Audit report, state of Georgia, Kennesaw State College, Marietta, Georgia, year ended June 30, 1994

GA
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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT STATE OF GEORGIA KENNESAW STATE COLLEGE MARIETTA, GEORGIA YEAR ENDED JUNE 30, 1994

KENNESAW STATE COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALL FUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

ALL FUND GROUPS

4

C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

6

D- NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

E COMBINING BALANCE SHEET

CURRENT FUNDS - UNRESTRICTED

20

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

21

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

23

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

24

2

LOTTERY FOR EDUCATION

26

SCHEDULES OF OPERATIONS

3

LOAN FUNDS

27

4

ENDOWMENT AND SIMILAR FUNDS

28

5 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

29

6 CASH AND CASH EQUIVALENTS

31

7 INVESTMENTS

32

8 ACCOUNTS RECEIVABLE

33

9 CHANGES IN INVESTMENT IN PLANT

34

10 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

36

KENNESAW STATE COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

11 SCHEDULE OF REVENUES

CURRENT FUNDS

38

SCHEDULES OF EXPENDITURES BY OBJECT

12

CURRENT FUNDS

39

13

PLANT FUNDS

40

14 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

41

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDl10R (404) 656-2174
TAX RATIO (404) 656-0494

~.epartment nf J\uhits
254 WASHING10N STREET, S. W. ROOM 214
~thmbt, &ieorgia 30334-8400
November 4, 1994

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe Board ofRegents ofthe University System of Georgia
and Honorable Betty L. Siegel, President Kennesaw State College
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements (Exhibits A through D) of Kennesaw State College as ofand for the year ended June 30, 1994. These financial statements are the responsibility of the College's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the College to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the financial statements of this departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material.
As described 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.

94ARL-52

In our opinion, except for the effects on the financial statements ofthe matters discussed in the third and fourth
paragraphs, the financial statements referred to above present fairly, in all material respects, the financial position of Kennesaw State College as of June 30, 1994, and the changes in fund balances and the current operating funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibits E through G and Schedules I through 14) is presented for purposes of additional analysis and is not a required part of the financial statements of Kennesaw State College. Such infonnation has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, except for the effects of the matters discussed in the third and fourth paragraphs, such information is fairly presented in all material respects in relation to the financial statements taken as a whole.
Respectfully submitted,
ff~~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-52

FINANCIAL STATEMENTS - 1-

ASSETS
Cash and Cash Equivalents Investments Accounts Receivable Inventories Prepaid Items Investment in Plant

KENNESAW STATE COLLEGE COMBINED BALANCE SHEET
ALL FUND GROUPS JUNE 30 1 1994

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

ENDOWMENT AND SIMILAR
FUNDS

$ 3,972,265.43 $
730,180.56 866,941.00 123,260.17

226,147.82 $ 11,508.03 307,766.98

3,048.38 $ 302,923.44

7,569.06 721,150.86

Total Assets

$5,692,647.16$ 545,422.83$ 305,971.82 $ 728,719.92

LIABILITIES AND FUND BALANCES
Liabilities Cash Overdraft Accounts Payable Deferred Revenue Tuition and Fees Deposits Held for Others
Total Liabilities
Fund Balances U. S. Government Grants Refundable Institutional Loans - Restricted Endowment Quasi-Endowment - Restricted Net Investment in Plant Restricted Unrestricted
Total Fund Balances

$ 643,468.74 2,905,408.74
$ 3,548,877.48
$ 276,366.72 29,605.10 $ 371,925.20 356,794.72
$ 545,422.83 $ 2,143,769.68
$2,143,769.68$ 545,422.83 $ 305,971.82$ 728,719.92

Total Liabilities and Fund Balances$ 5,692,647.16$ 545,422.83 $ 305,971.82 $ 728,719.92
============= ============= ============= ========

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)

$ 812,086.27

$ 49,772.35$ 5,070,889.31

732,658.89

$ 102,928.50

356,373.36 1,800,172.84

866,941.00

123,260.17

$53,840,770.91

53,840,770.91

$ 102,928.50 $ 812,086.27 $53,840,770.91 $ 406,145.71 $62,434,693.12
============= ============= ============= ============= =============

$ 47,866.08 55,032.69 $ 177,673.00
$ 102,898.77 $ 177,673.00

$ 47,866.08 $ 262,418.92 1,138,593.35

2,905,408.74

143,726.79

143,726.79

$ 406,145.71 $ 4,235,594.96

$53,840,770.91

$

29.73 $ 634,413.27

$

29.73 $ 634,413.27 $53,840,770.91

$ 276,366.72 29,605.10
371,925.20 356,794.72 53,840,770.91 545,422.83 2,778,212.68
$58,199,098.16

$ 102,928.50$ 812,086.27 $53,840,770.91 $ 406,145.71 $62,434,693.12
============= ============= ============= ============= =============

- 3-

KENNESAW STATE COLLEGE COMBINED STATEMENT OF CHANGES IN FUND BALANCES
ALL FUND GROUPS YEAR ENDED JUNE 30, 1994

REVENUES AND OTHER ADDITIONS Unrestricted Current Fund Revenues State Appropriations - Lottery Proceeds Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Investment Income Endowment Other Realized Gains on Investments Interest on Loans Receivable Adjustments Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Prior Years' Revenues/Accounts Receivable 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 S~stem of Georgia Prior Years Unrestricted Fund Balance Surplus Loans Assigned to Federal Government Administrative and Collection Costs Expended for Plant Facilities Capitalized Non-Capitalized Disposals/Deletions/Adjustments Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS Mandatory Investment Income for Principal Nonmandatory Renewals and Replacements Capital Projects Total Transfers Between Funds
Net Increase/(Decrease) for the Year FUND BALANCES JULY 1, 1993
FUND BALANCES JUNE 30, 1994

CURRENT FUNDS UNRESTRICTED RESTRICTED
$49,543,291.92 $ 3,126,226.34 1,007,283.23 347,399.43 265,919.04 169,990.00
21,546.13 17,172.73 5,013.29 16,702.25

$49,603,726.32 $4,916,818.04
$47,544,617.44$ 4,556,894.80 1,583,630.35 67,708.45 6,751.71

$49,134,999.50$ 4,624,603.25

$ -1,827.21

$ -208,933.56

-9,386.40
-------------

-------------

$----2-1--8-,3-1--9-.9--6 $------1--,8-2--7-.2-1-

$ 250,406.86 $ 290,387.58

1,893,362.82 255,035.25
------------- -------------

$==2=,1=4==3=,7=6==9=.6==8 $=--5=4-5-,-4-2sz2.-8-3-

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

EXHIBIT "B"

