GA A'isoo .R\ GLf38 /G'15 - q<:, STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 REVIEWREPORT STATE OF GEORGIA GEORGIA COLLEGE MILLEDGEVILLE, GEORGIA YEAR ENDEDJUNE 30, 1996 GEORGIA COLLEGE - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT ACCOUNTANT'S COMBINED REPORT ONREVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION EXHIBITS FINANCIAL STATEMENTS A COMBINED BALANCE SHEET ALLFUND GROUPS 2 B COMBINED STATEMENT OF CHANGES INFUND BALANCES ALLFUND GROUPS 4 C STATEMENT OF CURRENT FUNDS REVENUES. EXPENDITURES. AND OTHER CHANGES 6 D NOTES TO THEFINANCIAL STATEMENTS 7 SUPPLEMENTARY INFORMATION E COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED 22 F COMBINING STATEMENT OF CHANGES INFUND BALANCES CURRENT FUNDS - UNRESTRICTED 23 G COMBINING STATEMENT OF CURRENT FUNDS REVENUES. EXPENDITURES. AND OTHER CHANGES UNRESTRICTED 25 SCHEDULES SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 1 RESIDENT INSTRUCTION 26 2 LOTTERY FOREDUCATION 28 SCHEDULES OF OPERATIONS 3 LOAN FUNDS 30 4 ENDOWMENT FUNDS 31 5 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS AGENCY FUNDS 32 6 CASH ANDCASH EQUNALENTS 34 7 ~STMENTS 35 8 ACCOUNTSRECENABLE 37 9 CHANGES IN ~STMENT IN PLANT 38 10 SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS 40 GEORGIA COLLEGE - TABLE OF CONTENTS - SECTION I FINANCIAL SUPPLEMENTARY INFORMATION SCHEDULES 11 SCHEDULE OF REVENUES CURRENT FUNDS 42 SCHEDULES OF EXPENDITURES BY OBJECT 12 CURRENT FUNDS 44 13 PLANT FUNDS 48 14 RECONCILIATION OF SALARIES ANDWAGES, ANDTRAVEL 49 SECTIONll FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS ANDIMPROPER OR QUESTIONED COSTS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 November 13, 1996 Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Board ofRegents ofthe University System of Georgia and Honorable Edwin G. Speir, Jr., President Georgia College INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Ladies and Gentlemen: We havereviewed the accompanying financial statements (Exhibits A through D) of Georgia College as of and for the year ended June 30, 1996, in accordance with Statementson Standardsfor Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representationofthe management of Georgia College. A review consists principally ofinquiries of College personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, with the exceptionof the matters described in the fourth and fifth paragraphs, we are not awareof anymaterial modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. As disclosed in Note 1 to the financial statements, generally accepted accounting principles require encumbrances to be recorded as a reservation of fund balance. However, in accordance with Georgia Law and Statebudgetary policy, management recorded encumbrances as expenditures and liabilities. The effects of thisdeparture from generally accepted accounting principles on the financial statementswere not reasonably determinable. 96ARL-67 As disclosed in Note 1 to the financial statements, the College did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles. Ifcompensated absences were reported, liabilities would be increased and fund balance would be decreased by $1,354,227.71 as of June 30, 1996, and the net change in fund balance for the year ended June 30, 1996, would be decreased by $115,541.54. Our review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 14) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements, and except for the effects of the matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto. CLV:cm 96ARL-67 FINANCLALSTATE~TS - 1- GEORGIA COLLEGE COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30,1996 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Prepaid Items Investment in Plant Total Assets CURRENT FUNDS UNRESTRICTED RESTRICTED LOAN FUNDS $ 2,836,848.29 $ 701,417,75 $ 655,005,53 45,806.17 609,020.07 1,831,232.25 536,422,77 22,740.87 $ 4,005,032,00 $ 747,223,92 $ 2,486,237,78 LIABILITIES AND FUND BALANCES Uabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees other Deposits Held in Custody for others Total Uabilities Fund Balances U. S, Government Grants Refundable Institutional Loans - Restricted Endowment Net Investment in Plant Restricted Unrestricted Total Fund Balances $ 1,687,415,58 86,554.40 996,788,25 197,202.13 $ 2,967,960.36 $ 2,028,215.19 458,022.59 $ 747,223.92 $ 1,037,071.64 $ 1,037,071.64 $ 747,223,92 $ 2,486,237,78 Total Uabilities and Fund Balances $ 4,005,032,00 $ 747,223.92 $ 2,486,237,78 See Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information, The notes to the financial statements are an integral part of this statement. -2- EXHIBIT"A" ENDOWMENT FUNDS UNEXPENDED PLANT FUNDS RENEWALS AND REPLACEMENTS INVESTMENT IN PLANT AGENCY FUNDS TOTAL (Memorandum Only) $ 883,447.58 $ 1,594,959.80 $ 461,841.92 $ 