Review report, state of Georgia, Gordon College, Barnesville, Georgia, year ended June 30, 1999

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REVIEW REPORT STATE OF GEORGIA GORDON COLLEGE BARNESVILLE, GEORGIA YEAR ENDED JUNE 30, 1999 \.~-------------------
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASH I NGTON STREET
ATLANTA, GEORGIA 30334-8400

GORDON COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF 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 COMBINlNG BALANCE SHEET

CURRENT FUNDS - UNRESTRICTED

20

F COMBINlNG STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

21

G COMBINlNG STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

22

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

23

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

2

RESIDENT INSTRUCTION

24

3

LOTTERY FOR EDUCATION

27

4 CHANGES IN INVESTMENT IN PLANT

28

5 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

30

GORDON COLLEGE - TABLE OF CONfENTS -
SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTO!'l
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
September 15, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly of Georgia Members ofthe Board ofRegents ofthe University System ofGeorgia
and Honorable Jerry M. Williamson, President Gordon 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 Gordon College as of and for the year ended June 30, 1999, 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 Gordon College.

A review consists principally ofinquiries of College personnel and analytical procedures applied to financial

data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards,

the objective of which is the expression of an opinion regarding the financial statements taken as a whole.

Accordingly, we do not express such an opinion.

..

Based on our review, with the exception ofthe matters described in the fourth and fifth paragraphs, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.

As disclosed in Note 1 to the financial statements, generally accepted accounting principles require encumbrances to be recorded as a reservation of fund balance. However, in accordance with Georgia Law and State budgetary 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 detenninable.

99ARL-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. If compensated absences were reported, liabilities would be increased and fund balance would be decreased by $191,732.83 as of June 30, 1999, and the net change in fund balance for the year ended June 30, 1999, would be decreased by $29,996.99.
Our review 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 year 2000 supplementary information on Schedule"1" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. The accompanying combining statements (Exhibits E through G) and the fmancial schedules (Schedules 2 through 5) are presented for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review ofthe financial statements, and except for the effects of the matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto.
Respectfully submitted,
~.:a4.QQ W-. --1"~ :"-'
Russell W. Hinton State Auditor
RWH:jb 99ARL-67

FINANCIAL STATEMENTS - 1-

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

GORDON COLLEGE COMBINED BALANCE SHEET
ALL FUND GROUPS JUNE 30. 1999

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$

2,670,225.62 $

157,022.01

217,794.49

2,135.79

853,714.87

0.00 $

1,632.47 11,151.31

$

3,900,892.78 $

0.00 $ ==1=2:=,7:::;;8=:3,==:78=

Total Liabilities and Fund Balances

$

3,900,892.78 $

0.00 $ ==1=2:=,7=8=:3.==:78=

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"

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$

34,750.00 $

436,762.24

$ 3,143,370.33

$ 201,597.57

369,770.89

217,794.49

2,135.79

853,714.87

_ _ _ _ _ _ $ 34,554,311.56

34,554,311.56

$

34,750.00 $

436,762.24 $ 34,554,311.56 $ 201,597.57 $ 39,141,097.93

$ 1,802,254.49 $
748,823.17 $ 2,551,077.66 $
$ -2,516,327.66 $ $ -2,516,327.66 $

58,655.00 58,655.00

$

18,795.45 $ 2,380,949.39

49,600.00

77,910.42 104,891.70

279,542.43 124.00
77,910.42 853,714.87

$ 201,597.57 $ 3,641,841.11

$ 34,554,311.56 378,107.24 378,107.24 $ 34,554,311.56

$

12,783.78

34,554,311.56

0.00

932,161.48

$ 35,499,256.82

$

34,750.00 $

436,762.24 $ 34,554,311.56 $ 201,597.57 $ 39,141,097.93

-3-

GORDON COLLEGE COMBINED STATEMENT OF CHANGES IN FUND BALANCES
ALL FUND GROUPS YEAR ENDED JUNE 30,1999

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues State Appropriations
Regular Lottery Proceeds Federal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Investment Income Other Adjustments Prior 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) Expended for Plant Facilities
Current Funds Plant Funds
Unexpended Renewals and Replacements Georgia State Financing and Investment Commission
Total Revenues and Other Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered 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
Expended for Plant Facilities Capitalized Noncapitalized
DisposalslDeletionS/Adjustments
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements
Net Increase/(Decrease) for the Year
FUND BALANCES JULY 1. 1998

