Georgia Institute of Technology, Atlanta, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

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, GEORGIA INSTitUtE OF .TECHNOLOGY
-TABLEOFCoNTENTS-

SECTION I

FINP,.NCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALL FUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

ALL FUND GROUPS

4

C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

7

D NOTES TO THE FINANCIAL STATEMENTS

8

SUPPLEMENTARY INFORMATION

E COMB~GBALANCESHEET

CURRENT FUNDS - UNRESTRICTED

24

F COMB~G STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

26

COMB~G STATEMENTS OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

G

UNRESTRICTED

28

H

RESTRICTED

31

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

32

2

LOTTERY FOR EDUCATION

34

3

OTHER ORGANIZED ACTNITIES

36

SCHEDULES OF OTHER ORGANIZED ACTIVITIES

4

BALANCE SHEET

42

5

CHANGES IN FUND BALANCE

43

6

REVENUES, EXPENDITIJRES, AND OTHER CHANGES

44

7 CHANGES IN INVESTMENT IN PLANT

46

8 SCHEDULE OF FUND BALANCES

CURRENT FUNDS - UNRESTRICTED AND PLANT FUNDS

48

9 RECONCILIATION OF SALARIES AND TRAVEL

50

GEORGIA INSTITUTE OF TECHNOLOGY

- TABLE OF CONTENTS -

....~ .~ \

~" SECTION II

'~\..

AUDITEE'S RESPONSE TO PRI~'~ YEAR FINDINGS AND QUESTIONED COSTS

.

~

.

\\

SUMMARY
"

SCHEDULE

OF

PRIOR

YEAR~"'~.~IND.INGS

AND

QUESTIONED

COSTS

"\~
I

SECTION ill

CURRENT YEAR FINDINGS AND QUESTIONED COSTS

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

II

SECTION I FINANCIAL

RUSSELl. \\'. HINTON
STATE AUDITOR 1404)6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-X400
January 15,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the University System of Georgia
and Honorable G. Wayne Clough, President Georgia Institute of Technology
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements (Exhibits A through D) ofGeorgia Institute of Technology as of and for the year ended June 30, 2001. These financial statements are the responsibility of the Institute's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1 to the financial statements, the Institute did not recognize June 30, 2000, encumbrances as expenditures in the June 30, 2001, financial statements. To conform to accounting principles generally accepted in the United States ofAmerica, encumbrances should be recognized as expenditures and liabilities in the period that goods and services are received. The effects on the financial statements of this departure from accounting principles generally accepted in the United States of America were not reasonably determinable, but are believed to be material.

01ARL-62X

As disclosed in Note 1 to the financial statements, the Institute did not report the liability and related expenditure for compensated absences in the current funds as required by accounting principles generally accepted in the United States of America. If compensated absences were reported, liabilities would be increased and fund balance would be decreased by $22,843,837.13 as ofJune 30, 2001, and the net change in fund balance for the year ended June 30, 2001, would be decreased by $1,587,529.50.
In our opinion, except for the effects on the financial statements ofthe matters discussed in the third and fourth paragraphs, the financial statements referred to above present fairly, in all material respects, the financial position of Georgia Institute of Technology as of June 30, 2001, and the changes in fund balances and the current operating funds revenues, expenditures, and other changes for the year then ended in conformity with accountingprinciples generally accepted in the United States of America.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 9) are presented for purposes of additional analysis and are not a required part ofthe financial statements of Georgia Institute ofTechnology. Such information has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, except for the effects ofthe matters discussed in the third and fourth paragraphs, such information is fairly presented in all material respects in relation to the financial statements taken as a whole.
Respectfully submitted,
~l~;.~nW .cti-~ State Auditor
RWH:gp 01ARL-62X

FINANCIAL STATEMENTS - 1-

ASSETS
Cash and Cash Equivalents Investments Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant
Total Assets

GEORGIA INSTITUTE OF TECHNOLOGY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30, 2001

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

LOAN FUNDS

s 118,758,960.61

$

1,000.00

s 14,897,441.64
1,565.818.70
5,898.817.65

39,660.963.47

.7,039.019.13 1,588.272.39

s s s 141,121,038.60

39,660,963.47

8,628,291.52

Total Liabilities and Fund Balances

$ 141,121,038.60 $ 39,660,963.47 $ 8,628,291.52

The notes to the financial statements are an integral part of this statement. - 2-

EXHIBIT "A"

ENDOWMENT AND SIMILAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$ 40,868,438.31 13,467,879.41
s
84,440.11

253,270.53
5,436,623.62 $ 11,255,568.54 ______ $

$ 1,060,354,219.98

$ 1,321,972.50

159,628,398.92 13,467,879.41 61,850,694.77 1,565,818.70 5,898,817.65 19,686,877.16
1,060,354,219.98

$ 54,420.757.83 $ 5,689,894.15 $ 11,255,568.54 $ 1,060,354,219.98 $ 1,321,972.50 $ 1,322,452,706.59

$
$ 893,219.10 504,602.70

150,588.97
860,059.93 114,294.07

$ 1,397,821.80 $

$ 1,124,942.97 $

$
$ 1,321,972.50 1,040,441.81 1,040,441.81 $ 1,321 ,972.50 $

18,327,740.47 166.717.79
2,133,929.89 677,457.53 36,646.16 222,327.90
12,815,634.11 22,000,204.35
1,321,972.50 19,686,877.16
1,040,441.81
78,429,949.67

$ 47,157,144.71 234,756.48
7,028,856.64
$ 4,292,072.35 $ $ 54,420,757.83 $ 4,292,072.35 $

$ 1,059,313,778.17 10,130,625.57 10,130,625.57 $ 1,059,313,778.17

$

6,155,322.95

2,472,968.57

47,157,144.71

234,756.48

7,028,856.64

1,059,313,778.17

17,395,549.87

104,264,379.53

$ 1,244,022,756.92

$ 54,420,757.83 $ 5,689,894.15 $ 11,255,568.54 $ 1,060,354,219.98 $ 1,321,972.50 $ 1,322,452,706.59

-3-

GEORGIA INSTITUTE OF TECHNOLOGY COMBINED STATEMENT OF CHANGES IN FUND BALANCES
ALL FUND GROUPS YEAR ENDED JUNE 30, 2001

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues State Appropriations
Regular. Federal Grants and Contracts State Grants and Contracts Local Grantsand Contracts Private Gifts, Grants, and Contracts Investment Income
Endowment Other Net Increase/Decrease in Fair Value of Investments Interest on Loans Receivable Adjustments Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Expended for Plant Facilities . Current Funds Plant Funds
Unexpended Renewals and Replacements Georgia State Financing and Investment Commission Other Additions - Late Fees
Total Revenues and Other Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered Adjustments
Prior Years' Revenues/Accounts Receivable Loan Cancellations and Write-Ofts Administrative and Collection Costs Expended for Plant Facilities
Capitalized Noncapitalized Disposals/Deletions/Adjustments
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements Capital Projects General Operations
Total Transfers Between Funds
Net Increase/(Decrease) for the Year
FUND BALANCES JULY 1, 2000

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

LOAN FUNDS

$ 537,855,317.79

$ 162,668,316,38 26,932,615.48 1,012,457.93 94,349,899,06 $ 616,112,91
1,754,253.32 -5,063.80

