of Regents to a maximum of $9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees and from failure of its employees to perform faithfully. - 21 - \L_ I I , ( .... \.e..., SUPPLEMENTARY INFORMATION - 23- ~ Cash and Cash Equivalents Investments Accounts Receivable Prepaid Items BOARPOF REGENTS OF THE UNIVERSITY sySTEM OF GEORGIA A[)MINISTRATNE CENTRA!.OFFICE (OVERSIGHT UNm COMBINING BALANCE SHEET CURRENTFUNDS. UNRESTRICTEP JUNE 30, 1996 EXHIBIT-e" "A" RESIDENT INSTRUCTION "SREGENTS CENTRAL OFFJCEAND OTHERORGANIZED ACTMTlES "0LOITERYFOR EDUCATION EMPLOYEE HEALTH BENEFITS PLAN TOTAL $ 101,738.51 $ 32,518,044.93 349.00 341,097.71 $ 2,000,000.00 61,712.11 $ 19,679,715.45 $ 25,105,n4.22 20,184,263.78 25,105,n4.22 34,518,044.93 349.00 Total Assets $ 32,620,132,44 $ 2,341,097.71 $ 61,712,11 $ 44,785,489.67 $ 79,808,431.93 LIABILITIES AND FUND BALANCES Liabilities AccountsPayable A1lobnents Due to Other Units BenefitsPayable $ 457,455.14 $ 32,164,000.00 Total liabilities $ 32,621,455.14 $ Fund Balances Unrestricted -1,322.70 312,843.70 $ 2,000,000.00 2,312,843.70 $ 43,536.92 $ $ 19,600,000.00 813,835.76 34,164,000.00 19,600,000.00 43,536,92 $ 19,600,000,00 $ 54,5n,835.76 28,254,01 18,175,19 25,185,489,67 25,230,596,17 Total Liabilitiesand Fund Balances $ 32,620,132,44 $ 2,341,097.71 $ 61,712,11 $ 44,785,489,67 $ 79,808,431.93 See notesto the financialstatements. 24 - BOARDOF REGENTSOF THE UNIVERSITY SYSTEMOF GEORGIA APMINISTRAT!VE CENTRALOFFICE(OVERSIGHT UNID COMBINING STATEMENTOf CHANGESIN FUND BALANCES CURRENT FUNDS - UNRESTRICIED YEAR ENDED JUNE 30, 1996 EXH!BIT"P mD REVENUES OTHER APDmONS "A" RESIDENT INSTRUCTION "S" REGENTSCENTRAL OFFICEAND OTHER ORGANIZED ACTMTlES "0LOITERYFOR EDUCATION EMPLOYEE HEALTH BENEFITS PLAN TOTAL Unrestricted CurrentFund Revenues Adjustments Prior Years' Expenditul'llSlAccounts Payable Remltlanceof UncommittedRegents SCholarshipsfrom Units of the UniversitySystemof Georgia Remitlanceof Surplus from Units ofthe UniversitySystemof Georgia YearEndedJune3O,1995 $ 16,326,241.80 $ 9,954.22 1,448,962,68 25,290,515,32 $ 8.710.053.00 $ 137,447.725.79 $ 187,n4.535.91 4,264.09 17,469,93 20,687.69 52.375.93 5.584,00 5.584.00 256,991.22 12,412.96 1,718,366,86 Total Revenuesand Other Additions $ 17,785,158,70 $ 25,557,354,63 $ 8,739,935.89 $ 137,468,413,48 $ 189,550,862.70 EXPENPITURES AND OTHER DEDUCTIONS Educationaland GeneralExpenditures Adjustments Prior Years'Revenues/Accounts Receivable UnrestrictedFund Balance(Surplus) Returned to Officeof Treasuryand FISCal Services Year Ended June 30,1995 $ 14,814,935,72 $ 22,583,00 1,454,226,95 25,266,525.40 $ 8,709,347,74 $ 126,838.4n.73 $ 175,629,286.59 22,583.00 298,642,58 14,408.79 1,767,278.32 Tolal Expenditures and Other Deductions $ 16,291,745,67 $ 25,565,167,98 $ 8,723,756.53 $ 126,838,4n.73 $ 1n,419,147.91 TRANSFERSBETWEEN FUNDS Mandatory Slate Appropriations for Restricted Quasi-Endowment Fund $ -1,500,000,00 $ -1,500,000,00 Net Increasel(Pecrease) for the Year $ -6,586,97 $ -7,813.35 $ 16,179.36 $ 10,629,935.75 $ 10,631,714.79 FUND BALANCES JULY '. 1995 5,264,27 36,067,36 1,995.83 14,555,553.92 14,598,881,38 FUND BALANCES JUNE 30. 1996 $ -1,322,70 $ 28,254.01 $ 18,175,19 $ 25,185,489,67 $ 25,230,596.17 See notesto the financial statements, -25- BOARD OF REGENTS OF THE UNIVERSITY SYSTEMOF GEORGIA APMINISTRATIVE CENTRAl OFFICE (OVERSIGHT UNm COMBINING STATEMENT OF CURRENTFUNpS REVENUES, EXPENPITURES, AND OTHERCHANGES UNRESTRICTED )'EAR ENpED JUNE 30 1996 EXHIBIT -0" Net Increasel(Pecrease) in Fund Balances $ '-6,586,97 $ -7,813,35 $ 16,179,36 $ 10,629,935,75 $ 10,631,714,79 See notesto the financialstatements, -26- BOARDOF REGENTS OF.THEUNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNm COMBINING STATEMENT OF CURRENTFUNDS REVENUES, EXPENDITURES, AND OTHERCHANGES RESTRICTED yEAR ENDEDJUNE30, 1996 EXHIBIT -H" REVENUES Federal Grantsand Contracts StateGrantsand Contracts Private Grantsand Contracts Endowment Income Total Revenues EXPENPITURES ANp MANDATORY TRANSFERS Educational