LOAN FUNDS

ENDOWMENT AND SIMILAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

$ 21,300.00 $
6,090.61

$ $ 9,600.00

3,250.00

99,998.50 48,929.76

$ 27,390.61 $ 3,250.00$ 158,528.26$

0.00 $

$49,543,291.92

9,600.00

3,147,526.34

1,007,283.23

347,399.43

90,057.34

459,224.88

169,990.00 48,929.76 21,546.13 6,090.61

17,172.73 5,013.29 16,702.25

2,156,207.01 2,156,207.01

132,129.61

132,129.61

464,047.80

464,047.80

6,143,254.75 6,143,254.75

0.00 $ 8,985,696.51 $63,695,409.74

$ $ 2,702.74
12,004.86 $ 14,707.60$

0.00

$52,101,512.24

1,583,630.35

67,708.45

$

107.30

132,129.61 $ 464,047.80

35,755.32

17,121.85

$ 251,321.64

6,859.01 2,702.74 12,004.86 596,177.41 52,877.17 251,321.64

0.00 $ 167,992.23 $ 481,169.65$ 251,321.64 $54,674,793.87

$

1,827.21

$

$

1,827.21 $

$ 12,683.01 $ 5,077.21 $

293,288.81

723,642.71

$ 208,933.56 9,386.40 9,386.40$ 208,933.56

$

0.00

0.00 0.00

$

0.00

-77.57 $ -272,236.09 $ 8,734,374.87 $9,020,615.87 107.30 906,649.36 45,106,396.04 49,178,482.29

$====3=0=5=,9==7=1=.8==2 $====7=2=8=,7==1=9=.9==2 $=========2=9=.7=3= $====6=3=4=,4==1=3=.2=7= $=5=3=,8==4=0=,7=7==0=.9=1= $=5=8=,1==9=9=,0==9=8=.1==6

- 5-

KENNESAW STATE COLLEGE STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES YEAR ENDED JUNE 30, 1994

EXHIBIT "C"

UNRESTRICTED RESTRICTED

TOTAL (Memorandum
Only)

REVENUES

State Appropriations Tuition and Fees
Federal Grants and Contracts State Grants and Contracts
Local Grants and Contracts Private Gifts, Grants, and Contracts
Endowment Income Sales and Services of Educational Activities
Sales and Services of Auxiliary Enterprises Other Sources

$27,111,149.00

$27,111,149.00

18,054,907.27

18,054,907.27

70,442.23 $ 3,057,359.23 3,127,801.46

8,406.53

734,911.17

743,317.70

331,133.84 331,133.84

268,583.53

268,583.53

164,907.03 164,907.03

100,458.08

100,458.08

1,403,859.66

1,403,859.66

2,794,069.15

2,794,069.15

Total Revenues

$49,543,291.92 $ 4,556,894.80 $54,100,186.72

EXPENDITURES AND MANDATORY TRANSFERS

Educational and General Instruction
Public Service Academic Support
Student Services
Institutional Support
Operation and Maintenance of Plant Scholarships and Fellowships
Auxiliary Enterprises Food Services Stores and Shops Intercollegiate Athletics
Other Service Units Mandatory Transfers
Investment Income for Principal

$27,583,918.81 $ 455,770.17 $28,039,688.98

500,943.38 812,237.36 1,313,180.74

4,575,397.97

50,707.13 4,626,105.10

3,694,556.55

3,694,556.55

6,325,118.06

54,037.24 6,379,155.30

4,578,100.67

4,578,100.67

286,582.00 3,184,142.90 3,470,724.90

31,943.12 495,242.40 931,151.22
125,293.61

31,943.12
495,242.40 931,151.22 125,293.61

1,827.21

1,827.21

Total Expenditures and Mandatory Transfers

$49,128,247.79 $ 4,558,722.01 $53,686,969.80

OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)

Excess of Restricted Receipts over Transfers to Revenues
Transfers for Renewals and Replacements Transfers for Capital Projects Prior Period Adjustments (Net) Realized Gain on Investments 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)

$ $ -208,933.56
-9,386.40 38,888.27
21,546.13

292,214.79 $

292,214.79 -208,933.56
-9,386.40 38,888.27
21,546.13

-6, 751. 71

-6,751.71

------------- ------------- -------------

$ -164,637.27 $ 292,214.79 $ 127,577.52
------------- ------------- -------------

Net Increase in Fund Balances

$ 250,406.86 $ 290,387.58 $ 540,794.44
============= ============= ====z======z=

The notes to the financial statements are an integral part of this statement.
- 6-

KENNESAW STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Kennesaw State College is one ofthirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System ofGeorgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Kennesaw State College as a separate reporting entity.
The Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions: Kennesaw State College does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Kennesaw State College is considered an organizational unit ofthe Board ofRegents ofthe University System of Georgia reporting entity for financial reporting purposes because ofthe significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING In order to ensure observance oflimitations and restrictions placed on the use of the resources available to the College, the accounts ofthe College are maintained in accordance with the principles of fund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group.
Within each fund group, the 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.
Funds presented in the accompanying financial statements are as follows:
CURRENT FUNDS
UNRESTRICTED - the fund used to account for those economic resources over which the College retains full control to use for purposes of performing the primary functions of the College, i.e., instruction, public service, auxiliary enterprises, and student activities.
RESTRICTED - the fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes.
- 7-

KENNESAW STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
LOAN FUNDS
The fund used to account for resources which have been made available for financial loans to students.
ENDOWMENT AND SIMILAR FUNDS
The fund used to account for endowment and quasi-endowment funds. Endowment funds are subject to the restrictions ofgift instruments requiring that the principal be invested in perpetuity and income only be utilized. While quasi-endowment funds have been established by the College for the same purposes as endowment funds, any portion of quasi-endowment funds may be expended. Restricted quasi-endowment funds may be expended only for the purposes established by the source of such funds.
PLANT FUNDS
UNEXPENDED - the fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes.
RENEWALS AND REPLACEMENTS - the fund used to account for resources set aside for the renewal and replacement 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 Investment 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, staff members and organizations.
BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants Industry Audit Guide, Audits ofColleges and Universities. The modified accrual basis ofaccounting is defined as that method of accounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures ofthe fiscal period.

- 8-

KENNESAW STATE COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based in part on the unexecuted portion of contracts for goods and services. The recognition of encumbrances of this nature 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 ofencumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Compensated absences represent obligations of the College relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated leave in which payment is probable and can be reasonably estimated. The compensated absences liability ofSl,049,655.77, salaiy-related fiinge benefits liabilities of approximately $80,298.66, and the related current year expenditure, which was not reasonably determinable, have not been reported in the current funds as required by generally accepted accounting principles.
Prior period adjustments are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with the State budgetary basis of accounting, 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 of the 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 behalf ofthe College. Fixed assets donated to the College are recorded at fair market value at the date ofthe gift and disposals are deleted at recorded cost. Depreciation on physical plant and equipment is not recorded.
The Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to present the results of operations or the net income or loss for the period as would a statement of income or a statement of revenues and expenses.
BUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriated funds for the organizational units ofthe University System ofGeorgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations
- 9-

KENNESAW STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET Act of 1993-1994. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The budget allocation and disbursement ofthese funds is made to the various organiz.ational units by the Administrative Central Office. In addition, the organiz.ational units receive Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office.

CASH AND CASH EQUIVALENTS .

Cash and Cash Equivalents consist of petty cash, demand deposits and temporary investments in authorized

financial institutions, and cash management pools that have the general characteristics of demand deposit

accounts in that the College may deposit additional cash at any time and also may withdraw cash at any time

without prior notice or penalty.



Certain amounts reflected as Investments in the fiscal year 1993 financial statements are reflected as Cash and Cash Equivalents in the accompanying financial statements. These funds are invested in the Board ofRegents cash management pools.

INVESTMENTS Investments are recorded at cost or in the case of gifts at fair market value on the date of the gift. Funds received by the College as endowments or for restricted purposes are invested according to conditions stipulated by the donor, grantor, or in accordance with the Board ofRegents authorizing resolutions. Gains and losses on investment transactions are accounted for in the funds where such assets are recorded.

