(;..A ABoo 'i:!_ I Gil, :;I. Oo I - ~Gl>J. J r ' , STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS > '' I' ( ' / ' ' -' r ' ' , j I 'I I \ GORDON COLLEGE ., , ' BARNESViLLE, GEO,RGIA ' REPORT ON REVIEW OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 ,,i_ ' I ' '' ' '' T -\ ' I' r Russell W. Hinton ' State Auditor "' I ~ j ' ' GORDON COLLEGE - TABLE OF CONTENTS - Page FINANCIAL INDEPENDENT ACCOUNTANTS COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION REQUIRED SUPPLEMENTARY INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMEl'l'TS EXHIBITS A STATEMENT OF NET ASSETS 11 B STATEMENT OF REVENUES, EXPENSES A1'.'D CHANGES IN NET ASSETS 12 C STATEMENT OF CASH FLOWS 13 D NOTES TO THE FINANCIAL STATEMENTS 14 SUPPLEMENTARY INFORMATION SCHEDULES SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET - (NON-GAAP BASIS) I RESIDENT INSTRUCTION 31 2 LOTTERY FOR EDUCATJON 32 3 RECONCILIATION OF SALARIES AND TRAVEL 33 FINANCIAL R1 "''111 \\. H1, rn, STATlAU(ITOP c.i 5'i 2 1 1.i ,, , . ,C" --':'H--..Jfi~:: DEPARTl\1ENT OF AUDITS AND ACCOUNTS ~l:i-l \\J..,h1n~ton ~ircct ~ \\ ';u11c: :1--t t\tl..mta Gcorg-1J ~(1~~4-8400 November 22. 2002 Honorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the Umverslly System of Georgia and Honorable La'wTence V Welil, President Gordon College INDEPENDENT ACCOW,..'TANT'S COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Ladies and Gentlemen We have reviewed the accompanymg baste financial statements (Exh1b1ts A through D) of Gordon College an organ1zat1onal umt of the State of Georgia, as of and for the year ended June 30. 2002. m accordance with Statements on Standards for Accountmg and Review Services issued by the Arnencan Institute of Certified Pubhc Accountants All mformatlon mcluded m these financial statements 1s the representation of the management of Gordon College A review consists pnnc1pally ofmqumes of College personnel and analyttcal procedures applied to financial data It 1s substanllally less m scope than an audit m accordance with audllmg standards generally accepted m the Umted States of Amenca, the obJect1ve ofwh1ch 1s the expression of an opm10n regarding the financial statements taken as a whole Accordmgly, we do not express such an opinton Based on our review, with the exception of the matter discussed m the fourth paragraph, we arc not aware of any matenal modifications that should be made to the accompanying financial statements m order for them to be m conformity with accountmg pnnc1ples generally accepted m the Umted States ofArnenca As descnbed m Note 1 to the financial statements, the College did not recognize June 30, 2001, encumbrances as expenses in the June 30, 2002. basic financial statements To conform to generally accepted accounting pnnctples, encumbrances should be recogruzed as expenses and hab1hues m the penod that goods and services are received The effects on the basic financial statements of this departure from genernlly accepted accountmg pnnc1ples were not reasonably determmable 02ARL-67 As descnbed m Note L Gordon College adopted the prov1s10ns of Governmental Accountmg Standards Board (GASB) Statement No 35, Basic Fznanc,a/ Sraremenrs - and Afanagemem's D1scusswn and Analvs,s -for Public College~ and Umversllles, as amended by GASB Statement No 37, Basic F111ancwl Sraremenrs - and Afanagemenr's D1scusswn and Ana/is1s - for Srarc and Locar Govcmmellls, and GASB Statement No 38, Cerram Fmancwl Srarements Note D1sc/0s11res, as of July 1, 200 I, to implement a new financial reportmg model Management's D1scuss1on and Analysis 1s not a reqmred part of the basic financial statements but 1s supplementary mformalion reqmred by the GASB We have applied certam limited procedures, which consisted pnne1pally ofmqumes ofmanagement regardmg the methods of measurement and presental!on ofthis supplementary mformalion, and we are not aware ofany matenal mod1ficauons that should be made thereto Our review was made for the purpose of expressmg limited assurance that there are no matenal mod1ficat10ns that should be made to the financial statements m order for them to be m conformity with accountmg pnnc1ples generally accepted m the Umted States ofAmenca The accompanymg supplementary mformalion (Schedules 1 through 3) 1s presented for add111onal analysis purposes Such mformalion has been subJected to the mqumes and analytical procedures applied m the review of the financial statements, and we are not aware of any matenal mod1fica11ons that should be made to such data Respectfully submitted, - k)~ Rus ell W Hmton State Auditor RWH as 02ARL-67 REQUIRED SUPPLEMENTARY INFORMATION -I- GORDON COLLEGE Management's Discussion and Analysis Introduction Gordon College 1s one of the 34 mstltutlons of the Umvers1ty System of Georgia The College, located m Bamesv1lie, Georgia, was founded m 1852 The College offers associate degrees m a Wide vanety of subjects This wide range of educat10nal opportumtles attracts a highly qualified faculty and a student body of more than 3,000 students each year The mst1tut10n continues to grow as shown by the companson numbers that follow Faculty Students FY2002 FY2001 FY2000 76 3,074 70 2,890 66 2,758 Overview ofthe Financial Statements and Financial Analysis Gordon College 1s proud to present its finane1al statements for fiscal year 2002 The emphasis of d1scuss1ons about these statements will be on current year data There are three financial statements presented the Statement of Net Assets, the Statement of Revenues, Expenses and Changes m Net Assets, and, the Statement of Cash Flows This d1scuss10n and analysis of the College's financial statements provides an overview of its financial activities for the year Gordon College has elected to not restate pnor penods for purposes of prov1dmg the comparative data for this Management's D1scuss1on and Analysis However, m future years, when pnor penod mformatlon 1s available, a comparative analysis will be presented Statement ofNet Assets The Statement ofNet Assets presents