87,500.00
89,688,74 121,673,44

s $ 539,604,507,31

285,579,401.76 $

15,019.79 313,881,97

$ 418,569,768,99 $ 218,470,585,75 41,201,178,96 64,853,859,27
36,012,46 $

31,056,09 6,413,02

$ 459,806,960.41 $ 283,324,445,02 $

37,469,11

$ -3,203,950.18

-2,087,444,00 $ -5,745,706,24

320,567,48

-320,567.48

$ -4,970,826,70 $ -6,066,273.72

s $ 74,826,720.20 $ -3,811,316.98

276,412,86

15,014,961.41

21,206,866,85

8,351,878.66

FUND BALANCES JUNE 30, 2001

$ 89,841 ,681.61 $ 17,395,549.87 $ 8,628,291.52

The notes to the financial statements are anintegral part of this statement. -4-

EXHISIT "S"

ENDOWMENT AND SIMILAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

s 4,883,060.00

$

37,500.00

637,314.21

s 2,221,104.20
226,143.25

$

674,814.21 $ 7,330,307.45 $

$ 717,968.62 124,208.37
842,176.99 $

$
4,051,187.29
27,896,243.49 7,340,545.43 1,260,235.36
28,045,822.97
s 68,594,034.54

537,855,317.79
4,883,060.00 162,668,316.38
26,932,615.48 1,012,457.93
98,526,086.35
616,112.91 3,028,761.56
637,314.21 121,673.44 .
2,104,604.~
-5,063.80
27,896,243.49
7,340,545.43 1,260,235.36 28,045,822.97
15,019.79
902,939,124.23

$

0.00

$ 637,040,354.74 41,201,178.96 64,853,859.27

36,012.46 31,056.09
6,413.02

$ 7,340,545.43 $ 3,530,839.91

1,260,235.36 1,053,812.28
$

24,036,541.07

8,600,780.79 4,584,652.19 24,036,541.07

$

0.00 $ 10,871.385.34 $

2,314,047.64 $

24,036,541.07 $ 780,390,848.59

$ $ 7,833,150.24

$

$

674,814.21 $

53,745,943.62

7,833,150.24 $ 4,292,072.35 $
0.00

3,203,950.18

$

0.00

0.00

0.00

3,203,950.18

$

0.00

1,732,079.53 $

44,557,493.47 $ 122,548,275.64

8,398,546.04

1,014,756,284.70

1,121,474,481.28

$ 54,420,757.83 $ 4,292,072;35 $ 10,130,625.57 $ 1,059,313,778.17 $ 1,244,022,756.92

-5-

GEORGIA INSTITUTE OF TECHNOLOGY STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES YEAR ENDED JUNE 30, 2001

EXHIBIT"C"

Netlnerease/(Deerease) in Fund Balances

$ 74,826,720.20 $ -3,811,316.98 $ 71,015.403.22

The notes to the financial statements are an integral part of this statement -7-

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FiNANCIAL STATEMENTS
JUNE 30, 200 I

EXHIBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Georgia Institute of Technology is one of thirty-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 Institute of Technology 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 policies for member institutions. Georgia Institute of Technology does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Georgia Institute ofTechnology is considered an organizational unit ofthe Board ofRegents 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 of limitations and restrictions placed on the use of the resources available to the Institute, the accounts of the Institute are maintained in accordance with the principles of fund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group.
Within each fund group, the Institute's fund balance allocations and designations represent those portions ofthe fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies.
Fund groups and funds presented in the accompanying financial statements are as follows:
CURRENT FUNDS
UNRESTRICTED - The fund used to account for those economic resources over which the Institute retains full control to use for purposes of performing the primary functions of the Institute, e.g., instruction, research, public service, etc.
RESTRICTED - The fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes.
.- 8 -

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
LOAN FUNDS
The fund used to account for resources which have been made available for financial loans to students.
ENDOWMENT AND SIMILAR FUNDS
The fund used to account for endowment funds and quasi-endowment funds. Endowment funds are subject to the restrictions of gift instruments requiring that the principal be invested in perpetuity and income only be utilized. While quasi-endowment funds have been established by the Institute for the same purposes as endowment funds, any portion of quasi-endowment funds may be expended. Restricted quasi-endowment funds may be expended only for the purposes established by the source of such funds.
PLANT FUNDS
UNEXPENDED - The fund used to account for financial resources utilized "to acquire or to construct physical properties for institutional purposes.
RENEWALS AND REPLACEMENTS - The fund used to account for resources set aside for the renewal and replacement of institutional properties.
INVESTMENT IN PLANT - The fund which shows the total amounts representing the book value of all physical properties owned by the Institute. Net Investment in Plant is an equity account showing the total book value of physical properties belonging to the Institute less the amount of any indebtedness to others."
AGENCY FUNDS
The fund used to account for resources held by the Institute as custodian or fiscal agent for individual students, faculty, staff members, and organizations.
BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis of accounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants' audit guide reporting model. The modified accrual basis of accounting is defined as that method of accounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures of the fiscal period.
-9 -

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2001

EXHIBIT "0"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING At June 30, 2000, encumbrances (contractual obligations for goods and services not received at fiscal year end) were recorded as expenditures by the Institute instead of reservations of fund balance as required by accounting principles generally accepted in the United States of America. For fiscal year 2001, the Institute changed its method of recording encumbrances such that encumbrances at June 30,2001, were recorded as a reservation of fund balance. This change is in accordance with accounting principles generally accepted in the United States of America.
No adjustments however, have been made on the financial statements to restate the fund balance at July 1, 2000 for the June 30, 2000 encumbrances recorded asexpenditures in fiscal year 2000. The net effect of the above accounting treatment resulted in an understatement of expenditures on the accompanying financial statements for prior year encumbrances which should have been reflected as expenditures in the period when goods and services were received.
Compensated absences represent obligations ofthe Institute relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability of$22;843,837.13 and a related net current year expenditure of $1,587,529.50 have not been reported in the current funds as required by accounting principles generally accepted in the United States of America.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but differs from accounting principles generally accepted in the United States ofAmerica in that immaterial adjustments should be reported as current period revenues and expenditures. The effect ofthis departure is deemed to be immaterial to the fair presentation ofthe financial statements.
To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made forplant facilities expended by the Georgia State Financing and Investment Commission on behalf of the Institute. 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 of Georgia Institute ofTechnology to record assets acquired through capital leases as additions to Investment in Plant when received at the total acquisition cost including interest. The liability for such leases at fiscal year-end is recorded in Investment in Plant including interest. This presentation differs from accounting principles generally accepted in the United States ofAmerica in that the assets and the related liability resulting from capital leases should be recorded in Investment
. - 10-

GEORGIA INSTITUTE OF TECHNOLOGY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, lOO 1

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING

in Plant at the inception of the agreement at the net present value of the future minimum lease

payments, not to exceed the fair value ofthe leased property. The effect ofthis departure is deemed

to be immaterial to the fair presentation of the 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.

