Board of Regents of the University System of Georgia, Administrative Central Office (Oversight Unit), report on audit of the financial statements for the fiscal year ended June 30, 2002

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OF THE FINANCI"AL',STATEMENTS FOR THE FISCA~ YEAR ENDED JUNE 30. 2002

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BOARD OF REGENTS OF TIIE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
-TABLE OF CONTENTS-

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

REQUIRED SUPPLEMENfARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

2

BASIC FINANCIAL STATEMENfS

EXHIBITS

A STATEMENT OF NET ASSETS

11

B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

12

C STATEMENT OF CASH FLOWS

13

D NOTES TO THE FINANCIAL STATEMENTS

14

SUPPLEMENfARY INFORMATION

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO

BUDGET - (NON-GAAP BASIS)

1

RESIDENT INSTRUCTION

35

2

REGENTS CENIRAL OFFICE AND OTHER ORGANIZED ACTIV1TIES 36

3

LOTTERY FOR EDUCATION

37

SCHEDULES OF APPROVED BUDGET

4

RESIDENT INSTRUCTION

38

5

REGENTS CENTRAL OFFICE AND OTHER ORGANIZED ACTIV1TIES

40

6

LOTTERY FOR EDUCATION

42

SCHEDULES OF BUDGET TRANSFERS TO OTHER UNITS

7

RESIDENT INSTRUCTION

44

8

REGENTS CENTRAL OFFICE AND OTHER ORGANIZED ACTIV1TIES

48

9

LOTTERY FOR EDUCATION

50

SCHEDULES OF ALLOTMENTS TO UNITS OF THE UNIVERSITY SYSTEM

OF GEORGIA

10

RESIDENT INSTRUCTION

52

11

REGENTS CENTRAL OFFICE AND OTHER ORGANIZED ACTIV1TIES 54

12

LOTTERY FOR EDUCATION

55

BOARD OF REGENTS OF lHE UNNERSfIY SYSTEM OF GEORGIA
ADMINISTRATIVE CENTRAL OffICE (OVERSIGHT UNfD
- TABLE OF CONTENTS -

SECTION I

FINANCIAL

SCHEDULES

13 ANALYSIS OF PRIOR YEAR'S SURPLUS FUNDS COLLECTED FROM

INSTITUTIONS AND REDISTRIBUTED TO INSTITUTIONS WTI1I

DEFICITS

S6

14 RECONCILIATION OF SALARIES AND TRAVEL

S8

1S RECONCILlATION OF PER DIEM AND FEES

S9

SECTION IT AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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

SECTION I FINANCIAL

Russu.i W. H"m~
STATE AUDITOR
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DEPARTMENT OF AUDITS AND ACCOUNTS
2 ~4 Washmgton Street. S W . Surtc 214 Allam a. Georgia 10334-H400
February 24, 2003

Honorable Sonny Perdue, Governor Members ofthe General Assembly of Georgia Members of the Board of Regents of the University System ofGeorgia
and Honorable Thomas C. Meredith, Chancellor
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladles and Gentlemen
We have audited the accompanying basic financial statements (Exhibits A through D) of the Admuustrative Central Office (Oversight Urnt) ofthe Board ofRegents ofthe Uruversrty System of Georgia as ofand for the year ended June 30, 2002. These financial statements are the responsibihty ofthe Admmrstrative Central Office's management. Our responsibrhty IS to express an opmton on these financial statements based on our audit.
We conducted our audit In accordance with audmng standards generally accepted In the United States ofAmenca Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of matenal misstatement. An audit Includes exammmg, on a test basis, evidence supporting the amounts and disclosures In the financial statements. An audit also Includes assessmg 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 opimon.
As discussed in Note I, the financial statements ofthe Admirustrative Central Office are intended to present the financial position and changes In financial posrtion (mcludmg cash flows) of only that portion ofthe business-type activrties ofthe State ofGeorgia that IS attnbutable to the transactions of the Adrmmstranve Central Office. They do not purport to, and do not, present fairly the financial positron and changes in financial position (including cash flows) of the State of Georgia, In confomnty WIth accountmg pnnciples generally accepted m the Urnted States of Amenca

02ARL-61

In our opimon, the basic financial statements referred to above present fairly, in all matenal respects, the financial position of the Adrmmstranve Central Office as of June 30, 2002, and Its changes in financial position (mcludmg cash flows) for the year then ended m conformity WIth accounting pnncrples generally accepted in the United States of Amenca.

As descnbed in Note I, the Admmistrative Central Office adopted the provisions of Governmental Accounting Standards Board (GASB) Statements No 35, Baste Ftnanctal Statements - and Management's DISCUSSion and Analysts - for Public Colleges and Umverstttes, as amended by GASB Statement No 37, Basic Financial Statements - andManagement's DISCUSSIOn and Analysts for State and Local Governments, and GASB Statement No. 38, Certain Ftnanctal Statements Note DISclosures, as of July I, 2001, to Implement a new financial reportmg model.

Management's DISCUSSion and AnalYSiS IS not a required part ofthe basic financial statements but IS supplementary mformanon required by the GASB We have apphed certain limited procedures, wluch consisted principally ofmqumes ofmanagement regarding the methods ofmeasurement and presentation of this supplementary Information. However, we did not audit this information and express no opinion on It.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanymg supplementary mformanon (Schedules I through IS) IS presented for purposes of additional analysis and IS not a required part of the basic financial statements ofthe AdImmstrative Central Office. Such information has been subjected to the auditing procedures apphed by us m the audit ofthe basic financial statements and, in our opuuon, based on our audit, IS fairly stated in all rnatenal respects in relation to the basic financial statements taken as a whole

Respectfully submitted,

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ell W. Hinton Auditor

REQUIRED SUPPLEMENTARY INFORMATION
-I -

Administrative Central Office
Management's Discussion and Analysis

Introduction

The Adnumstrative Central Office of Georgia's Board of Regents was created In 1931 as a part of a
reorgaruzation of'Georgia's state government With tills act, pubhc lugher education in Georgia was
unified for the first tune under a smgle governmg and management authonty. The governor appoints members to the Board, who each serve seven years Today the Board ofRegents IS composed of 16 members, five of whom, are appointed from the state-at-large, and one from each of the 11 congressional distncts. The Board elects a chancellor who serves as its chief executive officer and the cluef admirustranve officer of the University System. The Board oversees 34 institutions: 4 research umversities, 2 regional universities, 13 state umversines, 2 state colleges, and 13 two-year colleges. These msntutions enroll more than 200,000 students and employ more than 9,000 faculty and 30,000 employees to provide teaclung and related services to students and the communities In wluch they are located.

Overview ofthe Financial Statements and FinancitIJAnalysis I

!

The Adrmmstrative Central Office IS proud to present Its financial statements for fiscal year 2002.

The emphasis of discussions about these statements will be on current year data. There are three

I

financial statements presented: the Statement ofNet Assets; the Statement ofRevenues, Expenses

and Changes In Net Assets; and, the Statement of Cash Flows. This dISCUSSIon and analysrs of the

I

Adrmmstranve Central Office's financial statements provides an overview of Its financial acnvities for the year. The Admimstrative Central Office has elected to not restate pnor penods for purposes

of providing the comparative data for t1us Management's DISCUSSIon and Analysis. However, in

I

future years, when pnor penod information IS available, a comparative analysis WIll be presented.

I

Statement ofNet Assets

I

The Statement of Net Assets presents the assets, habihties, and net assets of the Admnustrative

I

Central Office as of the end of the fiscal year. The Statement of Net Assets IS a pomt of time

financial statement The purpose of the Statement of Net Assets IS to present to the readers of the

financial statements a fiscal snapshot of the Admimstratrve Central Office The Statement of Net

Assets presents end-of-year data concermng Assets(current and non-current), Liabihnes (current and

non-current), and Net Assets (assets mmus habihnes). 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 deterrmne the assets available to continue the operations of the Adrmmstratlve Central Office. They are also able to deterrmne how much the Admmistranve Central Office owes vendors, Investors and lending msntutions

-2-

..

Finally, the Statement ofNet Assets provides a picture ofthe net assets (assets mmus habihtres) and their availabrhty for expenditure by the Adrrurustranve Central Office Net assets are drvided Into three major categones. The first category, mvested In capital assets, net of debt, provides the Admimstranve Central Office's equity in property, plant and equipment owned by the Adrmrustranve Central Office The next asset category IS restncted net assets, which IS drvided Into two categones, nonexpendable and expendable. The corpus ofnonexpendable restncted resources IS only available for mvestment purposes. Expendable restncted net assets are available for expenditure by the Admuustrative Central Office but must be spent for purposes as determmed by donors and/or external entities that have placed time or purpose restncnons on the use of the assets. The final category IS unrestncted net assets. Unrestncted assets are available to the Admimstratrve Central Office for any lawful purpose of the Admirnstrative Central Office.

Statement ofNet Assets, Condensed (thousands of dollars)

Assets Current Assets Capital Assets, Net Other Assets

$ 205,269 15,288 3,612

Total Assets
Liabinties
Current Liabihtres Non-Current Liabihues
Total Liabilities

$ 224.169
$ 143,628 963
$ 144.591

Net Assets Invested m Capital Assets, Net of Debt Restricted - Nonexpendable Restncted - Expendable Unrestncted

$ 13,702 3,612
33,375 28,889

Total Net Assets

$ 79,578

Sttltement ofRevenues, Expenses IIIId Chllllges in Net Assets

Changes m total net assets as presented on the Statement of Net Assets are based on the acnvity presented in the Statement of Revenues, Expenses and Changes in Net Assets. The purpose of the statement IS to present the revenues received by the AdnurustratIve Central Office, both operatmg and nonoperatiog, and the expenses pard by the Admmistranve Central Office, operatmg and nonoperatmg, and any other revenues, expenses, g3.lDS and losses received or spent by the AdrnmistratIve Central Office Generally speaking operating revenues are received for providmg goods and services to the vanous customers and consntuencies ofthe AdmuustratIve Central Office. Operating expenses are those expenses paid to acquire or produce the goods and services provided in return for the operating revenues, and to carry out the mission ofthe Admimstrative Central Office Nonoperatmg revenues are revenues received for winch goods and services are not provided, For

-3-

example state appropnatIons are nonoperatmg because they are provided by the Legislature to the Adrmrustranve Central Office WIthout the Legislature directly receiving commensurate goods and services for those revenues.

Statement of Revenues, Expenses and Changes 10 Net Assets, Condensed (thousands ofdollars)

Operating Revenues Operating Expenses

$ 211,857 376,383

OperatIng Loss

$-164,526

Nonoperatmg Revenues and Expenses

172,313

Increase In Net Assets

$ 7,787

Net Assets at Begmnmg of Year, as Ongmally Reported

$ 213,965

Cumulative Effect of Changes In Accountmg Pnnciple

-142.174

Net Assets at Beginnmg of Year-
Restated

$ 71.791

Net Assets at End of Year

$ 79578

The Statement of Revenues, Expenses and Changes In Net Assets reflects a positive year WIth an mcrease In the net assets at the end of the year. Some highhghts ofthe Information presented on the Statement of Revenues, Expenses and Changes 10 Net Assets are as follows:

-4-

Revenue By Source (thousands of dollars) For The Year Ended June 30, 2002
Operatmg Revenue Grants and Contracts Sales and Services of Educational Departments Other
Total Operating Revenue
Nonoperating Revenue State Appropnanons Grants and Contracts Investment Income Other
Total Nonoperatmg Revenue
Total Revenues
Expenses (thousands of dollars) For The Year Ended June 30, 2002
Operating Expenses Instruction Research Public Service Academic Support Student Services Institutional Support Plant Operations and Maintenance Scholarshtps and Fellowshtps Unallocated Depreciation
Total Operating Expenses
Nonoperatmg Expenses Interest Expense (Capital Assets)
Total Expenses

$ 1,065 70
210,722
$ 21 \,857
$ 162,699 8,372 652 785
$ 172.508
$ 384.365
$ 274 13
103,286 16,175 592
247,138 2
3,948 4,955 $ 376,383
194
$ 376.577

-5-

The compensation and employee benefits category Increased dunng 2002 The Increase reflects a pay raise for the employees of the Adrmmstranve Central Office of approximately four and a half percent WIth the associated fnnge benefits The Increase also reflects an Increased cost of health Insurance for the employees of the Admnustrauve Central Office
The cumulative effect of changes In accounting pnnciple are pnmarily the result of the Adrmmstranve Central Office adoptIng depreciation on capital assets and recogmtion of compensated absences
Statement ofCash Flows
The final statement presented by the Adrmmstranve Central Office IS the Statement of Cash Flows. The Statement of Cash Flows presents detailed mformanon about the cash activtty of the
Admnustratrve Central Office dunng the year. The statement is divided Into five parts The first part deals WIth operating cash flows and shows the net cash used by the operating acnviues of the
Adrmrustranve Central Office. The second section reflects cash flows from non-capital financing activtties This section reflects the cash received and spent for nonoperatIng, non-investmg, and noncapital financing purposes. The third section reflects the cash flows from mvestmg acnvines and
shows the purchases, proceeds, and mterest received from investing acnvmes. The fourth section
deals WIth cash flows from Capital and related financing acnvities This sectIon deals WIththe cash used for the acquisition and construction ofcapital and related items The fifth sectIon reconciles the net cash used to the operating income or loss reflected on the Statement ofRevenues, Expenses and Changes In Net Assets.
Cash Flows for the Year Ended June 30, 2002, Condensed (thousands of dollars)

Cash Provided (Used) By: Operating Acuvitres Non-Capital Fmancmg Actrvines Investing Actrvities Capital and Related Fmancmg Activities

$-163,474 142,224 11,769 -5,996

Net Change in Cash

$ -15,477

Cash, Beginnmg of Year

68.025

Cash, End of Year

$ 52.548

Capital Assets

The Adrmrustratrve Central Office had no sigmficant capital asset addmons for facihties In fiscal year 2002

For additional mformation concermng Capital Assets, see Notes I, 5, 7, and 8 In the notes to the financial statements.