and General .Institutional Support Scholarships and Fellowships Mandatory Transfersfor: Investment Income for Endowment Principal Total Expenditures and Mandatory Transfers OTHERTRANSFERS ANp APPITIONSf(PEPUCTIONS) Excess of Restricted Receipts overTransfers to Revenues Transfers of Endowment Principal for Objectof Trust Administrative Fees Realized Losson Investments Total OtherTransfers andAdditionsl(Deductions) Net Increasel(Decrease) in FundBalances RESIDENT INSTRUCTION REGENTS CENTRAL OFFICEAND OTHER ORGANIZED ACTIVITIES TOTAL $ $ 1,814.47 $ 1,814,47 $ 150,840.06 $ 20,000.00 96,000.00 266,840,06 $ 150,840,06 20,000.00 1,814.47 96,000,00 268,654.53 $ 1,814,47 $ $ 1,814.47 $ . 37,840.06 $ 229,000.00 39,654,53 229,000.00 18,583,83 18,583,83 285,423,89 $ _ _-=2.8:7.:,.2:3;=8,3;;6,. $ 160,182,09 $ 160,182,09 338,325.92 338,325,92 -27,785.15 -27,785.15 -8,09 -8,09 $ 470,714,77 $ _ _...4..7;.0;.,~;7..1;.4;.,.7;.7.;.. $ 0,00 $ 452,130,94 $ =======4::5!2::,i1::3:=0=,9=4= Seenotesto the financial statements, -27 - BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET NAN RESIDENT INSTRUCTION YEAR ENDED JUNE 30, 1996 REVENUES state Appropriation other Revenues Retained CURRENT FUNDS UNRESTRICTED RESTRICTED TOTAL $ 9,908,920.00 $ 6,417,321.80 $ _ _1..,;"8,:1",4;,...4.~_7_ 9,908,920.00 6,419,136.27 $ 16,326,241.80 $ 1,814.47 $ 16,328,056.27 EXPENDITURES Personal Services: Education, General and Departmental Services Operating Expenses: Education, General and Departmental Services Sponsored Operations Special Funding Initiative Research Consortium $ 3,047,992.71 9,614,802.36 $ 2,152,140.65 0.00 $ 3,047,992.71 1,814.47 9,614,802.36 1,814.47 2,152,140.65 0.00 $ 14,814,935.72 $ 1,814.47 $ 14,816,750.19 Excess of Revenues over Expenditures $ 1,511,306.08 $ (1) To reclassify balance of current year transfers of restricted appropriations to Georgia Eminent Scholars Endowment Trust Fund. 0.00 $ =====1=,5=1=1=,=3=0=6=.0=8= See notes to the financial statements. - 28- SCHEDULE "1" ADJUSTMENTS (1 ) TOTAL (Budget Basis) BUDGET VARIANCEFAVORABLE (UNFAVORABLE) $ 0.00 $ 9,908,920.00 $ 9,908,920.00 $ 0.00 6,419,136.27 7,734,367.00 -1,315,230.73 $ ......;.0...;,.0_0 $ 16,328,056.27 $ 17,643,287.00 $ -1,315,230.73 $ 3,047,992.71 $ 3,277,242.00 $ 229,249.29 $ 1,500,000.00 9,614,802.36 1,814.47 2,152,140.65 1,500,000.00 10,709,406.00 3,000.00 2,153,639.00 1,500,000.00 1,094,603.64 1,185.53 1,498.35 0.00 $ 1,500,000.00 $ 16,316,750.19 $ 17,643,287.00 $ 1,326,536.81 --~...:.-_- $ -1,500,000.00 $ _======1=1=,3=0==6=.0=8= 11,306.08 - 29- BOARQOF REGENTS OFJHE VNIVERSIIY S'fSIEM Of GEORGIA AQMINISTRADVE CENIBAL OFFICE(OVERSIGHT UNffi SCHEDULE Of REVENUES AND EXPENDITURES COMpAREDTO BUDGET "B"REGENTS CENTRAL OFF,ce ANDOTHERORGANIZED ACTJyrnEs YEARENDEDJUNE30 1996 SCHEDULE? REVENUES State Appropriation Other R___ Retained CURRENT FUNDS UNRESTRICTED RESTRICTED PlANT FUNDS TOTAL UNEXPENDED (Budget Basis) BUDGET VARIANCEFAVORABLE (UNFAVORABLE) $ 24,596,938.00 693,5n32 $ $ 24,596,938.00 $ 24,596,938.00 $ 266,840.06 $ 10,768,329.95 11,728,747.33 1,160,232.00 0.00 10,568,515.33 $ 25,290,515.32 $ 266,840.06 $ 10,768,329.95 $ 36,325,685.33 $ 25,757,170.00 $ 10,568,515.33 EXPENDITURES PeIsonaI 8ervices: Education, General and Departmental 8ervices $ 4,812,577 .48 Operating Expenses: Education, General and Departmental 8ervices 2,160,364.59 Sponsored Operations $ Capital Outlay SREB Payments 871,650.00 MedicalSCholarships 1,359,538.33 RegentsOpportunity Grants 600,000.00 Regents Scholarships 200,000.00 Rental Paymentsto Georgia Military College 1,034,952.00 Direct Paymentsto the GeorgiaPublic Telecommunications Commissionfor Operations 14,227,443.00 $ 4,812,577.48 $ 4,812,613.00 $ 96,000.00 $ 8,779,141.41 170,840.06 2,160,364.59 96,000.00 8,779,141.41 871,650.00 1,530,378.39 600,000.00 200,000.00 1,034,952.00 2,205,360.00 . 