BUDGET The Board ofRegents ofthe University System ofGeorgia - Administrative Central Office receives State appropriation allotments for units of the University System of Georgia. The appropriated budget is adopted at the Board level and represents appropriations provided by the Amended Appropriations Act of2000-2001. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The allocation of the appropriated budget is made to the Institute by the Administrative Central Office. In addition, the Institute receives Federal funds and other funds directly and includes 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:

Resident Instruction Personal Services: Sponsored Operations Operating Expenses: Education, General and Departmental Services Special Funding Initiative
Lottery for Education Special FUnding Initiatives
Other Organized Activities Georgia Tech Research Institute Operating Expenses: Sponsored Operations . State Data and Research Center Operating Expenses: . Education, General and Departmental Services Sponsored Operations

$ 1.121.698.64 $ 688,204.94 $ 684,298.12 $ 62,101.81
$ 5,962.00
$ 253.328.78 $ 129.969.97

- 11 -

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT liD"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET 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 Board object class level.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits, certificates of deposit and temporary investments in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts.
INVESTMENTS Investments are reported at fair value. Funds received by the Institute as endowments or for restricted purposes are invested according to conditions stipulated by the donor, grantor, or in accordance with the Board of Regents authorizing resolutions. Gains and losses on investment transactions are accounted for in the funds where such assets are recorded.
Investments in the various investment pools-maintained by the Institute consist in part, of U. S. Agency Securities and other mortgage-backed securities such as collateralized mortgage obligations and adjustable rate mortgages. These mortgage-backed securities are reported as U. S. Government Securities and Corporate Obligations in the note of custodial credit risk. (See Note 2 on Categorization of Investments) Investments in the investment pools are transacted by an external investment finn under direction ofinvestment advisory agreement executed between the Institute and the investment management finn. As of June 30, 2001, the Institute had $3,200,133.34 invested in U. S. Agency Securities and other mortgage-backed securities.
ACCOUNTS RECEIVABLE . Accounts receivable consist ofreimbursements 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.
Inventories of goods for resale are valued at cost using the weighted average method.
PREPAID ITEMS Prepaid items are payments made to vendors in advance ofthe receipt of goods and services that will benefit periods subsequent to the balance sheet date.

, - 12 -

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

. MEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State of Georgia cannot-be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the 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 of the State of Georgia.

(2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or

municipalities of the State of Georgia.

.

.

(3) Bonds of any public authority created by the laws of the State of Georgia, providing that

the statute that created the authority authorized the use of the bonds for this purpose.

(4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia.

(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.

As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which includes organizational units of the Board of Regents of the University System of Georgia) the option of exempting demand deposits from the collateral requirements.

- 13-

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2001

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES The treasurer ofthe Board ofRegents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia.

CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 2001, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk;

Category 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the Institute or by its agent in the Institute's name.

Category 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the Institute'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 Institute's name, and amounts uncollateralized.

Cash Deposits Investment Portfolio
Accounts
Total Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$28,455,158.92 $ 9,726,756.53 $ 88,855.02 $

0.00 $ 9,637,901.51

3.621.61

3.621.61

3.621.61

0.00

0.00

$28 458 780 53 $ 9730378.14 $ 92 476 63 $

000 $ 9637901 51

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 Institute or its agent in the Institute's name.

Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Institute's name.

Category 3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Institute's name.

The carrying amounts of investment balances as of June 30, 2001, are categorized below:

-14-

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

,EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS

'Type of Investment

Risk Categories

2

3

Canying Amount

Common Stock

$

Corporate Bonds

U. S. Government Securities

And Corporate Obligations

120,166.05 $ 1,103,082.70 $ 2,533,139.68
8,023.53 9,641,877.45

0.00 $ 1,223,248,75 2,533,139,68
0.00 9,649,900,98

$ 128.189.58 $13,178,099.83 $,==~ 0.0~0 $ 13,406,289.41

Investments Not Subject to Categorizations:
Board of Regents , Short-Term Fund
Total Return Fund Investment Portfolio Accounts
Mutual Funds Real Estate State Investment Pool
Total Investments

2,926,131. 73 40,868,438,31
56,510,28 1,458,11
87,290,043.46
$144,548,871.30

Funds invested in an investment pool managed by another governmental entity are not required to be categorized since the Institute did not own any specific, identifiable investment securities ofthe pool.

NOTE 3: INVESTMENT IN PLANT

The following is a summary of Investment in Plant fixed assets as of June 30, 2001:

Land Buildings Improvements Other Than Buildings , Equipment Library Books and Collections
Total Investment in Plant

$ 29,592,015.14 571,553,988.81 43,464,335.46 353,453,312.87 62.290,567.70
$1.060.354.219,98

NOTE 4: OPERATING LEASES

Georgia Institute of Technology has entered into certain agreements to lease office space and equipment which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date ofthe original term of the lease, the Institute has the option ofrenewing the lease on a year-to-year basis. Future minimum

- 15 -

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2001

EXHIBIT "D"

NOTE 4: OPERATING LEASES

lease payments for operating leases as of June 30,2001, are listed below. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised.

Fiscal Year Ending June 30

2002

$ 5.467,062.21

Expenditures for rental of office space and equipment under operating leases for the year ended June 30,2001, totaled $9,329,852.55.

NOTE 5: CAPITAL LEASES

Georgia Institute of Technology acquires certain equipment through multi-year capital leases with varying terms and options. These agreements contain fiscal funding clauses in accordance with Official Code of Georgia Annotated Section 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes.

As of June 30, 2001, future minimum lease payments under capital leases are as follows:

Fiscal Year EndingJune 30

2002 2003 2004 2005 2006

$ 562,784.56 . 348,821.34 58,316.70 50,882.26 19,636.95

Total Future Minimum Lease Payments

$ 1.040,441.8l

NOTE 6: ENCUMBRANCES

At June 30, 2001, Georgia Institute of Technology reported encumbrances totaling $30,481,743.65

for the following funds:

.

- 16":

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 6: ENCUMBRANCES

Current Funds - Unrestricted Resident Instruction Lottery for Education Other Organized Activities Auxiliary Enterprises Student Activities

$18,304,081.44 2,477,208.99 3,329,679.90 904,454.85 258,439.45

$25,273,864.63

Plant Funds Unexpended - Regular Renewals and Replacements

$ 4,620,158.59 587,720.43

5,207,879.02

$30.481.743.65

In addition, Current Funds - Restricted had encumbrances totaling $29,584,207.38. The Institute has sufficient grants and contracts funding available to meet encumbrance obligations in the subsequent .fiscal period.

NOTE 7: RISK MANAGEMENT

Georgia Institute ofTechnology is a participant in the Board ofRegents ofthe University System of Georgia Health Benefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees of the University System of Georgia. The Institute and participating employees and retirees pay premiums to the Health Benefits Plan for this health insurance coverage. The Health Benefits Plan is included in the financial statements of the Board of Regents of the University System of Georgia - Administrative Central Office. All units ofthe University System of Georgia share the risk of loss for claims of the Health Benefits 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 $2,000,000.00 per person and dental coverage up to an annual maximum of$1 ,000.00 per person. Blue Cross Blue Shield ofGeorgia processes medical and dental claims in accordance with the Health Benefits Plan as established by the Board of Regents. As of January 1, 2001, Express Scripts, Incorporated was contracted with to process pharmacy drug claims in accordance with the Pharmacy Benefit Program portion of the Health Benefits Plan.

The Department of Administrative Services (DOAS) has the responsibility for the State of Georgia ofmaking and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, uneniployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, 'employee and automobile liability, fidelity and certain other risks. The Institute, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of Georgia reporting

- 17-

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 7: RISK MANAGEMENT

entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations . by DOAS to provide claims servicing and claims payment.

A .self-insured program of professional liability for its employees was established by the Board of Regents of the University System of Georgia under powers authorized by the Official Code of Georgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out of the performance of their duties or in any way connected therewith. The program is administered by DOAS as a SelfInsurance Fund.