ACCOUNTS RECEIVABLE Accounts receivable consist of reimbursements due from Federal, State, local and private grants and contracts, and other receivables disclosed from information available.

INVENTORIES Inventories ofconsumable supplies are recorded on the consumption method and are valued at cost based on the weighted average method.

Inventories ofgoods for resale are valued at cost based on the weighted average method.

PREPAID ITEMS Prepaid items are payments made to vendors in advance of the receipt ofgoods and services that will benefit periods subsequent to the balance sheet date.

MEMORANDUM ONLY - TOTAL COLUMNS
The total columns on the financial statements are captioned "Memorandum Only" to indicate that these totals are presented only to facilitate financial analysis. Data in these columns do not present 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 ofthe data.

- 10 -

KENNESAW STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia 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 any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:

(1) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or of the State of Georgia.

(2) Bonds, bills, notes, certificates ofindebtedness 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 of development authorities created by the laws ofthe State of

Georgia.



(5) Bonds, bills, certificates ofindebtedness, 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 and debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, 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) Insurance of accounts provided by the Federal Deposit Insurance Corporation.

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

The treasurer ofthe Board ofRegents is responsible for all details relative to furnishing the required depository protection for all units ofthe University System ofGeorgia.

COLLATERALIZATION OF DEPOSITS For purposes ofanalysis ofcustodial credit risk, the College's bank balances are categorized below to give an indication of the level of risk assumed by the College at year-end:

Category I - Amounts covered by depository insurance or collateralized with securities (at market value) held by the College Qr by its agent in the College's name.

- 11 -

KENNESAW STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Category 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the College's name.

Category 3 - Amounts collateralized with securities (at market value) held by the financial institution or by its trust department or agent, but not in the College's name, and amounts uncollateralized.

Cash Deposits

Canying
Amount

Bank Balances

Risk Categories

2

3

S 2 38189086 S 4 0S2 012 42 S 100 000,00 S===o,...oo,.. S 3 9S2 012 42

CATEGORIZATION OF INVESTMENTS Investments are summarized and classified as to custodial credit risk within the categories described below:

Category 1 - Insured or registered, or securities held by the College or its agent in the College's name.

Category 2 - Uninsured or unregistered held by the counterparty's trust department or agent in the College's name.

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

Type oflnveslment
U. S. Government Securities
Board of'Regents Legal Fund Short-Term Investment Fund
Investment Portfolio Account Mutual Funds
Total lnveslments

Risk Categories

2

3

Canying ~

Market Value

s==,...000..,. s 202,62221 s==,...o..,.oo s 709,627.91 s 112,11s.19

1,028,979.80 1,521,572.61

953,067.05 1,521,572.61

23,030.98

48,594.89

S 3 283 211 30 S 3235-352 74

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

- 12 -

KENNESAW STATE COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE 3: INVESTMENT IN PLANT

The following is a summary oflnvestment in Plant fixed assets at June 30, 1994:
Land
Buildings Improvements Other Than Buildings EQiupment Library Books and Collections
Total Investment in Plant
NOTE 4: OPERATING LEASES

$ 3,302,820.87 31,728,229.20 1,910,227.63 9,470,480.44 7,429,012.77
$53,840,770 91

Kennesaw State College has entered into certain agreements to lease office space and relocatable buildings which are classified as operating leases. These leases generally contain provisions that, at the expiration date of the original term of the lease, the College has the option of renewing the lease on a year-to-year basis. Future minimum commitments for operating leases as of June 30, 1994, are listed below. Amounts are included only for multi-year leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised.

Fiscal Year Ending June 30

1995 1996 1997 1998

$ 606,619.56 606,619.56
606,619.56 473,539.56

Total Future Minimum Lease Payments

$ 2,293 398,24

Expenditures for rental of real property and equipment under operating leases for the year ended June 30, 1994, totaled $617,505.63.

NOTE 5: DEFERRED COMPENSATION PLAN

The State of Georgia offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the
employee or other beneficiary) solely the property and rights ofthe State of Georgia subject only to the claims
of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account for each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board Merit System of Personnel Administration for the year ended June 30, 1994.
- 13 -

KENNESAW STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE 6: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by units of the University System of Georgia are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multipleemployer public employee retirement system (PERS).
TRS provides service retirement, disability ~etirement and survivors benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless ofage, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number ofyears of creditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or fraction thereofby which the member has less than 30 years of service. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date of d~th or up to the time of disability.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The College's payroll for employees covered by TRS .for the year ended June 30, 1994, was $19,026,032.68; total payroll was $30,469,354,77.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the College who are covered by TRS are required to pay 6% oftheir gross earnings to TRS. The College makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. For fiscal year 1994, the employer contribution rate was I 1.81% for covered employees. In addition, the College contributed 5.60% to the TRS on behalfofemployees electing to participate in the Regents Retirement Plan. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $3,813,623.58, ofwhich $2,672,058.41 was made by the College and $1,141,565.17 was made by employees. These contributions represented 14.04% (College) and 6% (employees) of covered payroll.

- 14 - .

KENNESAW STATE COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIDBIT "D"

NOTE 6: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardiz.ed measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation of TRS as of June 30, 1993, which was the latest information

available, was as follows:



Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090.292.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as ofthe same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $507,582,176.00. The College's contribution for the year ended June 30, 1994, of $2,672,058.41 was actuarially determined and represented .5264% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

TRS RELATED-PARTY INVESTMENTS During the fiscal year 1994 and as ofJune 30, 1994, the TRS held no securities issued by the College or other
related parties.

REGENTS RETIREMENT PLAN The State of Georgia provides optional pension benefits for eligible faculty and principal administrators through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings.

- 15 -

KENNESAW STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTE 6: RETIREMENT PLANS
REGENTS RETIREMENT PLAN State legislation requires that the employee contribute 6% and the employer contribute 4% ofthe participating employee's eamable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The College's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1994, was $7,590,784.74; total payroll was $30,469,354.77. The College and the covered employees made the required contributions of$304,718.16 (4%) and $457,076.90 (6%), respectively.
GEORGIA DEFINED CONTRIBUTION PLAN The State ofGeorgia provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the TeachersRetirement System of Georgia through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% of their gross salary, with no matching contribution by the employer. The College's payroll for employees covered by the Georgia Defined Benefit Plan for the year ended June 30, 1994, was $1,883,569.65; total payroll was $30,469,354.77. Total contributions from the covered employees of the College during fiscal year 1994 amounted to $141,267.72 (7.5%). Amounts attnbutable to the plan are fully vested and a member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of65 with the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan description and. fun4ing status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994.
NOTE 7: LEAVE POLICIES
Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with maximum accumulation of forty-five
days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1- Basis of Accounting (Compensated Absences)
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.

- 16 -

KENNESAW STATE COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTE 8: CONTINGENCIES

Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the College expects such amounts, if any, to be immaterial to its overall financial position.

Litigation, claims and assessments filed against Kennesaw State College (as a unit of the Board ofRegents of the University System ofGeorgia), ifany, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program ofpurchased insurance and self-insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994.

NOTE 9: BONDING INFORMATION

The President and all employees of Kennesaw State College are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures Kennesaw State College to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the College to a maximum of $100,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.