108,000.00 0.00 891,950.00 1,676,852.00 600,000.00 200,000.00 1,034,952.00 14,227,443.00 14,227,443.00 35.52 44,995.41 12,000.00 ~, 779,141.41 20,300.00 146,473.61 0.00 0.00 0.00 0.00 $ 25,266,525.40 $ 266,840.06 $ 8,779,141.41 $ 34,312,506.87 $ 25,757,170.00 $ ~,555,336.87 Excess d Revenuesover Expenditures $ 23,989.92 $ 0.0..0.. $ 1,989,188.54 $ 2,013,178.46 $ See notes to the financialstatements. -30- BOARD OF REGENTS OF THE UNIVERSITY sysTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNID SCHEDULE OF REVENUES AND EXpENDITURES COMpARED TO BUDGET -0= LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1996 SCHEDULE "3" REVENUES State Appropriation Other Revenues Retained CURRENT FUNDS UNRESTRICTED PLANT FUNDS UNEXPENDED TOTAL (Budget Basis) BUDGET VARIANCEFAVORABLE (UNFAVORABLE) $ 8,710,053.00 $ 4,091,450.80 $ 12,801,503.80 $ 12,668,298.00 $ 133,205.80 5,054,410.00 5,054,410.00 0.00 5,054,410.00 $ 8,710,053.00 $ 9,145,860.80 $ 17,855,913.80 $ 12,668,298.00 $_....;.:..;,5.;.,;1.;8.;7...,;6..1;.5;.;.;8..0;.. EXPEND'TURES Equipment, Technology and Construction Trust Fund Capital Outlay - Georgia Military College $ Georgia Research Alliance Capital Outlay - Albany State College Special Funding Initiatives $ 3,500,000.00 5,209,347.74 0.00 $ 15,834,723.10 16,074,170.60 0.00 $ 3,500,000.00 15,834,723.10 16,074,170.60 5,209,347.74 318,634.00 $ 3,500,000.00 0.00 3,639,611.00 5,210,053.00 318,634.00 0.00 -15,834,723.10 -12,434,559.60 705.26 $ 8,709,347.74 $ 31,908,893.70 $ 40,618,241.44 $ 12,668,298.00 $ -27,949,943.44 Excess of Revenues over Expenditures $====7=0.5....2..6= $ -22,763,032.90 $ -22,762,327.64 $ -22,762,327.64 See notes to the financial statements. - 31 - BOARDOF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> SCHEDULE OF APPROVED BUDGET "A" RESIDENT INSTRUCTION YEARENDED JUNE 30, 1996 REVENUES State Appropriation OtherRevenues Retained EXPENDITURES Personal Services: Education, General and Departmental Services Sponsored Operations Operating Expenses: Education, General and Departmental Services Sponsored Operations Capital Outlay Special Funding Initiative Office of Minority Business Enterprise StudentEducation Enrichment Program ForestryResearch Research Consortium ORIGINAL AMENDED APPROPRIATION APPROPRIATION GOVERNOR'S EMERGENCY FUND $ 1,081,433,473.00 $ 736,849,988.00 -599,999.00 $ -1,433,001.00 102,932.00 $ 1,818,283,461.00 $ -2,033,000.00 $ =======1=02=,=9=3=2=.0=0= $ 1,157,829,143.00 $ 202,917,763.00 -1,948,000.00 289,713,286,00 145,787,679.00 0,00 15,314,094.00 994,628.00 364,360.00 362,508.00 5,000,000.00 $ -85,000.00 102,932.00 $ 1,818,283,461.00 $ -2,033,000.00 $ ======::1:!0::2::,:9::3::2=.=0=0= See notesto the financial statements. - 32- SCHEDULE "4" BUDGET ADJUSTMENTS TOTAL APPROVED BUDGET LESS: BUDGET TRANSFERS TO OTHER UNITS TOTAL $ 1,080,936,406.00 $ 1,071,027,486.00 $ $ 562,267,079.00 1,297,684,066.00' 1,289,949,699.00 9,908,920.00 7,734,367.00 $ 562,267,079.00 $ 2,378,620,472.00 $ 2,360,9n,185.00 $ 17,643,287.00 $ 6,493,425.00 $ 1,162,374,568.00 $ 1,159,097,326.00 $ -12,895,140.00 190,022,623.00 190,022,623.00 3,2n,242.00 0.00 45,593,332.00 365,046,314.00 158,029,148.00 335,306,618.00 510,936,925.00 158,029,148.00 15,229,094.00 994,628.00 364,360.00 362,508.00 5,000,000.00 324,597,212.00 510,933,925.00 158,029,148.00 13,075,455.00 994,628.00 364,360.00 362,508.00 3,500,000.00 10,709,406.00 3,000.00 0.00 2,153,639.00 0.00 0.00 0.00 1,500,000.00 $ 562,267,079.00 $ 2,378,620,472.00 $ 2,360,9n,185.00 $ 17,643,287.00 - 33- BOARDOF REGENTS OF THEUNI\IEBSlry sysTEM OF GEORGIA ADMINISTRATIVE CENTRAL OfFICE INVESTMENTS JUNE 30. 