NOTE 8: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description Georgia Institute ofTechnology participates in the Teachers Retirement System ofGeorgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability 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 Georgia Department of Audits and Accounts.

Funding Policy Employees ofthe Institute who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2001, the employer contribution rate was 11.29% for covered employees. In addition, the Institute contributed 2.33% to the TRS on behalf of employees electing to participate in the Regents Retirement Plan. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$18,792,120.88 $19,346,820.05 .$20,109,501.61

. - 18 -

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 8: RETrnEMENTPLANS
REGENTS RETIREMENT PLAN
Plan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan established and administered by the Board of Regents of the University System of Georgia, underwhich it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts.
Funding Policy Member contribution requirements are established by the Board of Trustees of the Teachers Retirement System. Employer contributions are established by statute and may be amended only by the General Assembly ofthe State of Georgia. The employer contributes 8.81% ofthe participating employee's earnable compensation. Employees contribute 5% of their earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times.
The Institute and the covered employees made the required contributions of$9,494,945.33 (8.81 %) and $5,417,394.14 (5%), respectively.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Georgia Institute of Technology 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 of Georgia.
Benefits A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. Ifa member has less than $ 3,500.00 credited to his/her account, the Board ofTrustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute.
Contributions and Vesting Member contributions are seven and one-halfpercent (7.5%) ofgross salary. There are no employer contributions. Contribution rates are established by State statute. 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.
- 19 -

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO 'tHE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE 8: RETffiEMENTPLANS
GEORGIA DEFINED CONTRIBUTION PLAN
.Contributions and Vesting Total contributions made by employees during fiscal year 2001 amounted to $642,931.83 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
NOTE 9: LEAVE POLICIES
Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with maximum accumulation of forty-five days. 'Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Basis of Accounting (Compensated Absences)
Employeesearn 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, except as noted in the subsequent paragraph.
Certain employees who retire with a minimum ofthree months of unused sick leave are entitled to additional service credit in the Teachers Retirement System of Georgia.
NOTE 10: CONTINGENCIES
. Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for 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 Institute expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Georgia Institute ofTechnology (an organizational unit ofthe Board ofRegents ofthe University System ofGeorgia), if any, are generally considered to be actions against the State of Georgia; Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2001.
NOTE 11: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-331, the Board of Regents of the University System of Georgia has established group health and life . insurance programs for regular employees ofthe University System ofGeorgia. It is the policy ofthe Board ofRegents to permit employees ofthe University System of Georgia eligible for retirement or that become permanently and totally disabled to continue as members of the group health and life
- 20-

GEORGIA INSTITUTE OF TECHNOLOGY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "D"

NOTE. 11: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS

.insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System of Georgia and who have at least ten years ofservice with the University System of Georgia are eligible for these postemployment health and life insurance benefits; Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals.

As of June 30, 2001, there were 1,028 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 2001, Georgia Institute ofTechnology recognized as incurred $2,627,070.51 ofexpenditures, which was net of$1,024,141.46 of participantcontributions.

NOTE 12: ENROLLMENT

The equivalent full-time student enrollment of Georgia Institute of Technology was as follows:

Regular Term Fall Semester, 2000 Spring Semester, 2001

14,124 13,200

Average

13.662

Summer School, 2000

4.754

- 21 -

SUPPLEMENTARY INFORMATION - 23 -

GEORGIA INSTITUTE OF TECHNOLOGY COMBINING BALANCE SHEET
CURRENT FUNDS - UNRESTRICTED JUNE 30, 2001

ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Salaries Payable Contracts Payable Retainages Payable Security Deposits Student Deposits Deferred Revenue Tuition and Fees Other Due to Other Fund Groups
Total Liabilities
Fund Balances Unrestricted
Total Liabilities and Fund Balances

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

$ 118,704,786.97

3,012,741.00

561,273.79

5,832,710.75

_-.,....

$

22,515,061.97

$ 128,111,512.51 $ 22,515,061.97

$ 14.904,657.83 $ 166,717.79 354,344.30 52,157.60

24.821.38
11,728.44 1,303.16

11,295,997.60 393,650.00
80,105,432.34
$ 107,272,957.46 $

37,852.98

20,838,555.05

22,477,208.99

$ .128,111,512.51 $ 22,515,061.97

See notes to the financial statements.

- 24-

EXHIBIT"E"

OTHER ORGANIZED ACTIVITIES

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$

34,100.00 $

16,273.64 $

3,800.00 $ 118,758,960.61

419,558.42

11,365,819.25

99,322.97

14,897,441.64

1,004,544.91

1,565,818.70

22,362.91

14,434.48

29,309.51

?,898,817.65

36,723,683.15

13,548,678.38

1,607,011.33

74,394,434.83

$ 37,199,704.48 $ 25,949,750.66 $ 1,739,443.81 $ 215,515,473.43

$

370,516.18 $ 1,937,197.90 $ 157,420.57 $ 17,394,613.86

166,717.79

14,578.12

380,650.86

5,100.00

58,560.76

36,646.16

36,646.16

222,327.90

222,327.90

741,606.49 14,099,558.04

778,030.02

12,815,634.11 14,493.208.04 80,105,432.34

$

426,840.46 $ 17,000,690.33 $ 935,450.59 $ 125,673,791.82

36,772,864.02

8,949,060.33

803,993.22

89,841,681.61

$ 37,199,704.48 $ 25,949,750.66 $ 1,739,443.81 $ 215,515,473.43

- 25-

GEORGIA INSTITUTE OF TECHNOLOGY COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 2001

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues Adjustments
~rior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Funded by the Board of Regents of the University System of Georgia
Prior Year's Unrestricted Fund Balance (Deficit)
Total Revenues and Other Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Adjustments Prior Years' Revenues/Accounts Receivable
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements Capital Projects General Operations In Lieu of State Appropriations
Total Transfers Between Funds
Net Increase/(Decrease) for the Year
FUND BALANCES JULY 1. 2000
FUND BALANCES JUNE 3D. 2001

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

$ 346,838,672.25 $ .25,652,798.00

1,286,231.99 745.88

795.11

239,704.19 $ 348,365,354.31 $ 25,653,593.11

$ 338,200,757.23 $ 3,180,187.16

7,559.92 $ 338,208,317.15 $ 3,180,187.16

$

316,764.44 $

8,316,264.00

- 3,803.04

$

8,633,028.44 $

3,803.04

$ 18,790,065.60 $ 22,477,208.99

2,048,489.45

0.00

$ 20,838,555.05 $ 22,477,208.99

See notes to the financial statements.