All employees ofKennesaw State College are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium was paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the College to a maximum of$4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

NOTEl0: ENROLLMENT

The equivalent full-time student enrollment ofKennesaw State College was as follows:

Regular Term Fall Quarter, 1993 Winter Quarter, 1994 Spring Quarter, 1994

8,606 8,162 7,707

Average

Summer School, 1993

- 17 -

SUPPLEMENTARY INFORMATION - 19 -

KENNESAW STATE COLLEGE COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED
JUNE 30. 1994

EXHIBIT "E"

ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items

RESIDENT INSTRUCTION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$ 2,273,070.97 $ 1,338,591.80 $

723,957.98

4,400.98

140,699.03 726,241.97

118,110.40

5,009.77

360,602.66$ 3,972,265.43 1,821.60 730,180.56 866,941.00 140.00 123,260.17

Total Assets

$3,255,838.38$ 2,074,244.52 $ 362,564.26$ 5,692,647.16

LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Deferred Revenue Tuition and Fees
Total Liabilities
Fund Balances Unrestricted

$ 573,488.10 $ 53,424.59 $ 16,556.05$ 643,468.74
2,479,431.74 265,331.00 160,646.00 2,905,408.74
------------- ------------- ------------- -------------
$ 3,052,919.84 $ 318,755.59 $ 177,202.05 $ 3,548,877.48
202,918.54 1,755,488.93 185,362.21 2,143,769.68
------------- ------------- ------------- -------------

Total Liabilities and Fund Balances$ 3,255,838.38$ 2,074,244.52 $ 362,564.26$ 5,692,647.16

See notes to the financial statements.

- 20 -

KENNESAW STATE COLLEGE COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED
YEAR ENDED JUNE 30. 1994

EXHIBIT "F"

RESIDENT

AUXILIARY

STUDENT

INSTRUCTION ENTERPRISES ACTIVITIES

TOTAL

REVENUES AND OTHER ADDITIONS

Unrestricted Current Fund Revenues Realized Gains on Investments Adjustments
Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Prior Years' Revenues/Accounts Receivable

$46,140,150.06 $2,414,880.72 $ 988,261.14 $49,543,291.92

21,546.13

21,546.13

16,047.02

1,037.35

88.36

17,172.73

4,404.99

608.30

5,013.29

16,759.25

-36.00

-21.00

16,702.25

------------- ------------ ------------ -------------

Total Revenues and Other Additions $46,177,361.32 $2,437,428.20$ 988,936.80 $49,603,726.32

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

$46,538,437.80

$1,006,179.64 $47,544,617.44

$1,583,630.35

1,583,630.35

6,751.71

6,751.71

Total Expenditures and Other Deductions

$46,545,189.51 $1,583,630.35 $1,006,179.64 $49,134,999.50

TRANSFERS BETWEEN FUNDS

Nonmandatory Renewals and Replacements In Lieu of State Appropriations Capital Projects

$ -208,933.56 $ 412,409.00 -412,409.00
-9,386.40

$ -208,933.56 0.00
-9,386.40

Total Transfers Between Funds

$ 412,409.00$ -630,728.96

$ -218,319.96

Net Increase/(Decrease) for the Year $ FUND BALANCES JULY 1, 1993

44,580.81 $ 223,068.89 $ -17,242.84 $ 250,406.86 158,337.73 1,532,420.04 202,605.05 1,893,362.82

FUND BALANCES JUNE 30, 1994

$ 202,918.54 $1,755,488.93 $ 185,362.21 $ 2,143,769.68
============= ============ ============ =============

See notes to the financial statements.

- 21 -

KENNESAW STATE COLLEGE COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
ANO OTHER CHANGES UNRESTRICTED
YEAR ENDED JUNE 30. 1994

EXHIBIT "G"

RESIDENT

AUXILIARY

STUDENT

INSTRUCTION ENTERPRISES ACTIVITIES

TOTAL

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

$27,111,149.00

16,213,317.09 $ 919,633.68$

70,442.23

8,406.53

100,458.08

1,403,859.66

2,636,377.13

91,387.38

$27,111,149.00 921,956.50 18,054,907.27
70,442.23 8,406.53
100,458.08 1,403,859.66 66,304.64 2,794,069.15

Total Revenues

$46,140,150.06 $2,414,880.72 $ 988,261.14 $49,543,291.92

EXPENDITURES

Educational and General Instruction Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships
Auxiliary Enterprises Food Services Stores and Shops Intercollegiate Athletics Other Service Units

$27,583,918.81 500,943.38
4,575,397.97
2,688,376.91 6,325,118.06 4,578,100.67
286,582.00

$27,583,918.81 500,943.38
4,575,397.97 $1,006,179.64 3,694,556.55
6,325,118.06 4,578,100.67
286,582.00

$ 31,943.12 495,242.40
931,151.22 125,293.61

31,943.12 495,242.40
931,151.22 125,293.61

Total Expenditures

$46,538,437.80 $1,583,630.35 $1,006,179.64 $49,128,247.79

OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)

Transfers for Renewals and Replacements Transfers In Lieu of State Appropriation Transfers for Capital Projects Prior Period Adjustments (Net) Realized Gain on Investments 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)

$ -208,933.56

$ 412,409.00 -412,409.00

-9,386.40

37,211.26

1,001.35 $

21,546.13

$ 675.66

-208,933.56 0.00
-9,386.40 38,888.27 21,546.13

-6,751.71

-6,751.71

------------- ------------ ------------ -------------

$ 442,868.55$ -608,181.48 $

675.66 $ -164,637.27

Net Increase/(Decrease) in Fund Balances

$-----4-4-,-5=80--.8-1-

$ 223,068.89
------------

$ -17,242.84
------------

$ 250,406.86
----=======

See notes to the financial statements.

- 23 -

KENNESAW STATE COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30, 1994

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS
RENEWALS AND UNEXPENDED REPLACEMENTS

$27,111,149.00

19,029,001.06$ 4,556,894.80$ 148,928.26$

0.00

$46,140,150.06 $4,556,894.80$ 148,928.26$

0.00

EXPENDITURES

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

$36,286,044.02 $ 759,815.93

10,174,142.72 78,251.06

3,797,078.87 $

158,316.16 $

481,169.65

$46,538,437.80$ 4,556,894.80$ 158,316.16$ 481,169.65

Excess of Revenues over Expenditures

$ -398,287.74 $

0.00 $ -9,387.90 $ -481,169.65

============= ============= ============ ============

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

See notes to the financial statements.

- 24 -

SCHEDULE "l"

TOTAL

ADJUSTMENTS

TOTAL

(1)

(Budget Basis)

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$27,111,149.00

$ 27,111,149.00 $27,111,149.00$

0.00

23,734,824.12 $ 203,974.05 23,938,798.17 24,505,689.00 -566,890.83

$50,845,973.12 $ 203,974.05$ 51,049,947.17 $51,616,838.00$ -566,890.83

$36,286,044.02 759,815.93

$ 36,286,044.02 $36,310,903.00$

759,815.93

834,986.00

24,858.98 75,170.07

10,174,142.72 $ 3,797,078.87
639,485.81 78,251.06

-286,582.00

9,887,560.72 3,797,078.87
639,485.81 78,251.06

9,736,848.00 3,955,001.00
699,100.00 80,000.00

-150,712.72 157,922.13 59,614.19 1,748.94

$51,734,818.41 $ -286,582.00 $ 51,448,236.41 $51,616,838.00$ 168,601.59
------------- ------------- -------------- z====--=-=--- -------------

$ -888,845.29 $ 490,556.05$ -398,289.24
============= c============ ==============

$ -398,289.24

- 25 -

KENNESAW STATE COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION
YEAR ENDED JUNE 30, 1994

SCHEDULE "2"

REVENUES State Appropriations
EXPENDITURES Distant Learning - Satellite Dishes
Excess of Revenues over Expenditures

PLANT FUNDS ------------UNEXPENDED

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$

9,600.00$

9,600.00$

0.00

$

9,568.77 $

9,600.00$

31.23

$

31.23

=============

$

31.23

See notes to the financial statements.