1996 SCHEDULE -13" Investment Accounts SunTrust Bank, Atlanta, Georgia Board of Regents Balanced Income Fund Investment Portfolio Account Accrued Income Cash Common Stock Corporate Bonds Mutual Funds U. S. Government Securities Held for Units of the University System of Georgia Held for Cooperative Organizations Board of Regents Legal Fund Investment Portfolio Account Accrued Income Cash Mutual Funds U. S. Government Securities Held for Administrative Central Office (Oversight Unit) Held for Units of the University System of Georgia Board of Regents Short-Term Investment Fund Investment Portfolio Account Accrued Income Cash Mutual Funds U. S. Government Securities Held for Administrative Central Office (Oversight Unit) Held for Units of the University System of Georgia Held for Cooperative Organizations Board of Regents Total Return Fund Investment Portfolio Account Accrued Income Cash Common Stock Corporate Bonds Mutual Funds U. S. Government Securities Held for Administrative Central Office (Oversight Unit) Held for Units of the University System of Georgia Held for Cooperative Organizations See notes to the financial statements. - 48- $ 54,422.11 0.92 1,262,162.26 379,628.00 60,429.00 2,146,965.90 $ 3,903,608.19 -2,792,965.50 -1,110,642.69 $ 0.00 $ 35,038.55 161.65 81,625.76 2,849,725.71 $ 2,966,551.67 -1,496,022.25 -1,470,529.42 0.00 $ 106,817.02 20,133.14 9,382,000.00 9,254,796.96 $ 18,763,747.12 -8,536,469.65 -7,982,870.18 -2,244,407.29 0.00 $ 288,489.48 -19,043.62 15,942,217.19 3,389,170.00 1,386,347.00 8,021,281.40 $ 29,008,461.45 -3,568,606.67 -24,803,558.52 -636,296.26 0.00 BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE(OVERSIGHT UNIT) INVESTMENTS JUNE 30,1996 SCHEDULE -13" InvestmentAccounts SunTrust Bank, Atlanta, Georgia Health Insurance Reserve Fund InvestmentPortfolio Account Cash U. S. Government Securities Olympic Fund Investment Portfolio Account Cash Mutual Funds $ 503,243.43 24,602,530.79 $ 25,105,774.22 $ 0.49 3,869,681.30 3,869,681.79 $ 28,975,456.01 Seenotes to the financial statements. -49- BOARDOF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> ACCOUNTS RECEIVABLE JUNE 30.1996 SCHEDULE 14 State Appropriations Other Various Sources SoftwareSales and Services CURRENT FUNDS UNRESTRICTED PLANT FUNDS UNEXPENDED $ 34,164,000.00 $ 9,500,000.00 $ TOTAL 43,664,000.00 354,044.93 354,044.93 $ 34,518,044.93 $ 9,500,000.00 $ 44,018,044.93 See notesto the financial statements. - 50- BOARD OF REGENTS OF THE UNIVERSIIY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> CHANGES IN INVESTMENT IN PLANT YEAR ENDED JUNE 30, 1996 SCHEDULE -15" Land Buildings Equipment Ubrary Booksand Collections Construction in Progress BALANCE JULY 1,1995 ADDITIONS CURRENT FUNDS PLANTFUNDS UNRESTRICTED UNEXPENDED DEDUCTIONS DISPOSALSI DELETIONSI ADJUSTMENTS BALANCE JUNE 30, 1996 $ 1,390,700,00 $ 1,350,000.00 $ 248,450.00 $ 2,492,250.00 83,794.12 83,794.12 0.00 11,317,034.45 $ 2,364,875.72 512,808,07 13,169,102.10 31,384.30 31,384.30 43,003,319.34 39,338,035.11 82,341,354.45 $ 55,826,232.21 $ 2,364,875.72 $ 40,688,035.11 $ 845,052,19 $ 98,034,090,85 SUMMARY OF INVESTMENT Administrative Central Office Capital Leases $ 55,557,381.42 $ 268,850.79 2,364,875,72 $ 40,688,035.11 $ 652,940.05 $ 97,957,352.20 192,112,14 76,738.65 $ 55,826,232.21 $ 2,364,875.72 $ 40,688,035.11 $ 845,052.19 $ 98,034,090.85 See notes to the financial statements. 51 - BOARDOF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE SCHEDULE OF ALLOTMENTS TO UNITSOF THE UNIVERSITY SYSTEM OF GEORGIA NAN RESIDENT INSTRUCTION YEARENDEDJUNE 30, 1996 RESEARCH UNIVERSITIES Georgia Institute of Technology Georgia StateUniversity Medical College of Georgia University of Georgia REGIONAL UNIVERSITIES Georgia Southern University Valdosta StateUniversity STATE UNIVERSITIES/COLLEGES Albany State University Armstrong StateCollege Augusta State University Clayton StateCollege Columbus StateUniversity Fort Valley State University Georgia College Georgia Southwestern College Kennesaw StateUniversity North Georgia College Savannah StateUniversity Southern College of Technology State University of West Georgia ASSOCIATE DEGREE COLLEGES Abraham Baldwin Agricultural College Atlanta Metropolitan College Bainbridge College Brunswick College Dalton College Darton College DeKalb College , East Georgia College Floyd College Gainesville College Gordon College MaconCollege . Middle Georgia College SouthGeorgia College Waycross College OTHER Skidaway Institute of Oceanography (1) Includes Governor's Emergency Fund Seenotesto the financial statements, REGULAR