-6-

Health Insurance

The Adrmrustratrve Central Office IS also the Fiscal Agent for the Employee Health Benefits Plan covenng participating employees of umts of the University System of Georgia The information regarding revenues and expenses for fiscal year 2002 are listed below 10 thousands of dollars

BegImI1Dg Net Assets July I, 2001

$ -2,103

Plus Revenues Fiscal Year 2002 Less Expenses Fiscal Year 2002

199,698 180,884

Ending Net Assets June 30, 2002

$ 16,711

Economic Outlook

The Adrmrustranve Central Office IS not aware ofany currently known facts, decision, or conditions that are expected to have a Significanteffect on the financial position or results ofoperations dunng this fiscal year.

The Admimstrative Central Office's overall financial position IS strong, Despite reductions in state appropriations funding this year, the Adrmmstratrve Central Office was able to generate a modest increase 10 net assets. A new program called the Georgia Leadership Institute begun 10 fiscal year 2002 IS expected to bnng 10 new grant funding this year. At the same lime, responsibilities for the fiscal management of the Gwmnett Uruversrty Center, a separate umt of the Umversity System of Georgia, have been transferred out ofthe AdrmmstratIve Central Office, Other acnvmes mcludmg the operations ofthe P-16 program, the ICAPP program and vanous informatIontechnology projects and programs are expected to expand in the current fiscal year.

Budget reductions uutiated m fiscal year 2002 will continue mto the next year, but should not cause any major change 10 operations. The Admimstranve Central Office Will remam Vigilant regarding resources 10 order to mamtam the office's ability to react and respond to unknown mternal and external factors

Wilham R. Bowes, Vice Chancellor for Fiscal AfTairslTreasurer The Board of Regents Adnumstrative Central Office

-7 -

BASICFINANCIAL STATEMENTS -9-

BOARp OF REGENTS OF THE UNI\IERSlTY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNm STATEMENT OF NET ASSETS
JUNE 30. 2002

EXHIBIT "A"

ASSETS
Current Assets Cash and Cash EquNalents Short-term Investments Accounts R9C8MIble State AppropnatlonS Federal FinanCIal AsSistance Other Prepaid Items
Tolal Current Assets
Noncurrent Assets Investments
Capital Assets, Net (See Note 5)
Total Noncurrent Assets
Total Assets
L1ABILmES
Current Uab~rtJes Payroll Wrthholdrngs Accounts Payable Benelits Payable Dafened Revenue Funds Held tor Others Capital Leases Compensated Absences
Total Current Uabliltles
Noncurrent Uabllltles Caprtel Leases Compensated Absences
Total Noncurrent LIabilities
Tolal lJablll\Jes
NET ASSETS
Invested In Capital Assets, Net of Related Debt Restncted for
Nonexpendable Expendable Unrestncted
Tolal Net Assets
The notes to the finanCIal statements are an Integral part of thIS statement 11

$ 52,548,011 70 150,069,426 33
110,999 00 1,234,800 80 1,300,529 26
5,37850
$ 205,269,14559

$

3,612,04320

15,287,699 68

$ 18,899,74268

$ 224,168,88847

$

20,108 26

2,261,858 61

29,277,958 31

319,399 98

109,231,60757

1,207,108 32

1,309,481 05

$ 143,627,522 10

$

378,81642

584,22673

$

963,04315

$ 144,590,565 25

$ 13,701,77494 3,612,04320
33,375,176 06 28,889,329 02
s 79,578,323 22

BOARR OF REGENTS OF THE UNI\IERSIIY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNm
STATEMENT OF REVENUES EXPENSES AND CHANGES IN NET ASSETS YEAR ENpER JUNE 30 2002

EXHIBIT"B"

OPERATING REVENUES
Grants and Contracts Federal Slate Nongovernmental
Sales and SeMces of Educabonal Departments Other Operatin9 Revenues
Total Operating Revenues
OPERATING EXPENSES
Salanes Stall
Employee Benefits Other Personal Services Travel Scholarships and Fellow8hlps
Ublftles Supplies and Other Sennces
Depreaabon
Total OpensUng Expenses
Operating Income (Loss)
NONOPERATING REVENUES !EXPENSES)
State Appropriations Grants and Contracts
Federal Slate Nongovernmental Interest and Other Investment Income Interest Expense (Caprtal Assets) Other Nonoperabn9 Revenues
Net Nonoperabng Revenues
InaeaseJ(Decrease) U1 Net Assets
Net Assets Net Assets - Beginning of Year, as OnglnaUyReported Cumulative Ellect of Changes In Accounbng PnncrpIe
Net Assets - BegInning of Year, Restated
Net Assets - End of Year
The notes to the financaal statements are an Integral part of this statement -12 -

$

82,71984

694,98242

287,29747

70,638 91

210,721 ,79778

$ 211 ,857,436 42

$

17,322,274 23

4,056,086 24

47,940 00

564,14118

3,947,533 51

24,937,4n 74

320,552,340 17

4,955,596 86

$ 376,383,389 93

$ -184,525,95351

$ 162,698,616 16

8,286,400 29 51,244 12 34,21396
651,708 84 -194,499 08 785,43646

S 172,313,12075

$

7,787,16724

$ 213,965,544 17 -142,174,38819

$

71,791,15598

$

79,578,323 22

BOARD OF REGENTS OF THE UNf\lERSITY SYSTEM OF GEORGIA ADMINISTRATNE CENTRAL OFFICE (OVERSIGHT UNITl STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2002

EXHIBIT"C"

CASH FLOWS FROM OPERATING ACTMTIES Grsnts end Contracts
Sales and ServiceS of Educabonal Departments Payments to Suppliers Payments to Employees
Payments for Scholarslups and Fellowships Other Receipts (Payments)
Net Cash Provuled (Used) by QperaIIng Ac:IMbes
CASH FLOWS FROM NONCAPITAb FINANCING ACTIVITIES S_ Appropnabons Agency Funds Trsnsacllons
Gifts and Grants Received torOther than Capital Purposes
Other NonoperatJng Recetpls
Net Cash Flows Provxled (Used) by Noncapltal F,nanang Ac:IMbes
CASH FLOWS FROM CAPITAL AND REbATED FINANCING ACTIVITIES Proceed. from Sale of Capltal Assets
Purchases of Capital Assets
Prtnapal P8Id on Capttal Debl and Lea.. Interest Paid on CapJtal Deb1and Leese
Net Cash ProVIded (Used) by Caprtaland Rela1ed Financing ActivtlIes
CASH FLOWS FROM INVESTING ACTIVITIES PurchaseJSale of 1nves1mel1ls (Net) lmerest on InYlllltrTwJnts
Net Cash ProvIded (Used) by Investing AdMbes
Net InQ'll8/l&l(Decrease) In Cesh
Cash and Cash Equrvalenls - June 30. 2001 bess Short-Term Investments
Cash and Cash EqUIValents - Beglnnlng of Year
Cash end Cash Equrvalents - End of Year

S

1,064,999 73

70,638 91

-354,162,287 14

-17,221,70188

-3,947,53351

210,721,79778

S -163,474,086 11

$ 162,587,617 16 -27,476,91632 8,964.945 34 148,44750
$ 142,224,09368

S

9,22925

-3.986,386 83

-1,824,820.28

-194,499 08

$

-5,996,47694

$

7,963,877 41

3,805,10296

$

11.768,980 37

$ -15,477.48900

$ 222,756,341 84 -154,730.84114

$

88,025,500 70

$ 52,548 ,11 70

RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Opera1Jng Income (boss) Adjustments to Reeonale Net Income (Loss) to Net Cash
Provided (Used) by Qpeiabllll Ac:IMbes DepreaatJon Change m Assets end liabilities Prepaid Items Accounts Payable Payroll Wrthholdlngs Benefits Payable Compensated Absences
Net Cash PrcMded (Used) by QperaIIng Aclrvfbes
The notes to the ftnanaal alalelilenls ere en 1n1egr81 part of thiS _
-13 -

$ -184,525,953 51
4,955,596 86 -5,37850
1,879,466 62 20,108.26
-5,901,180 19 103,254 35
$ -163,474,08611