- 26 -

KENNESAW STATE COLLEGE SCHEDULE OF OPERATIONS
LOAN FUNDS YEAR ENDED JUNE 30, 1994

SCHEDULE "3"

FUND
u. s. GOVERNMENT GRANTS REFUNDABLE
----------------------------------
Nursing Student loan Fund Perkins Loan Fund
INSTITUTIONAL LOANS - RESTRICTED
--------------------------------
Kennesaw State College Emergency Loan Fund
Marietta Ci vi tan loan Fund Memorial Loan Fund Smyrna lions Club Loan Fund

FUND BALANCE

FUND BALANCE

JULY 1, 1993

ADDITIONS

DEDUCTIONS JUNE 30, 1994

------------- ------------- ------------- -------------

$ 8,147.55

$

8,147.55

256,423.17 $ 25,640.54 $ 13,844.54

268,219.17

------------- ------------- ------------- -------------

$ 264,570.72 $ 25,640.54 $ 13,844.54 $ 276,366.72
------------- ------------- ------------- -------------

$ 21,239.65 $ 1,721.51 $

863.06 $ 22,098.10

517.24

8.80

526.04

6,607.10

14.00

6,621.10

354 .10

5.76

359.86

------------- ------------- ------------- -------------

$ 28,718.09 $ 1,750.07 $

863.06 $ 29,605.10

------------- ------------- ------------- -------------

$ 293,288.81 $ 27,390.61 $ 14,707.60$ 305,971.82
============= ============= ============= ===z======

RECONCILIATION OF STUDENT NOTES RECEIVABLE
Balance July 1, 1993 Add:
loans to Students
Deduct: Repayment of loans Loan Assigned to Federal Government

$ 285,242.39 125,244.50

$ 410,486.89

$ 104,860.71 2,702.74

107,563.45

Balance June 30, 1994

$ 302,923.44

See notes to the financial statements.

- 27 -

KENNESAW STATE COLLEGE
SCHEDULE OF OPERATIONS ENDOWMENT AND SIMILAR FUNDS
YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

FUND BALANCE ADDITIONS/

FUND BALANCE

FUND

JULY 1, 1993

TRANSFERS

DEDUCTIONS JUNE 30, 1994

ENDOWMENT

Cobb County Medical Society Memorial Fund $ Dean, Ann Greider, Scholarship Fund Dunaway, William H., Scholarship Fund Dunn, Robert and Polly, Scholarship Fund Ector, Howard, Library Endowment Fund Ellis, Grady Albert, Scholarship Fund Georgia Society of Certified Public
Accountants Gibson, R. Wayne, Scholarship Fund Griffin, Helen 0., Endowment Fund Herod, Dr. N. S., Endowment Fund Kiwanis Club of Marietta Endowment Fund Lockheed Teacher Center Scholarship Mortin, Malinda J., Scholarship Fund Muench, C. Wendell, Library Endowment Fund Northcutt, Guy, Sr., Endowment Fund Schaffer, Howard A. and Virginia H.,
Scholarship Fund Sturgis, Horace and Sue, Library Fund Sullivan, Lillian Bennett, Scholarship Fund

1,280.00 43,857.29 $ 34,402.68 41,000.00
1,050.00 8,863.85
50,000.00 5,000.00 2,294.50
13,506.78 5,572.50 15,000.00
82,791.08 14,481.31 3,913.50
15,000.00 22,500.00 6,334.50

$
776.15 608.90 149.71
3,250.00 292.45

0.00 $

1,280.00 44,633.44 35,011.58 41,000.00
1,050.00 9,013.56
50,000.00 5,000.00 2,294.50
13,506.78 8,822.50 15,000.00 82,791.08 14,773.76 3,913.50
15,000.00 22,500.00
6,334.50

$ 366,847.99 $

5,077.21 $

0.00 $ 371,925.20

QUASI-ENDOWMENT - RESTRICTED

Anderson, Leila, Endowment Fund

$

Barclay, Patterson, Endowment Fund

Georgia International Life Insurance Company

Cobb County Bankers Association

Dinos Chair of Private Enterprises

Jolley, Leo and Lex, Scholarship Fund

Walker, Frank, Scholarship Fund

69,881.21 $ 5,000.00
252,863.51 25,000.00 4,050.00

0.00 $

0.00 $

69,881.21 5,000.00

252,863.51 25,000.00 4,050.00

$ 356,794.72 $

0.00 $

0.00 $ 356,794.72

$ 723,642.71 $

5,077.21 $

0.00 $ 728,719.92

============= ============= ============ ============

See notes to the financial statements.

- 28 -

KENNESAW STATE COLLEGE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 1

BALANCE

BALANCE

FUND

JULY 1, 1993

RECEIPTS

DISBURSEMENTS JUNE 30, 1994

PAYROLL DEDUCTIONS

F. I .C.A. Federal Income Tax State Income Tax Retirement Group Insurance Tax Sheltered Annuities Savings Bonds United Fund Garnishments Credit Union Georgia Defined Contribution Plan KSC Foundation
EMPLOYER'S CONTRIBUTIONS

$ 1,994,826.34 $ 1,994,826.34

3,420,666.49 3,420,666.49

1,235,933.32 1,235,933.32

$

-48.03 1,598,621.44 1,598,621.44 $

-48.03

102,176.74

897,570.69

906,965.24

92,782.19

605,024.89

605,024.89

44,875.00

44,875.00

9,772.10

9,774.60

-2.50

-35.90

18,446.25

18,410.35

787,965.15

787,965.55

-0.40

35. 72

141,252.75

141,269.61

18.86

8,790.65

8,790.65

------------- ------------- ------------- -------------

$ 102,128.53 $10,763,745.07 $10,773,123.48$ 92,750.12
------------- ------------- ------------- -------------