. - 26-

EXHIBIT "F"

OTHER ORGANIZED ACTIVITIES

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$ 102,187,306.80 $ 56,268,751.36 $ 6,907,789.38 $ 537,855,317.79

123,226.30

319,030.01 -5,809.68

24,969.91

1,754,253.32 -5,063.80

239,704.19 $ 102,310,533.10 $ 56,581,971.69 $ 6,932,759.29 $ 539,844,211.50

$ 70,564,877.22

$ 6;623,947.38 $ 418,569,768.99

$ 41,201,178.96

41,201,178.96

239,704.19

239,704.19

545.00

27.546.22

361.32

36,012.46

$ 70,805,126.41 $ 41,228,725.18 $ 6,624,308.70 $ 460,046,664.60

$ -3,203,950.18 -2,087,444.00
-8,316,264.00

$ -3,203,950.18 -2,087,444.00 320,567.48 0.00

$ -13,607,658.18

$ -4,970,826.70

$ 31.505,406.69 $ 1,745,588.33 $ 308,450.59 $ 74,826,720.20

5,267,457.33

7,203,472.00

495,542.63

15,014,961.41

$ 36,772,864.02 $ 8,949.060.33 $ 803,993.22 $ 89,841,681.61

- 27-

GEORGIA INSTITUTE OF TECHNOLOGY COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES UNRESTRICTED
YEAR ENDED JUNE 30, 2001

REVENUES
State Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues
EXPENDITURES
Educational and General Instruction Research Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and FelloWships
Auxiliary Enterprises Student Housing Food Services Stores and Shops Intercollegiate' Athletics Other Service Units
.Total Expenditures
OTHER TRANSFERS AND ADDITIONS/{DEDUCTIONSl
Transfers for Renewals and Replacements Transfers for Capital Projects Transfers for General Operations Transfers in Lieu of State Appropriations Prior Period Adjustments (Net) Funded by/Remittances to the Board of Regents
of the University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus/Deficit)
Total Other Transfers and .Additions/(Deductions)

Net Increase/(Decrease) in Fund Balances
See notes to the financial statements.

- 28-

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

$ 176,337,464.00 $ 25,652,798.00 106,975,708.55 20,548,632.15 994,774.77 134,282.69 5,736,638.20 50,770.83
36,060,401.06
$ 346,838,672.25 $ 25,652,798.00

$ 130,059,312.71 $ 65,575,188.38 3,685,080.80 27,564,940.91 8,170,636.91 32,251,839.81 34,017,000.58 36,876,757.13

61,629.81 2,382,167.11
13,031.60
723,358.64

$ 338,200,757.23 $ 3,180,187.16

$

316,764.44 $

8,316,264.00

1,279,417.95

3,803.04 795.11

239,704.19 $ 10,152,150.58 $

4,598.15

s 18,790,065.60 $ 22,477,208.99

EXHIBIT"G"

. OTHER ORGANIZED ACTIVITIES

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$ 56,816,711.00

$ 258,806,973.00

$ 3,752,888.17

110,728,596.72

30,753,746.55

51,302,378.70

1,145,332.52

2,140,107.29

60,051.59

194,334.28

5,480,400.80

11,217,039.00

2,969,564.32

3,020,335.15.

$ 46,358,085.01

46,358,085.01

4,961,500.02

9,910,666.35

3,154,901.21

54,087,468.64

$ 102,187,306.80 $ 56,268,751.36 $ 6,907,789.38 $ 537,855,317.79

$ 45,356,145.47 17,142,397.18
93,976.32 7,972,358.25

$ 130,120,942.52

113,313,500.96

20,827,477.98

27,577,972.51

$ 6,623,947.38

14,794,584.29

33,069,174.77

41,989,358.83

36,876,757.13

$ 16,499,635.72 11,427,638.44 2,572,333.11 1,540,670.63 9,160,901.06

16,499,635.72 11,427,638.44 2,572,333.11
1,540,670.63 9,160,901.06

$ 70,564,877.22 $ 41,201,178.96 $ 6,623,947.38 $ 459,770,947.95

$ -3,203,950.18

$ -3,203,950.18

-2,087,444.00

-2,087,444.00

320,567.48

-8,316,264.00

0.00

$

122,681.30

285,674.11 $

24,608.59

1,713,177.06

-239,704.19

0.00

$

-117,022.89 $ -13,321,984.07 $

24,608.59 $ -3,257,649.64

$ 31,505,406.69 $ 1,745,588.33 $ 308,450.59 $ 74,826,720.20 - 29-

GEORGIA INSTITUTE OF TECHNOLOGY COMBINING STATEMENT OF CURRENT FUNDS REVENUES. EXPENDITURES,
AND OTHER CHANGES RESTRICTED
YEAR ENDED JUNE 30. 2001

EXHIBIT "HIO

Net Increasel(Decrease) in Fund Balances

$ -2,108,756.05 $ -1,702,560.93 $ ~3,811 ,316.98

See notes to the financial statements.

- 31 -

GEORGIA INSTITUTE OF TECHNOLOGY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30, 2001

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

$ 176,337,464.00

$

170,501,208.25 $ 149,334,977.59

4,883,060.00 2,221,104.20 $ _ _--'7-1';.7;,.9."6,;8:.;6=2=_

$ 346,838,672.25 $ 149,334,977.59 $ 7,104,164.20 $

71--7-,:9.6.8;~.6-'2--

EXPENDITURES

Personal Services:
Education, General and Departmental Services $
Sponsored Operations' Operating Expenses:
Education, General and Departmental Services Sponsored Operations . Capital Outlay Special Funding Initiative Research Consortium

211,547,082.51 $
108,655,224.54
12,354,641,10 5,643,809.08

69,417,312.64
79,917,664.95
$ 10,871,385,34 $

2,314,047.64

$ 338,200,757.23 $ 149,334,977.59 $ 10,871,385.34 $_---';;;.;;2..,3..1~.4.,.0;.4;.7...6;.4'--

Excess of Revenues over Expenditures

$

8,637,915.02 $====O~.O:;;,;O= $ -3,767,221.14 $==~=-1=,5=9=6,=0=79=.0=2=

(1) To eliminate tuition waivers and Georgia Tech Research Corporation contract overhead not bUdgeted and to reclassify current year transfers and prior year fund balances budgeted as revenues. Also, to adjust for Regular Appropriations and Research Consortium revenues and expenditures recorded in Other Organized Activities but bUdgeted in Resident Instruction,

See notes to the financial statements.

32

SCHEDULE "1"

TOTAL

ADJUSTMENTS

ENCUMBRANCES

JUNE 30, 2001

OTHER (1)

TOTAL (Budget Basis)

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 181,220,524.00 $ 322,775,258.66

0.00 $ 1,938,276.00 $ 183,158,800.00 $ 186,158,800.00 $

-24,250,968.05

298,524,290.61

356.458,794.00

-3,000,000.00 -57,934,503.39

$ 503,995,782.66 $

--"'0.c:..00:... $ -22,312,692.05 $ 481,683,090.61 $ 542,617,594.00' $ -60,934,503.39

$ 211,547,082.51 69.417,312.64
108,655,224.54 $ 79,917,664.95 13,185,432.98 12,354,641.10
5,643,809.08

$ 211,547,082.51 $ 226,661,662.00 $

69.417,312.64

68,295,614.00

11,255,732.19 $ -42,317 ,028.79

5,207,879.02 1,606,846.02 5,441 ,503.23

1,928,836.00

77 ,593,927.94 ' 79,917,664.95
18,393,312.00 13,961,487.12 13,014,148.31

76,905,723.00 92,704,386.00 48,921,600.00 13,277 ,189.00 15,851.420.00

15,114,579.49 -1,121,698.64
-688,204.94 12,786,721.05 30,528,288.00
-684,298.12 2,837 ,271.69

$ 500,721,167.80 $

23,511,960.46 $ -40,388,192.79 $ 483,844,935.47 $ 542,617,594.00 $

58,772,658.53

$ 3,274,614.86 $ -23,511,960.46' $ 18,075,500.74 $ -2,161,844.86

-2,161 ,844.86

- 33

GEORGIA INSTITUTE OF TECHNOLOGY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTIERYFOR EDUCATION YEAR ENDED JUNE 30. 2001

REVENUES State Appropriations
EXPENDITURES Equipment, Technology and Construction
Trust Fund. Education Technology Center Special Funding Initiatives Student Information System
Excess of Revenues over Expenditures

CURRENT FUNDS UNRESTRICTED

ENCUMBRANCES JUNE 30, 2001

$

25,652,798.00 $

0.~ 00

$

2,395,198.71 $

1,125,095.63

723,358.64

1,186,641.36

61,629.81

165,472.00

0.00

$

3,180,187.16 $ _ _~2~:,:4:.7.7.:,.2.;0;;8,..;9,;9:.:~

$ 22,472,610.84 $ ===:!:-:2=,=4=7=7-,=2=08=.=9=9=

See notes to the financial statements.