SPECIAL FUNDING INITIATIVE OFFICEOF MINORITY BUSINESS ENTERPRISE $ 119.213,906.00 $ 123,547,063.00 88,530,069.00 255.994,420.00 (1) 1,454.632.00 585,690.00 820.637.00 1,698,471.00 $ 634.628.00 55,039,015.00 (1) 33,052.355.00 1,793.228.00 1,411.649.00 14,369,786.00 17,492,478.00 18,453,928.00 13,4n,275.oo 20,096,925.00 16,044,233.00 (1) 21,424,830.00 (1) 11,553,882.00 33,140,052.00 12,878,616.00 15,820.106.00 16,810,058.00 28,339,842.00 195,162.00 700,698.00 230,985.00 193,482.00 224,095.00 464.847.00 3n,069.oo 88,013.00 138,917.00 154,587.00 306,342.00 56,875.00 363,394.00 60.000.00 300.000.00 10,664,813.00 6,315,873.00 3,533,493,00 5,801,347.00 7,821,746.00 8,852,281.00 39,183,880.00 2,758,579.00 8,409,538.00 8,524,113.00 6,447,513.00 11,888,421.00 8,624,210.00 5,598,892.00 2,934,994,00 83,364.00 41,582.00 41,355.00 231,026.00 41,932.00 99,321.00 137,556.00 41,864.00 108,409.00 41,355.00 168,109.00 313,147.00 117,957.00 270,833.00 41,582.00 92,003.00 37,290.00 ======:::r==== $ 1,052,730,535.00 $ 13,075,455.00 $ 994,628.00 - 56- SCHEDULE-ur STUDENT EDUCATION ENRICHMENT PROGRAM FORESTRY RESEARCH RESEARCH CONSORTIUM TOTAL $ 1,754,036.00 $ 122,422,574.00 124,132,753.00 $ 364,360.00 89,715,066.00 $ 362,508.00 1,407,327.00 260,097,354.00 181,652.00 116,909.00 57,013,895.00 34,580,913.00 14,384.00 25,692.00 14,564,948.00 18,193,176.00 18,684,913.00 13,670,757.00 20,335,404.00 16,569,080.00 21,801,899.00 11,641,895.00 33,278,969.00 13,033,203.00 16,426,448.00 16,892,625.00 28,703,236.00 10,748,177.00 6,357,455.00 3,574,848.00 6,032,373.00 7,863,678.00 8,951,602.00 39,321,436.00 2,800,443.00 8,517,947.00 8,565,468.00 6,615,622.00 12,201,568.00 8,742,167.00 5,869,725.00 2,976,576.00 129,293.00 $ 364,360.00 $ 362,508.00 $ 3,500,000.00 $ 1,071,027,486.00 -57 - PI C.)o\ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> SCHEDULE OF ALLOTMENTS TO UNITS OF THE UNIVERSITY SYSTEM OF GEORGIA "B" OTHER ORGANIZED ACTIVITIES YEAR ENDED JUNE 30, 1996 SCHEDULE "19" RESEARCH UNIVERSITIES Georgia Institute of Technology Education Extension Services Advanced Technology Development Center Georgia Tech Research Institute Agricultural Research Center for Rehabilitation Technology Medical College of Georgia Medical College of Georgia Hospital and Clinics Joint Board of Family Practice Capitation Contracts For Family Practice Residency Residency Capitation Grants Student Preceptorships Mercer Medical School Grant Morehouse School of Medicine Grant SREB Payments University of Georgia Agricultural Experiment Station Athens and Tifton Veterinary Laboratories Cooperative Extension Service Marine Institute Marine Resources Extension Center Veterinary Medicine Experiment Station Agricultural Research Veterinary Medicine Teaching Hospital OTHER Skidaway Institute of Oceanography $ 568,850.00 1,979,060.00 11,131,140,00 1,558,091.00 1,019,568.00 $ 16,256,709.00 $ 31,697,885.00 936,032.00 3,548,759.00 2,484,870.00 146,400.00 6,619,012.00 5,549,n8.00 4,460,850.00 $ 55,443,586.00 $ 36,398,122.00 121,122.00 29,856,244.00 988,994.00 1,345,184.00 1,947,090.00 834,441.00 512,595.00 $ 72,003,792.00 $ 1,532,120.00 $ 145,236,207.00 See notes to the financial statements. - 59- BOARD OF REGENTS OF THE UNiVERSITY SYSTEM OF GEORGIA ADMINISTRATiVE CENTRAL OFFICE (OVERSIGHT UNID SCHEDULE OF ALLOTMENTS TO UNITS OF THE UNiVERSITY SYSTEM OF GEORGIA "0= LOTTERY FOR EDUCATION YEAR ENDED JUNE 30 1996 CAPITAL OUTLAY EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND RESEARCH UNiVERSITIES Georgia Institute of Technology Georgia State University Medical College of Georgia University of Georgia $ $ 213,300.00 135,000.00 443,550.00 3,361,000.00 1,250,000.00 500,000.00 5,368,000.00 REGIONAL UNiVERSITIES Georgia SouthemUniversity Valdosta State University 262,684.00 188,000.00 400,000.00 339,819.74 SIDE UNIVERSITIES/COLLEGES Albany State University Armstrong State College Augusta State University Clayton State College Columbus State University Fort Valley State University Georgia College Georgia Southwestern