Review report, state of Georgia, Georgia Southwestern College, Americus, Georgia, year ended June 30, 1996

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REVIEW REPORT STATE OF GEORGIA GEORGIA SOUTHWESTERN COLLEGE AMERICUS, GEORGIA YEAR ENDED JUNE 30, 1996

GEORGIA SOUTHWESTERN COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS ANDSUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALLFUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND 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 IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

23

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

25

SCHEDULES

SCHEDULES OF REVENUES ANDEXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

26

2

LOTTERY FOR EDUCATION

28

3 SCHEDULE OF OPERATIONS

LOAN FUNDS

29

4 SCHEDULE OF CASH RECEIPTS ANDDISBURSEMENTS

AGENCY FUNDS

30

5 CASH AND CASH EQUIVALENTS

32

6 INVESTMENTS

33

7 ACCOUNTSRECENABLE

34

8 CHANGES IN INVESTMENT IN PLANT

36

9 SCHEDULE OF FUND BALANCES

CURRENT FUNDS ANDPLANT FUNDS

38

GEORGIA SOUTHWESTERN COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

10 SCHEDULE OF REVENUES

CURRENT FUNDS

40

SCHEDULES OF EXPENDITURES BY OBJECT

11

CURRENT FUNDS

42

12

PLANT FUNDS

44

13 RECONCILIATION OF SALARIES ANDWAGES, ANDTRAVEL

45

SECTIONll FINDINGS ANDIMPROPER 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
October 15, 1996

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe Board ofRegents of the University System of Georgia
and Honorable Michael L. Hanes, President Georgia Southwestern College
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through D) of Georgia Southwestern College as of and for the year ended June 30, 1996, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of Georgia Southwestern College.
A review consists principally of inquiries 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 exception of the matters described in the fourth and fifth paragraphs, we are not aware ofanymaterial 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 GeorgiaLaw and Statebudgetary policy, management recorded encumbrances as expenditures and liabilities. The effects of this departure from generally accepted accounting principles on the financial statements were 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 $497,360.65 as ofJune 30, 1996, andthe net change in fund balance for the year ended June 30, 1996, would be decreased by $17,192.54.
Ourreview was made for the purpose of expressing 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 13)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 madethereto.
Respectfully submitted,
~->:--~--
Claude L. Vickers State Auditor
CLV:jy 96ARL-67

FINANCIAL STATEMENTS - 1-

GEORGIA SOUTHWESTERN COLLEGE COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30, 1996

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

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$

966,993.01 $

516,529.02 $

153,932.60

194,232.93

314,649.67

285,954.54

1,127,068.39

234,841.68

20,831.16

135,471.37

Total Assets

$

1,672,786.89 $

996,716.49 $ 1,281,000.99

LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Unclaimed Property Deposits Held in Custody for Others Due to Other Fund Groups Capital Lease Obligations
Total Liabilities
Fund Balances U. S. Government Grants Refundable Institutional Loans - Restricted Endowment Net Investment in Plant Restricted Unrestricted
Total Fund Balances

$

352,560.48 $

22,264.87

32,810.00

841,027.56 3,806.24

135,471.37

$

1,230,204.28 $

157,736.24

$ 1,080,464.60
200,536.39

$

838,980.25

$

442,582.61

$

442,582.61 $

838,980.25 $ 1,281,000.99

Total Liabilities and Fund Balances

$

1,672,786.89 $

996,716.49 $ 1,281,000.99

See Independent Accountant's 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 FUND

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$ 999,781.55 $

786,152.77

$

$ 383,606.63

45,453.79

27,000.00

_ _ _ _ _ _ $ 35,343,830.50

87,852.30 $ 86,500.41

3,511,241.25 577,839.56
1,886,626.80 234,841.68 20,831.16 135,471.37
35,343,830.50

$ 383,606.63 $ 1,045,235.34 $

813,152.77 $ 35,343,830.50 $ 174,352.71 $ 41,710,682.32

s 1,043,745.23 $
1,286.80

$ 1,045,032.03 $

$ 383,606.63
$ $ 383,606.63 $

203.31 $ 203.31 $

68,431.13
$ 68,431.13 $

$
124,096.36 124,096.36 $

142,246.29 $ 1,629,248.00 32,810.00

32,106.42

841,027.56 5,093.04 32,106.42
135,471.37 124,096.36

174,352.71 $ 2,799,852.75

$ 35,219,734.14 744,721.64 744,721.64 $ 35,219,734.14

$ 1,080,464.60 200,536.39 383,606.63
35,219,734.14 838,980.25
1,187,507.56
$ 38,910,829.57

$ 383,606.63 $ 1,045,235.34 $

813,152.77 $ 35,343,830.50 $ 174,352.71 $ 41,710,682.32

-3-

GEORGIA SOUTHWESTERN COLLEGE COMBINED STATEMENT OF CHANGES IN FUND BALANCES
ALL FUND GROUPS YEAR ENDED JUNE 30, 1996

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues State Appropriations
Lottery Proceeds Major RepairslRehabilitation Funds Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts. Grants, and Contracts Investment Income Endowment Other Realized Gains on 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 Other Additions Proceeds from Sale of Plant Assets Recovery of Prior Years' Cancelled Loans Recovery of Prior Years' Collection Costs
Total Revenues and Other Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered Refunded to Grantors 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 Prior Years' Unfunded Programs
Loans Assigned to Federal Government Loan Cancellations and Write-Offs Expended for Plant Facilities
Capitalized Noncapitalized DisposalslDeletionslAdjustments
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Investment Income Allocated for Loans Renewals and Replacements
Total Transfers Between Funds
Net Increasel(Decrease) for the Year
FUND BALANCES JULY 1 1995