the assets, hab1ht1es, and net assets ofthe College as ofthe end of the fiscal year The Statement ofNet Assets 1s a pomt of time financial statement The purpose of the Statement ofNet Assets 1s to present to the readers of the financial statements a fiscal snapshot of Gordon College The Statement ofNet Assets presents end-of-year data concernmg Assets (current and non-current), Liab1ht1es (current and non-current), and Net Assets (assets mmus hab1ht1cs) The difference between current and non-current assets will be discussed m the notes to the financial statements From the data presented, readers of the Statement of Net Assets arc able to determme the assets available to contmue the operaltons ofthe 1ns1ttulton They are also able to determme how much the mst1tut10n owes vendors, investors and Iendmg msutullons - 3- Finally, the Statement of Net Assets provides a picture of the net assets (asset~ minus hab1hlles) and their availab1hty for expenditure by the inst1tut1on Net asset~ are d1v1dcd mto three maJor categones The first category, invested in capital assets, net of debt, provides the inslltuuon'~ equ1tv in property, plant and equipment owned by the inst1tut10n The next asset Cdtcgory 1s restnctcd net assets The final category 1s unrestncted net assets Unrestnctcd assets are available to the inslltullon for any lawful purpose of the inst1tut1on Statement of Net Assets, Condensed (thousands of dollars) Assets Current Assets Capital Assets, Net Other Assets S 5,349 14,559 I I Total Assets S 19,919 Liabilities Current L1ab1h11es Non-Current L1ab1hlles S 1,229 90 Total Liabilities S I 319 Net Assets Invested in Capital Assets, Net of Debt Restncted Unrestncted s 14,559 13 4,028 Total Net Assets $ 18,6QQ Statement ofRevenue.~, Expenses and Changes in Net Assets Changes in total net assets as presented on the Statement of Net Assets are ha~ed on the ac11v1ty presented in the Statement of Revenues, Expenses and Changes in Net Assets The purpose of the statement 1s to present the revenues received by the inst1tullon, both operating and nonopcrating, and the expenses paid by the instltullon, operating and nonoperating, and any other revenues, expenses, gains and losses received or spent by the inst1tut10n Generally speaking operating revenues arc received for providing goods and services to the vanous customers and conslltucnc1cs of the inst1tu11on Operating expenses are those expenses paid to acqmre or produce the goods and services provided in return for the operating revenues, and to carry out the m1ss1on of the inslltut1on Nonoperating revenues are revenues received for which goods and services are not provided For example state appropnallons arc nonoperating because they are provided by the Legislature to the inslltullon without the Legislature directly receiving commensurate goods and ser. ices for those revenues -4- Statement of Revenues. E~penses and Changes in Ket Assets. Condensed (thousands of dollars) Operating Revenues Operating Expenses S 8.376 17 400 Operating Loss S -9.024 Nonoperating Revenues and Expenses 10,924 Income (Loss) Before Other Revenues, Expenses, Gains or Losses S I 900 Increase m Net Assets $ I 900 Net Assets at Beginrung of Year, as Onginally Reported S 46,562 Cumulative Effect of Changes m Accountmg Pnnc1ple -29,862 Net Assets at Begmmng of Year Restated $ 16,700 Net Assets at End of Year $_j8.600 The Statement of Revenues, Expenses and Changes m Net Assets reflects a pos1uve year with an mcrcase m the net assets at the end of the year Some h1ghhghts of the mformat10n presented on the Statement of Revenues, Expenses and Changes m Net Assets are as follows -5- ------------------ Revenue By Source (thousands of dollars) For The Year Ended June 30. 2002 Operating Revenue Tmt10n and Fees Grants and Contracts Aux1hary Other Total Operating Revenue Nonoperating Revenue State Appropnatlons Investment Income Total Nonoperatmg Revenue Total Revenues Expenses (thousands of dollars) For The Year Ended June 30, 2002 s 2,640 2,556 2,996 184 $ 8,376 $ 10,690 234 $ 10,924 $ 19.300 Operating Expenses Instruction Academic Support Student Services lnst1tut1onal Support Plant Operations and Mamtenance Scholarships and Fellowships Aux1hary Enterpnses Unallocated Depreciat10n S 5,093 979 1,386 1,806 1,830 2,518 2,758 I 030 Total Operatmg Expenses S !7.400 Statement of Cash Flows The final statement presented by the College 1s the Statement of Cash Flows The Statement ofCash Flows presents detailed mformatlon about the cash act1~,ty of the mstttutlon dunng the year The statement 1s d1v1ded mto five parts The first part deals with operating cash flows and shows the net cash used by the operatmg acttv1t1es of the mstltutlon The second section reflects cash flows from non-capital financmg activities This section reflects the cash received and spent for nonoperatmg, non-mvestmg, and non-capital finanemg purposes The third section reflects the cash flows from mvestmg acttv1t1es and shows the purchases, proceeds, and mterest received from mvestmg -6- act1v1t1cs The fourth sect10n deals with cash flows from capilal and related financing act1\1t1es This sect10n deals with the cash used for the acqu1slllon and construction ofcapital and related Items The ti fth section reconciles the net cash used to the operating income or loss reflected on the Statement of Revenues. Expenses and Changes in Net Assets Cash Flows for the Year Ended June 30, 2002, Condensed (thousands of dollars) Cash Provided (Used) By Operating Act1v1t1cs Non-Capital Fmancmg Acllv1t1es lnvestmg Act1v1t1es Capital and Related Fmancmg Acllv111es Net Change m Cash Cash, Begmnmg of Year S -9, 781 10,708 33 -713 s 247 133 Cash, End of Year $ 380 Capital Assets The College had one s1gmficant capital asset add1t10n for fac1hlles m fiscal year 2002 The Alurnm Hall, Phase I renovation was completed For additional information concerning Capital Assets, see Notes 1 and 6 in the notes to the financial statements. Economic Outlook The College is not aware of any currently known facts, dec1s1ons, or cond1t1ons that are ei.pected to have a s1gn1ficant effect on the financial pos1t1on or results of operations dunng this fiscal year beyond those unknown vanatlons havmg a global effect on virtually all IYPes ofbusmess operations The College's overall financial pos1t1on 1s strong Even with a relatively flat funded year, the College was able to generate a modest increase m Net Assets The College ant1c1pates the current fiscal year will be much hke last and will mamtam a close watch over resources to mamtam the College's ab1hty to react to unknown mtcmal and external issues Lawrence V Wei II, President Gordon College - 7- BASIC FINANCIAI STATEMENTS -9 - GORDON COLLEGE STATEMENT OF NET ASSETS JUNE 30. 