F.I.C.A.
Group Insurance Retirement

$1,995,090.66$ 1,994,827.29 $

263.37

$ 230,636.39 2,444,082.90 2,505,454.21

169,265.08

-93.18 2,978,257.50 2,978,023.97

140.35

$ 230,543.21 $7,417,431.06$ 7,478,305.47 $ 169,668.80

OTHER FUNDS
-----------

American Math Competition

$

Athletic Key Deposit

Beggs, Dean George,Retirement

Belize Trop Ecology Trip

Bell South Community Services

Career Services

Childcare Account

Commemorative License Plates

Consortium Leadership Academy

Continuing Education

Departmental Federal Assistance

Financing System

Employee of the Month

Executive MBA

Executive Round Table

Faculty Fund

Family Business Conference

Futurescape

GA Associate Degree Faculty Forum

GCEME

Georgia Academy of Science

Georgia Conference on Blacks in

Higher Education

Georgia History Day

Georgia Intercollegiate Athletic Conference

Georgia Research and Information Technology

System

History Symposium

History Teaching Alliance

Institutional Research Plan Meeting

International Entrepreneurs - Family

Business

Education Program

237.24 $ 10.00
700.00 200.00 2,428.19 145.25 2,450.00
861.88

1,057.63 $ 2,140.00
2,886.75
11,828.80 242,278.78

668.27 $ 2,140.00
300.00 962.00
9,726.66 235,019.91

-129,781.75 225.00
29,109.37 1,503.56
105.76 4,840.77
48.74
908.46 1,068.60

2,669,531.48 300.00
113,000.00
2,213.00 240,958.52
2,400.00 3,320.00 9,304.00

2,894,129.63 272.93
138,805.30
1,670.97 245,799.29
35.00
2,922.18 9,289.00

2,559.87 304.71 2.32

18.00

192.69 168.72

1,340.00 2,000.00
3,413.81

1,224.08 2,864.24

20,621.30

150.00

5,362.87

626.60 10.00
400.00 200.00 4,352.94 145.25 2,450.00 2,102.14 8,120.75
-354,379.90 252.07
3,304.07 1,503.56
647.79
13.74 3,308.46 1,466.42
15.00
2,559.87 322.71 2.32
115.92 2,000.00
192.69 718.29
15,408.43

- 29 -

KENNESAW STATE COLLEGE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS
YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 2

BALANCE

BALANCE

FUND

JULY 1, 1993

RECEIPTS

DISBURSEMENTS JUNE 30, 1994

OTHER FUNDS

International Model United Nations Program $ International Programs - General Japan - U.S. Friendship Commission KSC Arboretum Kennesaw College Opera Theater King, Salova, Foundation Lake Acworth City Monitoring Literature Conference Mathematics Tournament Fund Minority Staff Luncheon Mock Trial Competition National French Test Nursing Advertising Campaign Nursing Fees One Time Scholarship Account Owls Booster Club Pell Grant Recoveries Perkins Loan Fund - Matching Phi Eta Sigma National Honor Society Physical Education - Class Trips Plant Operations - GAPPA Fund Political Science Award Political Science Department RGC Asian Studies Abroad Readers Theater Regents African Council Retired and Terminated Employees' Health
Insurance Rowdy Owl Club Scholarships
Regents' Opportunity Grants Regents' Scholarship Fund Other Scholarships (List on File)
SE Association of Business Communication Society of Legal Studies
STRIVE Summer in France Summer in Mexico Summer Program for Gifted Superintendent Conference Teacher Center - Activity Fees Teacher Preparation Planning Grant Teaching Learning Assessment "The Kennesaw Review" Thomas, Warren Unclaimed Properties University System Conference Voting System Certification Year of the Constitution

2,743.54$ 377.83 183.20 175.00 33.85 651.96 316.50 267.10 224.99 227.00 119. 90
1,226.50 1,000.00 6,650.00
187.91 53.49 530.69 2,096.49 600.00
360.00
-4,676.15
1,234.00 27,887.94
449.30 710.17
1,669.32 8,749.21 3,009.19 1,238.90
550.00 111.21 7,435.20 937.28

1,690.00$
70.00 3,885.00
488.88
910.00
182.00 1,400.00
500.00
4,381.82 73,677.85 1,265.00
1,818.00 2,430.00 1,000.00
2,394.15 7,670.00
4,500.00
98,294.63 100.00
19,992.00 12,700.00 149,521.52 4,710.00
744.97
40,775.85 1,625.00 220.10 361.00
6,115.50 14.00
4,425.72
4,000.00

1,004.97 $
352.00 785.00 910.00 316.50 182.00 813.03 136.79 2,673.62 72,022.82
34.72 1,310.50
679.73
3,714.75 1,650.00 95,540.39
18,329.00 12,500.00 151,705.50 4,710.00
732.21 35,179.11
99.40 1,073.75 8,749.21 6,250.41
371.20 550.00 4,083.30 1,187.66 52.63

3,428.57 377 .83 183.20 245.00
3,566.85 355.84
267.10
811.96 590.21 119 .90 2,934.70 2,655.03 7,915.00 187.91 18. 77 1,038.19 3,846.76 1,000.00 600.00 2,394.15 3,955.25 360.00 2,850.00
-1,921.91 100.00
2,897.00 200.00
25,703.96
449.30 12.76 710.17
5,596.74 1,625.00
120.70 956.57
2,874.28 881.70
453.63 6,247.54 3,947.37
937.28

$ 6,242.20$ 3,760,003.76$ 3,978,892.53$ -212,646.57

$ 338,913.94 $21,941,179.89 $22,230,321.48$ 49,772.35

See notes to the financial statements.

- 30 -

KENNESAW STATE COLLEGE
CASH AND CASH EQUIVALENTS JUNE 30 1 1994

SCHEDULE "6"

INTEREST BEARING ACCOUNTS
Bank South, Marietta, Georgia
Conwnercial Interest Checking Account (2.00%)
Trust Company Bank, Atlanta, Georgia
Cash Management Pools Board of Regents Legal Fund Board of Regents Short-Term Investment Fund
OTHER
Cash on Hand Petty Cash

$ 2,381,890.86 $1,028,979.80
1,521,572.61 2,550,552.41 $ 4,932,443.27
90,579.96 $ 5,023,023.23
==========z===

See notes to the financial statements.

- 31 -

KENNESAW STATE COLLEGE INVESTMENTS
JUNE 30 1 1994
Investment Accounts George Putnam Fund of Boston, Providence, Rhode Island Mutual Funds
Wachovia Bank, Atlanta, Georgia
Investment Portfolio Account U. S. Government Securities

SCHEDULE "7"
$ 23,030.9B 709,627.91
$ 732,658.89

See notes to the financial statements.

- 32 -

KENNESAW STATE COLLEGE ACCOUNTS RECEIVABLE
JUNE 30. 1994

SCHEDULE "8"

CURRENT FUNDS

PLANT FUNDS

------------------------- LOAN ----------- AGENCY

UNRESTRICTED RESTRICTED

FUNDS UNEXPENDED

FUNDS

TOTAL

------------ ----------- ----------- ----------- ----------- ------------

Federal Grants and Contracts Research and Instruction
State Grants and Contracts Research and Instruction
Local Grants and Contracts Research and Instruction
Private Gifts, Grants, and Contracts Research and Instruction
Endowment Incane Research and Instruction Student Aid
Other Departmental Federal Assistance Financing System Georgia State Financing and Investment Conmission Student Accounts Student Notes Vendor Credit Memos Other

$ 60,720.99 125,463.32 71,084.31 17,266.54 31,732.97 1,498.85

$ 60,720.99 125,463.32 71,084.31 17,266.54 31,732.97 1,498.85

$ 354,379.90 354,379.90

$ 42,990.79

$ 2,930.00

45,920.79

17,156.45

17,156.45

$ 302,923.44

302,923.44

710.60

710.60

669,322.72

99,998.50 1,993.46 771,314.68

------------ ----------- ----------- ----------- ----------- ------------

$ 730,180.56$ 307,766.98$ 302,923.44 $102,928.50$ 356,373.36 $1,800,172.84

See notes to the financial statements.