FUND BALANCES JUNE 30, 1996

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information,

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

4-

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$ 18,939,183,03

$ 2.056,482,93 $ 1,109.254.26 9,793,19 1,166.573,98 40.284,44
6,383,59 4.120.00

49.200,00 19,300.00 5,222.18 14,120,30

$ 18,949.686,62 $ 4,382,388,80 $

25,047,00 1,379,15
114,268,63

$ 16,178,000.28 $ 4,283,944,09 2,618.556,28 57,230,83 82,52

9,530.04
13,165.72 4.694,24

$ 14,495.16 45,236.72

$ 18,823,946.56 $ 4,341,257.44 $_~59~ ,73~ 1.8~ 8

$ -25,000,00 $ 25,000.00 $ -146,116.11

$ -146,116.11 $ -25,000.00 $ 25,000.00

$

-20.376,05 $ 16,131,36 $ 79,536,75

462,958,66

822,848.89 1.201,464,24

$

442,582.61 $ 838,980.25 $ 1,281,000.99

EXHIBIT"B"

ENDOWMENT FUND

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

$ 130,500.00 1,181,048.00

$ 28,684.52

12,000.00 $ 77,032.63
108.00

1,380.00 $ 28,684.52 $ 1.402,068.63 $

$ 18,939,183.03

27,000.00 $

25,988.00

130,500.00 1.181,048.00 2,105,682.93 1,109,254.26
9,793.19 1,250,861.98

40,284.44 82,254.81 28,684.52 14,120.30

6,491.59 4,120.00

635,689.65

635,689.65

1,321,068.81 150,605.75

1,321,068.81 150,605.75

1,380.00 25,047.00
1.379.15

27.000.00 $ 2,133,352.21 $ 27,037,449.41

$

0.00

$ 20,461,944.37 2,618,556.28 57,230.83 82.52

$

5.79

9,535.83

282.10

13,447.82 4,694.24 14,495.16 45,236.72

1,321,068.81 $ 80,514.41

150,605.75 13,909.51
$

143,449.44

1,471,674.56 94,423.92 143.449.44

$

0.00 $ 1.401,871.11 $

164,515.26 $ 143,449.44 $ 24,934,771.69

$ 28,684.52 $ 354,922.11

$ $ 197.52 $ 5.79

146,116.11

$

0.00

0.00

146,116.11

$

0.00

8,600.85 $ 1,989,902.77 $ 2,102,677.72

736,120.79 33,229,831.37 36,808.151.85

$ 383,606.63 $

203.31 $

744.721.64 $ 35.219.734.14 $ 38,910.829.57

-5-

GEORGIA SOUTHWESTERN COLLEGE STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

Net Increase/(Decrease) in Fund Balances

$

-20,376.05 $

16,131.36 $ _ _-.4.,.2..4,;"4,;.,6;;;9;_

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
-6-

GEORGIA SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Georgia Southwestern College 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 Southwestern 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 policies for member institutions. Georgia Southwestern College does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Georgia Southwestern 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 relationshipswith the Board ofRegents as defined in Section 2100 ofthe 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 maintainedin 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 combined into 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.
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GEORGIA SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXlllBIT "0"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
LOAN FUNDS
The fund used to account for resources which havebeen made available for financial loans to students.
ENDOWMENT FUND
Thefund usedto account for gifts from the 1. C. Roney Family Trust Fund that are subject to restrictions by the donor requiring that the principal be invested in perpetuity and income onlybe utilized.
PLANT FUNDS
UNEXPENDED - The fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes.
RENEWALS AND REPLAC~lS - Thefund 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 valueofall physical properties ownedby the College. Net Investment in Plant is an equity account showing the total . bookvalue of physical properties belonging to the College lessthe 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 of accounting, which is materially the sameas the accrual basisof accounting applicable to colleges and universities prescribed inthe American Institute of Certified Public Accountants' audit guide reporting model. Themodified accrual basis of accounting is defined as that method 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 of the fiscal period.

- 8-

GEORGIA SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING Contractual obligations for goods and services which have 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 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 servicesalreadyrendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability of $497,360.65 and the related current year expenditure of $17,192.54 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 of the 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.
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 SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXHIBIT "0"

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 organizational unitsreceive 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 class was overspent by the amount identified below:

Operating Expenses: Education, General and Departmental Services

$ 12,318.50

Thisoverexpenditure of budget constitutes a violation of Board of Regents policy, but does not constitute a statutory violation 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 accordancewith the Board of Regents authorizing resolutions. Gains and losses on investmenttransactions 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 duefromFederal, State, local, and private grants and
contracts, and other receivables disclosed from information available.

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 first-in, first-out method.

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GEORGIA SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PREPAID ITEMS Prepaid items are payments madeto vendors in advance of the 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 of this data.
NOTE 2: CUSTODIAL CREDITRISKS OF CASHDEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the StateofGeorgia cannot be placed in a depository paying interest longerthan ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more of the 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 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 of development authorities created by the laws ofthe 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 andinterest, 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 FederalHome Loan Mortgage Association, and the Federal National Mortgage Association.
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.

- 11 -

GEORGIA SOUTHWESTERN 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 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.

The treasurer ofthe Board ofRegents is responsiblefor alldetails 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, 1996, 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 market value) held by the College or 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 agent but not in the College's name, and amounts uncollateralized.

Cash Deposits InvestmentPortfolio Accounts
Total Cash Deposits

Carrying Amount
s 1,810,452.86
26,775.74
s 183722860

Bank Balances
s 2,594,724.62
26,775.74
s2 62150036

s 200,000.00
26,775.74
s 22677574

Risk Categories 2
s 60,139.46
s 6013946

3
s 2,334,585.16
s 2 334 58516

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's trust department or agent in the College's name.

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GEORGIA SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,1996

EXHIBIT "0" .

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS 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.