2002 EXHIBIT"A" ASSETS Current Assets Cash and Cash Equivalents Short-term Investments Accounts Receivable Net Federal F1nanc1al Assistance Other Prepaid Items lnventones Total Current Assets Noncurrent Assets Notes Receivable, Net Capital Assets Net /See Note 6) Total Noncurrent Assets Total Assets LIABILITIES Current L1ab1hties Salanes Payable Payroll W1thhold1ngs Accounts Payable Deferred Revenue Funds Held for Others Compensated Absences Other L1ab1\Jl1es Total Current L1ab1hbes Noncurrent L1ab1lrtJes Compensated Absences Total L1ab1hbes NET ASSETS Invested 1n Capital Assets, Net of Related Debt Restncted Unrestncted Total Net Assets s 379,679 95 4 434 077 98 12 352 39 23911370 3,745 00 279 903 89 $ 5,348,872 91 $ 10.832 54 14 559,468 56 $ 14 570 301 10 $ 19 919,174 01 $ 27,784 41 73 662 07 316 676 03 519,990 57 43,885 56 171,905 79 74 755 00 $ 1,228,659 43 $ 90 704 45 $ 131936388 s 14 559 468 56 1288108 4 027 460 49 S 1859981013 See Independent Acccuntant's Combined Report on Review of Basic F1nanc,al Statements and Supplementary Information The notes to the f1nanc1al statements are an integral part of this statement - 11 - GORDON COLLEGE STATEMENT OF REVENUES EXPENSES AND CHANGES IN NET ASSETS YEAR ENDED JUNE 30 2002 EXHIBIT "B" OPERATING REVENUES Student Tu1tmn and Fees Less Scholarship Allowances Grants and Contracts Federal Sales and Services of Educational Departments Aux1l1ary Enterpnses Residence Halls Bookstore Food Services Park1ngfTransportatJon Intercollegiate Athlebcs Other Operating Revenues Total Operating Revenues OPERATING EXPENSES Salanes Faculty Staff Employee Benefits Travel Scholarships and Fellowships Ut1hbes Supplies and Other Services Deprec1abon Total Operabng Expenses Operabng Income (Loss) NONOPERATING REVENUES (EXPENSES) State Appropnabons Interest and Other Investment Income Net Nonoperat1ng Revenues lncrease/(Decrease) 1n Net Assets Net Assets Net Assets - Beg1nn1ng of Year as Ong1nally Reported Cumulative Effect of Changes 1n Accounting Pnnciple Net Assets - Beginning of Year, Restated Net Assets - End of Year See Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary lnfonmabon The notes to the financial statements are an integral part of this statement - 12 - s 3,763,826 96 -1,123,52482 2 556 007 33 6000 719,214 79 1214.=08 826,714 56 43 020 95 192 921 66 183.909 26 $ 8 376 372 77 $ 4 482,533 55 2,892,435 67 1,940 140 24 72,037 71 1,506,221 63 1,02161313 4 443 816 21 1 041 508 62 $ 17 400 306 76 $ -9,023,933 99 $ 10,689,582 41 234 331 46 s 10 923,913 87 $ 1899979 88 s 46,562 413 13 -29,862 582 88 $ 16 699 830 25 $ 18 599 810 13 GORDON COLLEGE STATEMENT OF CASH FLOWS YEAR ENPEP JUNE 30 2002 CASH FLOWS FROM OPERATING ACTMTIES Tu1t1on and Fees Grants and Contracts Sales and Services of Educat.Jonal Departments Payments to Suppliers Payments to EmplOyees Payments tor Scholarships and Fellowships Aux1l1ary Enterpnse Charges Residence Halls Bookstore Food Services Parkingn-ransportaoon Intercollegiate Attllebcs Other Receipts (Payments) Net Cash Provided (Used) by Operating AclivrtJes CASH FLOWS FROM NONCAPITAL FINANCING ACTMTIES Stale AppropnaliOns Agency Funds Tranaacttons Net Cash Flows Provided (Used) by Noncaprtal Financing Actrvlbes CASH FLOWS FROM CAPrTAL AND RELATED FINANCING ACTMTIES Purchases of Capital Assets CASH FLOWS FROM INVESTING ACTMTIES Interest on Investments Purchase of lnvestmants Net Caah Provided (Used) by lnvesl:Jng Actrvrbes Net lncrease/(Decrease) 1n Cuh Cash and Cash Equivalents - June 30 2001 Less Short-Term Investments cash and Cash Equivalents Beginning of Year Cash and Cash Equivalents End of Year RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTMTIES Operating Income (Loss) AdJustments to Reconole Net tncome (Loss) to Net Cash Provided (Used) by Operal:Jng Actlvlttes Depree&abon Change m A3sets and L1ab1llbes Accounts Receivables Net lnventones Prepaid Items Accounts Payable Salanes Payable Deferred Revenue Olher LlabllrtJes Compensated Absences Net Cash Provrded (Used) by Operat.Jng Activities See ,ndepen-dent Accountanfs Combmed Report on Review or Basic F11"\8nC1al Statements and Supplementary lnforme.Uon The notes to the financaal statements are an integral part of trus statement 13 EXH1srr ch s 276371568 2 690 583 87 60 00 -961120456 .7 296 463 21 1 506 221 83 726 869 79 1 214,222 06 826 714 56 43 020 95 192 921 86 174 333 55 s .9 781 446 96 s 10 689 582 41 17 952 68 s 10 707 535 09 s -712 805 45 s 234 331 46 -201 065 28 s 33 266 18 s 246 448 86 s 4 366 243 79 -4 233 012 70 s 13323109 s 378 678 85 s .g 023 933 99 104150862 12641322 -62 361 01 -1 563 75 2 069 672 51 7 061 19 122 001 45 7 855 00 71 ...... 