1,036,971.41 88,343.02 8,647.00 _ _ _ _ _ _ $ 60,000,400.91 327,730.63 $ 7,461,251.50 1,082,777.58 2,537,242.34 536,422.77 22,740.87 60,000,400.91 $ 1,920,418.99 $ 1,683,302.82 $ 470,488.92 $ 60,000,400.91 $ 327,730.63 $ 71,640,835.97 $ 1,564,129.30 $ $ 1,564,129.30 $ $ 1,920,418.99 $ $ 1,920,418.99 $ 119,173.52 $ 119,173.52 $ 131,341.45 131,341.45 $ 215,719.48 $ 3,598,605.81 86,554.40 112,011.15 996,788.25 197,202.13 112,011.15 $ 327,730.63 $ 4,991,161.74 $ 60,000,400.91 339,147.47 339,147.47 $ 60,000,400.91 $ 2,028,215.19 458,022.59 1,920,418.99 60,000,400.91 747,223.92 1,495,392.63 $ 66,649,674.23 $ 1,920,418.99 $ 1,683,302.82 $ 470,488.92 $ 60,000,400.91 $ 327,730.63 $ 71,640,835.97 -3- GEORGIACOlLEGE COMBINED STATEMENTOF CHANGES IN FUND BALANCES ALl FUNDGROUPS YEAR ENDEDJUNE 30 1996 REVENUES AND OTHER AOO!TIONS UnrestrictedCurrent Fund R _ . Stale Appropriations Major Repeil1llRehabilitalion Funds LoUery Proceeds Fedenli Gnlnts and Contracts State Grants and Contracts PrIvateGifts, Grants, and Contracts '"-tment Income Endowment Other RealizedGains on m-trnenls InIerelIt on Loans Receivable AdjU8lments Prior Vears' ExpenditureslAccounts Payable Prior Vears' Checks Voided Expended for Plant Facilities Current Funds Plant Funds U118JlP8l1ded ~1s and Replacements Georgia State Financingand InvestmentCommission Other Additions Proceeds from Sale d Plant Assets Recoveryd Prior Vean;' CancelledLoans Total R _ . - and Other Additions EXPENpnvRESANDOTHERPEDUCTIONS Educationaland General Expenditures Auxiliary Enterprises Expenditures Indirect Co8ts Recovered Remillances to the Board d Regentsd the University System d Georgia Prior Vear's UnnJSlricled Fund Balance(Surplus) Adjuslmenls Prior Vean;' R_ueslAccounls Receivable Loan Cancellationsand Write-Olfs Administrativeand CollectionCosts Expended for Plant Facilities Capitalized Noncapitalized DisposalslDelalionsiAdjuslments Total Expenditures and Other Deductions TRANSFERSBETWEEN FUNDS Nonmanclalory R_1s and Replacements Capital Projects Gains on Irweslmentsfor Object d Trust Total Transfers Elet\wen Funds Nellncreasel(Decrease) for the Vear FUND BALANCES JULV 1. 1995 FUND BALANCES JUNE 30, 1996 See Independent Accounlanfs CombinedReport on Reviewd FinancialStatements and SupplemenlaryInformation. The notes to the financial statementsare an integralpart of this statement. -4 CURRENT FUNDS UNRESTRICTED RESTRICTED LOAN FUNDS $ 35.072.685.41 $ .8,283,959.08 $ 3,096.034.83 587,693.36 143,732.47 8,584.45 684.63 156,250.00 52.084.18 18,271.58 34,070.23 24,476.93 $ 35,081,954.49 $ 12,111,419.74 $ 18,no.00 303,922.92 $ 31,044,432.03 $ 12,239,496.57 3,544,492.65 14,193.19 31,461.65 -1,649.81 s 20,735.58 17,498.15 $ 34,618,736.52 S 12,253,689.76 $_--3=8,=23=3.7:3. S -327.983.78 -208,606,00 S 56,913.35 S -536,589.78 $ 56,913.35 S -73,371.81 $ -85,356.67 S 265,689.19 1.110,443.45 832,580.59 2,220.548.59 S 1.037,071.64 $ 747,223.92 S 2.486,237.78 EXHIBIT "8" PLANT FUNDS ENDOWMENT RENEWALS AND FUNDS UNEXPENDED REPLACEMENTS INVESTMENT INPLANT TOTAl (Memorandum Only) $ 1,167,964.00 508,523.00 $ 14,997.53 87,400.00 109,369.10 175,964.68 171.50 $ 4,217.22 $ 124,366.63 $ 1,944,240.40 $ $ 35,On,685.41 1,167,964.00 508,523.00 8,440,209.06 3,096,034.83 $ 82,626.68 824,801.75 143,732.47 194,236.26 143,439.33 24,476.93 682.60 9,438.55 684.63 1,997,409.78 1,997,409.78 2,114,173.08 398,784.28 2,688,491.18 2,114,173.06 398,784.28 2,688,491.18 4,217.22 18,nO.00 682.60 $ 7.281,485.00 $ 56,848,071.78 $ 0.00 $ 43,283,928.60 3,544,492.65 14,193.19 $ 2,922.52 34,384.17 -1,649.81 20,735.58 17,498.15 2,114,173.08 $ 33,400.15 398,784.28 51,505.78 $ 221,702.13 2,512,957.36 84,905.93 221,702.13 $ 0.00 $ 2,150,495.75 $ 450,290.06 $ 221.702.13 $ 49,733,147,95 $ $ -56,913.35 $ -56,913.35 $ $ 67,453.28 $ 1,852,965.71 $ 206,606.00 206,606.00 $ 2,350.65 $ 116,822.87 327,983.78 $ 0.00 0.00 0.00 327,983.78 $ 0.00 -121,623.68 $ 7,059,782.87 $ 7,114,923.83 460,n1.15 52,940,618.04 59,534,750.40 $ 1,920,418.99 $ 119,173.52 $ 339,147.47 $ 60,000,400.91 $ 66,649,674.23 -5- GEORGIACOLLEGE STATEMENTOF CURRENTFUNDS REVENUES. EXPENDITURES. AND OTHER CHANGES YEAR ENDEDJUNE 30.1996 EXHIBIT"C REVENUES StateAppropriations Tuitionand Fees Federal Grantsand Contracts StateGrantsand Contracts LocalGrantsand Contracts PrivateGifts, Grants,and Contracts Endowment Income Sales and Servicesof Educational Activities Salesand Servicesof Auxiliary Enterprises Other Sources Total Revenues EXPENDITURES Educational and General Instruction Research Public Service Academic Support StudentServices Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Auxiliary Enterprises StudentHousing Facultyand Staff Housing Food Services Storesand Shops Intercollegiate Athletics Other Service Units Total Expenditures OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS) Excessof