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$ 12,881,558.92

$

0.00

$ 1,522,179.76
1,102,869.80

4,335.07 3,587.79

$ 12,889,481.78 $ 2,625,049.56 $

0.00

$

8,843,6n.41 $ 2,618,176.61 $

0.00

1,068,752.87

6,872.95

1,486,484.36 4,767.01

$ 11,403,681.65 $ 2,625,049.56 $

0.00

$

~111 ,295.55

$

1,374,504.58 $

1,695,877.32

0.00 $ 0.00

0.00 12,783.78

FUND BALANCES JUNE 30.1999

$

3,070,381.90 $

See Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.

The notes to the financial statements are an integral part of this statement -4-

0.00 $

12,783.78

EXHIBIT"B"

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

$

$

409,550.00

34,750.00

45,007.17 3,751.30
1,426,625.46

$

1,919,683.93 $

0.00 $

$ 12,881,558.92

50,535.00

409,550.00 34,750.00
1,522,179.76 1,102,869.80
50,535.00

45,007.17

8,086.37 3,587.79

1,426,625.46

416,186.84

416,186.84

3,009,386.13 40,284.08 260,759.78

3,009,386.13 40,284.08 260,759.78

0.00 $ 3,777,151.83 $ 21,211,367.10

$

3,009,386.13 $

$

3,009,386.13 $

40,284.08 81,326.60
$
121,610.68 $

$ 11,461,854.02 1,068,752.87 6,872.95

1,486,484.36

4,767.01

92,951.35

3,049,670.21 81,326.60 92,951.35

92,951.35 $ 17252,679.37

$ $ -1,089,702.20 $
-1,426,625.46

111295.55

$

0.00

-10,315.13 $ 3,684,200.48 $ 3,958,687.73

388,422.37

30,870,111.08

31,540,569.09

$ -2,516,327.66 $

378,107.24 $ 34,554,311.56 $ 35,499,256.82

-5-

GORDON COLLEGE STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES YEAR ENDED JUNE 30,1999

EXHIBIT"C"

REVENUES
State Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues
EXPENDITURES
Educational and General Instruction 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/lDEDUCTIONS)
Transfers for Renewals and Replacements Prior Period Adjustments (Net) Remittances to the Board of Regents
of the University System of Georgia
Prior Yeats Unrestricted Fund
Balance (SurplUS)
Total Other Transfers and Additions/(Deductions)

UNRESTRICTED RESTRICTED

TOTAL (Memorandum
Only)

$

8,349,199.00

$ 8,349,199.00

2,745,385.50

2,745,385.50

6,872.95 $ . 1,515,306.81

1,522,179.76

1,102,869.80

1,102,869.80

31,601.44

31,601.44

1,652,095.63

1,652,095.63

96,404.40

96,404.40

$ 12,881 ,558.92 $ 2,618,176.61 $ 15,499,735.53

$ 4,322,008.88

$ 4,322,008.88

711,255.97

711,255.97

890,273.14

890,273.14

1,555,089.78 $

48,609.11

1,603,698.89

1,276,941.89

1,276,941.89

88,107.75

2,569,567.50

2,657,675.25

350,064.40 521,639.00
77,601.33 119,262.02
186.12

350,064.40 521,639.00
77,601.33 119,262.02
186.12

$ 9,912,430.28 $ 2,618,176.61 $ 12,530,606.89

$

-111,295.55

3,155.85

$ -111,295.55 3,155.85

-1 ,486,484.36 $ -1,594,624.06

-1 ,486,484.36 $ -1,594,624.06

Net Increase/(Decrease) in Fund Balances

$

1,374,504.58 $===~O.~OO== $ 1,374,504.58

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. -7-

GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 3D. 1999

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Gordon College is one ofthirty-four (34) State supported memberinstitutions ofhigher 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 Gordon College as a separate reporting entity.
The Board ofRegents 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. Gordon College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Gordon College is considered an organizational unit ofthe Board ofRegents ofthe University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board ofRegents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial R~orting Standards.
FUND ACCOUNTING In order to ensure observance oflimitations and restrictions placed on the use of the resources available to the College, the accounts ofthe College are maintained in accordance with the principles 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 beell 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:
C.URRENT FUNDS
UNRESTRICTED - The fund used to account for those economic resources over which the College retains full control to use for purposes ofperforming the primary functions of the College, e.g., instruction, 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-