82 S -9.781 446 96 GORDON COLLEGE NOTES TO THE FINANCIAL S'rATEMENTS JUNE 30, 2002 EXHIBIT "D" NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS Gordon College serves the state, and natJonal comrnumtJes by prov1dmg its students with academic mstructJon that advances fundamental knowledge, and by d1ssemmatmg knowledge to the people of Georgia and throughout the country REPORTING ENTITY Gordon College 1s one ofthirty-four (34) State supported member mstJtutmns oflugher educallon m Georgia which compnse the Umvers1ty System of Georgia, an organ1zatmnal unit of the State of Georgia The accompanyrng financial statements reflect the operations of Gordon College as a separate reportmg entity The Board of Regents has constJtullonal authonty to govern. control and manage the Umverslty System of Georgia This authonty includes but 1s not hm1ted to the power to designate management, the ab1hty to s1gmficantly mfluence operations, the authonty to control mstltutJons' budgets, the power to determme allotments of State funds to member mstJtutJons and the authonty to prescnbe accountmg systems and adrmrustrauve pohc1es for member mstltullons Gordon College docs not have authonty to retam unexpended State appropnat1ons (surplus) for any given fiscal year Accordmgly, Gordon College 1s considered an organ1za11onal umt of the Board of Regents of the Umverstly System of Georgia reportmg entity for financial reportmg purposes because of the s1gmficance of1ts legal, operatJonal, and financial relallonslups with the Board ofRegents as defined m Section 2100 of the Governmental Accountmg Standards Board (GASB) CoddicatJon of Governmental Accounting and Fmanc1al Reportmg Standards FINANCIAL STATEMENT PRESENTATION ln June 1999, the GASB issued Statement No 34, Basic Fmanczal Statements and Management D1scuss1011 and Ana(vszsfor State and Local Governments ThIS was followed m November 1999 by GASB Statement No 35, Baste Fmanczal Statements and Management's D1scuss10n and Ana(1s1~ for Public Colleges and Umverswes The State of Georgia 1s reqmred to implement GASB Statement No 34 as of and for the year ended June 30, 2002 As an organ1zatJonal umt of the State of Georgia. the College 1s also reqmred to adopt GASB Statements No 34 and No 35 as amended by GASB Statements No 37 and No 38 The financial statement presentallon reqmred by GASB Statements No 34 and No 35 as amended by GASB Statements No 37 and No 38 provides a comprehensive, entity-wide perspecltve of the College's assets, hab1ht1es, net assets, revenues, expenses, changes m net assets, cash flows, and replaces the fund group perspective previously reqmred The College has elected to not restate tis 2001 financial statements to conform with the new financial statement presentation, therefore comparaltve financial mfonnalton will not be presented for fiscal year 2002 S1gmficant accountmg changes made m order to comply wtth the new reqmrements mclude (I) adoplton ofdeprec1atJon on capital assets, and (2) recogmuon ofcompensated absences - 14 - GORDON COLLEGE KOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT "D" NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINAl'iCIAL STATEMENT PRESENTATION Generally Accepted Accountmg Pnnc1ples (GAAP) reqmres that the reportmg of summer school revenues and expenses be between fiscal years rather than m one fiscal year Due to the lack of matenahty, Institutions of the Umvers1ty System ofGeorgia WIil contmue to report summer revenues and expenses m the year m which the predommate act1v1ty takes place At June 30. 2001, encumbrances (contractual obhgatmns for goods and services not received at fiscal year end) were recorded as expenditures by the College mstead of reservations of fund balance as reqmred by generally accepted accountmg pnnc1ples For fiscal year 2002. the College changed Its method ofrecordmg encumbrances such that encumbrances at June 30, 2002 were not recorded as expenses This change 1s m accordance with generally accepted accountmg pnnc1ples No adJustments however, have been made on the financial statements to restate the fund balance at July I, 2001 for the June 30, 2001 encumbrances recorded as expenditures m fiscal year 2001 The net effect of the above accountmg treatment resulted m an understatement of expenses on the accompanymg financial statements for pnor year encumbrances which should have been reflected as expenses m the penod when goods and services were received BASIS OF ACCOUNTING For fmancial reportmg purposes, the College 1s considered a special-purpose government engaged only m busmess-type act1vit1es Accordmgly, the College's financial statements have been presented usmg the economic resources measurement focus and the accrual basis of accountmg, except as noted m the preceding paragraphs Under the accrual basis. revenues are recogmzed when earned, and expenses are recorded when an obhgatlon has been mcurred All s1gmficant mtra-college transactions have been ehmmated The College has the option to apply all Fmanc1al Accountmg Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB The College has elected to not apply FASB pronouncements issued after the apphcable date RESTATEMENT OF NET ASSETS- BEGINNING OF YEAR As a result ofthe adoption ofGASB Statement No 34. the College was also reqmred to make certam changes m accountmg pnnc1ples, specifically (1) adoption ofdeprec1at1on on capital assets, and (2) recordmg of compensated absences GASB Statement No 34 requires certam summer semester revenues be recogmzed between fiscal years rather than the fiscal year m which the semester was predommantly conducted The Umvers1ty System of Georgia has chosen to contmue to record summer revenue m the year m which the semester was predommantly conducted Net assets at July I, 200 I were reduced by $29.862,582 88 for the cumulative effect of these changes - 15 - GORDON COLLEGE NOTES TO THE FINAl\"CIAL STATEMENTS JUNE 30, 2002 EXHIBIT "D" NOTE 1 SUMMARY OF SIGNIFlCANT ACCOUNTING POLICIES CASH AND CASH EQUIVALENTS Cash and Cash Eqmvalents consist of petty cash. demand deposns and time deposits in authonzed financial institutions. and cash management pools that have the general charactenstlcs of demand deposit accounts INVESTMENTS The College accounts for Its investments at fair value in accordance with GASB Statement No 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pool~ Changes in unrealized gain (loss) on the carrying value of investments are reported as a component of investment income in the statements of revenues, expenses, and changes in net assets ACCOUNTS RECEIVABLE Accounts receivable consists of tuition and