Restricted Receipts over Transfersto Revenues Transfersfor Renewals and Replacements Transfersfor Capital Projects Transfersof Gains on Investments for Objectof Trust Prior PeriodAdjustments (Net) Remittances to the Board of Regents of the UniversitySystemof Georgia PriorYear'sUnrestricted Fund Balance (Surplus) Total Other Transfersand Additionsl(Deductions) UNRESTRICTED RESTRICTED TOTAL (Memorandum Only) $ 21,063,418.00 $ 21,063,418.00 9,151,065.50 9,151,065.50 28,855.61 $ 8,223,760.82 8,252,616.43 639.96 3,028,452.61 3,029,092.57 120,094.09 120,094.09 590,273.28 590,273.28 276,915.n 276,915.n 66,083.26 66,083.26 3,559,997.47 3,559,997.47 1,202,625.61 1,202,625.61 $ 35,072,685.41 $ 12,239,496.57 $ 47,312,181.98 $ 16,225,004.83 $ 985,898.07 $ 17,210,902.90 18,015.17 9,999.39 28,014.56 38,110.51 38,110.51 3,442,705.24 157,832.15 3,600,537.39 2,282,453.79 58,810.01 2,341,263.80 4,674,894.57 272,810.65 4,947,705.22 3,882,371.42 3,882,371.42 480,876.50 10,754,146.30 11,235,022.80 1,586,669.12 36,230.95 156,413.95 461,119.52 874,538.22 429,520.89 1,586,669.12 36,230.95 156,413.95 461,119.52 874,538.22 429,520.89 $ 34,588,924.68 $ 12,239,496.57 $ 46,828,421.25 $ -142,270.02 $ -142,270.02 $ -327,983.78 -327,983.78 -208,606.00 -208,606.00 56,913.35 56,913.35 10,918.89 10,918.89 -31,461.65 -31,461.65 $ -557,132.54 $ -85,356.67 $ -642,489.21 Net Increasel(Decrease) in Fund Balances $ See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notesto the financialstatements are an integral part of this statement. -6- -73,371.81 $ -85,356.67 $ -158?28.48 GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY Georgia College is one ofthirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Georgia College as a separate reporting entity. The Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policiesfor member institutions. Georgia College does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Georgia College is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. FUND ACCOUNTING In order to ensure observance oflimitations and restrictions placed on the use of the resources available to the College, the accounts ofthe College are maintained in accordance with the principles offund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combinedinto fund groups. Accordingly, all financial transactions have been recorded and reported by fund group. Within each fund group, the College's fund balance allocations and designations represent those portions of the fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies. Fund groups and funds presented in the accompanying financial statements are as follows: CURRENT FUNDS UNRESTRICTED - The fund used to account for those economic resources over which the College retains full control to use for purposes of performing the primary functions of the College, e.g., instruction, research, public service, auxiliary enterprises, and student activities. RESTRICTED - The fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes. - 7- GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS RJNE 30. 1996 EXIllBIT "0" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FUND ACCOUNTING LOAN FUNDS The fund used to account for resources whichhave been made available for financial loans to students. ENDOWMENT FUNDS Thefund used to account for gifts that are subjectto the restrictions ofgift instruments requiring that the principal be invested in perpetuityand incomeonly be utilized. PLANT FUNDS UNEXPENDED - The fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes. . RENEWALS ANDREPLACEMENTS - Thefund usedto account for resources set aside for the renewal and replacement ofinstitutional properties. INVESTMENT IN PLANT - The fund whichshows the total amountsrepresenting the book value ofall physical properties owned by the College. Net Investment in Plant is an equity account showingthe total book value ofphysical properties belonging to the College less the amount of any indebtedness to others. AGENCY FUNDS The fund used to account for resources held by the College as custodian or fiscal agent for individual students, faculty, staff members, and organizations. BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the sameas the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute ofCertified PublicAccountants' audit guide reporting model. The modified accrual basis ofaccounting is defined as that method of accounting in which expenditures, other thanaccrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures ofthe fiscal period. Contractual obligations for goods and services whichhave not been received at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not - 8- GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 EXIllBIT "0" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles. Compensated absences represent obligations of the College relating to employees' rights to receive compensationfor future absences based upon servicesalready rendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability ofSl,354,227.71 and the related current year expenditure ofS1l5,541.54 have not been reported in the current funds as required by generally accepted accounting principles. Prior period adjustments and certain other items are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation ofthe financial statements. To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made for plant facilities expendedby the Georgia State Financing and Investment Commission on behalf of the College. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on physical plant and equipment. It is the policy ofGeorgia College to record assets acquired through capital leases as additions to Investment in Plant as payments are made by the College. The liabilityfor such leases at fiscal year-end is not recorded on the Combined Balance Sheet. This presentation differs from generally accepted accounting principles in that the assets and the related liability resulting from capital leases should be recorded in Investment in Plant at the inception ofthe agreement at the net present value ofthe future minimum lease payments, not to exceed the fair value of the leased property. The effect of this departure is deemed to be immaterial to the fair presentation ofthe financial statements. The Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to present the results of operations or the net income or loss for the period as would a statement of income or a statement of revenues and expenses. - 9- GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units of the University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 19951996. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The budget allocation and disbursement of these funds is made to the various organizational units by the Administrative Central Office. In addition, the organizationalunits receive Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office. A comparison of anticipated funds available and budgeted expenditures by budget unit object class indicates that the following object classes were overspent by the amounts identified below: Personal Services Sponsored Operations Operating Expenses Sponsored Operations s 13,953.03 s 258.655.54 These overexpenditures of budget constitute a violation of Board of Regents policy, but do not constitute statutory violations of budget authority. Statutory violations of budget authority are reported at the departmental level. CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits, certificates of deposit and temporary investments in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts. INVESTMENTS Investments are recorded at cost or in the case of gifts at fair market value on the date of the gift. Funds received by the College as endowments or for restricted purposes are invested according to conditions stipulated by the donor, grantor, or in accordance with the Board ofRegents authorizing resolutions. Gains and losses on investment transactions are accounted for in the funds where such assets are recorded. ACCOUNTS RECEIVABLE Accounts receivable consist of allotments due from the Board of Regents of the University System of Georgia - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. No provision has been made for an allowance for doubtful accounts within the accompanying financial statements. INVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the weighted average method. - 10 - GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 EXlllBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVENTORIES Inventories ofgoods for resale are valued at cost usingthe first-in, first-out method. PREPAID ITEMS Prepaid items are payments madeto vendors in advance ofthe receipt ofgoods and services that will benefit periods subsequent to the balance sheet date. MEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned "Memorandum Only" because they do not represent consolidated financial information andare presented only to facilitate financial analysis. The columns do not present information that reflects financial position or changes in financial positionin conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. NOTE 2: CUSTODIAL CREDITRISKS OF CASHDEPOSITS AND INVESTMENTS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the StateofGeorgia cannotbe placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: (1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or ofthe State of Georgia. (2) Bonds, bills, certificates of indebtedness, notes, or otherobligations ofthe counties or municipalities of the State of Georgia. (3) Bondsofanypublic authority created bythe laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose. (4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia. (5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporationof the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate CreditBank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. (6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. - 11 - GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 EXHIBIT "0" NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES As authorized in the Official Code ofGeorgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which includes organizational units of the Board ofRegents of the University System of Georgia) the option of exempting demand deposits from the collateral requirements. The treasurer ofthe Board ofRegents is responsible for alldetails relative to furnishing the required depository protection for all units ofthe University SystemofGeorgia. CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as ofJune 30, 1996, are categorized belowin orderto provide information aboutthe extent to which such deposits are exposed to custodial credit risk: Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Collegeor by its agent in the College's name. Category 2 - Amounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the College's name. Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution, or by its trust department or agentbut not in the College's name, and amounts uncollateralized. Cash Deposits InvestmentPortfolio Accounts TotalCash Deposits Carrying Amount s 2,495,545.66 191.232.83 s2 686 77849 Bank Balances s 3,857,627.61 191.232.83 $404886044 s 481,517.15 s 481517 15 Risk Categories 2 3 s s 2,445,263.73 930,846.73 191.232.83 s s 2 445.263 73 112207956 CATEGORIZATION OF INVESTMENTS Investments are summarized and classified as to custodial credit risk within the three categories described below: Category 1 - Insured or registered, or securities held by the College or its agent in the College's name. Category 2 - Uninsured and unregistered, with securities held by the counterparty'strust department or agent in the College's name. Category 3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the College's name. - 12 - GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1996 EXlllBIT "0" NOTE 2: CUSTODIAL CREDITRISKS OF CASHDEPOSITS AND INVESTMENTS CATEGORIZATION OF INVESTMENTS The carrying amounts ofinvestment balances as of June 30, 1996, are categorized below: Typeof Investment CommonStock StateAuthority Bonds U. S. Government Securities Investments Not Subjectto Categorizations: Board ofRcgents TotalRetum Fund StateInvestment Pool TotalInvestments Risk Categories 2 s 429,970.95 s 45,806.17 415,767.63 0.00 s s 89154475 s 0.00 s 3 0.00 000 Carrying Amount s 429,970.95 45,806.17 415,767.63 s 891,544.75 Market Value s 699,846.67 50,096.50 430.293.63 s 1,180,236.80 1,267,970.83 1,493,055.50 3,673.470.01 3,673.470.01 s 5,832 98559 s6346762 31 Funds invested in an investment pool managed by another governmental entity are not required to be categorized since the College did not own any specific, identifiable investment securities ofthe pool. NOTE 3: INVESTMENT IN PLANT The following is a summary ofInvestment in Plant fixed assets as of June 30, 1996: Land Buildings [mprovements Other ThanBuildings Equipment Library Books and Collections Total Investment in Plant $ 634,079.21 42,950,405.61 2,816,696.55 9,175,345.83 4.423,873.71 $60,000.40091 NOTE 4: RISKMANAGEMENT Georgia College is a participant in the Board of Regents of the University System of GeorgiaHealthBenefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees of the University System of Georgia. The College and participating employees and retirees pay premiums to the Health Benefits Plan for this health insurance coverage. The HealthBenefits Plan is included in the audit reportof theBoardof Regents of the University System of Georgia - Administrative Central Office. Allunits of the University System of Georgia sharethe risk of loss for claims of the HealthBenefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of $1,000,000.00 per person and dental coverage up to an annual maximum of $1,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the HealthBenefits Plan as established by the Board of Regents. - 13 - GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 EXHIBIT "D" NOTE 4: RISK MANAGEMENT TheDepartment ofAdministrative Services (DOAS) has the responsibility for the State ofGeorgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The Statebelieves it is moreeconomical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk ofloss to which theState is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and lawenforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The College, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provideclaims