BOARD OF REGENTS OF TIffi UNIVERSITY SYSTEM OF GEORGIA EXIllBIT "D" ADMINISlRATIVE CENTRAL OFFICE (OVERSIGHT UNID
NOTES TO TIlE FINANCIAL STATEMENTS JUNE 30. 2002
NOTE 1 SUMMARY OF SIGNmCANT ACCOUNTING POLICIES
NATURE OF OPERATIONS The Admuustranve Central Office of the Board of Regents of the Uruversity System of Georgia IS the "Oversight Unit" of the Board of Regents and performs adnumstratIve functions and provides guidance to the thirty-four (34) State colleges and umversitres and SkJdaway Institute of Oceanography winch are orgamzanonal umts of the Board of Regents of the Umversity System of Georgia.
REPORTING ENTITY The Board of Regents of the University System of Georgia, an orgaruzational unit of the State of Georgia, was created by the "Reorgamzanon Act of 1931". As of June 30, 2002, the Board of Regents ofthe Umversity System of'Georgia was composed 0f34lDStItutions (4 research university level, 2 regional university level, 13 state umversmes, 2 state colleges and 13 two-year colleges), Skidaway InstItute ofOceanography and an admmistranve central office, which is the oversight unit, responsible for implementanon ofBoard pohcies and admimstrative support. The BoardofRegents IS composed of sixteen members appomted by the Governor and confirmed by the Senate. The Chancellor IS appointed by the Board ofRegents as chiefexecutive officer and serves at the pleasure ofthe Board
The Board of Regents has constitutional authority to govern, control and manage the Universrty System ofGeorgia This authonty mcludes but IS not hmited to the power to designate management,
the ability to significantly influence operations, the authonty to control institutions' budgets, the power to determmeallotments ofState fimds to member insntunons and the authority to prescribe
accountmg systems and admirustratrve policies for member msntutions. The Board ofRegents does
not have authonty to retain unexpended State appropriations (surplus) for any given fiscal year.
Accordmgly, the Board ofRegents IS considered an organizational unit of the Board ofRegents of
the Umversity System of Georgia reporting entity for financial reporting purposes because of the
significance ofIts legal, operational, and financial relationships WIththe Board ofRegents as defined in Section 2100 of the Governmental Accounnng Standards Board (GASB) CodificatIon of Governmental Accountmg and FinanCial ReportIng Standards.
FINANCIAL STATEMENT PRESENTATION In June 1999, the GASB ISSUed Statement No. 34, Baste Fmanctal Statements and Management DISCUSSIOn and Analystsfor State and Local Governments This was followed m November 1999 by GASB Statement No. 35, Baste Financtal Statements and Management's DISCUSSion and Analysts for Public Colleges and Umverstues The State of Georgia IS required to implement GASB Statement No. 34 as of and for the year ended June 30, 2002. As an orgarnzational unit ofthe State of'Georgia, the Admimstrative Central Office IS also reqwred to adopt GASB Statements No. 34 and No. 35 as amended by GASB Statements No. 37 and No. 38 The financial statement presentation
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BOARD OF REGENTS OF THE UNNERSTIY SYSTEM OF GEORGIA EXHIBIT ''D"
ADMINISTRAINE CENTRAL OFFICE (OVERSIGHT UNID
NOTES TO mE FINANCIAL STATEMENTS
JUNE 30, 2002
NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FlNANCIAL 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 ofthe Admmistrauve Central Office's assets, habrhties, net assets, revenues, expenses, changes In net assets, cash flows, and replaces the fund group perspective previously required.
The Adrmnrstrative Central Office has elected to not restate Its 200 I financial statements to conform WIth the new financial statement presentation, therefore comparative financial information will not be presented for fiscal year 2002 Significant accounting changes made In order to comply WIththe new requirements Include (I) adoption of depreciation on Capital assets; and (2) recogmtron of compensated absences.
BASIS OF ACCOUNTING For financial reporting purposes, the Adrmrustranve Central Office ISconsidered a special-purpose government engaged only in business-type acnvines, Accordingly, the Admmrstrative Central Office's financial statements have been presented using the econorrnc resources measurement focus and the accrual basis ofaccountmg, except as noted In the preceding paragraphs. Under the accrual basis, revenues are recogmzed when earned, and expenses are recorded when an obhganon has been incurred. All Significant mtra-Adrmmstratrve Central Office transactions have been elumnated
The Adrmmstranve Central Office has the option to apply all Financial Accountmg Standards Board (FASB) pronouncements issued after November 3D, 1989, unless FASB conflicts WIthGASB The Admimstranve Central Office has elected to not apply FASB pronouncements ISSUed after the apphcable date.
RESTATEMENT OF NET ASSETS - BEGINNING OF YEAR As a result of the adoption ofGASB Statement No 34, the Admimstranve Central Office was also required to make certam changes In accounting pnnciples, specifically (I) adoption of depreciation on capital assets, and (2) recording of compensated absences. Net assets at July I, 2001 were reduced by $142,174,388 19 for the cumulative effect of these changes.
CASH AND CASH EQUIVALENTS/SHORT-TERM INVESTMENTS Cash and Cash Equivalents consist of petty cash, demand deposrts and time depostts In authonzed financial mstituuons, and cash management pools that have the general characteristics of demand deposit accounts.
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BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA EXHIBIT "0"
ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT>
NOTES TO WE FINANCIAL STATEMENTS
JUNE 30. 2002
NOTE I' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS The Admimstrative Central Office accounts for Its investments at fair value in accordance WIth GASB Statement No. 31, Accountmg and Ftnancial Reporttng for Certatn Investments and for External Investment Pools. Changes in unrealized gain (loss) on the carrying value ofmvestments are reported as a component of investment mcome m the statements of revenues, expenses, and changes m net assets.
Investments in the vanous investment pools mamtained bythe AdmimstratIve CentralOfficeCOnsist, m part, ofrepurchase agreementsand certam U. S. GovernmentSecuritieswinch mclude mortgagebacked secunties such as collateralizedmortgageobhganons and adjustable rate mortgages. These mortgage-backed securities are reported as U. S. Government Secunttes m the disclosure note of custodial credit nsk. (See Note 2 on CategorizationofInvestments) Investments m the mvestment pools are transacted by an external investment firm under direction of an investment advisory agreement executed between the Adrmmstrattve Central Office and the mvestment management finn As ofJune 30, 2002, the AdmimstrattveCentral Office had $31,073,552.25 mvested 10 U. S. Agency mortgage-backed securities.
ACCOUNTS RECEIVABLE Accounts receivable consist of allotments due from the Office of Treasury and FIscal SeTVICes, Federal, State and other receivables disclosed from information available.
INVENTORIES No inventones of supphes are reported in these financial statements Expendable supphes are recorded as expenditures at the time of purchase.
NON-CURRENT INVESTMENTS Investments that are externa1ly restrictedand cannot be used to paycurrenthabihtiesare classifiedas non-eurrent assets 10 the statements of net assets
CAPITAL ASSETS Capital assets are recorded at cost at the date of acquismon, or fair market value at the date of donation m the case of gifts, For equipment, the AdministratIve Central Office's capitalization pohcy mcludes all items WIth a unit cost of$5,OOO.OO or more, and an estnnatedusefulhfe ofgreater than one year. Renovations to buildings, mfrastructure, and land Improvements that exceed $100,000.00 and significantly increase the value or extend the useful hfe of the structure are
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BOARDOF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA EXHIBIT"D"
ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNfD NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 2002
NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL ASSETS capitalized. Routine repairs and maintenance are charged to operatmg expense m the year m wluch the expense was incurred. Depreciation IS computed using the straight-hue method over the estimated useful lrves of the assets, generally 40 to 60 years for buildings, 20 to 25 years for infrastructure and land Improvements, 10 years for library books, and 3 to 7 years for equipment.
To obtain the total picture of plant additions in the Umversity System, It IS necessary to look at the activmes ofthe Georgia State Fmancing and InvestmentCOmrDlSSIOn (GSFIC)- an orgamzanon that IS external to the System. GSFIC issues bonds for and on behalf ofthe State of'Georgia, pursuant to powers granted to It in the Consntution ofthe State ofGeorgia and the Act creatmg the GSFIC. The bonds so ISSUed constitute direct and general obligations of the State ofGeorgia, to the payment of wluch the fun faith, credit and taxmg power of the State are pledged.
Effective July I, 200I, the GSFIC retains construction in progress on their books throughout the construction penod and transfers the entire project to the AdImmstrative Central Office when complete.
DEFERRED REVENUES Deferred revenues mclude amounts received from grant and contract sponsorsthat have not yet been earned.
COMPENSATED ABSENCES Employee vacation pay 15 accrued at year-end for financial statement purposes. The liability and expense incurred 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 in Net Assets The Admmistratlve Central Office had accrued hability for compensated absences in the amount of$I,790,453.43 as ofJuly I, 2001. For FIScal Year 2002, $1,412,735.40 was earned in compensated absences and employees were paid $1,309,481.05, for a net mcrease of$103,254.35.
NON-CURRENT LIABILITIES Non-eurrent liabihues include (I) habihties that will not be paid withm the next fiscal year; (2) capital lease obligations with contractual maturities greater than one year, and (3) other habihtres that, although payable withm one year, are to be paid from funds that are classified as non-eurrent assets.
NET ASSETS The Adrmrustrative Central Office's net assets are classified as follows
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BOARD OF REGENTS OF 1lfE UNIVERSITY SYSTEM OF GEORGIA EXHIBIT ''0''
ADMINISTRATIVE CENTRAL OFFICE (OVERSIGlIT UNIT)
NOTES TO TIlE FINANCIAL STATEMENTS
JUNE 30. 2002
NOTE I' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NET ASSETS Invested In capital assets, net ofrelated debt This represents the Admuustranve Central Office's
total Investment In capital assets, net of outstanding debt obhgations related to those capital assets To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of Invested In capital assets, net of related debt.
Restncted net assets - nonexpendable Nonexpendable restncted net assets COnsISt of endowment and sumlar type funds In which donors or other outside sources have stipulated, as a condition ofthe gift instrument, that the pnncipal rs to be mamtamed inviolate and m perpetuity, and mvested for the purpose of producmg present and future Income, wluch may either be expended or added to pnncipal. The Administrative Central Office may accumulate as much ofthe annual net mcome of an mstJtutlonal fund as is prudent under the standard established by Code Section 44-15-7 of Annotated Code of'Georgia,
Restncted net assets - expendable. Restncted expendable net assets include resources In which the AdminIstrative Central Office IS legally or contractually obligated to spend resources in accordance WIth restrictions Imposed by external third parties.
Unrestricted net assets: Unrestricted net assets represent resources denved from stale appropnatJons and sales and services ofeducatJonal departments. These resources are used for transaelJons relatmg to the educational and general operatJons of the Adrrumstranve Central Office, and may be used at the discretion of the governmg board to meet current expenses for those purposes, except for unexpended state appropriatJons (surplus) of$242,059.85.
When an expense is incurred that can be paid USIng either restncted or unrestncted resources, the AdmmislratJve Central Office's pohcy IS to first apply the expense towards unrestncted resources, and then towards restncted resources.
INCOME TAXES
The Admimstranve Central Office, as a polmcal SUbdIVISion of the State of Georgia, IS excluded
from Federal mcome taxes under Section 115(1) of the Internal Revenue Code, as amended
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BOARD OF REGENTS OF TIlE UNIVERSTIY SYSTEM OF GEORGIA EXHIBIT "D" ADMINISTRATIVE CENfRAL OFFICE (OVERSIGHTUNfD
NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 2002
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CLASSIFICATION OF REVENUES The Adrmmstratrve Central office has classified Its revenues as either operating or non-operatIng revenues in the Statement of Revenues, Expenses, and Changes m Net Assets according to the following cntena
Operaung revenues' OperatIng revenues mclude activities that have the characteristics ofexchange transactIons, such as (1) sales and services of EducatIonal Departments and (2) Federal, state and local grants and contracts.
Non-operattng revenues. Non-operanng revenues include activines that have the characteristics of
non-exchange transactions, such as gifts and contributions, and other revenue sources that are defined as non-operating revenues by GASB No.9, Reporting Cash Flows of Proprietary and Nonexpendable TrustFunds and Governmental Entuies That UsePropnetary FundAccounttng,and
GASB No 34, such as state appropnanons and investment income.
NOTE 2' CASH AND CASH EOUIVALENTS; OTHER DEPOSITS; AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State of Georgia (and thus the Adrmmstranve Central Office) cannot be placed m a depository paymg mterest 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 anyone or more of the following secunnes as enumerated in the Official Code ofGeorgia Annotated Section 50-1759:
1. Bonds, bill, certificates of'indebtedness, notes, or other direct obliganons ofthe United States or of the State of Georgia,
2. Bonds, bills, certificates of indebtedness, notes, or other obhganons of the counties or mumctpalines of the State of Georgia
3 Bonds of any public authonty created by the laws of the State of Georgia, providing that the statute that created the authonty authonzed the use of the bonds for thrs purpose.
4 Industnal revenue bonds and bonds of development authontJes created by the laws of the State of Georgia
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BOARD OF REGENTS OF TIlE UNNERSITY SYSTEM OF GEORGIA EXHIBIT "D" ADMlNISJRATIVE CENIRAL OFFICE (OVERSIGHT UNf[) NOTES TO TIIE FINANCIALSTATEMENJS JUNE 30. 2002

NOTE 2: CASH AND CASH EOUIVALENTSj OTHER DEPOSITS, AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES 5. Bonds, bills, certificates of indebtedness, notes, or other obhgations of a subsidiary corporation ofthe Umted States govermnent, which are fullyguaranteed by the Umted States government both as to pnncipal and interest, or debt obhgations ISSUed by the Federal Land Bank, the Federal Home Loan Bank, The FederalIntermediate CreditBank, the CentralBank for Cooperatives, the Farm Credit Banks, the FederalHome Loan MortgageAssociation,and the Federal National Mortgage Association.

6 Guarantee or Insuranceofaccounts provided by the Federal Deposit Insurance Corporation

As authonzed In the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (and thus the Admnustranve Central Office), the option of exempting demand deposits from the collateral requirements

The Treasurer ofthe Board ofRegents is responsible for all details relativeto furmshing the required depository protection for all units of the Umversity System of Georgia,

CATEGORIZATION OF DEPOSITS The Admmistrative Central Office's cash deposits are categonzed by risk as follows.

Category I Amounts covered by depository Insurance or collaterahzed with secunnes (at fair value) held by the AdrmmstrativeCentral Office or by Its agent m the Adrmmstranve Central Office's name.

Category 2 - Amounts collateralized WIth securities (at fair value) held by the pledging financial institution's trust department or agent In the Admimstrative Central Office's name

Category 3 - Amounts collateralized With securities (at fair value) held by the pledging financial institution, or by Its trust department or agent but not in the Adrmrustranve Central Office's name, and amounts uncollaterahzed.

Cash Deposits as of June 30, 2002 arc as follows:

Cash Deposns Investment Portfolio
AccolUlts
Total Cash Deposits

Carrymg
Amount

Bank
Balances

Risk CategQDes

2

3

S52,S48,0I1 70 S54,494,57667

S

000 S54.494,57667

31,718767 SO 31718.767 SO S3! 718 767,SO
SM 266 V9 20 $86 213 344 J7 $31 718 767 SO s_ _..:0loloo.r:./ SS4 424 '76 67

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BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA EXHIBIT "0"
ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2002

NOTE 2 CASH AND CASH EOUIVALENTS; OTHER DEPOSITS, AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS The Admimstranve Central Office's investments are categorized as to credit nsk withm the three
categones descnbed below'

Category 1 - Insured or registered, or secunnes held by the Adrrnmstrauve Central Office or Its agent in the Admimstratrve Central Office's name.

Category 2 - Uninsured and unregistered, WIth secunnes held by the counter party's trust department or agent in the Admnnstranve Central Office's name,

Category 3 - Uninsured and unregistered, With securities held by the counter party, or by Its trust department or agent, but not In the Admmistratrve Central Office's name.

The carrying amounts of mvestment balances as of June 30, 2002, COnsisted solely of an external mvestment pool. (See Note 3) The following is a nsk categonzanon of the pooled mvestments of the Admmistranve Central Office's "mixed" external mvestment pool, as of June 30, 2002:

Typeof Investments
Common Stock Corporate Bond. Repurchase AgtCCiiLtlts U S Government Secunnes
Total Investments

RIsk Categones 2

$

000 $ 54,909,126 38 $

16,99O,80S 22

80,00000

49982 V043

$._ _.....l0lo0ll0ll $121962702 Q3 $

Carrying

3

Amount

000 $ S4,909,12638 16,99O,8OS 22 80,00000 49.982 770 43

900 $121962792 Q3

NOTE 3: EXTERNAL INVESTMENT POOL

The Admmistranve Central Office serves as fiscal agent for various umts ofthe University System of Georgia and cooperative orgaruzations, The Admmistranve Central Office pools the momes ofthese orgamzauons WIth the Admmistranve Central Office's momes for Investment purposes, The Admirustrative Central Office cannot allocate pool investments between the mternal (Umversity System) and external (cooperative orgaruzations) investment pool porIJons. The Investment pool IS not registered WIththe SEC as an mvestment company. The fauvalue ofmvestments ISdetermmed daily. The pool does not ISSUe shares, Each participant IS allocated a pro rata share of each mvestment at fair value along WItha pro rata share ofthe mterest that it earns, Condensed financial information for the mvestment pool follows

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BOARD OF REGENTS OF THE UNIVERSTIY SYSTEM OF GEORGIA EXHIBIT "D" ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNID
NOTES TO TIlE flNANCiAL STATEMENTS
JUNE 30. 2002

NOTE 3: EXTERNAL INVESTMENT POOL

Statement of Net Assets - June 30, 2002

Assets
Cash
Investments
Interest Receivable

s 3,490,065 7I
121,962,702.03
811,728.71

$126,264,49645

Net Assets Held In Trust for Pool PartIcIpants

Internal Portion External Portion

$ 17,277,976.65 108,986.519.80

$126,264,496 45

Statement of Changes In Net Assets - Year Ended June 30, 2002

Revenues
Interest Income Net Increase (Decrease) in Fair Value of Investments
Total Revenues

s 5,153,962.08
-6.302,596 76
s -1,148,63468

Expenses

Operatmg Expenses Admimstranve Expenses
Net Increase (Decrease) in Assets Resulting from Operations

466.27648
s -1,614,911.16

Distribution to Parncipants Capital Transactions
Total Increase (Decrease) m Net Assets

-42,944,485 13 16,093,051 60
s -28,466,344.69

Net Assets July 1,2001

154,730,841 14

Net Assets June 30, 2002

$126,264,496 45

NOTE 4 ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following at June 30, 2002'

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BOARD OF REGENTS OF 1HE UNIVERSITY SYSTEM OF GEORGIA EXlllBIT "D" ADMINISIRAINE CENTRAL OFFICE (OVERSIGHT UNfD
NOTES TO TIlE FINANCIAL STATEMENIS JUNE 30. 2002

NOTE 4 ACCOUNTS RECEIVABLE

State Appropnations Federal Funds Other

$ 110,999.00 1,234,800.80 1.300,529.26
$ 2,646.329 06

NOTE 5. CAPITAL ASSETS

The balance at July 1,2001 was adjusted for accountIng changes required In unplementIng GASB Statements 34 and 35 as disclosed In Note I. Following are the changes In capital assets for the year ended June 30,2002