fee charges to students and aux1hary enterpnse services provided to students, faculty and staff, the maJonty of each residing m the State of Georgia Accounts receivable also include amounts due from the Federal government, state and local governments, orpnvate sources, m connect10n with reimbursement of allowable expenditures madr pursuant to the College's grant and contracts Accounts receivable are recorded net of estimated uncollectlble amounts INVENTORIES Consumable supplies are earned at the lower of cost or market usmg the weighted average method Resale Inventones are valued at cost using the average-cost basis NON-CURRENT CASH AND INVESTMENTS Cash and investments that are externally rcstncted and carmot be used to pay current hab1ht1es are classified as non-current assets in the statements of net assets CAPITAL ASSETS Capital assets are recorded at cost at the date of acqms1t10n, or fair market value at the date of donation in the case of gifts For eqwpment, the College's cap1tahzat1on pohcy includes all items with a umt cost of $5,000 00 or more. and an estimated useful hfe of greater than one year Renovations to bu1ldmgs, mfrastructure, and land improvements that exceed $5,000 00 and s1gmficantly mcrease the value or extend the useful life of the structure are capitalized Routine repairs and mamtenance are charged to operatmg expense m the year m which the expense was mcurred Depreciation 1s computed usmg the straight-line method over the estimated useful lives of the assets, generally 40 to 60 years for bmldings, 20 to 25 years for mfrastructure and land improvements, IO years for library books, and 3 to 7 years for eqmpment To obtam the total picture of plant additions in the Umvers1ty System, 111s necessary to look at the act1v1t1es of the Georgia State Fmancing and Investment Comm1ss1on (GSFIC) - an orgaruzatlon that 1s external to the System GSFIC issues bonds for and on behalfofthe State of Georgia, pursuant to - 16 - GORDON COLLEGE NOTES TO THE FINANCIAL STATE~1ENTS TUNE 30. 2002 EXHIBIT "D" '.\IOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CAPITAL ASSETS powers granted to 11 in the Constnuuon of the State of Georgia and the Act creating the GSFIC The bonds so issued constitute direct and general obhgauons of the State of Georgia, to the payment of which the full faith, credn and taxing power of the State are pledged DEFERRED REVENUES Deferred revenues include amounts received for tmllon and fees and certain aux1hary activities pnor to the end of the fiscal year but related to the subsequent accountmg penod Deferred revenues also include amounts received from grant and contract sponsors that have not yet been earned COMPENSATED ABSENCES Employee vacation pay 1s accrued at year-end for financial statement purposes The hab1hty and expense mcurred are recorded at year-end as accrued vacation payable in the Statement of Net Assets. and as a component of compensation and benefit expense m the Statements of Revenues, Expenses, and Changes in Net Assets Gordon College had accrued hab1hty for compensated absences m the amount of$191.165 42 as ofJuly I, 2001 For Fiscal Year 2002, $243,350 61 was earned m compensated absences and employees were paid S171,905 79, for a net increase of $71,444 82 NON-CURRENT LIABILITIES Non-current hab1hues mclude (I) hab1hues that will not be paid w1thm the next fiscal year. (2) cap1tal lease obhgauons with contractual matunt1es greater than one year, and (3) other hab1ht1es that, although payable w1thm one year, are to be paid from funds that are classified as non-current assets NET ASSETS The College's net assets are classified as follows Invested m capital assets. net of related debt This represents the College's total mvestment m capital assets, net of outstanding debt obhgauons related to those capital assets To the extent debt has been mcurred but not yet expended for capital assets, such amounts are not mcluded as a component ofmvested m capital assets, net ofrelated debt (The term "debt obhgat10ns" as used in this defiruuon does not mclude debt of the GSFIC as discussed above ) Restncted net assets Restncted net assets mclude resources in which the College 1s legally or contractually obhgated to spend resources in accordance with restncuons imposed by external third parties Unrestrzcted net assets Unrestncted net assets represent resources denved from student tu1t1on and fees, state appropnat10ns, and sales and services of educational departments and aux1hary cnterpnses Th'ese resources are used for transacllons relatmg to the educallonal and general operations of the College, and may be used at the d1scret1on of the governmg board to meet current - 17 - GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 2002 EXHIBIT "D" I\JOTE I SUMMARY OF SIGNIFICANT ACCOUI\Tr-JG POLICIES NET ASSETS expenses for those purposes. except for unexpended state appropnat1ons (surplus) of $22,512 82 Unexpended state appropnatlons must be refunded to the Board ofRegents ofthe Uruvcrslty System of Georgia - Admm1strallve Central Office for remittance to the Office of Treasury and Fiscal Services These resources also mclude aux1hary enterpnses. which arc substantially self-supporting act1v11Ies that provide services for students, faculty and staff When an expense 1s mcurred that can be paid usmg either restnctcd or unrcstncted resources, the College's pohcy 1s to first apply the expense towards unrestncted resources, and then towards restncted resources INCOME TAXES Gordon College, as a pohllcal subd1v1s1on of the State of Georgia. 