The carrying amounts of investment balances as of June 30, 1996, are categorized below:

Type of Investment
U. S. GovernmentSecurities
Investments Not Subjectto Categorizations:
InvestmentPortfolio Accounts Mutual Funds
State InvestmentPool
TotalInvestments

Risk Categories

2

3

Carrying Amount

Market Value

$,===o~o~o $,===0~0!Q1,0 s 22973047 s 229,730.47 s 219,516.00

321,333.35 1,694,788.39

342,983.98 1,694,788.39

s 2245 85221 s 2257 288 37

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 of the pool.

NOTE 3: INVESTMENT IN PLANT

The following is a summary ofInvestment in Plant fixed assets as of June 30, 1996:

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

$ 18,320.00 24,322,025.61
2,189,155,93 4,307,154.14 4,507,174.82
$35,343,830.50

NOTE 4: CAPITAL LEASES

Georgia Southwestern College acquires 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, 1996, future minimum lease payments under capital leases are as follows:

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GEORGIA SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT liD"

NOTE 4: CAPITAL LEASES

Fiscal Year Ending June 30
1997 1998 Total Future Minimum Lease Payments Less: AmountsRepresenting Interest Present Value ofFuture Minimum Lease Payments NOTE 5: RISK MANAGEMENT

$ 101,110.81 27,745.07
$ 128,855.88 4,759.52
$ 124,096.36

Georgia SouthwesternCollege is a participantin the Board of Regents of the 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 College and participating employees and retirees pay premiums to the Health Benefits Planfor this health insurancecoverage. The Health BenefitsPlan is included in the audit report of the Board of Regents of the University Systemof Georgia - Administrative Central Office. Allunits of the University System of Georgia share the risk ofloss for claims of the Health Benefits Plan. The Health BenefitsPlan 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 accordancewith the Health Benefits Plan as established by the Board of Regents.

TheDepartment of Administrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The Statebelieves it is more economical to manageits risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement 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 provide claims servicing and claims payment.

A self-insured program of professional liability for its employees was established by the Board ofRegents of the University System of Georgia underpowers 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 Self-Insurance Fund.

- 14 -

GEORGIA SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"D"

NOTE 6: DEFERRED COMPENSATION PLAN
The State of Georgia offers its employees a deferred compensation plan in accordancewith InternalRevenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits suchemployees to defer a portion of theirsalary until future years. Participation in the plan is optional. Participants choose the optionor options inwhich they wish to 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 7: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Georgia Southwestern College participates in the Teachers Retirement System of Georgia (TRS), a costsharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The College's payroll for the year ended June 30, 1996, for employees covered by TRS was $7,366,846.30. The College's total payroll for all employees was $10,709,587.17.
Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of60 years and has at least ten years of creditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attainedthe age of 55 years and hasat least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paidyears of service multiplied by the numberofyears of creditable service up to 40 years. Any member who has between25 and 30 years of creditable service and is at least 55 years of age shall receive a benefit which is reduced bythe lessor of 1/12 of 7% for each month the member is below age 60, or by 7% for eachyearor fraction thereofbywhich the member has lessthan 30 years of service. The normal retirement pensionis payable monthly for life. Optionsare available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include deathanddisability benefits whereby the disabled memberor 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 of disability.
- 15 -

GEORGIA SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXfllBIT "0"

NOTE 7: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Benefits Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer 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 College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised bytheir independent 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 $1,345,821.82, of which $977,478.57 was made by the College and $368,343.25 was made by employees. These contributions represented 13.27% (College) and 5% (employees) of covered payroll.

Funding Status and Progress Pension Benefit Obligation
The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value of credited projected benefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers ofthe PERS financial statements to assessthat PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS.

Thetotal unfunded pensionbenefit obligation ofTRS as ofJune 30, 1995, whichwas the latest information

available, was as follows:

.

Total pensionbenefit obligation

s 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

- 16 -

GEORGIA SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATE1\.1ENTS
JUNE 30.1996

EXlllBIT "D"

NOTE 7: RETffiEMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Pension Benefit Obligation
The measurement ofthe total pension benefit obligationis based on an actuarial valuation as ofJune 30, 1995. Net assets available for benefitswere valued as ofthe same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.
Retirement System Contributions Total contributionsfrom all employersto TRS for the year ended June 30, 1996, were $607,274,559.00. The College's contribution for the year ended June 30, 1996, of $977,478.57 was actuarially determined and represented .1609% oftotal contributions made by 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 assets to 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.
State legislation requires 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 $2,206,447.77. The College's total payroll for all employees was $10,709,587.17.
The College and the covered employeesmade the required contributions of $90,655.92 (4%) and $113,319.82 (5%), respectively.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Georgia Southwestern 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 of Georgia. The College's payroll for the year ended June 30, 1996, for employees covered by GDCP was $206,974.95. The College's total payroll for all employees was $10,709,587.17.
- 17 -

GEORGIA SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "0"

NOTE 7: RETIREMENTPLANS
GEORGIA DEFINED CONTRIBUTION PLAN
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 ofTrustees. Ifa member hasless 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 of making periodic payments. Uponthe death ofa member, a lump sum distribution equaling the amount credited to his/her 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. Upontermination 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 $15,523.34 which represents 7.5% of covered payroll. Thesecontributions met the requirements of the plan.
NOTE 8: LEAVB POLICIES
Employees earn annual leave ranging from oneand one-quarter days to oneand three-quarter dayseach month depending uponthe employees' length of continuous State service with maximum accumulation offorty-five days. Employees are paid for unused accumulated annual leave uponretirement or termination ofemployment. See Note 1- Basis of Accounting (Compensated Absences)
Employees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.
NOTE 9: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to thegrantor 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 College expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Georgia Southwestern College (as an organizational unit of the Board of Regents of the University System of Georgia), ifany, 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, 1996.
- 18 -

GEORGIA SOUTHWESTERN COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXHIBIT "0"