servicing and claims payment. A self-insured programof professional liability for its employees was established by the Board ofRegents of the University System ofGeorgia underpowers authorized bythe Official Code ofGeorgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out ofthe performance oftheir duties or in any way connectedtherewith. The program is administered by DOAS as a Self-Insurance Fund. NOTE 5: DEFERRED COMPENSATION PLAN The StateofGeorgia offers its employees a deferred compensation plan in accordance with InternalRevenue Code Section 457. The plan, available to employees of the State of Georgiaand county health departments, permits suchemployees to defer a portion oftheirsalary until future years. Participation in the plan is optional. Participants choose the option or options inwhich they wishto participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the State of Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account for each participant. Financial information relative to the plan will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996. NOTE 6: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Plan Description Georgia College participates in the Teachers Retirement System of Georgia(TRS), a cost-sharing multipleemployer public employee retirement system (PERS) established by the General Assembly of Georgiafor the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The - 14 - GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 EXHIBIT "D" NOTE 6: RETIREMENTPLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Plan Description College's payroll for the yearended June30, 1996, for employees covered by TRS was $14,551,507.19. The College's total payrollfor all employees was $20;277,438.64. Benefits TRS provides serviceretirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member(1) has attainedthe age of60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless ofage, or (3) has attained the age of55 yearsand hasat least 25 years ofcreditable service. For those members with 30 years of serviceor those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paidyears of service multiplied by the numberofyears ofcreditable service up to 40 years. Any memberwho has between25 and 30 years ofcreditable serviceand is at least 55 years of age shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 70.10 for eachyearor fraction thereofbywhich the member has less than 30 years of service. The normal retirement pensionis payable monthly for life. Optionsare available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement benefits alsoinclude deathanddisability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service(minimum of 10 years of service) and compensation up to the date of death or up to the time ofdisability. Membersbecome fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. Contributions Required and Contributions Made Employees of the College who are covered by TRS are required to pay 5% of their gross earnings to TRS. The Collegemakes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised bytheirindependent actuary. For fiscal year 1996, the employer contribution rate was 11.81%for covered employees. In addition, the College contributed 4.87% to the TRS on behalfof employees electing to participate in the Regents Retirement Plan. Theinterest rate assumption (rate of return on investments) was 7.50%. Total contributions to the plan made during fiscal year 1996 amounted to $2,637,463.40, of which $1,909,817.96 was made by the College and $727,645.44 was made by employees. These contributions represented 13.12% (College) and 5% (employees) of covered payroll. - 15 - GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1996 EXHIBIT "0" NOTE 6: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Funding Status and Progress Pension Benefit Obligation The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 ofthe Governmental Accounting Standards Board (GASB)that is required to be used for reporting purposes. The standardized measurement isthe actuarial present value of creditedprojectedbenefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted bythe GASB to enable readersofthe PERS financial statements to assessthat PERS funding status on a going-concern basis, assess progress made inaccumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS. Thetotal unfunded pension benefit obligation ofTRS as ofJune 30, 1995, whichwas the latest information available, was as follows: Total pension benefit obligation $ 17,442,607,000.00 Net assets available for benefits, at cost 15,857,066,000.00 Unfunded pension benefit obligation $ 1.585,541.000.00 Themeasurement of the totalpension benefit obligation isbased on an actuarial valuation as ofJune 30, 1995. Net assets available for benefits werevalued as ofthe samedate. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers. Retirement System Contributions Total contributions from allemployers to TRSforthe year endedJune 30, 1996, were $607,274,559.00. The College's contribution for the year ended June 30, 1996, of $1,909,817.96 was actuarially determined and represented .3145% oftotal contributions madeby all participating employers. Trend Information Historical trend information is presented in the TRS June 30, 1996, financial report. This information gives an indication of the progress made in accumulating sufficient assetsto pay benefits when due. REGENTS RETIREMENT PLAN The State of Georgia provides optional pension benefits for eligible faculty and principal administrators through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. - 16 - GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1996 EXIllBIT "0" NOTE 6: RETIREMENT PLANS REGENTS RETIREMENT PLAN State legislationrequires that the employer contribute 4% and the employee contribute 5% ofthe participating employee's earnable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The College's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1996, was $3,924,514.04. The College's total payroll for all employees was $20,277,438.64. The College and the covered employees made the required contributions of $156,980.56 (4%) and $196,225.70 (5%), respectively. GEORG~DE~DCONTmrnUTIONPLAN Plan Description Georgia College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System ofGeorgia. The College'spayrollfor the year ended June 30, 1996, for employees covered by GDCP was $560,039.29. The College's total payroll for all employees was $20,277,438.64. Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $ 3,500.00 credited to hislher account, the Board of Trustees has the option of requiring a lump sum distributionto the member inlieu ofmaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to hislher account will be paid to the member's designated beneficiary. Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. Total contributions made by employees during fiscal year 1996 amounted to $42,004.79 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan. - 17 - GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 EXlllBIT "D" NOTE 7: LEAVB POLICIES Employees earnannual leave ranging from one and one-quarter days to one and three-quarter days each month depending uponthe employees' length of continuous State servicewith maximum accumulation offorty-five days. Employees are paidfor unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Basis of Accounting (Compensated Absences) Employees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment. NOTE 8: CONTINGENCIES Amounts received or receivable from grantoragencies are subject to audit and adjustment by grantor agencies. Thiscould result in refunds to the grantoragency for anyexpenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time althoughthe Collegeexpects such amounts, if any, to be immaterial to its overall financial position. Litigation, claims and assessments filed against Georgia College (as an organizational unit of the Board of Regents ofthe University System ofGeorgia), ifany, are generally considered to be actions againstthe State ofGeorgia. Accordingly, significant litigation, claims and assessments pending againstthe State ofGeorgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Reportfor the fiscal year ended June 30, 1996. NOTE 9: POSTE:MPLOYMENT BENEFITS OTHER THAN PENSIONBENEFITS Pursuant to the general powers conferredby the Official Code of Georgia Annotated Section 20-3-31, the Board ofRegents ofthe University System of Georgia hasestablished grouphealth and lifeinsurance programs for regular employees ofthe University System of Georgia. It is the policy ofthe Board ofRegents to permit employees ofthe University System ofGeorgia eligible for retirement or that become permanently and totally disabled to continue as members ofthe group health and lifeinsurance programs. Employees who are eligible for retirement or disability under the criteria established by the TeachersRetirement System of Georgia and who have at least ten years of service with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of the Board of Regents of the University Systemof Georgia pay the employer portion for group insurance for affected individuals. As of June 30, 1996, there were 154 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1996, Georgia College recognized as incurred $250,919.93 ofexpenditures, which was net of$81,527.39 of participant contributions. - 18 - GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1996 EXHIBIT "0" NOTE 10: BONDINGINFORMATION The President and all employees of Georgia College are bonded under a Public