1s excluded from Federal mcome !aJ(es under Secllon 115( 1) of the Internal Revenue Code, as amended CLASSIFICATION OF REVENUES The College has classified its revenues as either opcratmg or non-operatmg revenues m the Statement of Revenues, Expenses, and Changes m Net Assets accordmg to the followmg cntena Operating revenues Operatmg revenues mclude acllv1t1es that have the charactensllcs ofexchange transacuons, such as (1) student tmt10n and fees, net of scholarship allowances, (2) sales and services of aux1hary enterpnses, (3) most Federal, state and local grants and contracts and Federal appropnauons, and (4) mterest on 1nslltullonal student loans Non-operating re1enues Non-operatmg revenues mclude ac11v1ues that have the charactensucs of non-exchange transactions, such as gifts and contnbutlons, and other revenue sources that are defined as non-operatmg revenues by GASB No 9, Reporting Cash Flows of Proprietary and Nonexpendable Trost Funds and Governmental Enlllles That Use Proprietary Fund Accounting, and GASB No 34, such as state appropnauons and mvestment mcome SCHOLARSHIP ALLO\\'ANCES Student tm!ion and fee revenues, and certam other revenues from students. are reported at gross with a contra revenue account of scholarship allowances m the Statement of Revenues, Expenses, and Changes m Net Assets Scholarship allowances are the difference between the stated charge for goods and services provided by the College, and the amount that 1s paid by students and/or third parties makmg payments on the students' behalf Certam governmental h'TillltS, such as Pell grants, and other Federal. state or nongovernmental programs, are recorded as either operating or nonoperatmg revenues m the College's financial statements To the extent that revenues from such programs are used to satisfy tmtlon and fees and other student charges, the College has recorded contra revenue for scholarship allowances - 18 - GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 2002 EXHIBIT "D" NOTE 2 CASH AND CASH EQUIVALENTS. OTHER DEPOSITS. AND Il\'VESTMEJ\1S STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belongmg to the State ofGeorgia (and thus Gordon College) cannot be placed ma depository paymg mterest longer than ten days without the depository prov1dmg a surety bond to the State In heu of a surety bond, the depository may pledge as collateral any one or more of the followmg secunlles as enumerated m the Offic1al Code of Georgia Annotated Sccllon 50-17-59 I Bonds, bill, certificates of mdebtedness, notes, or other c!Jrect obhgallons ofthe Umted States or of the State of Georgia 2 Bonds, bills, certificates of mdebtedness, notes, or other obhgal!ons of the counl!es or mumc1pahlles of the State of Georgia 3 Bonds of any pubhc authonty created by the laws of the State of Georgia, prov1dmg that the statute that created the authonty authonzed the use of the bonds for tlus purpose 4 Industnal revenue bonds and bonds of development authonl!cs created by the laws of the State of Georgia 5 Bonds, bills, certificates of mdebtedness, notes, or other obhgat10ns of a subsidiary corporat10n of the Umted States government, which are fully guaranteed by the Umted States government both as to pnnc1pal and mterest, or debt obhgat10ns issued by the Federal Land Bank, the Federal Home Loan Bank, The Federal Intermediate Credit Bank, the Central Bank for Cooperal!ves, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal Nallonal Mortgage Associal!on 6 Guarantee or msurance of accounts provided by the Federal Deposit Insurance Corporal!on As authonzed m the Official Code of Georgia Annotated Section 50-17-53. the State Depository Board has adopted pohc1es which allow agencies of the State ofGeorgia (and thus Gordon College), the option of exemptmg demand deposits from the collateral requirements The Treasurer ofthe Board of Regents 1s responsible for all details relative to furmshmg the required depository protecllon for all umts of the Umvcrs1ty System of Georgia CATEGORIZATION OF DEPOSITS The College's cash deposits arc catcgonzed by nsk as follows Category I - Amounts covered by depository msurance or collaterahzcd with secunt1es (at fair value) held by the College or by its agent m the College's name - I9 - GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT "D" NOTE 2 CASH AND CASH EOCIVALENTS, OTHER DEPOSITS, AND Il\'\'ESTMEJ\'TS CATEGORIZATION OF DEPOSITS Category 2 - Amounts collaterahzed with secunttes (at fatr value) held by the pledgmg financial mstttullon's trust department or agent m the College's name Category 3 - Amounts collaterahzed with secunues (at fair value) held by the pledgmg financial mst1tut1on, or by Its trust department or agent but not m the College's name, and amounts uncollaterahzed Cash Deposits as of June 30, 2002 are as follows Cash Dcpos,ts Carrying Bank R1c;k Categories Amount Balance'\ s, s ~zo 611 63 s , J06 oq ss s 100 ooo oo s,___o....o..o. 20fiaoq ss CATEGORIZATION OF INVESTMENTS At June 30, 2002, the College's mvestments consisted of the followmg Investments Not Subject to Categonz.at1ons Board of Regents Short-Term Fund s 4 434 077 98 Funds mvested man mvestment pool managed by another governmental entity are not requued to be categonzed smce the College did not own any specific, 1den11fiable mvestment secunues ofthe pool NOTE 3 ACCOUNTS RECEIVABLE Accounts receivable consisted of the followmg at June 30, 2002 Student Tmllon and Fees Aux1hary Enterpnses and Other Operatmg Acllv111es Federal, State, and Pnvate Funds Other $ 56,773 12 5,478 82 12,352 39 206,517 21 $ 281,121 54 Less Allowance for Doubtful Accounts Net Accounts Receivable 29.655 45 S___.251,466.09 - 20 - GORDON COLLEGE NOTES TO THE FINANCIAL STATE\1ENTS JUNE 30, 2002 EXHIBIT "D" NOTE 4 INVENTORIES Inventones consisted of the following at June 30, 2002 Bookstore Other $ 240,001 75 39,902 14 Total $ 279,901.89 NOTE 5 NOTES/LOANS RECEJVABLE Notes/Loans receivable at June 30. 2002, pnrnanly consist ofstudent loans made through the Federal Perkins Loan Program (the Program) The Program provides for cancellation of a loan at rates of I 0% to 30% per year up to a maximum of I00% 1fthe part1c1pant comphes with certain prov1s1ons The Federal government reimburses the College for amounts cancelled under these prov1s1ons As the College determines that loans are uncollectJble and not ehg1ble for reimbursement by the Federal government, the loans are wntten off and assigned to the U S Department of Educat10n NOTE 6 CAPITAL ASSETS The balance at July I, 2001 was adjusted for accounting changes requ1red in implementing GASB Statements 34 and 35 as disclosed in Note I Following are the changes in capital assets for the year ended June 30, 2002 - 21 - GORDO~ COLLEGE NOTES TO THE FINA:s.'CIAL STATEMENTS JUNE 30. 