- 34-

SCHEDULE "2"

TOTAL (Budget Basis)

BUDGET

VARIANCE. FAVORABLE (UNFAVORABLE)

$ 25,652,798.00 $ 25,652,798.00 $

- ' - =0;.0; ,0. -

$ 3,520,294.34 $ 3,577,798.00 $

1,910,000.00

:1 ,910,000.00

227,101.81

165,000.00

0.00

20,000,000.00

57,503.66 0.00
-62,101.81 20,000,000.00

$ 5,657,396.15 $ 25,652,798.00 $ 19,995,401.85

$ 19,995,401.85

$ 19,995,401.85

- 35-

.>
GEORGIA INSTITUTE OF TECHNOLOGY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
OTHER ORGANIZED ACTIVITIES YEAR ENDED JUNE 30, 2001

EDUCATIONAL EXTENSION SERVICES
REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

TOTAL

$ . 10,922,952.00

$ 10,922,952.00

2,619,822.57 $ 5,105,428.39

7,725,250.96

$ 13,542,774.57 $ 5,105,428.39 $ 18,648,202.96

EXPENDITURES
Advanced Technology Development Center Research Consortium Seed Capital Fund - ATDC

$ 11,424,814.41 $ 5,105,428.39 $ 16,530,242.80

1,139,657.11

1,139,657.11

750,000.00

750~000.00

$ 13,314,471.52 $ 5,105,428.39 $ 18,419,899.91

Excess of Revenues over Expenditures

$

228,303.05 $

(1) To eliminate Georgia Tech Research Corporation contract overhead not budgeted and Research Consortium revenues and expenditures budgeted in Resident Instruction. Also adjust for Seed Capital Expenditures budgeted as Advanced Technology Development Center.

0.00 $ =====2=2=8,~3=0=3=.0=5=

See notes to the financial statements.

SCHEDULE "3"

ADJUSTMENTS

ENCUMBRANCES

JUNE 30, 2001

OTHER (1)

TOTAL (Budget Basis)

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$

0,00 $ -1,392,629.00 $ 9,530,323.00 $ 9,530,323.00 $

0.00

-603,240.05

7,122,010.91

12,760,600.00

-5,638,589.09

$

0_._00_ $ -1,995,869.05 $ 16,652,333.91 $ 22,290,923.00 $ _ _-5-,6,-3-8-,,5-8_9.0_ 9

$

335.359.90 $

146,759.95 $ 17,012,362.65 $ 22,290,923.00 $

5,278,560.35

243,531.89

-1,383,189.00

0.00

0.00.

0.00

-750,000.00

0.00

0.00

0.00

$

578,891.79 $ -1,986,429.05 $ 17,012,362.65 $ 22,290,923.00 $ _ _5-,'2--7-8-,'5-_ 60.3_5

$

-578,891.79 $

-9,440.00 s=====-3=6=0-=,0=2=8=.=7=4=

-360,028.74

- 37-

GEORGIA INSTITUTE OF TECHNOLOGY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
OTHER ORGANIZED ACTIVITIES YEAR ENDED JUNE 30, 2001

GEORGIA TECH RESEARCH INSTITUTE
REVENUES
State. Appropriations Other Revenues Retained

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

TOTAL

$ 10,794,142.00

$ 10,794,142.00

42,750,773.23 $ 63,900,209.80

106,650,983.03

$ 53,544,915.23 $ 63,900,209.80 $ 117,445,125.03

EXPENDITURES

Personal Services:

Education, General and Departmental Services $ 23,279,122.18

$ 23,279,122.18

Sponsored Operations

$ 38,813,432.46

38,813,432.46

Operating Expenses:

Education, General and Departmental Services

24,795,505.00

24,795,505.00

Sponsored Operations

24,055,962.00

24,055,962.00

Agricultu"ral Research

1,693,566.46

1,693,566.46

Center for Rehabilitation Technology

1,722,253.15

1,030,815.34

2,753,068.49

Research Consortium

517,189.50

517,189.50

$ 52,007,636.29 $ 63,900,209.80 $ 115,907,846.09

Excess of Revenues over Expenditures

$

1,537,278.94 $

0.00 $=~:;,;;1,,;5,3~7,,;2;7,;8,.;9;4.=

(1) To eliminate Georgia Tech Research Corporation contract overhead not budgeted and Research Consortium revenues and expenditures budgeted in Resident Instruction.

See notes to the financial statements.

- 38-

SCHEDULE "3"

ADJUSTMENTS

ENCUMBRANCES

JUNE 30, 2001

OTHER (1)

TOTAL (Budget Basis)

BUDGET

VARIANCE FAVORABLE . (UNFAVORABLE)

$

0.00 . $ -545,647.00 $ 10,248,495.00 $ 10,248,495.00 $

0.00

-6,585,611.91

100,065,371.12

110,408,191.00

-10,342,819.88

$

---.,;:0;.;...0;..;0_ $ -7,131,258.91 $ 110,313,866.12 $ 120,656,686.00. $ -10,342,819.88

$ 23,279,122.18 $ 23,360,546.00 $

38,813,432.46

43,077,078.00

81,423.82 4,263,645.54

$

1,291,607.64 $ -6,585,611.91

32,892.12 179,024.61
28,457.50

-545,647.00

19,501,500.73 24,055,962.00
1,726,458.58 2,932,093.10
0.00

22,128,965.00 24,050,000.00
1,727,010.00 6,313,087.00
0.00

2,627,464.27 -5,962.00 551.42
3,380,993.90 0.00

$

1,531,981.87 $ -7,131,258.91 $ 110,308,569.05 $ 120,656,686.00 $ 10,348,116.95

$

-1,531,981.87 $

0.00 $====:.55:,=29=7=.0=7=

5,297.07

- 39-

GEORGIA INSTITUTE OF TECHNOLOGY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
OTHER ORGANIZED ACTIVITIES YEAR ENDED JUNE 30, 2001

STATE DATA AND RESEARCH CENTER
REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

TOTAL

$ 35,099,617.00

$ 35,099,617.00

______ $ '.129,969.97

129,969.97

$ 35,099,617.00 $ 129,969.97 $ 35,229,586.97

EXPENDITURES

Personal Services:

Education, General and Departmental Services

$

1,049,387.22

$ 1,049,387.22

Operating Expenses:

Education, General and Departmental Services

4,050,229.78

4,050,229.78

Sponsored Operations

$ 129,969.97

129,969.97

Student Information System

143,152.41

143,152.41

$

s 5,242,769.41 $ 129,969.97

5,372,739.38

Excess of Revenues over Expenditures

$ 29,856,847.59' $====0....=00=' $ 29,856,847.59

See notes to the financial statements.