College Kennesaw State University North Georgia College Savannah State University Southem College of Technology State University of West Georgia 300,000.00 300,000.00 385,000.00 157,000.00 253,400.00 208,523.00 180,000.00 84,500.00 181,239.00 76,000.00 295,000.00 150,000.00 200,000.00 195,115.48 171,950.00 200,000.00 100,000.00 200,000.00 $ 100,000.00 250,000.00 100,000.00 150,000.00 150,000.00 249,999.98 ASSQCIATE DEGREE COLLEGES Abraham Baldwin AgriCUlturalCollege Atlanta Metropolitan College Bainbridge College Brunswick College Dalton College Darton College DeKalb College East Georgia College Floyd College Gainesville College Gordon College Macon College Middle Georgia College South Georgia College Waycross College 148,725.00 100,000.00 175,000.00 60,000.00 30,000.00 200,000.00 218,079.00 200,000.00 205,000.00 267,314.00 225,000.00 225,000.00 250,000.00 282,500.00 300,000.00 335,308.00 230,653.00 300,000.00 300,000.00 250,000.00 350,000.00 283,000.00 250,000.00 212,500.00 CAPITAL OUTLAY GEORGIA COLLEGE 300,000.00 Skidaway Institute of Oceanography 51,000.00 ========. . . . . $ 5,000,000.00 $ 17,548,160.20 $ 300,000.00 Summary: Current Funds Plant Funds See notes to the financial statements. - 60- SCHEDULE "20" GEORGIA RESEARCH ALLIANCE SPECIAL FUNDING INITIATIVES CAPITAL OUTLAY AGRICULTURAL EXPERIMENT STATIONS TOTAL $ 6.039,062.00 $ 76.390.00 950.000.00 20.428,548.00 249,811.00 634,545.00 218.246.00 391.572.00 $ $ 1.500.000.00 9,649,873.00 2.174,235.00 1.803.246.00 28,131,670.00 231.893.00 1,093.869.00 894.577.00 1,621.688.74 125,867.00 278,089.00 128.591.00 138,483.00 128.519.00 119.411.00 229,483.00 119,435.00 138,864.00 127,411.00 125,867.00 135,831.00 282,386.00 275.867.00 778,089.00 623,706.48 695,433.00 485.519.00 472,811.00 938,006.00 219,435.00 568.864.00 311,911.00 457,106.00 361,831.00 827,385.98 119,205.00 175,700.00 44,350.00 308,761.00 119,435.00 127,435.00 344,227.00 117,700.00 122,971.00 119,411.00 121,285.00 218,483.00 220,411.00 .117,700.00 117,700.00 535,244.00 500,700.00 269,350.00 733,761.00 461,935.00 427,435.00 679,535.00 378,353.00 622,971.00 419,411.00 589,364.00 768,483.00 503,411.00 572,700.00 330,200.00 11,000.00 62.000.00 $ 27.494,000.00 $ 7,303,947.00 $ 1,500,000.00 $ 59,146.107.20 $ 56,468,759.00 2,677,348.20 $ 59,146,107.20 61 BOARDOf REGENTSOf THE VNIYERSIlY SYSTEMOf GEORGIA ADMINISTRATIVE CENTRALOfFICE lQVERSIGHT UNm SCHEDULE$2f expENPITURES BY OBJECT CURRENTFUNDS YEAR ENDEp JUNE 30 1996 PERSONAL SERVICES saJariea end Wages Emplovel's Contributionsfor: F.I.C.A Retirement Group Insurance liability Insurance UnemploymentCompensation Insurance WllIkers' Compensation Insurance opERATING EXPENSES Travel Supplies and Materials Repairsand Maintenance Rents (Other than Real Estate) Insuranceend Bonding Claims and Indemnities Tuition and Scholarships To Units d the UniversitySystem d Georgia Other OperatingExpenses Publicationsand Printing Equipment Non-Inventory Software Real Estate Rentals Telecommunication& Per Diem, Fees and Contracts Per Diem and Fees Equipment Lea&elPurcha&e d Equipment Inventory "A" RESIDENT INSTRUCTION UNRESTRICTED "B" REGENTSCENTRAL OFFICEANO "D" OTHER ORGANIZED LOTTERYFOR ACTlVmeS EDUCATION s 2,353,905.87 S 3,826,2n.05 161,584.98 279,941.14 198,115.72 44,015.00 813.00 9,617.00 256,668.10 429,769.30 299,863.03 s 3,047,992.71 S _ _-=4=,8.1.:2:,.5:.n:..:4=8. S 86,317.68 S 284,494.44 1,160,059.28 11,118.86 204,174.15 150,909.22 274,282.24 43,768.30 14,514.14 1,101.00 292,311.95 9,335.21 358,056.44 993,237.46 152,587.26 3,415,263.75 1,344,311.70 191,280.04 1,112,254.14 $ 9,614,802.36 $ 178,129.82 186,067.78 99,203.95 20,651.23 213,573.00 90,011.16 685,014.02 203,138.73 2,160,364.59 SPECIAL FUNDING INITIATIVES Personalservice& Salariesand Wages Employe~s Contributionsfor: F.I.C.A. Retirement Group Insurance OtherCo&ts Travel Supplies and Materials Repairsand Maintenance Rents (Other than Real Estate) OtherExpense& Publicationsand Printing Software Equipment