- 33 -

KENNESAW STATE COLLEGE CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30. 1994

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

CURRENT FUNDS BALANCE JULY 1, 1993 UNRESTRICTED RESTRICTED

$ 127,477.00

28,743,010.42

1,516,348.45

8,156,447.13 $1,211,754.26$

6,563,113.04

854,520.93

89,931.82

$45,106,396.04 $ 2,066,275.19 $ 89,931.82
------------- ----------==- =----=====z==

See notes to the financial statements.

- 34 -

SCHEDULE "9"

ADDITIONS

------------------------------------------------------------

PLANT FUNDS

GEORGIA STATE

---------------------------- FINANCING AND

RENEWALS AND INVESTMENT

PRIVATE

UNEXPENDED REPLACEMENTS COMMISSION

GIFTS

------------- ------------- ------------- -------------

DEDUCTIONS
-------------
DISPOSALS/
DELETIONS/
ADJUSTMENTS
-------------

BALANCE
JUNE 30, 1994
-------------

$ 3,175,343.87

$ 3,302,820.87

$ 19,929.76 $ 89,504.89 2,875,784.13

31,728,229.20

107,140.00

194,612.43

92,126.75

1,910,227.63

5,059.85

179,930.48

$ 78,678.54 $ 251,321.64 9,470,480.44

11,378.80

7,429,012.77

$ 132,129.61 $ 464,047.80 $ 6,143,254.75 $ 90,057.34 $ 251,321.64 $53,840,770.91
============= ============= ============= ============= ============= =============

- 35 -

KENNESAW STATE COLLEGE SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30 1 1994

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

AUXILIARY

STUDENT

ENTERPRISES ACTIVITIES

RESTRICTED

NET INVESTMENT IN PLANT

Investment in Plant Facilities

RESTRICTED

Designated for Subsequent Years' Expenditures

$ 545,422.83

UNRESTRICTED

Designated For Bus Replacement Reserve For Intercollegiate Athletics For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures For Uncollectible Accounts
Undesignated Surplus/Deficit Regular Lottery for Education

$ 4,753.18 $ 143,000.00 726,241.97

1,022,430.14$ 185,362.21

1,586.02

2,063.64

58,332.52

$ 202,918.54 $1,755,488.93 $ 185,362.21

$ 202,918.54 $1,755,488.93 $ 185,362.21 $ 545,422.83
------------ ---------=-- --------===- ==--=-=-=

See notes to the financial statements.

- 36 -

SCHEDULE "10"

PLANT FUNDS

UNEXPENDED

REGULAR

LOTTERY FOR RENEWALS AND EDUCATION REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$53,840,770.91 $53,840,770.91

$ 545,422.83

$ 10,407.27 624,006.00

$ 10,407.27 4,753.18
869,241.97 624,006.00 1,207,79-2.35
3,649.66

$

-1.50

$

31.23

$

-1. 50 $

31.23 $ 634,413.27

58,331.02 31.23
$ 2,778,212.68

$

-1. 50 $

31.23 $ 634,413.27 $53,840,770.91 $57,164,406.42

- 37 -

KENNESAW STATE COLLEGE SCHEDULE OF REVENUES
CURRENT FUNDS
YEAR ENDED JUNE 30. 1994

SCtDULE "11"

State Appropriations Allotments fran the Board of Regents of the University System of Georgia Regular Special Funding Initiative
Other Revenues Retained Tuition and Fees Matriculation Other

UNRESTRICTED

RESTRICTED

--R--E-SI-D-E-N-T-------A--U-X-IL-I-A-R-Y--------ST-U-O--EN--T-----------------

------------
RESIDENT

INSTRUCTION ENTERPRISES ACTIVITIES

TOTAL

INSTRUCTION

TOTAL

------------- ------------ ----------- ------------- ------------ -------------

$27,031,149.00 80,000.00
-------------
$27,111,149.00
-------------

$27,031,149.00 80,000.00
-------------
$27,111,149.00
-------------

$14,393,490.28

$14,393,490.28

1,819,826.81 $ 919,633.68$ 921,956.50 3,661,416.99

$27,031,149.00 80,000.00
-------------
$27,111,149.00
-------------
$14,393,490.28 3,661,416.99

Federal Grants and Contracts Research and Instruction Student Aid Contract Overhead

70,442.23

$ 468,957.90 468,957.90

2,588,401.33 2,588,401.33

70,442.23

70,442.23

State Grants and Contracts Research and Instruction Student Aid Contract Overhead

8,406.53

8,406.53

262,124.25 472,786.92

262,124.25 472,786.92
8,406.53

Local Grants and Contracts Research and Instruction

331,133.84 331,133.84

Private Gifts, Grants, and Contracts Research and Instruction Student Aid

168,801.60 99,781.93

168,801.60 99,781.93

Endownent Incane Research and Instruction Student Aid

141,734.31 23,172.72

141,734.31 23,172.72

Sales and Services of Educational

Activities

100,458.08

100,458.08

100,458.08

Sales and Services of Auxiliary Enterprises

1,403,859.66

1,403,859.66

1,403,859.66

Other Sources Cash Over-Short Extension and Public Service Interest Earned Rents Salvage Sales Other

-351.43

1,118.68

767.25

767 .25

2,367,534.08

2,367,534.08

2,367,534.08

81,638.57 12,734.35

94,372.92

94,372.92

7,068.67

7,068.67

7,068.67

1,114.14

1,114.14

1,114.14

261,011.67

8,630.13 53,570.29 323,212.09

323,212.09

------------- ------------ ----------- ------------- ------------ -------------

$19,029,001.06 $2,414,880.72$ 988,261.14 $22,432,142.92 $4,556,894.80 $26,989,037.72

$46,140,150.06 $2,414,880.72$ 988,261.14 $49,543,291.92 $4,556,894.80 $54,100,186.72
========= ========= ======= ======= ======--='=== -=-======-=

See notes to the financial statenents.

- 38 -

KENNESAW STATE COLLEGE SCHEDULE OF EXPENDITIRES BY OBJECT
CURRENT FUNDS YEAR ENDED JUNE 30. 1994

SClDULE "12"

UNRESTRICTED RESIDENT AUXILIARY STUDENT INSTRUCTION ENTERPRISES ACTIVITIES

TOTAL

RESTRICTED RESIDENT INSTRUCTION

TOTAL

PERSONAL SERVICES

Salaries and Wages E~loy1!r's Contributions for:
F.I.C.A. Group Insurance Retiranent Liability Insurance Uneq,lo)'IIIE!nt Con1>ensation
Insurance Workers' Con1>ensation
Insurance

$28,924,651.94 $ 610,775.07 $ 215,876.47 $29,751,303.48 $ 657,051.18 $30,408,354.66

1,914,083.80 2,323,443.85 2,861,889.43
101,500.00

37,776.32 60,912.91 57,999.73

7,693.35 1,959,553.47 9,761.38 2,394,118.14 11,403.70 2,931,292.86
101,500.00

30,905.32 1,990,458.79 31,265.29 2,425,383.43 40,594.14 2,971,887.00
101,500.00

13,946.00

13,946.00

13,946.00

146,529.00

146,529.00

146,529.00

$36,286,044.02 $ 767,464.03 $ 244,734.90 $37,298,242.95$ 759,815.93 $38,058,058.88