GORDON COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

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.
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 ofinstitutional properties.
INVESTMENT IN PLANT - The fund which shows the total amounts representing the book value of all physical properties owned by the College. Net fuvestment in Plant is an equity account showing the total book value ofphysical properties belonging to the College less -the amount of any indebtedness to others.
AGENCY FUNDS
The fund used to account for resources held by the College as custodian or fiscal agent for individual students, faculty, staffmembers, and organizations.
BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis ofaccounting applicable to colleges and universities prescribed in the American fustitute ofCertified Public Accountants' audit guide reporting model. The modified accrual basis ofaccounting is defined as that method ofaccounting in which expenditures, other than accrued interest on generallong-tenn debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures of the fiscal period.
Contractual obligations for goods and services which 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 ofencumbrances 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 of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.

-9-

GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1999

EXHIBIT "D"

NOTE I: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING Compensated absences represent obligations of the College 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$191,732.83 and a related net current year expenditure of $29,996.99 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 pennitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation ofthe financial statements.

To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made for plant facilities expended by the Georgia State Financing and Investment Commission on behalfofthe 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 ofcurrent 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 ofrevenues and expenses.

BUDGET
The Board ofRegents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units ofthe University System of Georgia. The appropriated budget is adopted at the Board level and represents appropriations provided by the Amended Appropriations Act of 1998-1999. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The allocation ofthe appropriated budget is made to the College by the Administrative Central Office. In addition, the College receives Federal funds and other funds directly and includes these funds in the budget filed wit!l 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:

.

-10 -

GORDON COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

EXHIBIT "D"

NOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET Resident Instruction Operating Expenses: Sponsored Operations Capital Outlay Year 2000 Project

$ 758.778.61 $ 2.657.696.81 $ 15.374.32

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.

ACCOUNTSRECEIVABLE Accounts receivable consist of allotments due from the Board of Regents of the University System of Georgia - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. No provision has been made for an allowance for doubtful accounts within the accompanying financial statements.

INVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the weighted average method.

Inventories of goods for resale are valued at cost using the weighted average method.

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 of this 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:

- 11 -

GORDON COLLEGE
NOTESTOTHEFINANC~STATEMENTS
JUNE 30. 1999

EXHIBIT "D"

NOTE 2: CUSTOD~ CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (1) Bonds, bills, certificates ofindebtedness, 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 ofany public authority created by the laws ofthe 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 ofdevelopment authorities created by the laws of the 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'Officia1 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 ofthe University System of Georgia) the option of exempting demand deposits from the collateral requirements.
The treasurer of the Board of Regents 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, 1999, 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 College or by its agent in the College's name.
Category 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the College's name.
- 12-

GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS 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 College's name, and amounts uncollateralized.

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$ 2,742,276.49 $ 3.129,024.04 $ 100,259.41 $ 3,028,764.63 $===01fi:'0~0

CATEGORIZATION OF INVESTMENTS At June 30, 1999, the carrying amount ofthe College's total investments was $405,647.99 and consisted entirely of funds in the Short Term Pooled Fund administered by the Board ofRegents of the University System of Georgia, which are not required to be categorized since the College did not own any specific identifiable securities in the pool.

NOTE 3: INVESTMENT IN PLANT

The following is a summary of Investment in Plant fixed assets as of June 30, 1999:

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

$ 240,541.04 25,240,602.53 3,462,367.10 3,819,631.31 1.791.169.58

Total Investment in Plant

$34.554.311.56

NOTE 4: RISK MANAGEMENT

Gordon College 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 Ur#:versity System of Georgia. The College 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 ofthe Board ofRegents ofthe 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$1,000,000.00 per person and dental coverage up to an annual maximum of $1 ,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the Health Benefits Plan as established by the Board of Regents.