Non-Inventory Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Equipment Inventory SOUTHERNREGIONAL EDUCATION BOARD (SREB)PAYMENTS Per Diem, Fees and Contracts Contracts See notes to the financialstatements. -62 - $ 29,462.14 2,103.94 3,427.11 4,195.20 $ 39,188.39 293.80 2,561.07 468,664.69 580.00 171,272.29 16,654.17 504,527.00 147,729.42 800,669.82 $ 2,152,140.65 s 2,004.60 153.36 $ 2,157.96 538,067.48 739.68 301,944.52 2,966,870.70 81,446.09 467,283.85 2,071.92 848,765.54 $ 5,209,347.74 $ - _ - - : : : . :8.7.1.,.6:5.0=.0=0 SCHEDULE "21" EMPLOYEE HEALTH BENEFITS PLAN TOTAL MAli RESIDENT INSTRUCTION RESTRICTED "8" REGENTS CENTRAL OFFICE AND OTHER ORGANIZED ACllVITIES TOTAL TOTAL $ 6,180,182.92 418,253.08 709,710.44 497,978.75 44,015.00 813.00 9,617.00 $ 7,860,570.19 $ 6,180,182.92 418,253.08 709,710.44 497,978.75 44,015.00 813.00 9,617.00 $ 7,860,570.19 $ 237,226.90 558,776.68 1,203,827.58 25,633.00 205,275.15 $ 121,381,489.72 121,381,489.72 63,769.00 534,210.77 195,402.99 457,260.39 1,013,888.69 366,160.26 3,505,274.91 5,393,219.01 7,422,544.73 $ 191,280.04 1,315,392.87 $ 126,838,477.73 $ 138,613,644.68 $ $ 1,814.47 1,814.47 $ 96,000.00 $ 96,000.00 $ $ 237,226.90 558,776.68 1,203,827.58 25,633.00 205,275.15 121,381,489.72 96,000.00 96,000.00 534,210.77 195,402.99 457,260.39 1,013,888.69 366,160.26 3,505,274.91 1,814.47 7,424,359.20 191,280.04 1,315,392.87 97,814.47 $ 138,711,459.15 $ 31,466.74 2,257.30 3,427.11 4,195.20 $ 41,346.35 293.80 540,628.55 469,404.37 580.00 473,216.81 16,654.17 3,471,397.70 81,446.09 615,013.27 802,741.74 848,765.54 $ 7,361,488.39 $ 871,650.00 -63 $ 31,466.74 2,257.30 3,427.11 4,195.20 $ 41,346.35 293.80 540,628.55 469,404.37 580.00 473,216.81 16,654.17 3,471,397.70 81,446.09 615,013.27 802,741.74 848,765.54 $ 7,361,488.39 $ 871,650.00 BOARD OFREGENTS OF THE VNlVERS!JY SYSTEM OF' GEORGIA . AQMINISTRATIVE CENTRAL OFfiCE CQIIERSIGHT UNm SCHEDULE OF EXPENDITURES BY OBJECT CURRENT FUNDS YEAR ENDED JUNE 30 1996 "AU RESIDENT INSTRUCTION ''8'' REGENTS CENTRAL OFfiCE AND OTHER ORGANIZED ACTIVITIES UNRESTRICTED "0" LOTTERY FOR EDUCATION MEDICAL SCHOLARSHIPS Personal Sefvices salaries and Wages Employet's Contributions for: F.I.C.A. Retirement GroupInsurance Liability Insurance OtherCo6ts Travel SUpplies and Materials Rents (Other than Real Estate) Insurance and Bonding Tuition and SCholarships SCholarships, Fellowships, Prizes, Awards and Other Other Operating Expenses Publications and Printing Real Estate Rentals Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Equipment InventOlY Non-lnventOlY REGENTS OPPORTUNITY GRANTS Tuition and SCholarships To Units of the University System of Georgia REGENTS SCHOLARSHIPS Tuition and Scholarships To Units of the University System of Georgia RENTAL PAYMENTS TO GEORGIA MILITARY COLLEGE Per Diem, Fees and Contracts Contracts DIRECT PAYMENTS TO THE GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION FOR OPERATIONS Per Diem, Fees and Contracts Contracts CAPITAL OUTLAY - GEORGIA MILITARY COLLEGE Per Diem, Fees and Contracts Contracts $ 144,269.60 10,411.64 16,211.52 13,611.24 2,974.00 $ 187,478.00 8,046.56 5,818.51 2,894.35 60.00 1,075,990.62 14,243.11 5,641.56 4,950.00 1,786.54 2,364.34 40,229.47 9,437.27 598.00 $----"'===- $-----'===- 600,000.00 $------2'0=0,=000=.00- $ ----"'=== 1,034,952.00 14,227,443.00 $ 2,152,140.65 $ $--3,5=00=,00=0.0~0 18,293,583.33 $ 8,709,347.74 $ 14,814,935.72 $ 25,266,525.40 $ 8,709,347.74 seenotes to the financial statements. -64- EMPLOYEE HEALTH BENEFITS PlAN TOTAl "A" RESIDENT INSTRUCTION RESTRICTED "B" REGENTS CENTRAl OFFICE AND OTHER ORGANIZED ACTIVITIES TOTAl TOTAl $ 144,269.60 10,411.64 16,211.52 13,611.24 2,974.00 $ 187,478.00 8,046.56 5,818.51 2,894.35 60.00 1,075,990.62 14,243.11 5,641.56 4,950.00 1,786.54 2,364.34 40,229.47 9,437.27 598.00 $ 1,359,538.33 $ 600,000.00 $ 200,000.00 $ 1,034,952.00 $ 144,269.60 10,411.64 16,211.52 13,611.24 2,974.00 $ 187,478.00 8,046.56 $ 48.75 $ 48.75 5,867.26 2,894.35 60.00 133,000.00 4,400.00 175.27 133,000.00 4,400.00 175.27 1,208,990.62 18,643.11 5,816.83 4,950.00 1,786.54 2,364.34 33,216.04 33,216.04 73,445.51 9,437.27 598.00 $ 170,840.06 $ 170,840.06 $ 1,530,378.39 $ 600,000.00 $ 200,000.00 $ 1,034,952.00 $ 14,227,443.00 $ 3,500,000.00 $ 29.155,071.72 $ 126,838,477.73 $ 175,629,286.59 $ $ 1,814.47 $ $ 14,227,443.00 170,840.06 $ $ 3,500,000.00 170,840.06 $ 29,325,911.78 266,840.06 $ 268.654.53 $ 175,897,941.12 65 BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> SCHEDULE OF EXPENDITURES BY OBJECT PLANT FUNDS YEAR ENDED JUNE 30,1996 SCHEDULE "22" CAPITAL OUTLAY Rents (Other than Real Estate) Other Expenses Per Diem, Fees and Contracts Per Diem and Fees Contracts UNEXPENDED LOTIERYFOR REGULAR EDUCATION TOTAL $ OTHER GEORGIA RESEARCH ALLIANCE Other Costs Other Expenses Per Diem, Fees and Contracts Contracts CAPITAL OUTLAY - ALBANY STATE COLLEGE Other Costs Per Diem, Fees and Contracts Contracts $ 127,435.50 $ 127,435.50 15,707,287.60 15,707,287.60 $ 15,834,723.10 $ 15,834,723.10 $ 16,074,170.60 $ 16,074,170.60 $ 8,779,141.41 $ 31,908,893.70 $ 40,688,035.11 See notes to the financial statements. - 66- BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) SCHEDULE OF GOVERNOR'S EMERGENCY FUND YEAR ENDED JUNE 30, 1996 "A" RESIDENT INSTRUCTION Fort Valley State University To assist in preparation for Olympic-Related activities Georgia College To assist with expenses in connection with Olympic-Related activities Georgia Southern University To assist in preparation for Olympic-Related activities University Of Georgia For renovations and equipment relating to the University of Georgia as an Olympic Venue SCHEDULE "23" $ 3,715.00 17,445.00 61,927.00 $ 102,932,00 See notes to the financial statements. - 67- BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> SCHEDULE OF REGENTS OPPORTUNITY GRANTS YEAR ENDED JUNE 30.1996 RESEARCH UNIVERSITIES Georgia Institute of Technology Georgia State University Medical College of Georgia University of Georgia REGIONAL UNIVERSITIES Georgia Southern University Valdosta State University STATE UNIVERSITIES/COLLEGES Albany State University Armstrong State College Augusta State University Columbus State University Fort Valley State University Georgia College Georgia Southwestern College Kennesaw State University North Georgia College Southern College of Technology State University of West Georgia SCHEDULE "24" $ 70,000.00 125,000.00 140,000.00 123,332.00 20,000.00 12,500.00 5,000.00 1,668.00 10,000.00 7,500.00 5,000.00 22,500.00 10,000.00 20,000.00 5,000.00 10,000.00 12,500.00 $ 600,000.00 See notes to the financial statements. - 68- SOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT> SCHEDULE OF REGENTS SCHOLARSHIPS YEAR ENDED JUNE 30, 1996 "S" REGENTS CENTRAL OFFICE AND OTHER ORGANIZED ACTIVITIES RESEARCH UNIVERSITIES Georgia Institute of Technology Georgia State University Medical College of Georgia University of Georgia REGIONAL UNIVERSITIES Georgia Southern University Valdosta State University STATE UNIVERSITIES/COLLEGES Albany State University Armstrong State College Augusta State University Clayton State College Columbus State University Fort Valley State University Georgia College Georgia Southwestern College Kennesaw State University North Georgia College Savannah State University Southern College of Technology State University of West Georgia ASSOCIATE DEGREE COLLEGES Abraham Baldwin Agricultural College Atlanta Metropolitan College Brunswick College DeKalb College East Georgia College Floyd College Gainesville College Gordon College Macon College Middle Georgia College South Georgia College Waycross College SCHEDULE "25" $ 8,100.00 24,900.00 2,500.00 26,200.'00 14,000.00 7,700.00 4,300.00 4,900.00 5,500.00 5,200.00 5,600.00 2,700.00 5,800.00 2,250.00 13,750.00 3,500.00 3,900.00 5,100.00 8,300.00 3,100.00 2,800.00 2,000.00 17,200.00 1,000.00 3,100.00 3,300.00 2,100.00 5,900.00 2,600.00 1,700.00 1,000.00 $ 200,000.00 See notes to the financial statements. - 69- BOARP OF REGENTS OF THE UN'VERSITYSYSTEMOF GEORGIA ADMINISTRATIVE CENTRALOFfiCE