2002 EXHIBIT "D" NOTE6 CAPITAL ASSETS Capnal Assets Not Bemg Depreciated Land and Land lmprO\emcnts Construction Work-In-Progress Adjusted Balance Jul\ I, 200! Addn12m, Reductions Bjlancc June l() 1 2002 s 240,541 04 0 00 s J76 774 40 s s 240,541 04 O()(l 1Z6,774 4Q Tot.JI Capnal Assets Not Bcmg Depreciated s 240 541 04 s J76 774 4Q s Q 00 s ~JZ1JS44 Capnal Assets, Bemg Depreciated Infrastructure Du1ldmg and Bmldmg Improvements Fac1ht1es and Other Improvements Equipment Library Collcc11ons $ 2,678,474 56 18,052,619 02 1,125 187 35 2,872,474 54 s 2,Q55,697 50 s ;16,Z~4,452 27 s 205,93 I 11 13019224 116 131 QS s 2,678,474 56 18,052,619 02 1,125,187 35 3,078,405 65 2 l~H27 44 s 71:lQ5~Q2 Less Accumulated Deprcc1at1on Infrastructure s Bmldmgs and Bu1ldmg Improvements Fac1h11cs and Other Improvements Equipment Library Collcct1ons 1,087,236 20 s 7,230,092 13 692,177 04 1,410,957 35 1,716,459 56 107,067 53 451,743 93 69,054 62 332,778 ~o 864 5o4o s 12,136 922 2~ $ 1,041,50~ 62 s I, 194,303 73 7,68 I ,836 06 761,23166 1,743,735 89 I 797 321 56 $ 1317~41090 ~z Total Capital Assets, Bemg Dcprcc1atcd, Net $ I~ 53Q 62 s Capital Assets, Net s 14 888 071 73 5 -ZQS 17Z~Z $ -328 603 LZ $ QQQ s 13 2~ 1s1 1:l 0 00 S.,l.J,.l,.~~ NOTE? DEFERRED REVENUE Deferred revenue consisted of the following at June 30, 2002 Prepaid Tmt10n and Fees Federal Grants. Contracts $ 499,416 62 20 573 95 Totals $ 519,990.57 NOTES LONG-TERM LIABILITIES Long-term hab1hty act1v1ty for the year ended June 30, 2002, was as follows - 22 - GORDON COLLEGE l\'OTES TO THE FNANCIALSTATEME~TS JUNE 30, 2002 EXHIBIT "D" NOTE 8 LONG-TERM LIABILITIES BJIJncc Jui) I 21HJI Add1uons Rcduct10nc. [3 ..i!Jncc June JO ;!CH)~ Current Pomon Compensated Absences NOTE 9 RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Plan Description Gordon College part1c1pates m the Teachers Retirement System of Georgia (TRS). a cost-shanng multiple-employer defined benefit pens10n plan established by the General Assembly ofGeorgia for the purpose of proVIdmg retirement allowances and other benefits for teachers of the State of Georgia TRS provides service retuement, d!sab1hty retirement, and survivor's benefits for Its members m accordance with State statute The Teachers Retuement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts Funding Policy Employees of Gordon College who are covered by TRS are reqmred by State statute to contnbutl' 5% ofthe1r gross earnmgs to TRS Gordon College makes monthly employer contnbut1ons to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by theu mdependent actuary For fiscal year 2002, the employer contnbuuon rate \\ as 9 24% for covered employees Employer contnbuhons for the current fiscal year and the precedmg two fiscal years are as follows Fiscal Year Percentage Contnbuted Required Contnhut1on 2002 2001 2000 100% 100% 100% S 414,185 31 S 439,131 17 $ 450,867 51 REGENTS RETIREMENT PLAN Plan Description The Regents Retirement Plan, a smgle-employer defined contnbut10n plan, 1s an opt10nal retirement plan established and adm1mstered by the Board of Regents of the Umvers1ty System of Georgia, under which 1t may purchase annuity contracts for the purpose ofprov1dmg retirement and death benefits for ehg1ble faculty and pnnc1pal admm1strators Benefits depend solely on amounts contnbuted to the plan plus mvestment earnings Benefits are payable to pamc1patmg employees or theu benefic1anes m accordance with the terms of the armmty contracts - 23 - GORDON COLLEGE NOTES TO THE FINANCIAL STATEMEJ\:TS JUNE 30, 2002 EXHIBIT "D" NOTE 9 RETIREMENT PLA.""1S REGENTS RETIRE!\IEl'O' PLAN Funding Policy Member contnbutlon requuements are established by the Board of Trustees of the Teachers Retirement System Employer contnbut1ons are established by statute and may be amended on!} by the General Assembly ofthe State of Georgia The employer contnbutes 9 62% of the part1c1patmg employee's earnable compensation Employees contnbute 5% of their earnable compensatmn Amounts attnbutable to all plan contnbuuons are fully vested and non-forfenable at all times Gordon College and the covered employees made the required contnbullons of$201 ,341 60 (9 62%) and $104,647 95 (5%), respectively GEORGIA DEFINED CONTRIBUTION PLAN Plan Description Gordon College part1c1pates m the Georgia Defined Contnbuuon Plan (GDCP) which 1s a smgleemployer defined contnbutlon plan established by the General Assembly of Georgia for the purpose ofprov1dmg retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pensmn system GDCP 1s adm1mstered by the Board of Trustees of the Employees' Retirement System of Georgia Benefits A member may retire and elect to receive penod1c payments after attamment ofage 65 The payment will be based upon mortality tables and mterest assumptions to be adopted by the Board ofTrustees If a member has less than$ 3,500 00 credited to his/her account, the Board ofTrustees has the option of requmng a lump sum d1stnbutmn to the member m lieu of makmg penod1c payments Upon the death of a member, a lump sum d1stnbut1on equal mg the amount credited to his/her account will be paid to the member's designated beneficiary Benefit prov1s1ons are established by State statute Contributions and Vesting Member contnbutlons are seven and one-halfpercent (7 5%) of gross salary There are no employer contnbutlons Contnbuuon rates are established by State statute Eammgs are credited to each member's account m a manner established by the Board of Trustees Upon termmallon of employment, the amount of the member's account 1s refundable upon request by the member Total contnbutlons made by employees dunng fiscal year 2002 amounted to $ I9,457 28 which represents 7 5% of covered payroll These