OPERATING EXPENSES
------------------
Travel Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bondin~ Tuition and Scholars ips
1 College Work-Stud Pr!)!;Jram
Scholarshixs, Fel owsh11:, Prizes, wards and Ot r
Other O~rating E)(J)enses Publica ions and Printing Equiplll,!nt Purchases
Non-Inventory Canrwter Charges Sof ware Real Estate Rentals Telecanmunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts Equipment Purchases Inventory

$ 405,554.79 $ 29,086.03 $ 6,592.18 $ 441,233.00 $

18,000.43

6,534.52

24,534.95

1,946,769.01 131,710.60 273,668.86 2,352,148.47

282,827.49

7,028.99

7,257.65 297,114.13

837,109.90 17,083.90

854,193.80

86,281.01 28,149.89 52,133.28 166,564.18

34,008.25 20,664.05

54,672.30

34,926.55$ 476,159.55

221.60

24,756.55

96,609.79 2,448,758.26

800.45 297,914.58

854,193.80

1,793.96 168,358.14

54,672.30

18,011.26

18,011.26 54,037.24

72,048.50

286,582.00 303,638.05 550,148.49 163,724.30 483,197.45 25,107.52

79,082.84 74,726.00

590,220.05 3,184,142.90 3,774,362.95 792,955.63 63,037.72 855,993.35 583,030.97 20,066.38 603,097.35

516,896.91 39,713.37 136,793.24 646,637.09 558,659.68

16,699.13 275.53
20,010.34

21,434.96 1,240.36 6,298.08

555,031.00 39,713.37 138,309.13 646,637.09 584,968.10

66,590.13 27,074.42 10,495.48

621,621.13 39,713.37 165,383.55 646,637.09 595,463.58

1,132,837.22 176,219.85

23,729.21 208,109.57 1,364,676.00 119,417.55 1,484,093.55

5,245.31

181,465.16 27,932.88 209,398.04

2,017,895.28 17,478.95 30,900.96 2,066,275.19 89,931.82 2,156,207.01
------------- ------------ ------------ ------------- ------------ -------------
$10,174,142.72 $ 816,166.32 $ 761,444.74 $11,751,753.78 $3,797,078.87 $15,548,832.65

OTHER

SPECIAL FUNDING INITIATIVE Personal Services Salaries and Wages E,loyer's Contributions or: F.I.C.A. Group Insurance Retiranent

$ 61,000.11

$ 61,000.11

$ 61,000.11

4,433.81 6,961.20 5,855.94
-------------
$ 78,251.06
-------------

4,433.81 6,961.20 5,855.94
-------------
$ 78,251.06
-------------

4,433.81 6,961.20 5,855.94
-------------
$ 78,251.06
-------------

----=---~ $46,538,437.80 $1,583,630.35 $1,006,179.64 $49,128,247.79 $4,556,894.80 $53,685,142.59 ---------- --------- ----------- --------- ==-====-==

See notes to the financial statanents.

- 39 -

KENNESAW STATE COLLEGE SCHEDULE OF EXPENDITURES BY OBJECT
PLANT FUNDS YEAR ENDED JUNE 30. 1994

SCHEDULE "13"

CAP ITAL OUTLAY
Supplies and Materials Repairs and Maintenance Other Expenses Equipment Purchases
Non-Inventory Per Diem, Fees and Contracts
Per Diem and Fees Contracts Equipment Purchases Motor Vehicle Purchases Inventory
OTHER
DISTANT LEARNING - SATELLITE DISHES Other Costs Supplies and Materials Other Expenses Equipment Purchases Non-Inventory Equipment Purchases Inventory

UNEXPENDED

RENEWALS AND

---------------------------- REPLACEMENTS

LOTTERY FOR -------------

REGULAR

EDUCATION

AUXILIARY

TOTAL

$ 19,929.76 31,246.40 107,140.00
$ 158,316.16

$ 19,929.76

$ 1,240.60

1,240.60

570.92

570.92

16,968.89

48,215.29

135.00 282,323.76

135.00 389,463.76

43,036.00

43,036.00

136,894.48 136,894.48

------------- -------------

$ 481,169.65$ 639,485.81
------------- -------------

$ 3,728.30 12 .62
768.00
5,059.85
-------------
$ 9,568.77
-------------

$ 3,728.30 12.62
768.00
5,059.85
-------------
$ 9,568.77
-------------

$ 158,316.16$ 9,568.77$ 481,169.65$ 649,054.58

See notes to the financial statements.

- 40 -

KENNESAW STATE COLLEGE RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30. 1994

SCHEDULE "14"

Totals per Annual Supplement Adjustments Shared Services on Jointly Staffed Personnel Dalton Co 11 ege Deaton, Thomas M.
Totals per Report

SALARIES AND WAGES

TRAVEL

$30,465,317.89 $ 476,159.55

4,036.88

$30,469,354.77 $ 476,159.55

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

$28,924,651.94 $ 61,000.11
610,775.07 215,876.47

405,554.79
29,086.03 6,592.18

657,051.18

34,926.55

$30,469,354.77$ 476,159.55

See notes to the financial statements.

- 41 -

SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS

KENNESAW STATE COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
BUDGET PREPARATION/EXECUTION Overexpenditure ofBudget - Resident Instruction Financial Statements
The total approved budget for Resident Instruction of Kennesaw State College provided for expenditures totaling $51,616,838.00. A comparison ofanticipated revenues and budgeted expenditures to actual revenues and expenditures is summarized on Schedule "I" of this report. This comparison indicates that actual expenditures for Operating Expenses of Education, General and Departmental Services exceeded budgeted expenditures by $150,712.72.
REVENUE/RECEIVABLES/RECEIPTS Inadequate Accounts Receivable Records Financial Statements Audit Control Number 543-94-01
An examination ofthe accounts receivable records for the Continuing Education Program ofKennesaw State College disclosed that the subsidiary records did not reconcile to the general ledger control accounts. As a result ofthis deficiency, additional audit procedures were performed to identify the discrepancies. However, a variance of$4,445.25 between the College's subsidiary accounts receivable records and the general ledger could not be identified.
Personnel at the College should review the matter and necessary adjustments should be made to reconcile the control accounts and subsidiary records.
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequate Equipment Inventory Records Financial Statements Audit Control Number 543-94-02
An examination ofthe property management records disclosed that the College's equipment inventory records were not reconciled with the general ledger control accounts. As a result ofthis deficiency, additional audit procedures were performed to identify the discrepancies. However, a variance of $81,163.78 between the College's subsidiary equipment inventory records and the general ledger could not be identified.
Personnel at the College should review the matter and necessary adjustments should be made to reconcile the control accounts and subsidiary records.

KENNESAW STATE COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
MATCHING, LEVEL OF EFFORT, AND/OR EARMARKING Cost Sharing Requirement Not Met Federal Financial Assistance Supplemental Educational Opportunity Grant (CFDA 84.007) Amount: $3,196.48 Audit Control Number 543-94-03
The Higher Education Act of 1965, as amended, provides that the Federal share of awards for student financial assistance under the Federal Supplemental Educational Opportunity Grant Program (FSEOG) may not exceed 75 percent of such awards. Kennesaw State College must provide a minimum of 25 percent match with a non-federal share from the College's own resources. For the year under review, the minimum match required by the College was $29,080.48. The College provided match in the amount of$25,884.00, which is $3,196.48 less than the minimum required match for cost sharing.
The College should implement procedures to ensure that the cost sharing requirements are met and contact the grantor agency to determine if any refund is due.