NOTE 10: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board ofRegents ofthe University System of Georgia has establishedgroup health and life insurance programs for regular employees ofthe University System of Georgia. It is the policy of the Board of Regents to permit employees ofthe University System of'Georgia eligible for retirement or that become permanently and totally disabledto continue as members ofthe group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System of Georgia and who have at least ten years of service with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals.
As of June 30, 1996, there were 111 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 Southwestern College recognized as incurred $232,432.08 of expenditures, which was net of $88,282.80 of participant contributions.
NOTE 11: BONDING INFORMATION
The President and all employees of Georgia Southwestern College are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-02-110723, on which the premium was paid to October 1, 1996. Under this agreement, the public employee dishonesty coverage insures Georgia Southwestern College to a maximum of$I,OOO,OOO.OO against loss sustained through fraudulent or dishonest acts by its employees. The faithfulperformance 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 of their position or employment.
All employees of Georgia Southwestern College are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 6260116752 and 626 012294 4, on which the premiums were 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 of its employees to perform faithfully.
NOTE 12: ENROLLMENT
The equivalent full-time student enrollment of Georgia Southwestern College was as follows:

- 19 -

GEORGIA SOUTHWESTERN COLLEGE
NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30. 1996

NOTE 12: ENROLLMENT
Regular Term Fall Quarter, 1995 Winter Quarter, 1996 Spring Quarter, 1996
Average
Summer School, 1995

2,151 2,037 1.955
. 2,047
1.055

EXIllBIT "0"

- 20 -

SUPPLEMENTARY INFORMATION - 21 -

GEORGIA SOUTHWESTERN COLLEGE COMBINING BALANCE SHEET
CURRENT FUNDS - UNRESTRICTED JUNE 30,1996

ASSETS
Cashand Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from OtherFundGroups

RESIDENT LOITERYFOR AUXILIARY

STUDENT

INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES

TOTAL

$ 289,468.16 $ 150,095.07 76,046.n 18,827.n 505,071.64

6,403.79 $ 18,500.00

572,340.54 $ 143,868.60 158,794.91
2,003.39

98,780.52 $ 2,186.00

966,993.01 314,649.67 234,841.68 20,831.16 505,071.64

Total Assets

$ 1.039.509.41 $

24,903.79 $ 8n007.44 $ 100,966.52 $ 2,042,387.16

LIABILITIES AND FUND BALANCES

Uabilities

Accounts Payable

$

Student Deposits

Deferred Revenue

Tuitionand Fees

Unclaimed Property

Dueto OtherFund Groups

Total Uabilities

$

Fund Balances Unrestricted

313,181.91 $ 7,600.00
633,495.00 2,112.65
956,389.56 $
83,119.85

20,841.91 $ 20,841.91 $

18,536.66 25,210.00

$ 352,560.48 32,810.00

173,517.56 $ 580.59
369.600,27

34,015.00 1,113.00

841,027.56 3,806.24
369,600.27

587,445.08 $ 35,128.00 $ 1,599,804.55

4,061.88

289,562.36

65,838.52

442,582.61

Total Uabillties and Fund Balances

$ 1:039,509,41 $

24.903.79 $ 8n007.44 $ 100,966.52 $ 2,042,387.16

Seeaccompanying notesand Independent Accountanrs Combined Report on Review of Financial Statements and Supplementary Information,
-22 -

GEORGIA SOUTHWESTERN COLLEGE COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTEP YEAR ENDED JUNE 30,1996

EXHIBIT -P'

FUND BALANCES JUNE 30 1996

$

4,061,88 $ 289.562,36 $ 65.838,52 $ 442,582.61

Seeaccompanying notesandIndependent Accountanfs Combined Report on Review of Financial Statements andSupplementary Information,
-23-

B\a.Vv~
'tJ 2~

GEORGIA SOUTHWESTERN COLLEGE COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES UNRESTRICTED
YEAR ENDED JUNE 30,1996

EXHIBIT"G"

REVENUES

RESIDENT

LOTTERY FOR

AUXILIARY

INSTRUCTION EDUCATION ENTERPRISES

STUDENT ACTIVITIES

TOTAL

State Appropriations Tuition and Fees Federal Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of AUXiliary Enterprises Other Sources

$ 10,460,847,00 $ 4,309,238,50 56,980.83 250.00 46,236.57
983,173.56

88,935.00 $

$
2,585,335.95 146,762.42

$ 214,488,00
46,935.20

10,549,782.00 4,523,726.50 56,980.83 250,00 46,236.57 2,585,335.95 1,176,871.18

Total Revenues

$ 15,856,726.46 $

88,935.00 $ 2,732,098,37 $ 261,423.20 $ 18,939,183.03

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

$ 8,6n,159,54 8,230.00 $ 9,192,94
1,291,308.33 1,197,391.28 2,657,540.22 1,858,040.97
143,481.00

59,500.00 28,102.74
$

$ $ 241,694.01
6,359.25

8,6n,159.54 67,730.00 9,192,94
1,319,411.07 1,439,085.29 2,657,540.22 1,858,040.97
149,840,25

946,078.07 614,411.63 104,212.20 619,173.56 334,680.82

946,078,07 614,411.63 104,212.20 619,173.56 334,680.82

Total Expenditures

$ 15,842,344.28 $

87,602.74 $ 2,618,556.28 $ 248,053.26 $ 18,796,556.56

OTHER TRANSFERS AND ADDITIONSI CDEPUCTIONS)

Transfers for Renewals and Replacements

Prior Period Adjustments (Net)

$

Remittances to the Board of Regents

of the University System of Georgia

Prior Year's Unrestricted Fund Balance

(surplus)

-9,065,42 -9,530.04

$ -146,116,11 1,709.05

$ -146,116.11 -7,356.37
-9,530.04

Total Other Transfers and Additions/(Deductions)

$

-18,595.46

$ -144,407,06

$ -163,002,52

Net Increasel(Decrease) in Fund Balances

$

-4,213,28 $

1,332.26 $

-30,864,97 $ 13,369.94 $ _ _-.2.0..,.3..7.6....0..5..