Adjusted
Balance July 1 2001

AddlUons

Reductions

Balance June 30. 2002

Capital Assets, Not Being Depeeciated

Land and Land Improvements

S 2,50l,g77 00

Capitaltzed Collecnons

0,00 S

10.()QQ,00

S 2,S0l,g77 00 IO.()QQ 00

Total CapItal Assets Not Being Deprecrated

S 2501.8nOO S 1000000

S 2.511.877 00

CapIlBI Assets, Betng Deprcclllled
Eqwpment Capttal Leases

S 19,764,05676 S 3,976,386 g3 S 1,754,960 86 S 21,985,48273

5,241 896,16

5.241,896 16

S 2S 005.952,92 S 3 976386 83 s I 754 960 86 S 27,227.378 89

Less AccumulatedDeprcctBlton Bqurpment Capttal Leases

s 9,400,56609 S 3,906,42995 S 1,499,28528 S 11,807,71076

1,594.678.54 1,049,16691

2,643,84545

S 10.295244,63 S 4.95s,s96 86 S 1.499,285,28 S 1445LS56,21

Total CapItal Assets, Bemg Deprccuttcd,

Net

s 1401070829 S

Capttal Asseta.Net

s S 1651258529

979210,03 s
~9692JQQ3 S

235,67558 S 12 TIS.822 68
s 7556"58 1528762968

NOTE 6 DEFERRED REVENUE

Deferred revenue consisted of the following at June 30, 2002

Other Deferred Revenue

$ 319.399 ,98

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BOARD OF REGENTS OF TIlE UNIVERSITY SYSTEM OF GEORGIA EXHIBIT "D"
ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHTUNIT)
NOTES TO THE FINANCIALSTATEMENIS
JUNE 30, 2002

NOTE 7' LONG-TERM LIABlllTIES

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

Balance July 1.2001

Add!Uns

Reductions

Balance June 30 2002

Current
Portion

Leases
Lease Obhganons

S 3,4 10,74S 02 S

000 S 1,824,820 28 S 1,58S,924 74 S 1,207,10832

Other Liabthnes
Compensated Ab5enceo
Total Long-Term Obhgahons

1 790 4S3 43
S S 201 1284S

1.412 73S 4Q
S 1412 735 49

),309.481 OS
S } 1}4 3Q) 3}

1893,70778
S } 412 3152

I 309.481 OS
S 25165893]

NOTE 8 LEASE OBLIGATIONS

CAPITAL LEASES Capital leases are generallypayablein installmentsrangmgfrommonthlyto annuallyand have terms expinng m various years between2003 and 2004. Expensesfor fiscal year2002 were $2,019,409.36 ofwluch $194,589.08 representedInterest Total pnncipal paid on capital leaseswas $1,824,820.28 for the fiscal year ended June 30, 2002, Interest rates range from 6.55 percent to 7.73 percent The following IS a summary of the carryingvalues of assets held under capital lease at June 30, 2002:

Equipment

$ 2,598,050,7]

Certain capital leases provide for renewal andlor purchase options. Generallypurchase options at bargain pnces ofone dollar are exercisable at the expiration of the lease terms

OPERATING LEASES The Admimstranve Central Office has entered into an agreement to lease real property which IS classified as an operatmg lease (leases on assets not recorded on the balance sheet). This lease contains provisions that, at the expiratrondate of the ongmal term of the lease, the Admnnstranve Central Office has the option ofrenewing the leaseon a year-to-year basis Future mmimum lease payments for the operating lease as ofJune 30, 2002, IS listed below. Amounts are Included only for the cancellable lease for which an option to renew for the subsequentfiscal year has been exercised,

Fiscal Year EndIng June 30
2003

s 436.740.00

24 -

BOARD OF REGENTS OF TIlE UNNERSITY SYSTEM OF GEORGIA EXHIBIT "D" ADMINISTRATIVE CENffiAL OFFICE (OVERSIGHT UNIT)
NOTES TO TIlE FINANCIAL STATEMENTS
JUNE 30, 2002

NOTE 8' LEASE OBLIGATIONS

OPERATING LEASES Expenses for agreements to lease real property under operating leases for the year ended June 30, 2002, totaled $436,740 00.

SUMMARY OF LEASE OBLIGATION Future comnntments for capital leases (which here and on the Statement ofNet Assets Include other Installment purchase agreements) havmg remairung terms In excess ofone year as ofJune 30, 2002, were as follows:

Year Ending June 30: 2003 2004

$ 1,281,19008 385.659.53

Total Minimum Lease Payments

$ 1,666,849.61

Less Interest

80.924.87

Principal Outstanding

$ 1.585,924.74

NOTE 9' RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description The Adrmmstrative Central Office participates In the Teachers Retirement System ofGeorgia (TRS), a cost-shanng multIple-employer defined benefit pension plan establIshed by the General Assembly of Georgia for the purpose ofprovidmg retirement allowances and other benefits for teachers ofthe State of Georgia. TRS provides service retirement, disabihty retirement, and surVIVOr'S benefits for its members in accordance With State statute, The Teachers RetIrement System of Georgia ISSUes a separate stand alone financial audit report and a copy can be obtained from the GeorgiaDepartment of Audits and Accounts

Funding Policy Employees of the Admirustranve Central Office who are covered by TRS are required by State statute to contribute 5% of their gross earnmgs to TRS The Adrmmstrauve Central Office makes monthly employer contnbutions to TRS at rates adopted by the TRS Board ofTrustees In accordance With State statute and as advised by their independent actuary. For fiscal year 2002, the employer contnbutIon rate was 9,24% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows'

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BOARDOF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA EXHIBIT "D" ADMINISIRATIVE CENTRAL OFFICE (OVERSIGHT UNID
NOTES TO TIlE FINANCIAL STATEMENTS
JUNE 30. 2002

NOTE 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Funding Policy

FIscal Year

Percentage Contributed

Required
ContributIon

2002 2001 2000

100%
100010
100%

$ 1,303,166.33 $ 1,388,030.80 $ 1,264,146.38

REGENTS RETIREMENT PLAN

Plan Description
The Regents Retirement Plan, a smgle-employer defined contribution plan, IS an optIonal retirement plan established and adrrumstered by the Board of Regents of the University System of Georgia, under which It may purchase annuity contracts for the purpose ofprovidmg retirement and death benefits for ehgible faculty and pnncipal admimsttators. Benefits depend solely on amounts contributed to the plan plus investment earmngs. Benefits are payable to participatmg employees or their beneficiaries in accordance with the terms ofthe annuity contracts.

funding Policy
Member contnbutIon reqwrernents are establIshed by the Board of Trustees of the Teachers Retirement System. Employer contnbutions are established by statute and may be amended only by
the General Assembly ofthe State ofGeorgia. The employer contributes 9.62% ofthe parncipatmg
employee's earnable compensatIon. Employees contribute 5% of their earnable compensation Amounts attnbutable to all plan contributions are fully vested and non-forfeitable at all times

The Admmistranve Central Office and the covered employees made the required contribunons of $204,894.20 (9 62%) and $106,493 26 (5%), respectively.

GEORGIA DEFINED CONTRIBUTION PLAN

Plan Description The Administrative Central Office participates in the Georgia Defined ContributIon Plan (GDCP) wluch is a smgle-employer defined contnbutIon plan establIshed by the General Assembly of
Georgia for the purpose ofprovidmg retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system GDCP IS adrrumstered by the Board of Trustees of the Employees' Retirement System of Georgia,

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BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA EXHffiIT "D"
ADMINISTRATIVE CENTRAL OFFICE(OVERSIGHT UNIT) NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2002
NOTE 9 RETIREMENT PLANS
GEORGIA DEFlNED CONTRIBUTION PLAN
Benefits A member may retire and elect to receive penodic payments after attamment ofage 65. The payment WIllbe based upon mortality tables and interest assumptIons to be adopted by the Board ofTrustees Ifa member has less than $ 3,500,00 credited to hislher account, the Board ofTrustees has the option of requmng a lump sum distribunon to the member m heu ofmalang penodic payments Upon the death of a member, a lump sum distribution equaling the amount credIted to luslher account will be paid to the member's designated beneficiary, Benefit provisions are established by State statute
Contribntions and Vesting Member contnbutrons are seven and one-halfpercent (7,5%) ofgross salary. There are no employer contnbutions. Contribution rates are established by State statute Eammgs are credited to each
member's account m a manner established by the Board of Trustees, Upon rermmation of
employment, the amount of the member's account IS refundable upon request by the member
Total contnbutions made by employees dunng fiscal year 2002 amounted to $11,885,86 wluch represents 7.5% of covered payroll, These contnbutions met the requirements of the plan
NOTE 10' RISK MANAGEMENT
The Board of Regents of the University System of Georgia maintains a self-Insured program of health and dental benefits for its employees and retirees. Tlus plan IS funded jointly through
prennums paid by participants covered under the plan and employer contributionspaidby the Board
ofRegents and its orgarnzational umts. All umts ofthe Umversity System ofGeorgia share the nsk ofloss for claims ofthe Employee Health Benefits Plan. Participants are covered up to a maximum
lifetime benefit of $2,000,000.00 per person and dental coverage up to an armual maximum of
$1,000.00 per person,
The Board ofRegents has contracted WIthBlue Cross - Blue Slueld to process all medical and dental claims m accordance WIth medical coverage guidelines as established by the Board of Regents All clarms submitted by program participants are remitted directly to Blue Cross - Blue Shield from the vanous orgaruzational units for venficanon of coverage, processing, and payment through a bank account mamtamed for tlus purpose by Blue Cross - Blue Shield. Blue Cross - Blue Slueld maintams an eligibility file based on Information furnished by the vanous organizational units ofthe Umversity System ofGeorgia
Express Scnpts IS the adrmmstrator ofthe Board ofRegents' prescnptIon drug plan Pharmacy drug claims WIll be processed in accordance with guidelines established for the Board of Regents' PrescnptIon Drug Benefit Program. Generally, claims are submitted by parncipatmg pharmacies
- 27-

BOARD OF REGENTS OF THE UNNERSI1Y SYSTEM OF GEORGIA EXHIBIT "D"
ADMINISIRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) NOTES TO THE FlNANQAL STATEMENTS
JUNE 30. 2002

NOTE 10: RISK MANAGEMENT

directly to Express Scnpts for venficanon, processing and payment. Express Scnpts mamtams an ehgibihty file based on Information furnished by Blue Cross - Blue Slueld on behalf of the vanous orgamzauonal units of the University System of Georgia,

A reconcihation oftotal estimated claims habihtres for the fiscal year ended June 30, 2002, IS shown
below:

Unpaid Claims and Claim Adjustments July 1,2001

$ 35,179,138.50

Incurred Claims and Claim Adjustments Expenses - ProVISIOns for Insured Events of the Current Year

170,457,217.98

Payments - Claims and Claim Adjustments Attnbutable to Insured Events of the Current Year and of Prior Years

176,358.398.17

Unpaid Claims and Claim Adjustments June 30, 2002

$ 29277,958,31

The Department of AdnumstratIve Services (DOAS) has the responsibility for the State of Georgia ofmakmg and carrying out decisions ihat Willmmimize the adverse effects of accidental losses that Involve State government assets. The State believes It IS more econonucal to manage its nsks Internally and set aside assets for claim settlement. Accordmgly, DOAS processes claims for nsk of loss to wluch the State IS exposed, Including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemmficatron. Limited amounts of commercial msurance are purchased applicable to property, employee and automobile habihty, fidelity and certain other risks. The Adnumstrative Central Office, as an orgamzanonal umt ofthe Board ofRegents of the University System of Georgia, IS part ofthe State of Georgia reportmg entity, and as such, IS covered by the State of Georgia nsk management program adnumstered by DOAS Premiums for the nsk management program are charged to the vanous state orgamzauons by DOAS to provide claims servicing and c1auns payment

A self-insured program of professional habihty for its employees was established by the Board of Regents of the Uruversity 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 they are not Immune from habihty against personal habihty for damages ansing out of the performance of their duties or In any way connected therewith, The program IS admimstered by DOAS as a SelfInsurance Fund.

28 -

BOARD OF REGENTS OF TIlE UNIVERSITY SYSTEM OF GEORGIA EXHffiIT "D" ADMINISlRA11VE CENTRAL OFFICE(OVERSIGHT UNIT> NOTES TO TIlE FINANCIAL STATEMENIS JUNE 30, 2002
NOTE II CONTINGENCIES
Amounts received or receivable from grantor agenciesare subject to audit and adjustmentby grantor agencies This could result In refunds to the grantor agency for any expenditures 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 ofRegents expects such amounts.rf'any, to be irnmatenal to Its overall financial position,
Litiganon, claims and assessments filed against the Adrmmstranve CentralOffice(an orgarnzanonal unit ofthe Board ofRegents ofthe UruversitySystemofGeorgia), if'any,are generallyconsideredto be actions against the State ofGeorgia. Accordingly,signrficant htigation, claims and assessments pending against the State of Georgia are disclosed In the State of Georgia Comprehensive Annual Fmancial Report for the fiscal year ended June 30, 2002.
NOTE 12' POST-EMPLOYMENT BENEmS OTHER THAN PENSION BENEmS
Pursuant to the general powers conferred by the Official Code ofGeorgia Annotated Section 20-331, the Board of Regents of the University SystemofGeorgia has established group health and life Insurance programs for regular employeesofthe UmversitySystemofGeorgia, It IS the policy ofthe Board ofRegents to permit employeesofthe University System ofGeorgia ehgible for retirementor that become permanently and totally disabled to continue as members of the group health and hfe Insurance programs. Employees who are eligible for retIrement or disabihty under the cntena established by the Teachers Retirement System ofGeorgia and who have at least ten yearsofservice with the University System of Georgia are ehgible for these post-employment health and hfe Insurance benefits. Orgaruzational umts of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected mdividuals
As ofJune 30, 2002, there were 62 employees who had retired or were disabled that were receiving these post-employment health and hfe Insurance benefits. For the year ended June 30, 2002, the AdnnrustratIve Central Office recogruzed as incurred $166,226.10 of expenses, wluch was net of $70,343.87 of parncipant contributions
29 -

BOARD OF REGENTS OF TIlE UNIVERSITY SYSTEM OF GEORGIA EXHIBIT "D"
ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
NOTES TO TIlE FINANCIAL STATEMENTS
ruNE 30, 2002

NOTE 13: NATURAL CLASSIFICATIONS WITH FUNCTIONAL CLASSIFICATIONS

The Adrmmstratrve Central Office's operating expenses by functional classificanon are shown below'

SIateIll<I11 of'Operatmg Expenses NatunII VI FunClUJna! C\asslflCllbonS For the FISCal Year EndedJune 30. 2002

FunctlmIJ ClI;mficangn

NIturBJ C!wJflClbon

Imquctron

RCK'TJ1'

Public
Serucr

Acldenuc
S"PPmt

SlUdcnt Semces

SaJanes Staff
Employee Benefits Other Pmonal ServIces Travel Scho!ar>Jnps end
Fellows1ups Unhnes Supplle. end Other
SCMCCS Dcpr=atton
Total OpcnIbll8 Expcmcs

S 73,506 39 S 14,S70SI
2,094 33

9,44444 S 1,172.99062 S

722 S{)

272,256 42

4S,7S3 S8

942,S2S.20 S 2OS,9OS 9S
46,82034

163,97820 28,940.26
14,38744

60113 183,384 12

2,61600

19,939.8S2 43 81,8S4,94078

27,083 91 14,949.62623

2,236.28 382,786 37

S 274 '9 S 12782 ?4 $103 28' 723 83 S 16,17426163 S 522]28 ,~

NaMiI ClM!uflCibOD
SaJanes Staff
~Ioyee 1Ienenf s
Other PcnooaI ServIces Travel Scholanh'P" end
Fellawslups
uuuees
Suppliesend Other Scrv1CC5
Dcpm:llbOn
TOOII Operatmg Expcmcs

InstttuDOlla1
SurM'!