"

-13 -

GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

EXHIBIT"D"

NOTE 4: RISK MANAGEMENT
The Department ofAdministrative 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, 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 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 Self-Insurance Fund.
NOTES: RETffiEMENIPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Gordon College participates in the Teachers Retirement SysteI1l of Georgia (TRS), a cost-sharing multipleemployer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers ofthe State ofGeorgia 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 of the College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The College makes monthly erilployer 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 1999, the employer contribution rate was 11.95% for covered employees. In addition, the College contributed 3.46% to the TRS on behalfof 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:

- 14-

GORDON COLLEGE
NOTESTOTHEFINANC~STATEMENTS
JUNE 30, 1999

EXHIBIT "D"

NOTE 5: RETffiEMENTPLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA

Funding Policy
Fiscal Year
1999 1998 1997
REGENTS RETIREMENT PLAN

Percentage Contributed
100% 100% 100%

Required Contribution
$ 421,104.79 $ 413,438.03 $ 401,791.99

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, urtder which it may purchase annuity contracts for the purpose ofproviding 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 ofthe 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 of the State of Georgia. The employer contributes 8.34% ofthe participating employee's earnable compensation. Employees contribute 5% of their earnable co~pensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times.

The College and the covered employees made the required contributions of $103,845.06 (8.34%) and $61,023.70 (5%), respectively.

GEORGIA DEFINED CONTRIBUTION PLAN

Plan Description Gordon 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.

Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. Ifa member has less than $ 3,500.00 credited to his/her account, the Board ofTrustees has the option ofrequiring a lump

- 15 -

GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

EXHIBIT "D"

NOTE 5: RETmEMENIPLANS
GEORGIA I)EFINED CONTRIBUTION PLAN
Benefits 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-half percent (7.5%) of gross 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 ofTrustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1999 amounted to $23,586.31 which represents 7.5% ofcovered payroll. These contributions met the requirements ofthe plan.
NQTE6: LEAVEPOUCrnS
Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length ofcontinuous 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)
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; except as noted in the subsequent paragraph.
Certain employees who retire with a minimum ofthree months ofunused sick leave are entitled to additional service credit in the Teachers Retirement System of Georgia.
NOTE 7: CONIINGENCrnS
Amounts received or receivable from grantor agencies are subject tq 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 ofexpenditures 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 Gordon College (an organizational unit of the Board of Regents ofthe 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, 1999.
- 16-

GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1999

EXHIBIT"D"

NOTE 8: 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 of Regents of the University System of Georgia has established group health and life insurance programs for regular employees ofthe University System of Georgia. 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 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 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, 1999, there were 16 employees who had retired or were disabled-that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1999, Gordon College recognized as incurred $34,807,20 of expenditures, which was net of$10,027,20 ofparticipant contributions.

NOTE 9: ENROLLMENT

The equivalent full-time student enrollment of Gordon College was as follows:

Regular Term Fall Semester, 1998 Spring Semester, 1999
Average
Summer School, 1998

2,093 1.930

- 17 -

SUPPLEMENTARY INFORMATION -19 -

GORDON COLLEGE COMBINING BALANCE SHEET CURRENT FUNDS UNRESTRICTED
JUNE 30, 1999

EXHIBIT"E"

ASSETS
Cash and Cash Equiyalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups
Total Assets

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$ 2,367,481,44 $
21,531.84 26,168.12
1,256.83 853,714.87