Employees Blanket Bond written bytheEmployers Insurance of Wausau, their Bond No. 1450-02-110723, on whichthe premium was paid to October 1, 1996. Under this agreement, the public employee dishonesty coverage insures Georgia College to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the College to a maximum of $1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment. All employees of Georgia College are also bondedunder Commercial Crime Policies written by the United States FireInsurance Company, their Policy Nos. 626011675 2 and 626 012294 4, on which the premium was paid to October 1, 1996. Under these additional public employee dishonesty coverages, the policies insure the College to a maximum of $9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees and from failure ofits employees to perform faithfully. NOTE 11: ENROLLMENT The equivalent full-time student enrollment of Georgia College was as follows: Regular Term Fall Quarter, 1995 Winter Quarter, 1996 Spring Quarter, 1996 4,668 4,593 4,272 Average Summer School, 1995 - 19 - I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I SUPPLEMENTARY INFORMATION - 21 - GEORGIA COLLEGE COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTEP JUNE 30, 1996 EXHIBIT"E" ASSETS cash and cash Equivalents Accounts Receivable Inventories Prepaid Items RESIDENT LOTTERY FOR AUXILIARY STUDENT INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES TOTAL $ 2,106,282,26 $ 282,764.62 171,331.26 19,889,99 209,633,88 $ 431,610.59 $ 323,092,42 365,091.51 2,850.88 89,321.56 $ 2,836,848.29 3,163.03 609,020,07 536,422.n 22,740,87 TotalAssets $ 2,580,268,13 $ 209.633.88 $ 1:122.645.40 $ 92.484.59 $ 4:005,032,00 LIABILITIES ANp FUNp BALANCES Liabilities AccountsPayable Student Deposits Deferred Revenue Tuitionand Fees Other $ 1,384,360,82 $ 938,254,00 104,843,63 Total Liabilities $ 2,427,458.45 $ Fund Balances Unrestricted 152,809.68 209,536,50 $ 209,536.50 $ 92,562.74 $ 86,554,40 58,534,25 78,287.00 315,938.39 $ 955.52 $ 1,687,415.58 86,554,40 14,071.50 996,788.25 197,202,13 15,027.02 $ 2,967,960,36 97.38 806.707,01 n,457,57 1,037,071.64 Total Liabilities and FundBalances $ 2,580.268.13 $ 209.633.88 $ 1.122,645.40 $ 92.484,59 $ 4,005.032.00 see accompanying notesand Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. -22- GEORGIA COLLEGE COMBINING STATEMENT OF CHANGES IN FUNDBALANCES CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 1996 EXHIBIT -P' RESIDENT LOITERYFOR AUXILIARY STUDENT INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES TOTAL REVENUES AND OTHER ADDITIONS Unrestricted CurrentFundRevenues Adjustments PriorYears'Expenditures/Accounts Payable PriorYears' ChecksVoided $ 30,348,232,73 $ 6,014.71 430,69 429,483,00 $ 3,887,608,68 $ 407,361,00 $ 35,072,685,41 2,469.74 245,14 100,00 8,80 8,584,45 684,63 Total Revenues and other Additions $ 30,354,678,13 $ 429,483,00 $ 3,890,323,56 $ 407,469,80 $ 35,081,954,49 EXPENDITURES AND OTHER DEDUCTIONS Educational and General Expenditures Auxiliary Enterprises Expenditures Remittances tothe Board of Regents of the University System of Georgia PriorYear'sUnrestricted FundBalance (Surplus) Adjustments PriorYears' Revenues/Accounts Receivable $ 30,162,626,91 $ 31,461.65 -1,649,81 430,547,14 $ 451,257,98 $ 31,044,432.03 $ 3,544,492.65 3,544,492.65 31,461,65 -1,649,81 Total Expenditures and other Deductions $ 30,192,438,75 $ 430,547,14 $ 3,544,492,65 $ 451,257.98 $ 34,618,736,52 TRANSFERS BElWEEN FUNDS Nonmandatory Renewals and Replacements capital Projects $ -156,606,00 $ -327,983,78 -52,000,00 $ -327,983,78 -208,606,00 TotalTransfersBetween Funds $ -156,606.00 $ -379,983,78 $ -536,589,78 Net Increasel(Decrease) for the Year $ 5,633,38 $ -1,064.14 $ -34,152,87 $ -43,788,18 $ -73,371,81 FUND BALANCES JULY " 1995 147,176.30 1,161.52 840,859,88 121,245,75 1,110,443.45 FUNDBALANCES JUNE 30,1996 $ 152,809,68 $ 97.38 $ 806?07,01 $ n,457,57 $ 1,037,071,64 see accompanying notesand Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information, -23- B[c~V\ k 'Fj i I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I GEORGIA COLLEGE COMBINING STATEMENT OF CURRENT FUNDS REVENUES. EXPENDITURES. AND OTHER CHANGES UNRESTRICTED YEAR ENDED JUNE 30. 1996 EXHIBIT-G- REVENUES StateAppropriatlons Tuitionand Fees Federal Grants 8nd Contracts State Grants and Contracts sates and 5ervices of Educational Activities sates and 5ervices of AuxiliaryEnterprises Other Sources Total Revenues EXPENDITURES Educational and General Instruction Research Public service Academic Support Student 5ervices Institutional Support Operation and Maintenance of Plant SCholarships and Fellowships AuxiliaryEnterprises Student Housing Facultyand Staff Housing Food 5ervices Storesand Shops Intercollegiate Athletics Other service Units Total Expenditures OTHER TRANSFERS AND ADPITIONSI