FWCttgn.ll C1us,fgbm

Plant

0pcnIb0nS end Scho1RRlups

Unallocated

Mamtenonce and EeIlgwltum [)gzrccllbon

TOOII 0peratm8
Fmrmn

S 14,9S9,829 38 30530.690 60 47.940 00 4SS.08S 49
4,967,70399
223,176,79167 S
$247 JJ8 94 1 IJ S

S 17,322,274.23 4,OS6,086.24 47,940 00
.564,141 18

S 3,947,S33's1

3,9470533 SI 24,937,477 74

2,19S00
212500

S 394' '3] 51

S 4.9SS S96 86
2M S 4 596 'Hi

32O,SS2,340 17 49'5,596 86
5376 383382 93

NOTE 14 SIGNIFICANT TRANSACTIONS

ALBANY STATE UNIVERSITY The construction project for extensive flood damage at Albany State Universitywas completed as of June 30, 2002 Total expenditures of$136,146,313 27, which, In past years, had been recorded as Construction In Progress at the Adrmmstratrve Central Office of the Board of Regents of the University System of Georgia, were transferred to Albany State Umversity to be recorded In the Umverstry's Capital Assets

- 30-

BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA EXHIBIT "0" ADMINISTRATNE CENTRAL OFFICE (OVERSIGHT UNIT> NOTES TO THF FINANCIAL STATEMENTS JUNE 30, 2002
NOTE 15 SUBSEOUENT EVENT On September 26,2002, the Adrmrustranve Central Office of the Board ofRegents ofthe University System of Georgia reimbursed the Georgia Emergency Management Agency $4,429,37 I 70 for the excess of Federal and State flood recovery funds received for repairs and restorations made to Albany State Uruversrty's campus resulting from flood damage caused by tropical storm Alberto
- 3I -

SupPLEMENTARY INFORMATION - 33

BOARDOF REGENTS OF THE UNiVERSITY SYSTEM OF GEORGIA ADMINISTRATiVE CENTRALOFFICE (OVERSIGHT UNm
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET- (N0N-GMf> BASIS)
RESIDENT INSmUCTION
YEAR ENDED JUNE39, 2002

SCHEDULE "1"

REVENUES
State Appropnabons Other Revenues Retained

BUDGET

ACTUAL (1)

VARIANCE FAVORABLE (UNFAVORABlE)

$ 41,482,27400 $ 45,732,273 50 $

11,647,417 00

16,216,67474

4,249,999 50 4,569,25774

$ 53,129,691 00 $ 61,948,948 24 $ _ _=6,=81=9:.,.2.5.:7::2:4:.

EXPENDITURES
Personal SeMces Education,General and Departmental servtces Sponsored Opel'll1lons
QpeI'll1Ing Expenses EducalJon, General and Dapartmantal SeMoas Sponsored QpeI'll1Ions
Caprtal OuUay Special Funding Inrllatlva

$ 12,996,143 00 $ 12,156,21627 $

000

568,37249

34,425,265 00 000
60,35700 5,645,926 00

35,057,169 14 3,407,381 46
62,55200 5,645,764 66

839,92473 -568,37249
-631,92414 -3,407,381 46
-2,195 00 14134

-3,769,80702

5,049,450 22

(1) Actual amounts were prepared on a prescnbad basis of aceountmg thal damonslrates compliance oMth budgetary s1atutes and regulalJons of the State of Gao<gla, >WIJch Is a comprehensive basis of accountmg otherthan generally acceptedaccoun1lng pnooples

See notesto the finandal s1alernents

- 35-

BOARD OF REGENTSOf THE UNf\/ERSITY SYSTEM OF GEORGIA
ADMINISTRAIIVE CENTRALOFFICE (OVERSIGHTUNrn
SCHEDULEOF REVENUES AND EXPENPITURES COMPAREDTO
BUDGET- (NON-GMP BASIS)
REGENTSCENTRAL OFFICE AND OTHER ORGANIZED ACTMIIES yEAR ENPED JUNE 30 2002

SCHEDULE "2"

FUNPS AVAILABLE REVENUES
StaleAppropnllbons Other Revenues Reta,ned
CARR)'-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL (1)

VARIANCE FAVORABLE (UNFAVORABLE)

$ 104,711,95000 $ 104,711,95000 $

2,616,05700

5,246,81287

$ 107,328,007 00 $ 109,958,76287 $

000 2,630,755 87
2,630,75587

n4,951 oo

000

-n4,951 oo

$ 108,102,95800 $ 109,958,78287 $ _ _~ 1,85= 5,8~ 048~ 7

EXPENDITURES
Peraonal SeMces Educabon,General and Departrnantsl Services Sponsor8d Operations
Operalll1g Expenses Education, General and Departrnantsl SeMalll Sponsored OperatJons
SREB Peyments Ragents Opportunrty GIants
Rantal Peyments to Georg,a MJlrtary Collega Duael Paymentsto GPTC for QperatJons Public Ubranes SeIar1es and OperlIbons

$

8,437,007 00 $

7,604,189 rr $

000

366,894 01

41,608,228 00 000
928,52500 585,00000 1,434,35000 19,905,363 00 35,204,485 00

40,521,234 31 4,638,376 09 887,35000 600,00000 1,434,35000 19,905,36300 32,095,35579

832,817 23 -366,894 01
1,086,99389 -4,638,37609
41,17500 -15,000 00
000 000 3,109,129 21

$ 108,102,95800 $ 108,053,11297 $

===::. 49,84503

1,905,64990

(1) Actual amounts -.a prepared on a presa1bed baSIS olaccounbng that demonBtratllB compliance\Mth budgalary stBtut8B and ragulatrons 01tho Stale 01Georg,a, wtuch ISa comprahellSMl basts 01accounting
othar than gaTlBl8lly accepted aCCOllnbng pnnapiBB

See notes to the finanaal statements

- 36-

BOARD Of REGENTS Of THE UNIVERSITY SYSTEM Of GEORGIA ADMINISTRATJ\IE CENTRAL OfFICE (OVERSIGHT UNm
SCHEDULE Of REVENUES AND EXPENDITURES COMpARED TO BUDGET (NON-GMP BASIS)
LQITERYfOREPUCATIQN YEAR ENDED JUNE 30 2002

SCHEDULE "3"

REVENUES State Appropna1Jons

BUDGET

ACTUAL (1)

VARIANCE FAVORABLE (UNFAVORABLE)

$ 12,954,50000 S 12,954,50000 $

-0=0~ 0

EXPENPITURES
Georgi. PublIC Telecornmuntcabons Comll\lSSlon Inteme1 Connecllon InotJabve Speasl funding Inotralrve& Equlpment-Publlc Ubranes

S 2,300,000 00 S 2,300,000 00 $

1,500,000 00

1,640,27236

9,154,500 00

9,013,97872

000

760,48250

000 -140,27236 140,52128 -760,48250

S 12,954,50000 $ 13,714,73358 $ _ _..-7.6.0:,2.3=3=5=8~

(1) Actual amounts were prepared on a presa1bed _ 01 accounbng!hal demonstrelall ccmpilallOll willi budgetary statutes and ragulabonsof the State of Georg"', which IS a comprehen8lVll ba ..s of aCCOUT1\lng other tI1an generally accepted aCCOUT1\lng P'!napleB

see notes to the finanCIal stetaments

-37-

BOARD OF REGENTS OF U1E UNryERS!IY SYSTEM OF GEORGIA
ADMINISTRAJJYE CENJJW. OffICE (OVERSIGHT UNm SCHEPULE OF APPROVEP BUDGET RESIDENT INSmUCTION YEAR ENPED JUNE 30 2002

REVENUES
Slate Apprapriations Other Revenues Retained

ORIGINAL APPROPRIATION

AMENDED APPROPRIATION

GOVERNOR'S EMERGENCY FUND

$ 1.523.604.554 00 $ 1,608,956,87900

8,289,220 00 $ 479,149,08900

133,93500

$ 3,132,581,43300 $ 487,438,30900 $

~~.::;~

EXPENP!TURES

Pe"""",1 5ervIcetI

Education, General and De~1 5ervIcetI

Sponsored 0peratl0I1S

Operating Expenses

Education, General and Departmental 5ervIcetI

Sponsored Operation.

CIpttal Outlay

5peaa1 FUnding I n _

0IIk:e of M,nortly Buslneos Enterprises

5tudenl Educabon Enrlclmant Program

Forestry Research

_

ConsorlJum

$ 1.859,481,759 00 $ 256.440.564 00
405,n6,297 00
740,373,595 00
34,070,755 00 1,738,576 00
3n.889 00
1.053,433 00 33,248,765 00

25.904.rn 00
132,191.868 00
34,401,16100 $ 87.399.966 00 188,870,15900 3,643,092 00
-42,194 00 -18,71000 -97,796 00 15.186.036 00

$ 3.132,581,43300 $ 487,438,309 00 $

133,935 00
....:=== 133,935 00

- 38-

SCHEDULE "4"

BUDGET ADJUSTMENTS

TOTAL APPROVED
BUDGET

LESS BUDGET TRANSFERS TO OTHER UNITS

TOTAL

S 1,532,027,709 00 S 1,490,545,43500 S 41,482,27400

S 205,102,559 00 2,293,208.52700

2,281,561,11000

11,647,41700

S -27,178,01200 S 1,658,208,47400 S 1,645,210,33100 S 12,998,143 00

21,427,266 00

410,059,698 00

410,059,698 00

000

70,850,893 00 121,215,76000
16,384,55200
402,100 00

511,162,286 00 946,989,321 00 207,254,711 00
37,713,847 00 1,696,392 00 358,97900 1,357,73700
48,434,601 00

476,737,021 00 948,989,321 00 207,194,354 00 32,067,921 00
1,696,392 00 356,979 00
1,357,73700 48,434,801 00

34,425,265 00 000
60,35700 5,845,926 00
000 000 000 000

39-

BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNm SCHEDULE OF APPROVED BUDGET
REGENTS CENTRAL OFFICE AND OTHER ORGANIZED ACTIYITIES
YEAR ENDED JUNE 30 2002

FUNpS AVAILABLE REVENUES
Slate Approprlabons Other Revenues RetaIned
CARRY-QVER FROM PRIOR YEAR Transfer from Reserved Fund Balence

ORIGINAL APPROPRIATION

AMENDED APPROPRIATION

$ 230,047,421 00 $ 379,784,560 00
$ 609,831,981 00 $

333,8noo 333,8noo

333,877 00

EXPENDITURES
PelllOl1el Servlces
Educahon, General and Departmental ServIces Sponsored Operanons Operating Expenses Educa11on, General and Departmental Services Sponsored Operations Capital OU1lay AgrICU!lura1 Research Advanced Technology Development Cerner' EconomiC Development Instrtute
Seed Caprtal Fund - ArnC
Center for Rehablirta1Jon Technology SREB Payments Regents Opportunrty Grants
Rental Payments to GeorgIa Mlirtary College DU'8Cl Payments to the Georgie Public
Telecommumcahons CommlSSlOl1 tor Operaltons
Public UbrariaB Salenes and Operaltons Student Infonnabon System

$ 138,279,793 00 $ 65,748,18700
93,151,91500 225,355,657 00
30,00000 3,000,433 00
22,290,195 00
5,839,421 00 928,52500 600,00000
1,434,350 00
21,294,22500 33,881,300 00

-4,055,762 00
1,507,706 00
174,27000 -235,354 00 3,000,000 00
38,894 00 -15,00000
-1,404,06200 1,323,165 00

See notes to the finanaal statements

-40-

$ 609,831,981 00 $ _ _...:3:=3;3:,.:8.7:.7.::0:;0:.

SCHEDULE "5"

BUDGET ADJUSTMENTS

TOTAL APPROVED
BUDGET

LESS BUDGET TRANSFERS TO OTHER UNITS

TOTAL

$

23,200 00 $ 230,404,498 00 $

-164,255,064 00 215,529,496 00

$ -164,231,864 00 $ 445,933,994 00 $

125,692,548 00 $ 104,711,950 00

212,913,43900

2,616,05700

338,605,98700 $ 107,328,00700

29,530,944 00

29,530,944 00

28,755,99300

IT4,95100

$ -134,700,920 00 $ 475,464,938 00 $

$

1,615,730 00 $ 133,839,761 00 $

4,158,038 00

69,904,205 00

5,288,857 00 -176,661,392 00

99,948,47800 48,694,265 00
30,00000 3,174,70300

866,368 00 1,378,238 00

22,921,209 00 3,000,000 00 7,256,553 00 928,52500 585,00000 1,434,350 00

15,200 00 28,638,04100

19,905,363 00 35,204,485 00 28,638,04100

125,402,754 00 $ 69,904,205 00

8,437,00700 000

58,340,250 00 48,694,26500
30,000 00 3,174,703 00

41,608,22800 000 000 000

22,921,209 00 3,000,000 00 7,256,553 00

000 000 000 928,52500 585,00000 1,434,350 00

28,638,04100

19,905,363 00 35,204,485 00
000

367,361,980 00 $ 108,102,958 00 - 41 -

BOARD OF REGENTS OF THE UNIVERSITY SYSJEM OF GEORGIA AQMINISTRAT!VE CENTRAL OFFICE (OVERSIGHT UNm SCHEDU"E OF APPROVEP BUDGET "OUERY FOR EDUCATION YEAR ENDED JUNE30 2002

FUNDS AVAILABLE REVENUES
State Appropnahons CARRY.QVER FROM PRIOR yEAR Transfer from Reserved Fund Balance
EXpENDITURES Equipment, Technology and Construction
Trust Fund GeorgI8 Public TetecommumeatlOll6 CommISSIon Internet Connection Initiative Special FundIng InitlatJves Student Informatton System

ORIGINAL APPROPRIATION

AMENDED APPROPRIATION

$

8,966,000 00 $ 22,723,500 00

3,642,41000
$ 8,966,000 00 $ _....2;6;:,3=8=5,9=1:0:0:0.