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information,
- 25-

GEORGIA SOUTHWESTERN COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30,1996

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

$ 10,460,847.00

$ 1,181,048.00

5,395,879.46 $ 4,283,944.09

90,412.63 $ _ _--=2=7,.0:.0.=0.=00=

$ 15,856.726,46 $ 4,283,944.09 $ 1,271,460.63 $

27,000.00

--.....;;..",:,.;;.;;,,;.~

EXPENDITURES
Personal Services: Education, General and Departmental Services Sponsored Operations
Operating Expenses: Education, General and Departmental Services Sponsored Operations
Capital Outlay Special Funding Initiative

$ 11,812.681.53 $

952,712.97

3,941,718.50 87,964.25

3,331 ,231.12 $ 1,271,179.82 $

164.515.26

Excess of Revenues over Expenditures

$ 15,842,344.28 $ 4,283,944.09 $ 1.271,179.82 $

164,515.26

---.....:.;..;..;.,~

$

14,382.18 $

0.00 $

280.81 $ _ _-"1;,3,;;7,;,,,:5.;;1,,;,5;:;.,2;,;;6;;,,

(1) To eliminate tuition waivers not budgeted and to reclassify prior year fund balances budgeted as revenues.

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
-26-

SCHEDULE "1"

TOTAL

ADJUSTMENTS

TOTAL

(1)

(Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 11,641,895.00 9.797,236.18 $

$ 11,641,895.00 $ 11,641,895.00 $ -5,965.74 9,791,270.44 10,227,869.00

0.00 -436,598.56

$ 21,439,131.18 $

-5,965.74 $ 21,433,165.44 $ 21,869,764.00 $

-436,598.56

$ 11,812,661.53 952,712.97
3,941,718.50 $ 3,331,231.12 1,435,695.08
87,964.25

$ 11,812,661.53 $ 11,903,842.00 $ 952,712.97 1,012,950.00

-143,481.00

3,798,237.50 3,331,231.12 1,435,695.08
87,964.25

3,785,919.00 3,592,160.00 1,486,880.00
88,013.00

91,180.47 60,237.03
-12,318.50 260,928.88 51,184.92
48.75

$ 21,561,983.45 $ -143,481.00 $ 21,418,502.45 $ 21,869,764.00 $ _ _4~ 51,2~ 61.~ 55

$ -122,852.27 $

137,515.26 $

1.4...,.6..6;;,2;;;.;;9,;,9;;_

14,662.99

-27 -

GEORGIASOUTHWESTERN COLLEGE SCHEDULEOF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERYFOR EDUCATION YEAR ENDEDJUNE 30, 1996

SCHEDULE "2"

REVENUES
StateAppropriations other Revenues Retained

CURRENT FUNDS PLANT FUNDS

TOTAL

UNRESTRICTED UNEXPENDED (BudgetBasis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

s

s 88,935,00 $ 130,500.00 $ 219,435,00 $ 219,435.00

0.00

2,730.00

-2,730,00

$

88,935.00 $ 130,500,00 $ 219,435,00 $ 222,165.00 $

-2,730,00

EXPENDITURES

EqUipment, Technology and Construction

Trust Fund

$

Special Funding Initiatives

59,500,00 $ 28,102,74

40,500,00 $ 100,000,00 $ 102,730,00 $

89,903,40

118,006.14 119,435.00

2,730,00 1.428.86

$

87,602,74 $ 130,403,40 $ 218,006.14 $ 222,165.00, $

4,158.86

Excessof Revenues overExpenditures

$

1,332.26 $

96,60 $

1.428.86

$

1.428.86

Seeaccompanying notesand'Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information,
-28-

GEORGIA SOUTHWESTERN COLLEGE SCHEDULE OF OPERATIONS LOAN FUNDS YEAR ENDED JUNE 30,1996

SCHEDULE "3"

BlliQ
U. S, GOVERNMENT GRANTS REFUNDABLE
Nursing Student Loan Fund Perkins Loan Fund
INSTITUTIONAL LOANS - RESTRICTED
Comer Loan Fund J. C. Roney Loan Fund Jackson Student Loan SABU Revolving Loan Fund

FUND BALANCE ADDITIONSI

JULY 1,1995

TRANSFERS

DEDUCTIONSI FUND BALANCE TRANSFERS JUNE 30, 1996

$

65,002,69 $

967,922,98

$ 1,032,925,67 $

-12,610,15 119,880,96 $
107,270.81 $

$ 59,731,88
59,731.88 $

52,392.54 1,028,072,06
1,080,464,60

$

12,050,66 $

79.90 $

26,217,01

155,847.10

5,175.87

640.81

525,04

$

168,538,57 $

31,997,82 $

0.00 $ 0,00 $

12,130.56 26,217.01 161,022.97
1,165.85
200,536.39

$ 1,201:464.24 $ 139,268,63 $

59,731.88 $ 1,281,000,99

RECONCILIATION OF STUDENT NOTES RECEIVABLE
Balance July 1, 1995 Add:
Loans to Students

Deduct

Repayment of Loans

Loans Assigned to Federal Government

Loan Cancellations and Write-Offs

For Death

$

For Law Enforcement

For Teaching and Nursing Service

$
2,413.49 350.58
42,472,65

$ 1,102,508,07
351,749,08
$ 1,454,257.15 267,456,88 14,495.16

45.236.72

327,188.76

Balance June 30, 1996

$ 1.127.068,39

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information,
-29-

GEORGIA SOUTHWESTERN COLLEGE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE "4"