19,024.73 $

203,468.97 $
135,490.17 191,626.37
878.96

80,250.48 $

2,670,225.62 157,022.01 217,794.49 2,135.79 853,714.87

$ 3,270,153.10 $

19,024.73 $

531,464.47 $

80,250.48 $ 3,900,892.78

LIABILITIES AND FUND BALANCES

Liabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Other

$

470,082.70 $

246,146.43

Total Liabilities

$

716,229.13 $

Fund Balances Unrestricted

2,553,923.97

19,024.73 $ 19,024.73 $

11,208.26 $
49,600.00
16,698.00 124.00
77,630.26 $

0.00

453,834.21

928.76 $
16,698.00
17,626.76 $

501,244.45 49,600.00
279,542.43 124.00
830,510.88

62,623.72

3,070,381.90

Total Liabilities and Fund Balances

$ 3,270,153.10 $

19,024.73 $

531,464.47 $

80,250.48 $ 3,900,892.78

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
20 -

GORDON COLLEGE COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30. 1999

EXHIBIT"F"

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

REVENUES AND OTHER ADDITIONS

Unrestricted Current Fund Revenues Adjustments
Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided

$ 10,922,813.83 $
3,977.84 2,595.24

134,250.00 $

1,679,729.13 $
237.98 269.05

144,765.96 $ 12,881,558.92

119.25 723.50

4,335.07 3,587.79

Total Revenues and Other Additions $ 10,929,386.91 $

134,250.00 $ 1,680,236.16 $

145,608.71 $ 12,889,481.78

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

$ 8,593,421.89 $
1,486,484.36 2,131.80

134,250.00 $

$ 1,068,752.87

2,497.21

116,005.52 $

8,843,677.41 1,068,752.87

138.00

1,486,484.36 4,767.01

Total Expenditures and Other Deductions

$ 10,082,038.05 $

134,250.00 $ 1,071,250.08 $

116,143.52 $ 11,403,681.65

TRANSFERS BETWEEN FUNDS

Nonmandatory Renewals and Replacements In Lieu of State Appropriations

$

189,067.00

$

-111,295.55

189,067.00

$

-111,295.55

0.00

Total Transfers Between Funds

$

189,067.00

$

300,362.55

$

-111,295.55

Net Increase/(Decrease) for the Year $ 1,036,415.86 $

0.00 $

308,623.53 $

29,465.19 $ 1,374,504.58

FUND BALANCES JULY 1, 1998

1,517,508.11

0.00

145,210.68

33,158.53

1,695,877.32

FUND BALANCES JUNE 30,1999

$ 2,553,923.97 $

0.00 $

453,834.21 $

62,623.72 $ 3,070,381.90

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
21 -

GORDON COLLEGE COMBINING STATEMENT OF CURRENT FUNDS REVENUES EXPENDITURES,
AND OTHER CHANGES UNRESTRICTED
YEAR ENDED JUNE 30 1999

EXHIBIT"G"

REVENUES
State Appropriations Tuition and Fees Federal Grants and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues
EXPENDITURES
Educational and General Instruction Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships
AuxDiary Enterprises Student Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units
Total Expenditures
OTHER TRANSFERS AND ADDITIONS/IDEDUCTIONSl
Transfers for Renewals and Replacements Transfers in Lieu of State Appropriations 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)

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$ 8,214,949.00 $ 2,610,848.90 6,872.95 31,601,44
58,541.54
$ 10,922,813.83 $

134,250.00 $
$ 1,652,095,63 27,633.50
134,250.00 $ 1,679,729.13 $

$ 134,536.60
10,229.36

8,349,199.00 2,745,385.50
6,872.95 31,601.44 1,652,095.63 96,404.40

144,765.96 $ 12,881,558.92

$ 4,195,758.88 $ 703,255,97 774,267.62
1,555,089,78 1,276,941.89
88,107.75
$ 8,593,421.89 $

126,250.00 8,000.00 $

$

350,064.40

521,639,00

77,601.33

119,262.02

186,12

134,250.00 $ 1,068,752.87 $

$ 116,005.52
116,005.52 $

4,322,008.88 711,255.97 890,273.14
1,555,089.78 1,276,941,89
88,107.75
350,064.40 521,639,00
77,601,33 119,262.02
186.12
9,912,430.28

$

189,067.00

4,441.28

$ -111,295.55 -189,067.00 -1,990,18 $

$ 704.75

-111,295.55 0.00
3,155.85

-1,486,484.36 $ -1,292,976.08

$ -302,352.73 $

-1,486,484.36 704.75 $ -1,594,624.06

Net Increase/(Decrease) In Fund Balances

$ 1,036,415.86 $

0.00 $

308,623.53 $

29,465.19 $ 1,374,504.58

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

-22-

GORDON COLLEGE

SCHEDULE "1"

SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDED JUNE 30. 1999

The year 2000 issue is the result of shortcomings in many electronic data processing systems and other electronic equipment that may adversely affect the College's operations beyond calendar year 1999. Gordon College has completed an inventory of computer systems and other electronic equipment that may be affected by the 2000 issue and that are necessary to conducting institutional operations. The following stages have been identified as necessary to implement year 2000 compliant systems.
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 Issue.
Assessment Stage - The actual process ofidentifying all systems and individual components ofsystems to check for compliance.
Remediation Stage - The time when changes are made to systems and equipment.
Validation/Testing Stage - The :process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.
It will be necessary for the College to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected.
Gordon College has identified the following financial systems requiring year 2000 remediation that are supported by the Board ofRegents, University System of Georgia and have been remediated by the Board.
The College and University Fund Accounting System has been remediated, validated and tested.
The Regents Budget Reporting System is reportedly year 2000 compliant. The awareness, assessment, validation/testing phases were completed in 1997.
The Regents Payrol1/Personnel System has been remediated, validated and tested.
The Regents Property Inventory System is reportedly year 2000 compliant. The awareness, assessment, validation/testing phases were completed in 1997.
The Banner Student Infonnation System is supported by SCT Banner, Inc. Their year 2000 version has been released and distributed to the College.
Because ofthe unprecedented nature ofthe year 2000 issue, its effects and the success ofrelated remediation efforts will not be fully determinable until year 2000 and thereafter. While management is confident that the College will be year 2000 ready, it cannot assume that its remediation efforts will be successful in whole or in part, or that parties with whom the College does business will be year 2000 ready.

See accompanying notes and Independent Accountant's Combined Report on Review ofFinancial Statements and Supplementary Infonnation.
- 23-

GORDON COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30,1999

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

PLANT FUNDS

RENEWALS AND

UNEXPENDED

REPLACEMENTS

$

8,214,949,00

$

2,707,864.83 $

=2,.::,61.:.::8::. ,1:.:,7.::,6,:.:::;6.:. .1

409,550,00 45,007,17 $

......;;.;0."'-00;;.".

$

10,922,813,83 $

2,618,176.61 $

454,557,17 $

-.;.;0,"-00;..,

EXPENDITURES

Personal Services:

Education, General and Departmental Services

$

Operating Expenses:

Education, General and Departmental Services

Sponsored Operations

Capital Outlay

Special Funding Initiative

Year 2000 Project

6,192,810.09
2,214,180,48 $
122,080.00 64,351.32

2,618,176.61 $

$

8,593,421.89 $

2,618,176.61 $

Excess of Revenues over Expenditures

$

2,329,391.94 $

0.00 $

2,974,636.13 $

121,610.68

2,974,636.13 $ _ _-.:.:12::,;1:.:.;,6;.;,1;;,;0.;;,;68;.., -2,520,078,96 $ -====-=12=1=,6;,,;1=0.=68=

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

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-24-

SCHEDULE "2"

TOTAL

ADJUSTMENTS (1)

TOTAL (Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$

8.624,499.00

$

8,624,499.00 $

8,624,499.00 $

5,371.048.61 $

222,569.93

5.593.618.54

4.631,917.00

0.00 961,701.54

$

13.995,547.61 $

222.569.93 $

14,218.117.54 $ 13,256,416.00 $

961.701.54

$

6.192.810.09

$

6.192.810.09 $

8.294,962.00 $

2.102.151.91

2.214.180.48 $ 2.618.176.61 3,096.246.81
122,080.00 64.351.32

-88,107.75

2.126.072.73 2.618,176.61 3.096.246.81
122,080.00 64.351.32

2,492,449.00 1,859,398.00
438,550.00 122.080.00 48.977.00

366.376.27 -758.778.61 -2.657.696.81
0.00 -15.374.32

$

14.307.845.31 $

-88.107.75 $

14.219.737.56 $ 13.256,416.00 $

-963.321.56

$

-312.297.70 $

310,677.68 $ = =.....-.1.0;;.6=20;:..0.2.;"

$====-1=.6;;;;2=0.=02...