$ 18,642,410 00

2,300,000 00

$

1,500,000 00

7,466,000 00

5,423,500 00

$

= __ _ 8,966,000 00 $_....2. 8,385~ ,91000

See notes to the financial statements

- 42-

SCHEDULE "6"

BUDGET ADJUSTMENTS

TOTAL APPROVED
BUDGET

LESS
BUDGET
TRANSFERS TO OTHER UNITS

TOTAL

$ 31,689,500 00 $

18,735,000 00 $ 12,954,500 00

$ 20,000,000 00 23,642,41000

23,642,41000

000

$ 20,000,000 00 $ 55,331,910 00 $

42,3n410 00 $ 12,954,500 00

$ 18,642,410 00 $ 2,300,000 00 1,500,000 00 12,889,500 00
$ 20,000,000 00 20,000,000 00

18,642,41000 $
3,735,000 00 20,000,000 00

000 2,300,000 00 1,500,000 00 9,154,500 00
000

$ 20,000,000 00 $ 55,331,91000 $

42,377,41000 $ 12,954,500 00

- 43-

BOARD OF REGENTS Of THE UNOCERSlry SYSTEM OF GEORGIA APMINISTRATI\IE CENTBAL OfFICE (OVERSIGHT UNIT> SCHEDULE OF BUpGET TRANSFERS TO OTHER UNITS RESIDENT lNSTBUCTION YEAR ENDED JUNE j!Q 2002

UNITS Of THE UNrJERSrrv SYSTEM OF GEORGIA

RESEARCH uNryERsmES

Georgta InlUtutll of TedJilOlog'f
R....reh ConlOl'bum
R_SpocIoI Fundlng........
0IIlc0 oI ...nortty Bus..- E . . <>-;_SIo1oU_
Conoonlum

OSpIIelcdoooI lF _ u __ ' _ E_

_

'~01_

R....rch ConIorIIum

Student Educabon Enrk:hment Program SpocIaIF........._

Un....... 01<>-;_

Forestry e...rch OIIlcool _ _ E _

R....rch ConIortium SpoaaIF ........._

REGIONAl. UNryERSITIES
<>-;.. SouIhom U _ Reaaarch ConsortIum SpocIot Funding, _
Val_ dosF ta Sutal_ l UnM_ ntly

STATE uNrygBsmESlCjOLLEGES

AIbOIIInIylcSotoalte_ Untwera_ ttr ..........

Speao' F....1ng.._

"""'..... _Sto1OU_

Reeeard1 ConIOl"bUrn

SpecaI Fundtng InItIattve

Augultll StabI UniYersIty

OIIlcoollllnorttyB_ E _

SpedaJ Fundr.g InIUatMl

~~""S_Un_

5peaal Funchng InltiattYe

CoIumbul S~ UnlYlll:l'dy

Spec::\C Fundtng l~tMI

F... V.....,S_U_

SpeciIII Futlchng InltilltM

Georgia CafIege .ncI $tIItII Un~

_

Funding ,. . . . . . .

Georgla Soulhltlim State UnNenlty Spocial FuncImg _ _

KeI"lneuw SWte UnlWlll'llt'f R....rch ConaortIum Sptdwl Fundng InlUttv'w

PERSONAL SERVICES

EDUCATION

GENERAl. AND

DEPARTMENTAL

SPONSORED

SERVICES

OPERATIONS

APPROVED BUDGET

OPERATING EXPENSES

EDUCATION

GENERAl AND

DEPART"ENTAL

SPONSORED

SERVICES

OPERATlONS

$ 238,87a,n2OO $ 7a Ma,51a 00 $

78,ne 3112 00 $ 85,151 452 00

200,528,017 00

30 500 DOO 00

NW,M4 00

138,&0000000

110 4i2,1U PO 1n 12570100

2585318400

87,435 4404 OQ

374,434,82500

76,000 DOO 00

11574580200

200 000,000 00

eem,58900

3897,05100

55,487.214 00

2,382,457 DO

21878,544 00 11 873,448 DO

74,102 849 00 45081,35500

23.281.2M 00

4012,150 00

28,882 845 DO

881,4"00

2II,:I51i1,31300

389 ei51i1 00

25013,14000 31 sea,159 00 20,340,142 00 33,744 1n 00 15.258,05500 8SI.281i1,40300

2123&8600 2783,41000 8,878,1530 00
455,15&0 00 1784,01000 3,0&4,4D5 00

3760 118 DO

28,m 070 00

e,lS57,223oo

9,853 500 00

7114,250 00

lS,727,304 00

5 7&fl36500 7,28235100 4,17524900 7 5SS 51i17 00 4,nS 312 00 22,829 825 00

8,82&,820 00 2S 1515,84300 28,7113 532 00 2IiI,245,922 00
15 858 005 00 18 a31 13800

....

SCHEDULE .,.

CAPITAl OUTLAY

OTHER

TOTAl

STATE
FUNDS

FUNDING PROVIDED OTHER
REVENUES RETAINED

TOTAl

S 4i,200 623 00 S
22,534 see 00
.. 784.7&4 DO
88880.43000

S 24819,794 00 IS 524.320 00
4&750000
12.110234600 1.251,84500 87.!li00 00
2 US 405 00 351 879 00
2,S02 754 00
1357,73100 604,38200
6,01674800 2630,100 00

538.8&4 787 00 S 24.688,784 00
6,624320 00 48750000
458.782.13700 12,802,341 00 1.25184500 9750000
"05.&01.78200
2.~40500
358 on 00
2302,754 00 852.14085700
1.157737 QO 804 3B200
8,01874800 2,830,100 00

112.012810 00 S 24,889.784 DO 5,624.32000 487.500 00 118,571.809 00 12802..3" 00 1,2&1 845 DO 87.500 00 109 74311)8 00 2,44840&00 388,97000 2.302.764 00 338,138,322 00 1,351,137 00 804,382 00 '018,741 00 2,830100 00

11&,152.10700 S 25K).18S,228 00 285.767854 00 518,002.83& 00

538 l&4.n7 00 24 e.ag 78-4 00 6 524,!20 00 487500 DO
458 762 137 00 12802.348 00 1,251,94500 87,500 00
405,501 782 DO 2441,405 00 358 879 00 2.302.754 00
1152 140,G57 00 1351.737 QQ 604,38200
e 016,748 00
2,830100 00

!5280,mOO 2.997,47300

&83 512 00
2,~75200
345,30500

182,258 010 OCI $83 572 DO
2,838,75200 117 801,945 00
345,30500

75.1159.125CIO 583,&72 00
2838,752 DO 47,744,17300
345,305 00

117,on,285 00 70,157,77200

182.258,01000 58357200
2038,752 00 117,901,a4500
345,30500

113&0200
1,1n 487 00
801.31200
450 048 DO 1,370,21& 00 2,281533700 1313,509 00 2,070111 00 1,831,25& 00

117 000 DO 1,039,808 00
845,714 DO 424.5OSI DO
19500000 105,274 DO
38,86100
813813 00
3518,88700
1,n5,88S 00
11888700
425,34300 1,35234000

57,H217800 11700000
1038,808 DO 48 D32 518 00
8415,714DO 424508 DO ",181,74800 185000 DO 105.2'7400 42,000 857 00
38,581 DO 69481,051 GO
813151300 86,475,158000
3,51818700
n 415 785 00
1,n56SOO 28,78800300
118 N7 00 118,22& 11500
425343 DO 1.352,348 00

18300,28700 117,000 00
1,038,808 00
25 m.MO DO
&45714 DO 424,I5OSI 00 25433.821 00 185,000 DO 105,27" 00 111,178,00400
38,881 DO 21,811 &9000
813,11300 115,819,48200
3,518,8157DO 27 ,3n,:M0 00
1 n5,," 00 14317,853 00
11888700 &54893nOO
425 343 00 1,352. 348 00

38 581,801100
20.264.858 00
111,7S1 127 00
23,824,15300 42570,.e.100 48,IISI!I.088 00 4S,CW3,418oo 15478,050 00 &0,73& 743 00

57 862.178 00 117,000 00
1.039,808 00 48032 518 00
84571400 424,508 DO "181,748 00 195 000 DO 105,27400 42 000,057 DO
38"100 8948805100
613 813 00 8!i,475,5S1O 00
351888700 72,41S 785 00
1,n5 895 00 28 788003 00
11888700 111,22811500
425,34300 1,352 348 00

-45

BOARD OF ReGENTS OF THe UNrvERSITY SYSTEM OF GeORGIA APMINISTBATrvg CeNTRAL OFFICe (oveRSIGHT UNID SCHeOULE OF BUDGET TBANSFgRS TO OTHeR UNITS RESIDENT INSTRUCTION
YeAR eNDeD JUNE 30 2002

UNrIS Of THe UNryEBSrrv SYSTeM OF GeORGIA

STATE UNryeBSITlESlCOLLEGES

North Georg_ College .nd Sill. UnlV'lJ1Jty SpocIol FundingInItia....
Savlnnah SIlIte UnMnIty ~I Funding In.ttve
Southern p~,t8etI1Yc StnI UnMI...1ty R....rt:h ConaortIum Speall Funding Inllldve
s - U _ a / _ ~.. SpocIol F....OIgIn_

ASSQCIAT DeGRee COLleGES

AbnI _ _ A g _ ~

_ F....OIgIn_ _ _ Ilan~

0II\c0 a/ ........... _

e.--

_Funding , _

BoinllrIdgo ~ $ped8I Funding InttiatMI
CoulaJ Goorgio Community ~ _FundIng_

DaIton_~

_

FundingI n _

a.-~
_ F....OIg .._

e..1~io~
_ , F....OIgIn_

FIoyd~
_ F....OIg_
Go...._ ~

_Sipo ocIo_ l F.._ .."" ........ ~ S_F_ _ _

- _ F~ u_ _
- - ~ _ ~ _ FuniodCinagIIIong!boatrve
S _ Funding, _
SouIh_~
S_FundIng_ -C_dIF O.g..O .... _

2D:lm
- . . . . - a/ e>ooonog.....,

PERSONAl SERVlCES

EDUCADON

GENERAL AND

DEPARTMENTAL

SPONSORED

SERVICES

OPERATIONS

APPROVED BUDGET

OPERATlNG EXPENSES

EDUCADON,

GENERAL AND

DEPARTMENTAL

SPONSORED

SERVICES

OPERATlONS

S 21,955,00100 S 898,87900 S

18,3115,38800

4,226,1600

23,159 8N 00

1,41M,87800

411113,73700 S

5,57580700

61546100

111 334,57a 00

5,8611,02600

1I,854,8n DO

46 539 232 00

2Q8.5 801 00

12,111,26200

'" 112 moo

13,01105711 00 8,2!i7,1411 00

1,1M,541 DO 818,522 00

5 179,n2 00 7,1162,04400 11.9,54200 13804109 00 4,424,878 00 11,133,8nOO 13 314,71100 65 553 334 00 9 se5 lSOlSOO 111 &17,704 00 1041M eo5 00 5588 moo 36158 782 00

952,70!li00 188347800 2,203,441 00
739,420 00 n,451 DO
382 837 00 4113,23900 368,HODO
1371 585 00 207,411300 Ui7,500 00 27107 00

3,734 850 00 2311251000
1538 834 00 2,031788 DO 3.2811,18200 3115,788 00 1,478,83200 2,1120,25800 2753,523 00 17 247,1117 00 4007 2e3 DO 3791,431 DO 2289412 DO 243900700 1,139 294 00

511MM900 4739738 00
4,555836 00 337838000 7,25289100 4539 DIIO 00 147667300 2952,08800 407805100 15 &41,040 00 331000000 7,397 150 DO 4118538 00 169250000 1,48964300

19500000

1,845,210,331 DO S 410,059 8D8 DO S 476,737 :021 0 0 ' 948989,321 00
....