- 30

GEORGIA SOUTHWESTERN COLLEGE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 3D, 1996

SCHEDULE "4"

Seeaccompanying notes and Independent Accountant's Combined Report on Review of Financial Statementsand Supplementary Information.
- 31 -

GEORGIA SOUTHWESTERN COLLEGE CASH AND CASH EQUIVALENTS
JUNE 30,1996

SCHEDULE "5"

INTEREST BEARING ACCOUNTS
State of Georgia - Office of Treasury and Fiscal Services State Investment Pool
Local Government Investment Pool (5.361%)
Sumter Bank and Trust Company, Americus, Georgia
N.O.W. Account (2.182%)
Wachovia Bank, Americus, Georgia
N.O.W. Account (1.00%)
OTHER
Cash on Hand Petty Cash

$ 1,694,788.39 1,809,870.53
_ _--=5:..::8:2.:.::,33::... $ 3,505,241.25
6,000.00 $ 3,511,241.25

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 32-

GEORGIA SOUTHWESTERN COLLEGE "INVESTMENTS
JUNE 30, 1996
Investment Account NationsBank of Georgia, Albany, Georgia Investment Portfolio Account Cash Mutual Funds U. S. Government Securities

SCHEDULE "6"

$

26,775.74

321,333.35

229,730.47

$ 577,839.56

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

GEORGIA SOUTHWESTERN COLLEGE ACCOUNTS RECEIVABLE JUNE 30 I 1996

State Appropriations Allotment from the Board of Regents of the University System of Georgia
Federal Grants and Contracts Research and Instruction Student Aid
State Grants and Contracts Research and Instruction Student Aid
Local Grants and Contracts Research and Instruction
Private Gifts, Grants, and Contracts Research and Instruction Student Aid
Other Department of Federal Assistance Financing System . Georgia State Financing and Investment Commission Guaranteed Student Loans - Bank Reimbursement from Georgia Southwestern Foundation Returned Checks Student Accounts Student Notes Vendor Credit Memos Other

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$

118,500.00

$

28,041.09

2,218.66

1,869.51 102,081.98

7,570.49

138,440.81 5,732.00

9,554.44 65,533.07
48,722.08 72,340.08

$ 1,127,068.39

$

314,649.67 $ 285,954.54 $ 1,127,068.39

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 34-

SCHEDULE '7"

PLANT FUNDS
RENEWALS AND UNEXPENDED REPLACEMENTS

AGENCY FUNDS

TOTAL

$

31,500.00

$ 150,000.00
28,041.09 2,218.66
1,869.51 102,081.98
7,570.49
138,440.81 5,732.00

1,953.79 12,000.00 $

$ 27,000.00

68,984.16 17,516.25

68,984.16
1,953.79 17,516.25
39,000.00 9,554.44 65,533.07 1,127,068.39 48,722.08 72,340.08

$

45A53.79 $

27,000.00 $

86,500.41 $ 1,886,626.80

- 35-

GEORGIA SOUTHWESTERN COLLEGE CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30. 1996

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections
SUMMARY OF INVESTMENT College Capital Leases

BALANCE JULY 1, 1995

CURRENT FUNDS UNRESTRICTED RESTRICTED

$

14,720.00

23,240,393.61

1,972,561.12 $

16,040.39

3,877,869.90

436,213.68 $

44,264.92

4,328,276.08

139,170.66

$ 33,433,820.71 $

591.424.73 $ ======4=4=,=2=6=4=.=9=2=

$ 33,229,831.37 $ 203,989.34

591,424.73 $

44,264.92

$ 33.433,820.71 $

591,424.73 $ ======4=4=,2=6=4=.=9=2=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 36-

SCHEDULE '~8"

ADDITIONS
PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

CAPITAL LEASES

PRIVATE GIFTS

DEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS

BALANCE JUNE 30, 1996

$

3,600.00

$

18,320.00

953,343.00 $

128,289.00

24,322,025.61

223,378.35

$

22,823.93

2,189,155.93

114,809.38 ,

22,316.75 $

14,642.00 $

8,038.00

211,000.49

4,307,154.14

25,938.08

17,950.00

4,160.00

4,507,174.82

$ 1,321,068.81 $

150,605.75 $

14,642.00 $

25,988.00 $

237,984.42 $ 35,343,830.50

$ 1,321,068.81 $

150,605.75

------$

$
14,642.00

25,988.00 $

143,449.44 $ 35,219,734.14

94,534.98

124,096.36

$ 1,321,068.81 $

150,605.75 $

14,642.00 $

25,988.00 $

237,984.42 $ 35,343,830.50

- 37-

GEORGIA SOUTHWESTERN COLLEGE SCHEDULE OF FUND BALANCES
CURRENT FUNDS AND PLANT FUNDS JUNE 30, 1996

NET INVESTMENT IN PLANT Investment in Plant Facilities
RESTRICTED Designated for Subsequent Years' Expenditures
UNRESTRICTED Designated For Bus Replacement Reserve For Equipment, Technology and Construction Trust Fund For Intercollegiate Athletics For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures For Uncollectible Accounts Undesignated Surplus Regular Lottery for Education

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

LOTIERYFOR

AUXILIARY

EDUCATION ENTERPRISES

STUDENT ACTIVITIES

$

$

67,500.00

2,729.62 $

54,501,53 158,794.91

10,303.09

67,149.71 $ 9,116.21

65,389.52 449.00

5,316.76

$

83,119.85 $

1,332.26 4,061.88 $

289,562.36 $

65,838.52

$

83,119.85 $

4,061.88 $ 289,562.36 $ =====6=5=,=8=3=8=.5=2=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 38-

SCHEDULE "9"

RESTRICTED

PLANT FUNDS

UNEXPENDED

LOTIERY FOR RENEWALS AND

REGULAR

EDUCATION REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 35,219,734.14 $ 35,219,734.14