~ 40-

SCHEDULE "3"

ADJUSTMENTS ENCUMBRANCES
JUNE 30, 2001

TOTAL (Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$.

0.00 $ 35,099,617.00 $ 35,099,617.00 $

0.00

129,969.97

0.00

129,969.97

$

0.00 $ 35,229,586.97 $ 35,099,617.00 $

129,969.97

$ 1,049,387.22 $ 1,302,716.00 $

253,328.78

$

1,218,806.24

4,050,229.78 129,969.97
1,361,958.65

3,796,901.00 0.00
30,000,000.00

-253,328.78 -129,969.97 28,638,041.35

$

1,218,806.24 $ 6,591,545.62 $ 35,099,617.00 $ 28,508,071.38

$

-1,218,806.24 $ 28,638,041.35

$ 28,638,041.35

- 41 -

GEORGIA INSTITUTE OF TECHNOLOGY SCHEDULE OF OTHER ORGANIZED ACTIVITIES
BALANCE SHEET JUNE 30, 2001

SCHEDULE "4"

Cash and Cash Equivalents Accounts Receivable Prepaid Items Due from Other Fund Groups
Total Assets

EDUCATION EXTENSION SERVICES

UNRESTRICTED

GEORGIA TECH STATE DATA AND

RESEARCH

RESEARCH

INSTITUTE

CENTER

TOTAL

s

1.500.00 $

6.197.18

10.012.91

5,251,268.33

32,600.00 395.231.60 $
12.350.00 1,631,791.12

s
18,129.64
29.840,623.70

34,100.00 419,558.42
22.362.91 36,723,683.15

s 5.268.978.42 $ 2,071,972.72 $

29.858,753.34 $ 37.199,704.48

LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Contracts Payable Retainages Payable Security Deposits
Total Liabilities
Fund Balances Unrestricted

$ 25,645.99 $
36.646.16 $ 62.292.15 $

342,964.44 $ 14,578.12 5.100.00
362,642.56 $

1,905.75 $ 1,905.75 $

370.516.18 14.578.12 5.100.00 36.646.16
426,840.46

5.206.686.27

1?09,330.16

29.856.847.59

36,772.864.02

Total Liabilities and Fund Balances

$ 5.268,978.42 $ 2,071.972.72 $ 29,858.753.34 $ 37.199,704.48

See notes to the financial statements.

-42 -

GEORGIA INSTITUTE OF TECHNOLOGY SCHEDULE OF OTHER ORGANIZED ACTIVITIES
CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues Adjustments
Prior Years' Expenditures/Accounts Payable
Total Revenues and Other Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expenditures R!lmittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surptus)
Adjustments Prior Years' Revenues/Accounts Receivable
Total Expenditures and Other Deductions
Net Increase for the Year
FUND BALANCES JULY 1. 2000

EDUCATION EXTENSION SERVICES

UNRESTRICTED

GEORGIA TECH STATE DATA AND

RESEARCH

RESEARCH

INSTITUTE

CENTER

TOTAL

$ 13,542,774,57 $ 53,544,915,23 $

54,053,89

69,172.41

$ 13,596,828.46 $ 53,614,087.64 $

35,099,617,00 $ 102,187,306,80 123,226.30
35,099,617.00 $ 102,310,533.10

$ 13,314,471,52 $ 52,007,636.29 $

5,242,769,4i $ 70,564,877.22

78,213,60

161,490.59

-3,745,00

4,290.00

$ 13,388,940,12 $

s

207,888.34 $

52,173,416.88 $ 1,440,670.76 $

4,998,797.93

268,659.40

239,704,19

545.00

5,242,769.41 $ 70,805,126,41

29,856,847.59 $ 31,505,406.69

0.00

5,267,457.33

FUNp BALANCES JUNE 30 2001

$ 5,206,686.27 $ 1,709,330,16 $ 29,856,847.59 $ 36,772,864.02

See notes to the financial statements,

..43 ..

GEORGIA INSTITUTE OF TECHNOLOGY SCHEDULE OF OTHER ORGANIZED ACTIVITIES REVENUES. EXPENDITURES. AND OTHER CHANGES
YEAR ENDED JUNE 30. 2001

REVENUES
State Appropriations Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Other Sources
Total Revenues
EXPENDITURES
Educational and General Instruction Research Public Service Institutional Support Operation and Maintenance of Plant
Total Expenditures
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONSI
Excess of Restricted Receipts over Transfers to Revenue
Prior Period Adjustments (Net) Remittances to the Board of Regents
of the University System of Georgia Prior Year's Unrestricted Fund Balance Surplus
Total Other Transfers and Additions/(Deductions)

EDUCATION EXTENSION SERVICES

UNRESTRICTED

GEORGIA TECH STATE DATA AND

RESEARCH

RESEARCH

INSTITUTE

CENTER

s 10,922,952.00 $
1,238,960.16 102,051.54 43,321.85 171,393.26 731,461.99 332,633.77

10,794,142.0.0 $ 29,514,786.39
1',043,280.98 16,729.74
5,309,007,54 2,238,102.33 4,628,866.25

$ 13,542,774.57 $ 53,544,915.23 . $

35,099,617.00 35,099,617.00

$ 2,380,506.38 $ 10,318,379.98 83,996.40 531,588.76

42,975,639.09
s 1,581,247.79
9,979.92
7,440,769.49

s s s 13,314,471.52

52,007 ,636.29

5,242,769.41 5,242,769.41

s

s 57,798.89

64,882.41

-78,213.60

-161,490.59

s

s -20,414.71

-96,608.18

Net Increase/(Decrease) in Fund Balances

s

1,440,670.76 $=~2~9,8~56~,8~ 4 7;.59"

See notes to the financial statements.

- 44-

SCHEDULE "6"

TOTAL

EDUCATION EXTENSION
SERVICES

RESTRICTED

GEORGIA TECH STATE DATA AND

RESEARCH

RESEARCH

INSTITUTE

CENTER

TOTAL

TOTAL

s 56,816,711.00

s 30,753,746.55 $ 3,912,9?3.73

52,797,384.82 $

1,145,332.52

454,202.36

2,890,922.23

60,051.59

116,182.82

20,950.84

5,480,400.80

622,089.48

8,190,951.91

2,969,564.32

4,961,500.02

s s 102,187,306.80 $ 5,105,428.39 $ 63,900,209.80

129,969.97 $

$ 56,840,308.52
3,345,124.59 137,133.66
8,813,041.39

56,816,711.00 87,594,055.07 4,490,457.11
197,185.25 14,293,442.19
2,969,564.32 4,961,500.02

s 129,969.97

69,135,608.16' $ 171,322,914.96

$

90,332.50

$ 45,356,145.47

1,144,447.29 $ 63,125,124.55

17,142,397.18

3,870,648.60

775,085.25 $

93,976.32

7,972,358.25

s 70,564,877.22 $ 5,105,428.39 $ 63,900,209.80 $

$ 129,969.97

90,332.50 $ 64,269,571.84 4,775,703.82

90,332.50 109,625,717.31
21,918,101.00 93,976.32
7,972,358.25

129,969.97 $ . 69,135,608.16 $ 139,700,485.38

$ -510,398.58 $ -1,311,752.64 $

$

122,681.30

119,590.29 $ -1,702,560.93 $ -1,702,560.93 122,681.30

-239,704.19

$

-117,022.89 $ -510,398.58 $ -1,311,752.64 $

-239,704.19 119,590.29 $ -1,702,560.93 $ -1,819,583.82

s $ 31,505,406.69 $ -510,398.58

-1,311,752.64 $

119,590.29 $ -1,702,560.93 $ 29,802,845.76

I

- 45-

I

GEORGIA INSTITUTE OF TECHNOLOGY CHANGES IN INVESTMENT IN PLANT YEAR ENDED JUNE 30, 2001

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

BALANCE JULY 1, 2000

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

PLANT UNEXPENDED

$

29,335,742.64

548,126,331.76

$ 5,925,214.01

31,350,760.96

1,304,877.47

349,430,836.84 $ 13,519,876.50 $ 10,025,259.72

110,453.95

57,939,460.43

4,325,258.41

25,848.86

$ 1,016,183,132.63 $ 17,845,134.91 $ 10,051,108.58 $ 7;340,545.43

SUMMARY OF INVESTMENT
Institute Capital Leases

$ 1,014,756,284.70. $ 1,426,847.93

17,845,134.91 $ 10,051,108.58 $ 7,340,545.43

$ 1,016,183,132.63 $ 17,845,134.91 $ 10,051,108.58 $ 7,340,545.43

See notes to the financial statements.

- 46-

SCHEDULE "7"

ADDITIONS
FUNDS RENEWALS AND REPLACEMENTS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

CAPITAL LEASES

PRIVATE GIFTS

DEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS

BALANCE JUNE 30, 2001

$

256,272.50

$

29,592,015.14

$

'591,521.22

16,910,921.82

571,553,988.81

506,343.33

10,302,353.70

43,464,335.46

162,370.81

576,274.95 $ 822,708.43 $ 4,051,187.29 $ 25,245,655.62

353,453,312.87

62,290,567.70

$

1,260,235.36 $ 28,045,822.97 $ 822,708.43 $ 4,051,187.29 $ 25,245,655.62 $ 1,060,354,219.98

$

1,260,235.36 $ 28,045,822.97

$ 4,051,187.29 $ 24,036,541.07 $ 1,059,313,778.17

_ _ _ _ _ _ $ 822,708.43

1,209,114.55

1,040,441.81

$

s s s 1,260,235.36

28,045,822.97 $ 822,708.43 $ 4,051,187.29

25,245,655.62

1,060,354,219.98

47 -

GEORGIA INSTITUTE OF TECHNOLOGY SCHEDULE OF FUND BALANCES
CURRENT FUNDS - UNRESTRICTED AND PLANT FUNDS JUNE 30, 2001

NET INVESTMENT IN PLANT Investment in Plant Facilities
UNRESTRICTED Designated For Encumbrances Reserve For Fringe Benefit Reserve _ For Inventory Reserve For Renewals and Replacements Reserve For State Data and Research Center For-Subsequent Years' Expenditures For Uncollectible Accounts For Seed Capital Fund - ATDC Surplus/Deficit Regular

RESIDENT INSTRUCTION

- CURRENT FUNDS

UNRESTRICTED

OTHER

LOTIERY FOR

ORGANIZED

EDUCATION

ACTIVITIES

s s s 18,304,081.44

2,477,208.99

912,553.56

635,000.00

3,329,679.90

20,000,000.00

28,638,041.35

883,688.80

157,511.59 4,422,776.19

103,231.25

224,854.99

$ 20,838,555.05 $ 22,477,208.99 $ 36,772,864.02

$ 20,838,555.05 $ 22,477,208.99 $ 36,772,864.02

See notes to the financial statements.

- 48-

SCHEDULE "8"

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

UNEXPENDED REGULAR

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 1,059,313,778.17 $ 1,059,313,778.17

$

s s s 904,454.85

258,439.45

4,620,158.59

587,720.43

1,004,544.91

9,542,905.14

6,567,226.87 47.2,833.70

473,414.08 72,139.69

s

30,481,743.65

912,553.56

1,639,544.91

9,542,905.14

48,638,041.35

7,040,640.95

1,586,173.78

.4,422,776.19

-328,086.24
s 8,949,060.33 $ 803,993.22 $ 4,292,072.35 $

10,130,625.57

0.00 $ 104,264,379.53

s 8,949,060.33 $ 803,993.22 $ 4,292,072.35 $ 10,130,625.57 $ 1,059,313,778.17 $ 1,163,578,157.70

- 49-

GEORGIA'INSTITUTE OF TECHNOLOGY RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001

SCHEDULE "9"

Totals per Annual Supplement

Accrued Salaries June 30, 2000 June 30, 2001

Prepaid Salaries June 30, 2000 June 30, 2001

Adjustments

Shared Services on Jointly Staffed Personnel

Augusta State University

Topolski,

Richard

Columbus State University

Renjin,

Tu

Georgia College and State University

Gleason,

Michael L.

Georgia Perimeter College

Labaise,

William

Georgia Southern University

Gleason,

Daniel F.

Georgia State University

O'Farrell,

Laura

Kennesaw State University

Garbe,

Kathie C.

Gayler,

Richard A.

Huggins,

Msimanga Z.

Lester,

Army

Setzer,

Charles B.

North Georgia College and State University

Eggers,

John D.

. Southern Polytechnic State University

Fadyn,

Joseph N.

Young,

Donald F.

SALARIES

TRAVEL

$ 320,579,750.82 $ 10,728,829.55

-163,873.94 166,717.79

2,164,118.52 -1,696,814.27

27,000.00 24,000.00 12,000.00
5,950.00 12,000.00
3,658.00 12,000.00 24,000.00 24,000.00 27,000.00 12,000.00 24,000.00 24,000.00 24,000.00
$ 321,305,506.92 $ 10,728,829.55

See notes to the financial statements.

- 50-

SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

GEORGIA INSTITUTE OF TECHNOLOGY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-503-99-01 FS-503-00-01

Further Action Not Warranted Previously Reported Corrective Action Implemented

SE~TIONm
CURRENT YEAR FINDINGS AND QUESTIONED COSTS

GEORGIA INSTITUTE OF TECHNOLOGY SCHEDULE OF FINDINGS AND QUESTIONED'COSTS
YEAR ENDED JUNE 30, 2001
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS.
GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Finding Control Number: FS-503-01-01
For the year under review, audit sampling and other procedures were utilized to verify the validity and accuracy of the equipment inventory records as presented for audit. An equipment inventory sample ofone hundred (100) items was randomly selected from the subsidiary equipment inventory records. Also, fifty (50) equipment items that were reported by the Institute as having been added or deleted during the fiscal year were selected for testing and fifty-five (55) items were traced from their location to the subsidiary equipment inventory records provided. The results ofour testing disclosed the following:
(1) Three (3) items from our equipment sample could not be located.
(2) One (1)' item selected by location could not be traced to the subsidiary equipment inventory records.
(3) Adequate documentation could not be provided for one (1) item reported as being disposed of by the Institute.
It should also be noted that the $25,245,655.62 reported as disposals/deletions/adjustments in the Institute's Investment in Plant records included adjustments of $1,956,142.16 for which no. documentation was available.
These deficiencies occurred because of management's failure to adequately monitor and maintain equipment inventory records. The Institute should strengthen internal accounting controls over the equipment inventory process.