SCHEDULE rr

CN'rTl'J. OUTLAY

OTHER

TOTAL

ST~TE
FUNDS

FUNDING PROVIDED OTHER
REVENUES RETAINED

TOTAL

, , 3,840417 QQ
1,41!UI 5418 00 1,181,152800
8,14882700

,
997,12900
5l32,~OO
822,87800 2H 82800
1 388,818 00

,
37,163,10100 897,128 00
47,589704 00 832,543 00
40,138,21500 822,87900 288 928 00
113,8159051 00 1,3681800

, 18,33351000
997,12800 18830 003 00
&325&3 00 20,886,30200
822,87900 288 828 00 41,l562.248 00 1,3",91800

,
17820 381 QQ 28758,701 00 18,45281300
72 D88 805 00

3715380100 ge7 128 00
47,589 704 00 832,5&3 00
40,139,215 00 822 878 00 288828 00
113859,05100 1,398,81800

718 NO 00 1511,30100
248,500 00 504,000 00
1088,02800 282,57100 138 754 DO 150,58100 259,250 00
4003,228 00 784,SOO 00
1,388,038 00 t54 218 00 171 18800 248,800 00

73,809 00 18500000 215858 00 44,81700
38,173 00 542812 QO 428,81800 1,028 850 00
71,7M 00 58,889 00 85,97500
4,31e QQ 1'-1,125 00 15a8,an CO 13020 00 66,425 00

23,925 81800 73 eog 00
17,509,217 00 18500000 215858 00
12,.7344700 44,81700
15,087,888 00 39,173 00
26,878,884 00 54281200
22,281,848 00 .28,81800
7,585 8516 00 1,02'8 850 00 17,'-3883400
71,78500 20,851 n4 00
15888900 Q3,803,7.-7oo
15,87500 17.97037100
4,31e 00 30,474 8ee 00
1'-1,82500 18,084,304 00
5M 817 00 10&47,11400
13020 00 8,471,828 00
1842500

12842,18900 73,808 00
8885,732 00 185,000 00 215,858 00
.,580,21900 44 817 00
7130,89200 39 173 00
10,743,151500 542,91200
11,058 382 00 428 818 00
4,179,81300 1028 850 00 10,544 M8 00
7178500 11,018,71500
159,88800 '-8,821 821 00
8587500 10507,81100
...,31e DO 14,584 128 00
14182500 10,045 128 00
hI,817 00 8 :M9,985 00
83,020 00 3,08 80100
86421500

11,08372800 8823,48500
7813,178 00 7,858,n4oo 14838,219 00 11,183 2t4 00 3,41808300 804,885 00 9 MO,058 00 44 882,128 00 7,482,780 00 15 8eo,757 00 8018175 00 4,297,228 00 2512 S20 00

23 825,818 00 73,8CKI 00
17,508,21700 185,000 00 215 ue 00
12,.7344700 44,817 00
15087,688 00 38 17300
26,879 S84 00 54281200
22,281,848 00 42881800
7585,688 00 1,028 850 00 17,'-38,834 00
71,78500 20,958 174 GO
59 MQ DO 93,803,7'-700
as 875 00 17,870,37100
... 318 00 30 .-74,aM 00
14182500 11!1 D84 304 00
1598,877 00 10,847 114 00
13,020 00 8.-7162800
66.42500

173.11300

388,11300

3&8,11300

, 207,1a43!l400' 83,"'1582000 $ 3,TI2.106,S04I500 $ 1,490.545,43500 , 2,281,511,11000 , 3,T12,10&,!04500

BOARD OF REGENTS OF THE UNNERSlry SYSTEM OF GEORGIA APMINISTRAWE CENTRAL OFFICE <OVERSIGHT UNm SCHEPUlE OF BUDGET TRANSFERS TO OTHER UNITS
REGENTS CENTRAL OFFICE AND OTHER ORGANIZED ACTMTIES yEAR ENpED JUNE 30 2002

UNITS Of WE UN!VERSrry SYSTgM OF GEORG'"

REseaRCH UNI'fERSlTIgS

Gecrgll Institute 01 Technology

Education extenllon SeMcea

AdvIInced TechnolOgy DeIIlopment CanIer Seed C.P"-! Fund
Goolv" Ted\ R _ " ' -
~raJR_rd1
Center for Ren.bIIttabOn Technotog)'
S _ Dolo Cenlor

Student Il'IforTN,tk\In Syatem

UA_ocI_l-_- c-. Mod""~01_

IIodlcol

01Goolv" _ , ond Cl"lco

Georg_ R.dlatlon T'MI1IPY Center

Athel\l and TtI'tDn VetilriMry L..-bcntorIeI
.............. C C:00Cl i!,.tW. Extenmn $VICII

ManIMI Raourcn E.xcenakIn Center V.......ry MedICineExpertment Stdon

Agr1culbJl1Il ReIiUICh

VNnnliry Medidne TNChIng Iiospbl

PERSONAL SERVICES

EDUCATION

GENERAL AND

DEPARTMENTAL

SPONSORED

SERVICES

OPERATIONS

APPROVED BUDGET

OPERATING EXPENSES

EDUCATION

GENERAL AND

DEPARTMENTAl

SPONSORED

SERVlCES

OPERA!lONS

204,82oC,2S6 00

.... 077,07800

23,037,083 00

2VUS,QQOOO

1 045715700

21725 DO

1301 157 00

780 lIiI7 00

2.2204,153 00
043,885,91500 128:sa1il 00
042,64B,DeB 00 8048,31B 00
1,584,180 00 2,371i1.4nDO
:5341i1343 00

11,550,000 00 3,097,o4SC 00
8500,000 00
575,000 00
31i1O aoo 00

11i13 SOO 00 10401157 00
104 D84 310 00
1,1iIe5,&4300 34S 818 00 714 423 00 343,702 00
4,337 71i11 00

10450 000 00 1,75151600 04 700 000 00 126,000 00 210,000 DO

2,172,428 00

1.81i12,N800

530.11800

807,05200

S 125,402,7504 DO 81i1,1iIOoC,205 DO

Se,34Q,250 00 S 48.8004,28500

SCHEDULE -e~

CAPITAl
OUTLAY

OTHER

TOTAL

STATE
FUNDS

FUNDING PROVIDED

OTHER
REVENUES

CARRY-ovER
FROM

RETAINED

PRIOR YEAR

TOTAL

I 22.021 209 00 I 22,921.2Oi 00 I 9,447,64100 I 13,473,388 00

I 22 921.209 00

3,000,000 00

3000,00000

3,000 000 00

3,00000000

121,783 417 00

10,154.238 00 111,639,178 00

121 7e3,417 00

1,632330 00

1,832 330 00

1 832,330 1XI

1,832330 00

7 2 5. . .5 3 0 0

7256 553 00

7.251!1 S~ 00

7.256,553 00

5T1l.T3ll 00

7,764,31400

112422 00

8,576 13& 00

28,83ll 041 00

28,531,041 00

I 28,830,041 00

28,830 04100

1513.50000 382581000

183 500 00 3,825,81000

1513500 00 3825.81000

I

3000000

".000,27500

41,517 408 00

33 422,807 00

4802.35800

1231800

4.05387000

82,71371100

3SI :soa,082 00

23,405,829 00

1,8804,18800

1 111,54500

n4e51 00

2,51711,803 DO

18",110300

1..278,800 00

2,723,191 00

2723 1511 00

1,34237300

1342,373 00

1,342,373 00

78117.134 00

56D,18200

7,000 000 00

117,95200

80 000.275 00 4 "235800
82,71371100 188418800 2517880300 2723.191 00 1342373 00 7887.134 00

5,202,542 00

1,859,122 00

3,343,420 00

I

30,000 00 I 84,990.508 00 387,3111,98000 I 125,892,54800 I 212,913,43D 00 I 2II.755JKI300 $ 387,381.811000

-.9 ~

BOARDOF REGENTS OF THE UNIVERSITY SYSTEMOF GEORGIA ADMINISTRATIVE CENTRAl. OFFICE (OVERSIGHT UNITl SCHEDULE OF BUDGETTRANSFERSTO OTHERUNITS LOTTERYFOR EDUCATION yEAR ENDEDJUNE 30 2002

UNITS OF THE UNIVERSITYSYSTEM OF GEORGIA
RESEARCH UNIVERSITIES
GeorgI8 Insbtutfl of Technology Student Inlonnebon SysI8m
Georgl8 State Unrvellllly Medocal College of georgia UnlV8llllly of GeorgI8
Technology EqulJllT18nt InlbalMl
REGIONAL UNIVERSITIES
Georgl8 Southern Unrverslty Valdosta State UnlV8ll11ly
STATE UNIVERSITIESJCQLLEGES
Albany State University Armstrong Allentlc State UnlYelWily Augusta State University Clayton College end State University Columbus State UnlV8rs1ty Fort Valley State Unrvelll1ly Georgia College and StateUnlversrty Georgia SouthwesIllm State UnlYBraily Kennesaw State UnlYelWily North Georgia College and StateUnrvelll1ly savannah State UnrverMy 50uthem Polyt8chnoc StateUmversrty State UnlYBraily of W881 GeorgI8
ASSOCIATE pEGREE COLLEGES
Abrahem BaldwlnAgnaJtlural College Atlanta Metropohtan College Bainbridge CofIege Coastal Georgia CommunityCollega Dalton State College Darton College East Georg.. College Floyd College Ga,nos-"I\e College Georgia Penmeter College Gordon College Macon State CoUege MKldIe Georgia College South Georgia College Wayc;ross College
QIl1EB
SkldllW8Y Ins_ of oceanography

EQUIPMENT, TECHNOLOGY
AND CONSTRUCTION
TRUST FUND

APPROVED BUDGET

SPECIAL FUNDING INITIATIVES

OTHER

$

4,720,01600 $ 153,550 00

$ 20,000,00000

2,634,87800

133.550 00

736.826 00

133,550 00

5.568.184 00

278,55000

100,000 00

452,984 00 401.87400

163.54800 133,548 00

167,61200 218,808 00 218,808 00 180,00000 218.61800 108.848 00 218,81800 108,850 00 274,04800 167,796 00 125,04600 167,61200 274,04800

147,032 00
148,03200 99,032 00 99,03200 141,032 00 139.032 00 109.032 00 99,03200 99,03200 128,032 00 99.032 00 99.032 00 141,032 00

119,752 00 66,184 00 66,184 00 66,184 00 149,31200 119,75200 39,36800 121,500 00 119.75200 270,800 00 119,752 00 149,31400 119,752 00 66,18400 39,37000

84,51600 84,51600 84.51600 84.51600 99.03200 64.51600 84.51600 84.51600 84.51600 99.03200 64.51600 99,03200 84.51600 84,51600 64,51600

46,27600

20,00000

see notetl to the finanoal s t a _

$

18,642,41000 $ 3.735,000 00 $ 20,000,000 00

- 50-

SCHEDULE "9"

TOTAl

STATE FUNDS

FUNDING PROVIDED CARRY-CVER FROM PRIOR YEAR

TOTAl

S 4,873,566 00 S 20,000,000 00 2,768,42800 870,37600 5,846,734 00 100,000 00

4,873,566 00
S 1,381,650 00
870,37600 3,591,102 00
100,000 00

S 20,000,000 00
1,386,n8oo
2,255,632 00

4,873,566 00 20,000,000 00 2,768,42800
870,37600 5,846,734 00
100,000 00

616,51200 535,42200

616,51200 535,422 00

616,51200 535,42200

314,644 00 366,64000 317,640 00 279,03200 359,65000 247,880 00 327,65000 207,88200 373,08000 295,82800 224,07800 266,64400 415,080 00

314,644 00 366,64000
317,640 00 279,03200 359,65000 247,880 00 327,650 00 207,882 00 373,08000 295,82800 224,07800 266,64400 415,080 00

314,644 00 366,64000
317,640 00 279,03200 359,65000 247,88000 327,650 00 207,88200 373,08000 295,82800 224,07800 266,64400 415,08000

184,268 00 130,680 00 130,680 00 130,680 00 248,344 00 184,268 00 103,884 00 186,01600 184,268 00 369,83200 184,268 00 248,346 00 184,266 00 130,680 00 103,88600

184,268 00 130,680 00 130,680 00 130,680 00 248,344 00 184,268 00 103,884 00 186,01600 184,268 00 369,83200 184,268 00 248,34600 184,268 00 130,68000 103,886 00

184,268 00 130,680 00 130,880 00 130,680 00 248,344 00 184,266 00 103,884 00 186,01600 184,268 00 369,83200 184,268 00 248,34600 184,268 00 130,680 00 103,886 00

66,27600

66,27600

66,27600

S 42,3n,410 00 S 18,735,000 00 S 23,642,41000 S 42,3n,410 00 51

BOARD OF REGENTS OF THE UNl\IERSITY SYSTEM OF GEORGIA ADMINISTRATl\IE CENTRAL OEElCE (OVERSIGHT UNID
SCHEDULE OF alLOTMENTS TO UNITS OF THE UNIVERSITY SYSTEM OF GEORGIA RESIPENT INSTRUCTION
YEAR ENpED JUNE 30 2002

RESEARCH UNI\IERSITIES

Georgia Ino_ of Technology Georgia State UnlVlllllrly MedICSI Collego of Georg'. UnlVlllllrly of Georgia

REGIONAL UNI\IERSITIES

Georgia SOuthern UnNefSlly Voldosta State UnlV8fSrly

STATE UNIVERSITIES/COLlEGES

AIlany State UnlverBrly

Armstrong Atlantic State UIIMII1lIty

Augusta State Unrvelllity

Clayton COllege ond Slate Un"",rsrty

_tern COlumbus State UnMllllity

Fort Volley State Unlvel1lrly

Georgia College and State Un""'l1lrly

Georgia

State UnlV8l1llty

Kennesaw State Unlversrty

North Georgia College and State Unlvelllity

Savannah State Unrvel1lrly Southern PoIytachruc State UIIMII1lIty
Slate Untve"'rly of Weat Georgia

ASSOCIATE DEGREE COLLEGES

Abl1lham Baklwln Agncuttural College Atlanta Motropolrtan College Bambndga College
CoastaJGeorg.. Community College
Dalton State College
Darton CoItego
East Georg.. College Floyd College GalnllSVlllo College Georg.. Penrnetar CoIIoge Gordon Collego Macon Slata College Middle Georgia College South Georgia College Waycross College

~ Skldaway Instlluta of Qcaanography

See notes to the financial statements

REGUlAR

GOVERNOR'S EMERGENCY
FUNDS

SPECIAL FUNDING INITIATl\IE

$ 162,012,680 00 168,531,90900 $ 109,743,83800 338,132,38700

$ 45,00000
5,93500

6,524,320 00 1,251,94500 2,302,75400 2,830,100 00

75,159,72500 47,744,17300

2,938,75200 345,30500

19,300,26700 25,777,560 00 25,433,621 00 18,178,00400 26,917,590 00 18,819,49200 27,372,34900 14,317,953 00 55,489,372 00 19,333,51000 18,830,00300 20,886,302 00 41,562,246 00

1,039,606 00 424,50900 105,27400 38,66100 113,81300
3,518,88700
1,n5,895 00
116,88700 352,34600 997,12900 932,583 00 298,92900 89991800

12,817,189 00 8,885,732 00 4,590,269 00 7,130,89200
10,743,585 00 11,048,362 00 4,179,61300 10,544,969 00 11,016,71500 46,821,621 00 10,507,611 00 14,564,129 50 10,035,12800
6,349,96500 3,958,806 00

25,000 00 20,00000 10,000 00

73,60900 215,856 00
44,81700 39,173 00 542,91200 428,91900 1,026,950 00 71,76500 59,86900 85,97500
4,31600 141,82500
596,8nOO 63,020 00
86,42500

368,11300

$ 1,406,523,680 50 $ - 52-

SCHEDULE "10"

OFFICEOF MINORITY BUSINESS ENTERPRISE

STUDENT EDUCATION ENRICHMENT PROGRAM

FORESTRY RESEARCH

RESEARCH CONSORTIUM

TOTAL

$ 487.50000
97.50000
S
604,382 00

$
356,97900 $ 1,357,73700

24,689,794 00 $ 12,602.346 00 1.696,405 00 4,516,74800

193,714,294 00 182.728,70000 114.103,976 00 345,247,289 00

563,5n 00

78,682.04900 48.069,47800

117.00000 195.00000

645.71400
425.34300 822.67900

20,456,873 00 26,847.76300 25,733,695 00 18.212,665 00 27,031,403 00 22,138,37900 29.148,244 00 14,434,840 00 56,267,061 00 20,330.63900 19,762,566 00 21.806,11000 42.462.164 00

195.00000

12.915,798 00 9,096.568 00 4,635.066 00 7.170,06500 11,266.497 00 11,497,281 00 5.206,563 00 10,616.734 00 11,076.584 00 48,907.596 00 10.511,927 00 14,725.954 50 10,642,00500 6,412,96500 4,025.231 00

368.11300

S 1.696,382 00 S

356,97900 S 1,357,73700 S 46,184,601 00 S 1,486.295.43550

- 53-

BOARD OF REGENTS OF THE UNryERSITY SYSTEM OF GEORGIA

SCHEDULE "11"

AQMINISTRATI\IE CENTRAl OFFICE (OVERSIGHT UNITl

SCHEDULE OF ALLOTMENTS TO UNITS OF THE UNIVERSITY SYSTEM OF GEORGIA

REGENTS CENTRAL OFFICE AND OTHER ORGANIZEP ACTMTlES

YEAR ENDED JUNE 30 2092

RESEARCH UNryERSmES
Georg.. Insbtut8 of Technology Education Extension SeMCllS Advanced TechnologyDevelopment Genter seed CeprlelFund ATDe Slate Data Center Georgre Tech B8seerch Insbtut8
Unrvenllty of Georgia Agncullunll Expemnent StaIIon Athens and TiftonVetennary Labor8lorlos CooperatMl Extension Servx:e Marine Instrtuta Manne ResourcesExteIlSlOl1 Center
VetertnaryMad,a"" EJcP,lnment Sta1Jon
Agrlalllural Research Velllnnary Med,aneTeachingHosprlel
SkJdaway Institute of OoH.nography

$

9.447.841 00

3,000.000 00

7.764.31400

10.154.238 00

46.577,468 00 128.38900
39.308.082 00 1.119.54500 1.698.803 00 2.723.191 00 1.342.37300 569.182 00

1.859.122 00

$ 125,692,548 00

See notes to the finanaal s1a1ementB

54

BOARD OF REGENTS OF THE UNI'JERSIlY SYSTEM OF GEORGIA

SCHEDULE "12"

APMINISTRA!I'JE CENTRAL OFFICE (OIIERSIGHT UNIT!

SCHEDULE OF ALLOTMENTS TO UNITS OF THE UNI'JERSITY SYSTEM OF GEORGIA

LOTTERY FOR EPUCATION

YEAR ENDED JUNE 30 2002

RESEARCH UNIVERSITIES
Georgia 1 _ of Technology
Georgoa State UnlY8lSlly MedIC8I College of Georgoa Unryal1l1ty of Georgoa
Manne extension Servu::es
REGIONAl UNIVERSITIES
Georgoa Southam UnlY8nllty Valdosta State UnlY8ralty
STATE UNIVERSITIES!CQLLEGES
Albany State UnlYerarty
Armstrong AlIanlJc State UnlY8ralty
Augusta State UnlY8lSlly Clayton Collaga and State UnlY8rarly Columbus State UnlY8ra1ty Fort Vallay State UnlY8rsrty
Georgla~aooStataUnlY8ralty
Georgoa SoutlMeslam State UnlY8rarly Kennesaw State UnlY8rarty North Georgoa Collage aoo State UnlYerarly savannah State UnJYeqj\y Southam Polytechn,c State UnlY8rs1ty State Un.........1ty of Wast GeorgI8
ASSOCIATE DEGREE COLLEGES
Abraham Baldwin Agneullural College Allan1a Ma1nlpohtan College Balnbndge Collage Coastal GeorgI8 Community Collegll Delton State Collage Derton Collage East Georgoa Collage Floyd Collage GemesYl!le College Georgl8 Perimeter Collage Gordon Collage Macon State College Middle Gaorgl8 Collage South Gaorgl8 CoIIeglI Waycross College
Q!I::IEB
Sladewsy InsIrtule of Oceanography
See notes to the linanasl _menIB

EQUIPMENT, TECHNOLOGY
AND CONSTRUCnON
TRUST FUND

SPECIAL FUNDING INITIATI'JES

TOTAL

S

~,72O,016 00 S

153,550 00 S ~,873,566 00

1,2~8,100 00

133,550 00

1,381,650 DO

738,82600

133,550 DO

870,37600

3,312,552 00

278,55000

3,591,102 00

100,00000

100,000 00

~,96400 ~I,87~OO

163,548 00 133,548 00

616,51200
535,~22.00

167,612 DO 218,608 00 218,608 00 180,000 00 218,61800 108,848 00 218,61800 108,85000 274,04800 167,796 00 125,04600 167,61200
27~,~00

1~7,032 00 1~,032 00 99,03200 99,03200 1~1,032 00 139,032 00 109,032 00 99,03200 99,03200 128,032 00 99,03200 99,03200 1~1,032 00

31~,644 00
386,~OO 317,~00
279,032 00 359,65000
2~7,880oo
327,65000
207,88200 373,08000 295,82800
22~,078oo
266,64400
415,080 00

119,752 00 66,164 00 66,164 00 66,164 00
149,31200 119,752 00
39,38800 121,500 00 119,752 00 270,800 00 119,75200 149,31400 119,752 00
66,164 00 39,37000

64,51600 64,51600 64,51600 64,51600 99,03200 64,51600 64,51600 64,51600 64,51600 99,03200 64,51600 99,03200 64,51800 64,51600 64,51600

~,27600

20,00000

164,268 00 130,68000 130,680 00 130,680 00
2~,~00
164,268 00 103,864 00 186,01600 164,26800 389,832 00 164,268 00
248,~00
164,268 00 130,680 00 103,886 00
66,27600

S

15,000,000 00 S 3,735,000 00 S 18,735,000 00

- 55-

R!WW OF REGENTS Of THE IlNNERSfrr fjYSTEM Of GEORGIA
AQMIN!STfW!VE CENTBN. OFFICE IMRSIGHT IJNITl
AHA!,VSl!} Of PRIOR Y'ENfS SURpl US FUNDS CObLEClEQ fROM lNSDTIn!OHS AND BfPlSTB,pmDTO !NSTIDJDONS 'N!1H I:fFIC!TS )'EAR fWD JUNE 30 2002

TOTAL COlLECTED REDlSTRI8lJTED

RESIDENT INSTRUCTION

REGULAR

LOITERY FOR EOLICATION

COLLECTED REDISTRIBUTED CCM.lECTED REDlSTRlBUTED

RESEARCH IINJYEBSfT!ES

--........., ~ k'tIbtuteof TKMOIogy
"-""
MecIIc* CoIege of o.orgsa
~d.GeCJrw..

S 328 DB6.24 I 1126704lI 201 00029 600 73e:Q1

32801!l624' 2Oe&431

10323125 S
150e:2913 ..,,19564

208&431'

62728 HI _25933 28 960 18

BEG!OHAl. IIHMBS!lJES

._........-. STATE IlNI\{fRSfTJEMj9lUQES
"....-...,..,. .,...-....._............,,.........-..-..,.,
~-",-""
Fort VI'Iey at-. I..Irrwn/t)'
-...--......,. 0-0- CoIIOgo - -- "'-"'Y
-----..... ..............,... ...., -... " - ond'" "'-"'Y - - -........ Stala urw.RttyaI w.l~

81131.22
n.,9
..... 92 311.27
40 311 ee 4092". 3105733 23,243TO 3381862
7,2260115
172 -.60
330 III 222.T02 . .
782809 211,_40

61876

1584380

yn
&4,318.57

........2555041 31177
.....45883
,23,"'02
32,71747 T.....
""" ...1S2,22e 110 329115
011 !501 14
21a.132~

81878

'.283 92 2180

12T30ee

100. T9



..n

1Ill2115
.~80
'33880 530 19

es-sogaTE [)Er~EE COl LEGES

-At-Ia-rU..........

.;.

C

n



oIIO
eoueo-

g

o

- " - e - _ _ COomu>Ily " -

Dalton..... CoIIOgo
....Dalton CoIIOgo "-"""-

- . . . - , , - .o"w"."evCtolIlIlOi geooueg.
0..-"-
- - . . . , , - """'" ..... CoIIOgo
"W """ "_-",","- -

_.,,83
100453.66 4681373
1478.17 8130!i1
2."''' 381877 , 32700 2 ..... 66043.18 82.. . . . .
'000" 041.230 18
_29 3.n143

132700 ...enT9

'_Ill
100.250 55 4587878
.....,.,7
,81'09
s.e1870 '32700 2.... ., 11817l
1 787 83 04(5126
..n
347143

210460 092
:00"'''2
",..,
""'98

,.....

471151~ S 1540eee22

n 360 ee 178 043 n I

~ ..~ n

2,037 &45 a3 I 2,508,197 A! 2 508,7fJ7 A!
....

SCHEDUlE --j 3"

OTHER ORGANIZED ACTMTlES

REGUl.AR

LOTTERY FOR EDUCATION

COll.ECTEO REDISTRIBUTED COlLECTED REDISTRIBUTED

Pl.ANTFUNDS

REGUlAR

lOTICRY FOR EDUCATION

COLLECTED REDISTRIBUTED COLLECTED REDIST'RSUTED

224!S4 99 I 4107423

000



I 1312!.De

000 1


29 767 30 ot5161 63 S588189




17500

000

'000
"'30

21~53
...,..,5.23251

757481

1SW21

64,31857

131 U1

.020.00

'83 158113720

3.32495

1.24828

0'"

..,..
;m:70 72DM 8000

438" 045
do<
23 875.24 152_38
..1..1..2.2.....6..7 30000

, :mOO

1 2M 963 80 1

.0..0.0::., 1 13 ' 28 oe I
1

0l:l:oo::., 1 so;!22 15 1

:w3n1 ag 1

17550 1

...0.:0:0=

-57 -

BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNID
RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30 2002

SCHEDULE "14"

Totals per Annual Supplement

Compensated Absences June 30, 2002 June 30, 2001

Adjustments Fahlslrom, Loftus, Mand18n,

Suzanne Richard Steve

SALARIES $ 17,227,10752 $

TRAVEL 566,550 62

1,759,134 02 -1,663,217 31

-750 00

-1,056 51 -1,352 93

564,14118

See notes to the firlBooal stalemenls

- 58-

BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNID

SCHEDULE "15"

..

RECONCILIATION OF PER PI EM ANP FEES

YEAR ENDED JUNE 30 2002

Tolals per Annual Supplement Adjustments Chnsban Computer Services Tek Systems, Inc Empower SoIUlJons, Inc
T DIals per Report

FEE AMOUNT

EXPENSE AMOUNT

TOTAL

$ 6,778,655 93 $ 141,51230 $ 6,920,168 23

-25,663 97 -11,834 00 -1,213,729 31

-25,66397 -11,834 00 -1,213,729 31

$ 5,527,42865 $ 141,51230 $ 5,668,94095

See notes to the flnanaal sIa1ements

-59-

SECTION II AUDITEE'S RESPONSE TO PRIORYEARFINDINGS AND QUESTIONED COSTS

BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA ADMINISTRATNE CENTRAL OFFICE (OVERSIGHT UNIT) AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-472-00-0l FS-472-0I-Ol

Prevtously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

SECTIONID CURRENT YEARFINDINGS AND QUESTIONED COSTS

BOARD OF REGENTS OF THE lINNERSITY SYSTEM OF GEORGIA
ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
SCHEDULE OF FINDINGS ANt> OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
ACCOUNTING CONTROLS (OVERALL) Inadequate General Controls Fmdmg Control Number: FS-472-02-01
Dunng fiscal year 2002, the Board of Regents of the Umvemty Systemof Georgiaconvertedurutsof the University System from the College Umversity Financial Accountmg (CUPA) legacy system to the new GeorgJaFIRST System (Fmanclal, Information and Reportmg Systems for Tomorrow) In January of2002, the Admimstrative Central Office placed this accountmg system into production
The management of the Adrmnistranve Central Office is responsible for estabhshmg and maintainmg adequate controls over the operation, utilization, and mtegnty of their data processed With the GeorgJaFIRST System. The objectives of these pohcies and procedures are to provide management with reasonable, but not absolute, assurance that the GeorgJaFIRST System has adequate controls in place and that those controls are operatmgeffectively. Our responsibihtywas to gam an understandmg of the procedures sufficient to plan and perform the audit.
In gaming that understanding, we encountered weaknesses that resulted from the Adrmmstranve Central Office's transition to the GeorgJaFIRSTSystem. The failureto establishand adhereto a final closing for the year ended June 30, 2002, created a Situation wherethe financial statementspresented for audit were not complete or presented in a timely manner.
To reduce the risk of reporting mcomplete information, the Admmistranve Central Office should develop procedures that will result in complete reporting ofall financial data in a more efficient and umely manner.