$ 838,980.25

$ 838,980.25

$

76,943.37

667,778.27

$

76,943.37

2,729.62 54,501.53 226,294.91 667,778.27 132,539.23 19,868.30

$

106.71

-----$--_...:::.=.:=96=.60-

$

106.71 $

96.60 $ _ _..7.:..4..:4...,:J7..:2...1.::..6.:.4.:..;;~

5,423.47 1,428.86 $ 1,187,507.56

$ 838,980.25 $

106.71 $

96.60 $

744,721.64 $ 35,219,734.14 $ 37,246,221.95

- 39-

GEORGIA SOUTHWESTERN COLLEGE SCHEDULE OF REVENUES CURRENT FUNDS YEAR ENDED JUNE 30, 1996

State Appropriations Allotments from the Board of Regents of the University System of Georgia Regular Special Funding Initiative Lottery Proceeds
Other Revenues Retained Tuition and Fees Matriculation Other
Federal Grants and Contracts Research and Instruction Student Aid Contract Overhead
State Grants and Contracts Research and Instruction Student Aid
Local Grants and Contracts Research and Instruction
Private Gifts, Grants, and Contracts Research and Instruction Student Aid Contract Overhead
Endowment Income Student Aid
Sales and Services of Educational Activities
Sales and Services of Auxiliary Enterprises
Other Sources Administrative Cost Allowances Campus Mail Service Cash Over-Short Donations Extension and Public Service Interest Earned Rents Other

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

$ 10,372,834,00 88,013,00 $
$ 10,460,847,00 $

88,935.00 88,935.00

$ 4,027,282.00 281,956,50

56,980.83

250.00
46,236,57
5,359,68 35,920,00
-367.95 933,670,37
3,800,00 4,791.46 $ 5,395,879.46

$

2,585,335,95

0.17 21,055.51

32,964,15

92,742.59

$

2,732,098,37

$ 15,856,726,46 $

88,935,00 $

2,732,098.37

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information,
-40 -

SCHEDULE "10"

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$ 10,372,834.00 88,013.00 88,935.00
$ 10,549,782.00

$ 10,372,834.00 88,013.00 88,935.00
$ 10,549,782.00

$ 214,488.00 $ 4,241,770.00 281,956.50

$ 4,241,770.00 281,956.50

$ 592,323.30 1,429,792.44
56,980.83

592,323.30 1,429,792.44
56,980.83

59,965.76 1,055,913.00

59,965.76 1,055,913.00

10,004.32

10,004.32

250.00

880,581.52 219,621.75

880,581.52 219,621.75
250.00

46,236.57 2,585,335.95

35,742.00

35,742.00 46,236.57 2,585,335.95

375.99 46,559.21

5,359.68 35,920.00
-367.78 21,055.51 933,670.37 33,340.14
3,800.00 144,093.26

5,359.68 35,920.00
-367.78 21,055.51 933,670.37 33,340.14
3,800.00 144,093.26

$ 261,423.20 $ 8,389,401.03 $ 4,283,944.09 $ 12,673,345.12

$ 261,423.20 $ 18,939,183.03 $ 4,283,944.09 $ 23,223,127.12

- 41 -

GEORGIASOUTHWESTERN COLLEGE SCHEDULEOF EXPENDITURES BYOBJECT
CURRENTFUNDS
YEARENDEDJUNE 30 1996

PERSONAL SERVICES
Salariesand Wages Employe~s Contributions for:
F.I.CA Retirement Group Insurance LiabilityInsurance Unemployment Compensation Insurance Workers' Compensation Insurance
OPERATING EXPENSES
Travel MotorVehicleExpenses Suppliesand Materials Repairsand Maintenance Utilities Rents (Otherthan Real Estate) Insurance and Bonding Claims and Indemnities Tuitionand SCholarships
CollegeWork-study Program SCholarships, Fellowships, Prizes,Awards and Other Other OperatingExpenses Publications and Printing Equipment Non-Inventory ComputerCharges Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts Equipment LeaseJPurchase of Equipment Inventory
OTHER
EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND Other Costs Suppliesand Materials Repairsand Maintenance Equipment Non-Inventory Software Telecommunications Equipment Inventory
SPECIALFUNDINGINITIATIVES Personal services salaries and Wages Employe~s Contributions fo~ F.I.CA Retirement Group Insurance
Other Costs Travel Suppliesand Materials Repairsand Maintenance Other Expenses Equipment Non-Inventory Software Telecommunications Equipment Inventory

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

s 9,086,578.24
634,155.24 932,333.52 1,016,382.53
85,056.00 6,856.00 51,300.00
s 11812,661.53

$

733,234.58

41,471.19 60,542.73 79,163.34

s

914,411.84

$ 127,387.74 16,905.18
308,048.19 241,099.77 578,489.00
92,963.96 21,566.97
290.13
29,814.61 143,481.00 814,304.17 104,398.27
34,140.76 41.57
59,868.21 154,829.33
233,247.58 478,104.40
110,834.76 392102.90
s 3,941718.50

$

9,380.67

23,550.48

116,957.27

74,101.20

259,900.87

38,489.55

32,956.84

107.89

254,427.80 80,049.55 12,011.24
4,434.56
273.55 76,233.44
84,400.21 840,808.91

16,060.39 $ 1,704,144.44

s

4,248.27

909.54

36,115.86 381.00
4,131.39

13,713.94

$

59,500.00

s

52,316.20

3,483.86 5,162.64 7,250.20

s

68,212.90

1,499.53 913.75 $ 300.00 224.85

4,945.95 613.57

1,793.63 602.33 400.00

2,765.57 681.00

14,017.26

19,096.65

s

s 87,964.25

28,102.74

s $ 15,842,344.28

87,602.74 $ 2,618,556.28

Seeaccompanying notesand Independent AccountanfsCombinedReport on Relliew of FinancialStatementsandSupplementaryInformation.

-42 -

SCHEDULE "11"

STUDENT ACTMTIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$

s 60,459.55 $ 9,880,272.37

n6,998.60 $ 10,657,270.97

2,146.81 3,158.34 1,989.40

6n,n3.24 996,034.59 1,097,535.27 85,056.00
6,856.00 51,300.00

46,889.40 71,054.87 57,nO.l0

724,662.64 1,067,089.46 1,155,305.37
85,056.00 6,856.00
51300.00

$

67,754.10 $ 12,794,827.47 $ 952,712.97 $ 13.747.540.44

$

8,815.20 $ 145,583.61 $

40,410.09 $ 185,993.70

40,455.66

40,455.66

28,290.52

453,295.98

50,126.88

503,422.66

208.95

315,409.92

4,707.32

320,117.24

838,389.87

838,389.87

7,808.00

139,261.51

22,881.00

162,142.51

4.00

54,527.81

3,706.40

58,234.21

398.02

398.02

6,359.25 55,621.79
9,679.64

29,814.61 404,268.05 949,975.51 126,089.15

89,450.79 2,741,069.19
225,348.33 9,126.90

119,265.40 3,145,337.24 1,175,323.84
135,216.05

3,595.20 3,400.21

42,170.54 41.57
60,141.76 234,462.98

18,960.94
5,880.32 12,737.34

61,131.48 41.57
66,022.08 247,200.32

46,482.73 275.23

344,130.52 1,119,188.54

57,965.90 4,595.00

402,096.42 1,123,783.54

9,758.44

110,634.76 417,921.73

44,264.92

110,634.76 462,186.65

$ 180,299.16 $ 5,826,162.10 $ 3,331,231.12 $ 9,157,393.22

$

4,248.27

909.54

36,115.86 381.00
4,131.39

13,713.94

$

59,500.00

$

4,248.27

909.54

36,115.86 381.00
4,131.39

13,713.94

$

59,500.00

$

52,316.20

3,483.86 5,162.64 7.250.20

$

88,212.90

1,499.53 5,859.70
913.57 224.85

4,559.20 602.33
1,081.00

33.113.91

$ 116.066.99

$

52,316.20

3,483.86 5,162.64 7.250.20

$

88,212.90

1,499.53 5,859.70
913.57 224.85

4,559.20 602.33
1,081.00

33113.91

$ 116,066.99

$ 248,053.26 $ 18,796,556.56 $ 4,283,944.09 $ 23,080,500.65

-43-

GEORGIA SOUTHWESTERN COLLEGE SCHEDULE OF EXPENDITURES BY OBJECT
PLANT FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE "12"

UNEXPENDED

LOTTERY FOR

REGULAR

EDUCATION

RENEWALS AND REPLACEMENTS

TOTAL

CAPITAL OUTLAY

Supplies and Materials Repairs and Maintenance . Rents (Other than Real Estate) Other Expenses Equipment
Non-Inventory Software Per Diem, Fees and Contracts
Per Diem and Fees Contracts Equipment Lease/Purchase of Equipment Inventory

$

2,791.64

11,868.86

770.00

435.00

10,783.91 7,027.28

16,511.62 1,165,560.73

3,432.00 51,998.78

$

482.00 $

3,273.64

11,868.86

770.00

435.00

4,639.01 6,288.50

15,422.92 13,315.78

5,808.00 124,981.00

22,319.62 1,290,541.73

22,316.75

3,432.00 74,315.53

$ 1,271,179.82

$

164,515.26 $ 1,435,695.08

OTHER

EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND
Other Costs Supplies and Materials Per Diem, Fees and Contracts Contracts

$

3,841.83

36,658.17

$

3,841.83

36,658.17

40,500.00

40,500.00

SPECIAL FUNDING INITIATIVES Other Costs Supplies and Materials Equipment Non-Inventory Equipment Inventory

$

2,277.88

2,308.84

85,316.68

$

2,277.88

2,308.84

85,316.68

89,903.40

89,903.40

$ 1,271,179.82 $ 130,403.40 $

164,515.26 $ 1,566,098.48

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-44 -

GEORGIA SOUTHWESTERN COLLEGE RECONCILIATION OF SALARIES AND WAGES. AND TRAVEL
YEAR ENDED JUNE 30. 1996

SCHEDULE "13"

Totals per Annual Supplement

Adjustments

Shared Services on Jointly Staffed Personnel

Abraham Baldwin Agricultural College

Gibbs, Jeff

Gibbs, Kay

Miller,

Paul W.

Macon College

Spencer, John T.

SALARIES AND WAGES
$ 10,695,730.52 $

TRAVEL 187,493.23

2,153.00 1,619.25 10,334.40
-250.00

Totals per Report

$ 10,709,587.17 $ 187.493.23

DISTRIBUTION BY FUND
CURRENT FUNDS Unrestricted Resident Instruction Regular Special Funding Initiative Auxiliary Enterprises Student Activities Restricted Resident Instruction

$ 9,086,578.24 $ 52,316.20
733,234.58 60,459.55
776,998.60

127,387.74 1,499.53 9,380.67 8,815.20
40,410.09

$ 10,709,587.17 $ 187,493.23

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 45-

SECTIONll FINDINGS AND IMPROPER OR QUESTIONED COSTS

GEORGIA SOUTHWESTERN COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30,1996

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER QR QUESTIONED COSTS

The status of findings disclosed in the audit report for the year ended June 30, 1995, is summarized below:

Audit Control Number

Status of Finding

542-92-10 542-93-06 542-95-01 542-95-02 542-95-03 542-95-04 542-95-05

Corrective Action Implemented Finding Deleted Corrective Action Implemented Corrective Action Implemented Corrective Action Implemented Corrective Action Implemented Corrective Action Implemented