contnbuuons met the reqmrements of the plan - 24 - GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS JL'N'E 30, 2002 EXHIBIT "D" NOTE IO RISK MANAGEMEl\'T Gordon College 1s a part1c1pant m the Board ofRegents ofthe Umvers1ty System of Georgia Health Benefits Plan, which 1s a self-msurance program of health and dental benefits for employees and retirees of the Umversny System of Georgia Gordon College and part1c1pating employees and retirees pay premiums to the Health Benefits Plan for this health msurance coverage The Health Benefits Plan 1s included m the financial statements of the Board of Regents of the Umverslty System of Georgia - Admuustrallve Central Office All umts of the Umvers1ty System of Georgia share the nsk ofloss for claims ofthe Health Benefits Plan The Health Benefits Plan 1s considered a self-sustammg nsk fund that provides health coverage for its members up to a maximum lifetime benefit of$2,000,000 00 per person and dental coverage up to an armual maximum ofS 1,000 00 per person The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to process chums m accordance with the Health Benefits Plan as established by the Board of Regents The Department of Adm1mstrat1ve Services (DOAS) has the respons1b1hty for the State of Georgia ofmakmg and carrymg out dec1s10ns that will mm1m1ze the adverse effects ofacc1dental losses that involve State government assets The State believes 1t 1s more econom1cal to manage its nsks mtemally and set aside assets for claim settlement Accordmgly, DOAS processes chums for nsk of loss to which the State 1s exposed, includmg general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' mdemmficat1on Limited amounts of commercial msurance are purchased applicable to property, employee and automobile liability, fidehty and certam other nsks Gordon College, as an orgaruzatlonal umt ofthe Board of Regents of the Urnvers1ty System of Georgia, 1s part of the State of Georgia reporting entity, and as such, 1s covered by the State of Georgia nsk management program adm1mstered by DOAS Premiums for the nsk management program are charged to the vanous state orgaruzauons by DOAS to provide chums serv1cmg and chums payment A self-msured program of professional hab1llty for its employees was estabhshed by the Board of Regents of the Umvcrslty System of Georgia under powers authonzed by the Official Code of Georgia Armotated Section 45-9-1 The program msures the employees to the extent that they are not immune from liability agamst personal hab1hty for damages ansmg out of the performance of their duties or in any way connected therewith The program 1s admm1stered by DOAS as a SelfInsurance Fund NOTE 11 CONTINGENCIES Amounts received or receivable from grantor agencies are subject to audit and adiusnnent by grantor agencies This could result m 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 determmed at tins lime although Gordon College expects such amounts, 1f any, to be 1mmatenal to its overall financial pos1t1on - 25 - GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUKE 30, 2002 EXHIBIT "D" NOTE 11 CONTINGENCIES L111ga11on, claims and assessments filed agamst Gordon College (an organ1zallonal umt ofthe Board of Regents of the Umvers1ty System of Georgia), 1f any, are generally considered to be acllons against the State of Georgia Accordmgly, s1gmficant hllgallon, claims and assessments pendmg against the State of Georgia are disclosed m the State of Georgia Comprehensive Annual Fmanc1al Report for the fiscal year ended June 30, 2002 NOTE 12 POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS Pursuant to the general powers conferred by the Official Code of Georgia Annotated Secl!on 20-331, the Board of Regents of the Umvers1ty System of Georgia has established group health and hfe msurance programs for regular employees of the Umvers1ty System ofGeorgia It 1s the pohcy ofthe Board ofRegents to perrmt employees ofthe Umvers1ty System ofGeorgia eligible for rellrement or that become permanently and totally disabled to contmue as members of the group health and hfe insurance programs Employees who are eligible for rel!rement or d1sab1lity under the cntena established by the Teachers Retirement System ofGeorgia and who have at least ten years ofservice with the Umvers1ty System of Georgia are eligible for these post-employment health and life insurance benefits Organ1zat10nal umts of the Board of Regents of the Umvers1ty System of Georgia pay the employer poruon for group insurance for affected md1v1duals As ofJune 30, 2002, there were 21 employees who had retired or were disabled that were rece1vmg these post-employment health and life msurance benefits For the year ended June 30, 2002, Gordon College recognized as mcurred $72,256 86 of expenditures, which was net of $26,561 08 of part1c1pant contnbul!ons - 26 - GORDON COLLEGE NOTES TO THE FINANCIAL STATEMEl\'TS JUNE 30. 2002 EXHIBIT "D" NOTE 13 NATURAL CLASSIFICATIONS WITH FUI\CTIONAL CLASSIFICATIONS The College's operatmg expenses by functional class1ficat1on arc shown below <;catement of Operaung Expense,; - !'-!annal 1,s l--unct1onal Class1ficat1ons fo; the ru.cal Year Ended June 30 2002 Functmnal C:ldS>1fica.uon Natural Cl:1$SJficatmn Salancs Faculty Staff Employee Benefits Tra-.cl Scholan;h1ps and Fcllowsh1ps Ut1ht1cs SuppllCS and Other Services Deprcc,a11on Total Operating Expenses lnstructmn Academic Support ~tudent "emccs lnst1tut1onal Suooon s 4.482,533 ll 143,215 52 s 522,974 OJ s 738,964 77 s 667 774 74 1,076,128 01 l)Q,685 33 17Q 535 70 J)7,86l )4 23,980 41 I0,88J 29 20t,84 37 11 092 73 -1,123,524 82 41.851 01 31,b4h47 19,224 07 50,397 00 110,09) 81 448,958 27 )Q4 'iQ ~.~z 271,271 23 16 427,345 72 628,441 Q7 s l 22J JJ!i ~,;; $ 2Z2 ~~~ Z1 S...J 1'i Z~ bJ S-------1..a,Q~~,;; ~c; Natural Cliss1ficgtHJo Salanes Faculty Suiff [mploycc Bencfil5 Tra..-~\ Scholarships and fdlowshtps Ut1l1t1es Supphcs and Other ~CTVICCS Dcprcc1at1on l otal Opcratmg Expenses Plant Operahons and Mamtenancc Eu1Hauma1 !:la~1ficiHl2D