-25-

GORDON COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTIERY FOR EDUCATION YEAR ENDED J_UNE 30. 1999

SCHEDULE "3"

'-

,,

REVENUES

State Appropriations

CURRENT FUNDS UNRESTRICTED

PLANT FUNDS UNEXPENDED

TOTAL (Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$

134,250.00 $

34,750.00 $

169,000.00 $

169,000.00 $

0.00

'~

EXPENPITURES

Equipment, Technology and Construction

Trust Fund

$

Special Funding Initiatives

..

$

Excess of Revenues over Expenditures

$

81,250.00 $

34,750.00 $

116,000.00 $

116,000.00 $

0.00

53,000.00

53,000.00

53,000.00

0.00

134,250.00 $

34,750.00 $

169,000.00 $

169,000.00 $

0.00

0.00 $

0.00 $ _ _ _....;;:0;;;;.0;;;..0

s_ _ _ _ _o..o..o..

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-27-

GORDON COLLEGE CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30,1999

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

BALANCE JULY 1,1998

CURRENT FUNDS UNRESTRICTED

PLANT UNEXPENDED

$

240,541,04

21,977,261.94

$

2,962,296,73

3,415,277.70

47,089,40

3,548,186.20 $

337,064.90

1,688,844,20

79,121.94

$ 30,870,111.08 $

416,186.84 $ ===3,:::00=:9=,3=8::6.::13=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 28-

SCHEDULE "4"

ADDITIONS
FUNDS RENEWALS AND REPLACEMENTS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

40,284.08 $

260,759.78

$

PRIVATE GIFTS

DEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS
$

3,775.00 $ 46,760.00

69,394.79 23,556.56

BALANCE JUNE 30,1999
240,541.04 25,240,602.53
3,462,367.10 3,819,631.31 1,791,169.58

$

40,284.08 $

260,759.78 $

50,535.00 $

92,951.35 $ ====34::i::,:=554:i::::i:i::,3::::1::i::1.=::5==6

-29 -

GORDON COLLEGE SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30, 1999

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

LOTTERY FOR

AUXILIARY

EDUCATION

ENTERPRISES

NET INVESTMENnN PLANT

Investment in Plant Facilities

UNRESTRICTED

Designated

For Intercollegiate Athletics

$

73,510,12

For Inventory Reserve

$

27,228.42

191,626.37

For Renewals and Replacements Reserve

For Subsequent Years' Expenditures

187,428.16 $

For Uncollectible Accounts

6,315.00

1,269.56

Surplus/Deficit

Regular

2,520,380.55

Lottery for Education

$

'$

2,553.923.97 $

0,00
0.00 $

453,834.21 $

STUDENT ACTIVITIES
62,623.72 62,623.72

$

2,553,923.97 $

0.00 $

453,834.21 $ ====6=2:!::,6=:2;;,;3.7..2.,=:

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 30-

SCHEDULE "5"

PLANT FUNDS

UNEXPENDED

LOTTERY FOR

RENEWALS AND

REGULAR

EDUCATION

REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 34.554,311.56 $ _......:::.34-'"'.:;.;55""4"".3;.;.1",-,1.5.:;.;6:...

$

-2,516,327.66

______ $

$

-2.516.327.66 $

$

-2.516.327.66 $

$

378.107.24

$

73.510.12

218,854.79

378,107.24

250,051.88

7.584.56

0:::,:.:::,:00::0.00 $ _ _.....::.;37:.;:8""1".:::.07.:.,:.2=-4:..

4.052.89 0.00
$ _ _...::.;93:;.=2""'.1.:::.6"'-'1.4.:.;8:..

0.00 $

378,107.24 $ 34.554.311.56 $ ===3:15'.;:48=6:1,;.4=73;:;.=4;.,

- 31 -

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

GORDON COLLEGE AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JDNE 30. 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-576-98-0l FS-576-98-02

Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented