Review report, State of Georgia, Kennesaw State University, Marietta, Georgia year ended June 30, 1996

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

REVIEW REPORT STAlE OF GEORGIA KENNESAW STAlE UNIVERSITY MARIETTA, GEORGIA YEAR ENDED JUNE 30, 1996

KENNESAW STATE UNIVERSITY -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALL FUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

ALL FUND GROUPS

4

C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

6

D NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

E COMBINING BALANCE SHEET

CURRENT FUNDS - UNRESTRICTED

22

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

23

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

25

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

26

2

LOTTERY FOR EDUCATION

28

SCHEDULES OF OPERATIONS

3

LOAN FUNDS

30

4

ENDOWMENT AND SIMILAR FUNDS

31

5 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

32

6 CASH AND CASH EQUNALENTS

34

7 INVESTMENTS

35

8 ACCOUNTS RECENABLE

37

9 CHANGES IN INVESTMENT IN PLANT

38

10 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

40

KENNESAW STATE UNIVERSITY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

11 SCHEDULE OF REVENUES

CURRENT FUNDS

42

SCHEDULES OF EXPENDITURES BY OBJECT

12

CURRENT FUNDS

44

13

PLANT FUNDS

46

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

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street. S.W. Suite 214 Atlanta. Georgia 30334-8400
September 27, 1996

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe Board ofRegents ofthe University System of Georgia
and Honorable Betty L. Siegel, President Kennesaw State University
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through D) of Kennesaw State University as of and for the year ended June 30, 1996, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of Kennesaw State University.
A review consists principally ofinquiries ofUniversity personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, with the exceptbn of the matters described in the fourth and fifth paragraphs, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.
As disclosed in Note 1 to th~ financial statements, generally accepted accounting principles require encumbrances to be recorded as a reservation of fund balance. However, in accordance with Georgia Law and State budgetary policy, management recorded encumbrances as expenditures and liabilities. The effects ofthis departure from generally accepted accounting principles on the financial statements were not reasonably determinable.

96ARL-67

As disclosed in Note 1 to the financial statements, the University did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles. Ifcompensated absences were reported, liabilities would be increased and fund balance would be decreased by $1,680,951.03 as of June 30, 1996, and the net change in fund balance for the year ended June 30, 1996, would be decreased by $404,468.71.
Our review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 13) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements, and except for the effects of the matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto.
Re~

CLV:jy 96ARL-67

Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

KENNESAW STATE UNIVERSITY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30,1996

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

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$ 4,556,913,92

$

22,130,77

766,231 ,52 $ 845,937,84 354,994,50 1,127,519,15

1,383,427,89

352,756,06

$ 7,651,596.93 $ 1,383,427,89 $ 374,886,83

LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Deferred Revenue Tuition and Fees Other Deposits Held in Custody for Others Due to Other Fund Groups
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

$ 1,377,525.10 2,281,089.53 239,374.66 $ 1,127,519.15
$ 3,897,989.29 $ 1,127,519.15
$ 313,049.41 61,837.42
$ 255,908.74 $ 3,753,607.64 $ 3,753,607.64 $ 255,908.74 $ 374,886.83

Total Liabilities and Fund Balances

$ 7,651,596.93 $ 1,383,427.89 $ 374,886.83

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
-2-

EXHIBIT "A"

ENDOWMENT AND SIMILAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$

2,211.56 $ 356,196.93 $

1,107,130.72

$ 263,405.62 $ 6,307,989.52

723,719.92

723,719.92

180,051.19

618,993.37

3,301,460.03

845,937.84

354,994.50

1,127,519.15

_ _ _ _ _ _ $ 75,356,341.17

75,356,341.17

$ 725,931.48 $ 536,248.12 $

1,107,130.72 $ 75,356,341.17 $ 882,398.99 $ 88,017,962.13

$ 536,157.12 $ 536,157.12

$ 235,542.75 $ 2,149,224.97

646,856.24

2,281,089.53 239,374.66 646,856.24
1,127,519.15

$ 882,398.99 $ 6,444,064.55

$ 374,136.76 351,794.72
$ $ 725,931.48 $

91.00 $ 91.00 $

$ 75,356,341.17 1,107,130.72 1,107,130.72 $ 75,356,341.17

$ 313,049.41 61,837.42
374,136.76 351,794.72 75,356,341.17 255,908.74 4,860,829.36
$ 81,573,897.58

$ 725,931.48 $ 536,248.12 $

1,107,130.72 $ 75,356,341.17 $ 882,398.99 $ 88,017,962.13

-3-

KENNESAW STATE UNIVERSITY COMBINED STATEMENT Of CHANGES IN FUND BALANCES
A!..L FUND GROUPS YEAR ENDED JUNE 30. 1996

REVENUES AND OTHER APDITIONS
Unrestricted Current Fund Revenues State Appropriations
Regular Lottery Proceeds Federal Grants and Contracts Slate Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Investment Income Endowment Other
Interest on Loens Receivable
Adjustments PriorYears' Expenditures/Accounts Payable Prior Years' Checks Voided
Funded by the Board of Regents of the University System of Georgia Prior Year's Unrestricted Fund Balance (Deficit)
Expended for Plant Facilities Current Funds Plant Funds Unexpended Georgia State Financing and Investment Commission
Total Revenues and Other Additions
EXPENQlTURES AND OTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Adjustments Prior Years' Revenues/Accounts Receivable Prior Years' Endowment Gift
Administrative and Collection Costs Expended for Plant Facilities
Capitalized DisposalslDeletionsiAdjustments
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements Capital Projects General Operations
Total Transfers Between Funds
Net IncreaseJ(Decrease) for the fear
FUND BALANCES JULY 1 1995
FUND BALANCES JUNE 30 1996
See Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
4-

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$ 63,488,312.02

$ 2,797,321.73 $ 4,007,637.10 368,831.87 329,520.92
182,763.83
55,818.46 4,497.04

10,032.00 1,499.83 3,068.00
4,872.17

$ 63.548,627.52 $ 7,686.075.45 $ 19,4n.00

$ 56,163,334.50 $ 7,564,071.10 5,812,454.82 75,352.57

13,431.40 7,568.79

$

4,814.78

$ 61,996,789.51 $ 7,639,423.67 $ _ _4;:.0,8,..1:..:4..".7.:..8

$ -275,981.94 -103,507.00 20,000.00

$ 20,000.00

$ -399,488.94

$ 20,000.00

$ 1,152,349.07 S 46,651.78 $ 34,657.22

2,601,258.57

209,256.96

340,229.61

S 3,753,607.64 $ 255,908.74 S 374,886.83

EXHIBIT "S"

ENDOWMENT

PLANT FUNDS

AND SIMILAR

RENEWALS AND

FUNDS

UNEXPENDED REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

S

0.00

S

S 390,262.07 180,000.00

71,538.62 91.00
249.50

S

0.00 S 642,141.19 $

0.00 S

S 63,488,312.02

2,109.75

390,262.07 180,000.00 2,807,353.73 4,007,637.10 370,331.70 334,698.67

182,763.83 71,538.62 4,872.17

55,909.46 4,497.04

249.50

3,638,314.63 3,638,314.63

745,307.69 1,998,926.31

745,307.69 1,998,926.31

0.00 S 6,384,658.38 S 78,280,974.54

S

S

5,000.00

S 745,307.69

S

5,000.00 S 745,307.69 $

0.00

S 63,727,405.60

5,812,454.82

75,352.57

13,431.40

7,568.79 5,000.00 4,814.78

S 850,881.86

745,307.69 850,881.86

0.00 S 850.881.86 $ 71 ,242,217.51

S $ 103,507.00

S 103,507.00 $

$

-5,000.00 $

340.50 S

730,931.48

-249.50

275,981.94

S

0.00

0.00

0.00

275,981.94

$

0.00

275,981.94 S 5,533.776.52 $ 7,038.757.03

831,148.78 69,822,564.65 74,535,140.55

$ 725,931.48 $

91.00 $ 1,107,130.72 $ 75,356,341.17 $ 81,573,897.58

-5-

KENNESAW STATE UNIVERSITY STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES YEAR ENDED JUNE 30,1996

EXHIBITC

Net Increase/(Decrease) in Fund Balances

$ 1,152,349.07 S

46,651.78 $ 1,199,000.85

See Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements arE;! an integral part of this statement.
-6-

KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIllBIT "0"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Kennesaw State University (formerly Kennesaw State College) is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Kennesaw State University 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 University does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Kennesaw State University 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 University, the accounts ofthe University are maintained in accordance with the principles offund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group.
Within each fund group, the University's fund balance allocations and designations represent those portions ofthe fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies.
Fund groups and funds presented in the accompanying financial statements are as follows:
CURRENT FUNDS
UNRESTRICTED - The fund used to account for those economic resources over which the University retains full control to use for purposes of performing the primary functions of the University, e.g., 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.
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KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
LOAN FUNDS
The fund used to account for resources which, have been made available for financial loans to students.
ENDOWMENT AND SIMILAR FUNDS
The fund used to account for endowment funds and quasi-endowment funds. Endowment funds are subject to the restrictions ofgift instruments requiring that the principal be invested in perpetuity and income only be utilized. While quasi-endowment funds have been established by the University for the same purposes as endowment funds, any portion ofquasi-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 REPLAC:EM:E1\'!'fS - 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 ofall physical properties owned by the University. Net Investment in Plant is an equity account showing the total book value ofphysical properties belonging to the University less the amount of any indebtedness to others.
AGENCY FUNDS
The fund used to account for resources held by the University 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 ofCertified Public Accountants' audit guide reporting model. 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.

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KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIllBIT "0"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING Contractual obligations for goods and services which have not been received at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances 'as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Compensated absences represent obligations of the University relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability of $1,680,951.03 and the related current year expenditure of$404~468.71 have not been reported in the current funds as required by generally accepted accounting principles.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation 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 of the University. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on physical plant and equipment.
The Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to present the results of operations or the net income or loss for the period as would a statement of income or a statement of revenues and expenses.

- 9-

KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATE~NTS
JUNE 30.1996

EXIllBIT "0"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units ofthe University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 19951996. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The budget allocation and disbursement ofthese funds is made to the various organizational units by the Administrative Central Office. In addition, the organizational units receive Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office.

A comparison ofanticipated funds available and budgeted expenditures by budget unit object class indicates that the following object classes were overspent by the amounts identified below:

Personal Services: Education, General and Departmental Services

$ 12,938.66

Capital Outlay

$ 147,707.69

These overexpenditures of budget constitute a violation of Board of Regents policy, but do not constitute statutory violations of budget authority. Statutory violations of budget authority are reported at the departmental level.

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.

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

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KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXIllBIT "D"

NOTE 1: SUM1v1ARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the weighted average method.
Inventories ofgoods for resale are valued at cost using the weighted average method.
PREPAID ITEMS Prepaid items are payments made to vendors in advance ofthe receipt ofgoods and services that will benefit periods subsequent to the balance sheet date.
MEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State 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 anyone or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations ofthe United States or of the State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.

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KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

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

(6) Guarantee or insurance ofaccounts 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 ofthe State of Georgia (which includes organizational units of the Board of Regents of the University System of Georgia) the option of exempting demand deposits from the collateral requirements.

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

CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 1996, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:

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

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

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

Cash Deposits

Cmying
~lount

Bank Balances

Risk Categories

2

3

$~668 945 59 $ 6332 903 84 $ ]00 000 00 $==~O~O~O $ 6232 903 84

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KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXIllBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASHDEPOSITS AND INVESTMENTS

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

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

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

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

The carrying amounts ofinvestment balances as ofJune 30, 1996, are categorized below:

Type ofInvestment
U. S. Government Securities
Investments Not Subject to Categorizations:
Board ofRegents Legal Fund Short-Term Investment Fund
Investment Portfolio Accounts Mutual Funds
Total Investments

Risk Categories

2

3

Carrying Arnount

Market Value

$===:!O~O~O $ 700.688 94 $,===:!O~O~O $ 700,688.94 $ 647,093.08

1,022,999.54 1,514,124.65

984,608.83 1,508,397.45

23.030.98

63310.93

$ 3260 844.11 $ 3203410 29

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

NOTE 3: INVESTMENT IN PLANT

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

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

$ 3,302,820.87 44,904,428.72
3,645,514.63 14,016,738.48 9.486.838.47
$75,356,341.17

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KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"D"

NOTE 4: OPERATING LEASES

Kennesaw State University has entered into certain agreements to lease office space and relocatable buildings which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date ofthe original term ofthe lease, the University has the option ofrenewing the lease on a year-to-year basis. Future minimum lease payments for operating leases as ofJune 30, 1996, are listed below. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised.

Fiscal Year Ending June 30
1997 1998 Total Future Minimum Lease Payments

$ 606,619.56 473.539.56
$ 1.080,159 12

Expenditures for rental of office space and relocatable buildings under operating leases for the year ended June 30, 1996, totaled $721,615.56.

NOTE 5: RISK MANAGEMENT

Kennesaw State University is a participant in the Board ofRegents ofthe University System of Georgia Health Benefits Plan, which is a self-insurance program ofhealth and dental benefits for employees and retirees ofthe University System ofGeorgia. The University and participating employees and retirees pay premiums to the Health Benefits Plan for this health insurance coverage. The Health Benefits Plan is included in the audit report ofthe Board ofRegents ofthe University System of Georgia - Administrative Central Office. All units ofthe University System of Georgia share the risk ofloss for claims of the Health Benefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of $1,000,000.00 per person and dental coverage up to an annual maximum of $1,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the Health Benefits Plan as established by the Board ofRegents.

The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts ofcommercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The University, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment.

- 14 -

KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE 5: RISK MANAGEMENT
A self-insured program of professional liability for its employees was established by the Board ofRegents of the University System ofGeorgia under powers authorized by the Official Code ofGeorgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out ofthe performance oftheir duties or in any way connected therewith. The program is administered by DOAS as a Self-~surance Fund.
NOTE 6: DEFERRED COMPENSATION PLAN
The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees ofthe 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 of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the State of Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor ofthe State of Georgia in an amount equal to the fair market value of the deferred account for each participant. Financial information relative to the plan will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
NOTE 7: RETffiEMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Kennesaw State University participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers ofthe State of Georgia. The University's payroll for the year ended June 30, 1996, for employees covered by TRS was $22,764,718.95. The University's total payroll for all employees was $35,837,609.63.
Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, 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 of years 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
- 15 -

KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"D"

NOTE 7: RETmEMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Benefits 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 death or up to the time of disability.
Memb~rs 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.
Contributions Required and Contributions Made Employees ofthe University who are covered by TRS are required to pay 5% of their gross earnings to TRS. The University makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1996, the employer contribution rate was 11.81% for covered employees. In addition, the University contributed 4.87% to the TRS on behalf of employees electing to participate in the Regents Retirement Plan. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions to the plan made during fiscal year 1996 amounted to $3,826,745.76, of which $2,688,511.41 was made by the University and $1,138,234.35 was made by employees. These contributions represented 11.81% (University) and 5% (employees) of covered payroll.
Funding Status and Progress Pension Benefit Obligation
The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value of credited projected benefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of the 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 similar PERS.

- 16 -

KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT"D"

NOTE 7: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
The total unfunded pension benefit obligation ofTRS as ofJune 30, 1995, which was the latest information available, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585.541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available for benefits were valued as ofthe same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Retirement System Contributions Total contributions from all employers to TRS for the year ended June 30, 1996, were $607,274,559.00. The University's contribution for the year ended June 30, 1996, of$2,688,511.41 was actuarially determined and represented .4427% oftotal contributions made by all participating employers.

Trend Information Historical trend information is presented in the TRS June 30, 1996, financial report. This information gives an indication ofthe progress made in accumulating sufficient assets to pay benefits when due.

REGENTS RETIREMENT PLAN

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

State legislation requires that the employer contribute 4% and the employee contribute 5% of the participating employee's earnable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The University's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1996, was $8,920,937.04. The University's total payroll for all employees was $35,837,609.63.

The University and the covered employees made the required contributions of $357,267.18 (4%) and $434,450.41 (5%), respectively.

- 17 -

KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXInBIT"D"

NOTE 7: RETIREMENT PLANS
GEORG~DE~DCONTmrnUTIONPLAN
Plan Description Kennesaw State University participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees ofthe Employees' Retirement System of Georgia. The University's payroll for the year ended June 30, 1996, for employees covered by GDCP was $2,413,830.91. The University's total payroll for all employees was $35,837,609.63.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. Ifa member has less than $ 3,500.00 credited to his/her account, the Board ofTrustees has the option of requiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination ofemployment, the amount ofthe member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1996 amounted to $182,585.40 which represents 7.56% of covered payroll. These contributions met the requirements ofthe plan.
NOTE 8: LEAVEPOUCffiS
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.

- 18 -

KENNESAW STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXIllBIT "D"

NOTE 9: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to 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 University expects such amounts, ifany, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Kennesaw State University (as an organizational unit ofthe Board ofRegents ofthe University System of Georgia), ifany, are generally considered to be actions against the State ofGeorgia. 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, 1996.
NOTE 10: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board ofRegents ofthe University System ofGeorgia has established group health and life insurance programs for regular employees ofthe University System of Georgia. It is the policy ofthe Board ofRegents to permit employees ofthe University System ofGeorgia eligible for retirement or that become permanently and totally disabled to continue as members ofthe group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System of Georgia and who have at least ten years of service with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals.
As of June 30, 1996, there were 87 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1996, Kennesaw State University recognized as incurred $221,535.42 of expenditures, which was net of$39,377.50 of participant contributions.
NOTE 11: BONDING INFORMATION
The President and all employees ofKennesaw State University are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-02-110723, on which the premium has been paid to October 1, 1996. Under this agreement, the public employee dishonesty coverage insures Kennesaw State University 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 University to a maximum of $1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.

- 19 -

KENNESAW STATE UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"D"

NOTE 11: BONDING INFORMATION

All employees ofKennesaw State University are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 011675 2 and 626 012294 4, on which the premiums have been paid to October 1, 1996. Under these additional public employee dishonesty coverages, the policies insure the University to a maximum ofS9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees and from failure ofits employees to perform faithfully.

NOTE 12: ENROLLMENT

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

Regular Term ,Fall Quarter, 1995 Winter Quarter, 1996 Spring Quarter, 1996

8,727 8,483 8.035

Average

Summer School, 1995

- 20 -

SUPPLEMENTARY INFORMAnON - 21 -

KENNESAW STATE UNIVERSITY COMBINING BALANCE SHEET
CURRENT FUNPS - UNRESTRICTEP JUNE 30.1996

EXHIBIT-E-

ASSETS
Cash and Cash EqUivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups

RESIDENT LOTIERYFOR AUXILIARY

STUDENT

INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES

TOTAL

$ 1,469,882.88 $ 510,925.39 133,468.73 343,199.44
1,127,519.15

19,812.93 $ 73,3n.00

1,986,666.78 $ 176,368.57 712,469.11 6,299.09

1,080,551.33 $ 5,560.56
5,495.97

4,556,913.92 766,231.52 845,937.84 354,994.50
1,127,519.15

Total Assets

$ 3,584,995.59 $

93,189.93 $ 2,881,803.55 $ 1,091 ,607.86 $ 7,651,596.93

LIABILITIES ANp FUNp BALANCES

Usbilities Accounts Payable Deferred Revenue Tuition and Fees Other

$ 1,243,892.88 $ 2,052,169.53

Total LIabilities

$ 3,296,062.41 $

Fund Balances Unrestricted

288,933.18

93,189.93 $ 93,189.93 $

26,040.10 $ 14,402.19 $ 1,3n,525.10

239,374.66

228,920.00

2,281,089.53 239,374.66

265,414.76 $ 243,322.19 $ 3,897,989.29

0.00 2,616,388.79

848,285.67 3,753,607.64

Total Liabilities and Fund Balances $ 3,584,995.59 $

93,189.93 $ 2,881,803.55 $ 1,091,607.86 $ 7,651,596.93

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 22-

KENNESAW STATE UNIVERSITY COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30. 1996

EXHIBIT -F"

RESIDENT LOITERYFOR AUXILIARY INSTRUCTION EDUCATION ENTERPRISES

STUDENT ACTIVITIES

TOTAL

REVENUES AND OTHER ADDITIONS

Unrestricted Current Fund Revenues Adjustments
Prior Years' ExpenditureslAccounts Payable Prior Years' Checks Voided

$ 54,119,804.13 $
57,944.96 3,724.73

388,864.00 $ 7,024,435.08 $ 1,955,208.81 $ 63,488,312.02

-2,776.25 93.74

649.75 678.57

55,818.46 4,497.04

Total Revenues and Other Additions $ 54,181 ,473.82 $ 388,864.00 $ 7,021,752.57 $ 1,956,537.13 $ 63,548,627.52

EXPENDITURES AND OTHER DEPUCTIONS

Educational and General Expenditures Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Adjustments Prior Years' Revenues/Accounts Receivable

$ 54,729,749.08 $
13,431.40 13,464.28

396,177.80

$ 1,037,407.62 $ 56,163,334.50

$ 5,812,454.82

5,812,454.82

-7,579.23

1,683.74

13,431.40 7,568.79

Total Expenditures and Other Deductions

$ 54,756,644.76 $ 396,177.80 $ 5,804,875.59 $ 1,039,091.36 $ 61,996,789.51

TRANSFERS BElWEEN FUNDS

Nonmandatory Renewals and Replacements capital Projects General Operations In Lieu of State Appropriations

$ 645,318.00

$ -275,981.94

$ -275,981.94

-94,865.00 $

-8,642.00

-103,507.00

-20,000.00

-20,000.00

-412,934.00

-232,384.00

0.00

Total Transfers Between Funds

$ 645,318.00

$ -783,780.94 $ -261,026.00 $ -399,488.94

Net Increasel(Decrease) for the Year $

70,147.06 $ -7,313.80 $ 433,096.04 $ 656,419.77 $ 1,152,349.07

FUND BALANCES JULY 1. 1995

218,786.12

7,313.80 2,183,292.75

191,865.90 2,601,258.57

FUND BALANCES JUNE 30 1996

$ 288,933.18 $ _ _...::0;;,;:.00,;;. $ 2,616,388.79 $ 848,285.67 $ 3.753,607.64

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 23-

I

I

I

I

I

I

I

I

I

I

I

I

I

I

I

I

I

I

I

I

.;

I

I

I

I

I

I

I

I

I

I

I

I

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KENNESAW STATE UNIVERSITY COMBINING STATEMENT OF CURRENT FUNDS REYENUES. EXPENDITURES,
AND OTHER CHANGES UNRESTRICTED
YEAR ENDED JUNE 30 1996

RESIDENT LOITERYFOR AUXILIARY INSTRUCTION EDUCATION ENTERPRISES

STUDENT ACTIVITIES

TOTAL

REVENUES

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

$ 32,888,706.93 $ 18,242,513.02 69,910.57 9,215.00 38,733.28 88,180,00
2,782,545.33

388,864.00 $

$
6,838,324.23 186,110.85

$ 1,873,427.50
81,781.31

33,277,570.93 20,115,940,52
69,910.57 9,215,00
38,733.28 88,180.00 6,838,324.23 3,050,437.49

Total Revenues

$ 54,119,804.13 $ 388,864.00 $ 7,024,435.08 $ 1,955,208.81 $ 63.488,312.02

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

$ 30,217,546.55 $ 681,295.98
6,459,784.92 3,092,829,93 8,138,348.30 5,707,703.40
432,240.00

137,002.02 15,000.00 242,100,78
2,075.00

$ 30,354,548,57

696,295.98

6,701,885.70

$ 1,037,407.62

4,130,237,55

8,140,423.30

5,707,703.40

432,240,00

$

41,307,89

4,339,996.02

1,176,197.43

254,953.48

41,307,89 4,339,996,02 1,176,197.43
254,953.48

Total Expenditures

$ 54,729,749.08 $ 396,177.80 $ 5,812,454.82 $ 1,037,407.62 $ 61 ,975,789.32

OTHER TRANSFERS AND ADDITIONSI <DEDUCTIONS)

Transfers for Renewals and Replacements

Transfers for Capital Projects

Transfers for General Operations

Transfers in Lieu of State Appropriations

$

Prior Period Adjustments (Net)

Remittances to the Board of Regents

of the University System of Georgia

Prior Year's Unrestricted Fund Balance

(SurplUS)

645,318,00 48,205.41
-13,431.40

$ -275,981.94

$ -275,981,94

-94,865.00 $

-8,642.00

-103,507.00

-20,000.00

-20,000.00

-412,934.00

-232,384.00

0.00

4,896,72

-355.42

52,746.71

-13,431.40

Total Other Transfers and Additionsl(Deductions)

$ 680,092.01

$ -778,884.22 $ -261,381.42 $ -360,173.63

Net Increase/(Decrease) in Fund Balances

$

70,147.06 $

-7,313.80 $ 433,096.04 $ 656.419.77 $ 1,152,349.07

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
-25-

KENNESAW STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30. 1996

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS

PLANT FUNDS

UNRESTRICTED RESTRICTED UNEXPENDED

$ 32,888,706.93

$

21,231,097.20 $ 7,564,071.10

390,262.07 71,538.62

$ 54,119,804.13 $ 7,564,071.10 $ 461,800.69

EXPENDITURES

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

42,284,421.66 $ 1,126,676.61

12,309,063.18 136,264.24

6,437,394.49 $

565,307.69

$ 54,729,749.08 $ 7,564,071.10 $ 565,307.69

Excess of Revenues over Expenditures

$

-609,944.95 $====0=.0=0 $ -103,507.00

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

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

SCHEDULE "1"

TOTAL

ADJUSTMENTS

TOTAL

(1)

(Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 33,278,969.00 28,866,706.92 $

$ 33,278,969.00 $ 33,278,969.00 $ 316,585.00 29,183,291.92 30,117,114.00

0.00 -933,822.08

$ 62,145,675.92 $ 316,585.00 $ 62,462,260.92 $ 63,396,083.00 $ -933,822.08

$ 42,284,421.66 1,126,676.61
12,309,063.18 $ 6,437,394.49
565,307.69 136,264.24

$ 42,284,421.66 $ 42,271,483.00 $ 1,126,676.61 1,305,952.00

-432,240.00

11,876,823.18 6,437,394.49
565,307.69 136,264.24

11,935,226.00 7,326,905.00
417,600.00 138,917.00

-12,938.66 179,275.39
58,402.82 889,510.51 -147,707.69
2,652.76

$ 62,859,127.87 $ -432,240.00 $ 62,426,887.87 $ 63,396,083.00 $ - - - -96-9,-19'5-.1-3

$ -713,451.95 $ 748,825.00 $ 35,373.05

$ ===3=5,==:37=3=.0==5

- 27-

KENNESAW STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION YEAR ENDED JUNE 30. 1996

REVENUES
State Appropriations Other Revenue Retained

CURRENT FUNDS PLANT FUNDS UNRESTRICTED UNEXPENDED

TOTAL

$

388,864.00 $ 180,000.00 $ 568,864.00

$

388,864.00 $ 180,000.00 $ 568,864.00

EXPENDITURES
Capital Outlay Equipment, Technology and Construction
Trust Fund Special Funding Initiatives

$ 180,000.00 $ 180,000.00

$

257,313.80

138,864.00

257,313.80 138,864.00

$

396,177.80 $ 180,000.00 $ 576;177.80

Excess of Revenues over Expenditures

$

-7,313.80 $

0.00 $ ==-7=,3=1:=3=.8=0

(1) To reclassify prior year fund balance budgeted as revenue.

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

SCHEDULE "2"

ADJUSTMENTS

TOTAL

(1)

(Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 568,864.00 $ 568,864.00 $

$

7,313.80

7,313.80

7,344.00

0.00 -30.20

$

7,313.80 $ 576,177.80 $ 576,208.00 $

-3_0_.2_0

$

0.00 $ 180,000.00 $. 180,000.00 $

0.00

257,313.80 138,864.00

257,344.00 138,864.00

30.20 0.00

$

-...,;...0;..;..0..;...0 $ 576,177.80 $ 576,208.00 $

3_0_.2_0

$

7,313.80 $

0.00

$========0:=.0=0

- 29-

KENNESAW STATE UNIVERSITY SCHEDULE OF OPERATIONS LOAN FUNDS YEAR ENDED JUNE 30,1996

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 Civitan Loan Fund Memorial Loan Fund Smyrna Lions Club Loan Fund

FUND BALANCE ADDITIONSI DEDUCTIONSI FUND BALANCE JULY1,1995 TRANSFERS TRANSFERS JUNE 30,1996

$

8,147.55

291 ,556.49 $

$ 17,972.17

$

299,704.04 $

17,972.17 $

9.27 $ 4,617.53
4,626.80 $

8,138.28 304,911.13
313,049.41

$

32,918.57 $

21,357.19

526.04

11.00

6,721.10

59.88 $

359.86

71.76

$

40,525.57 $

21,499.83 $

$ 187.98
187.98 $

54,275.76 537.04
6,593.00 431.62
61,837.42

$
RECONCILIATION OF STUDENT NOTES RECEIVABLE
Balance July 1, 1995 Add:
Loans to Students
Deduct: Repayment of Loans

340,229.61 $ _ ...3.9....4.7..2..0..0.. $

4,814.78 $

$ 324,022.08 165,358.57
$ 489,380.65 136,624.59

374,886.83

Balance June 30,1996

$ 352,756.06

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

KENNESAW STATE UNIVERSITY SCHEDULE OF OPERATIONS
ENDOWMENT AND SIMILAR FUNDS
YEAR ENDED JUNE 30, 1996

SCHEDULE "4"

FUND

FUND BALANCE ADDITIONSI DEDUCTIONSI FUND BALANCE
JULY 1.1995 TRANSFERS TRANSFERS JUNE 30, 1996

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 $ 45,725.08 35,660.37 41,000.00
1,050.00 9,173.08
50,000.00 5,000,00 2,294.50 13,506.78
8,822.50 15,000,00 82,791.08
15,085.37 3,913.50
15,000.00 22,500,00 6,334.50

0,00 $

0.00 $

1,280.00 45,725.08 35,660.37 41,000.00
1,050.00 9,173.08
50,000.00 5.000.00 2.294.50
13,506.78
8,822.50 15,000.00 82.791.08
15,085,37 3,913.50
15,000.00 22,500.00
6.334,50

$ 374.136.76 $

0.00 $

0.00 $ 374,136.76

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 $

$ 5,000.00

69,881.21

252,863.51 25,000.00 4,050.00

$ 356,794.72 $

0.00 $

5.000.00 $ 351,794.72

$ 730,931.48 $

0.00 $

5,000.00 $==7=25...,.9...3...1...4...8...

See accompanying notes and Independent Accountant's Combined Report

on Review of Financial Statements and Supplementary Information.

.

- 31 -

KENNESAW STATE UNIVERSITY SCHEDULE OF CASH RECEIPTS AND D'SBURSEMENTS
AGENCY FUNDS yEAR ENDED JUNE 30 1996

SCHEDULE "S"

BlliP
PAyROLL DEDUCTIONS
F.I.CA Federal Income Tax State Income Tax Retirement Group Insurance Tax Sheltered Annuities
saving Bond
United Fund Gamishments Credit Union Georgia Defined Contribution Plan KSC Foundation
EMPLOYER'S CONTRIBUTIONS
F.I.CA Group Insurance Retirement
OTHER FUNDS
American Math Competition Athletic Key Deposit Belize Trop Ecology Trip Bell South Community Services Career Services Carmen Diaz Fund Chief Executive Officers Childcare Account Clark Allanta/95 Commemorative Ucense Plates Consortium Leadership Academy Continuing Education Departmental Federal Assistance Financing System Employee of the Month Executive MBA Executive Round Table Faculty Fund 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 History Symposium History Teaching Alliance Honors Program Council Institutional Research Plan Meeting Intemational Entrepreneurs Family Business
Education Program Intemational Model United Nations Program Intemational Programs General Japan U. S. Friendship Commission KSC Arboretum

BALANCE JULY " 1995

RECEIPTS

BALANCE DISBURSEMENTS JUNE 30, 1996

$ 2,358,304.54 $

2,358,304.52 $

0.02

4,415,131.71

4,415,131.71

$

4,467.80

1,481,128.68

1,485.596.48

1,586,293.37

1.586.293.37

83.144.69

1.040,021.28

1.042,539.12

80,626.85

779,563.89

779,563.89

34.450.00

34.450.00

13,144.57

13,144.57

24,825.03

24,487.95

337.08

1,081.988.79

1.081.988.79

162.444.69

182,494.52

--49.83

8,869.44

8,869.44

$

87,612.49 $ 13,006,165.99 $

13,012,864.36 $

80,914.12

$ 2,358.304.54 $

$ 150.000.17

2.590,435.52

3,484,126.00

$ 150,000.17 $ 8.432,866.06 $

2,358,304.52 $ 2.585.807.08 3,484,126.00
8,428,237.60 $

0.02 154,628.61
154,628.63

$

277.03

$

10.00

7,211.87 $

3,346.00

200.00

2,338.07

5,250.27

4,815.00

10,624.74

145.25

2,500.00

10,442.92

2,450.00

2,040.67

15,176.54

6,674.72

130,463.68

-245,548.45

2,617,055.81

50.00

228,800.00

1,503.56

715.40

1,518.56

13.74

3,628.46

4,486.85

11,661.98

15.00

2,559.87

363.21

90.00

2.32

2,000.00

192.69

400.00

825.36

3,923.00

15,408.43 4,207.80 300.62 183.20 245.00

1,945.00 893.37

277.03 10.00
9.550.00 $ 7,317.89 4,815.00 9,620.94 10,442.92 2,450.00 17,002.20 120,090.14 2,979,813.21 224,251.28 1,503.56 1,996.88
8,605.30
2.32
2,801.07
1,664.75 183.20

1.007.87 200.00 270.45
1,003.80 2,645.25
215.01 17,048.26 -608,305.85
50.00 4,548.72
237.08 13.74
3,628.46 7,543.53
15.00 2,559.87
453.21
2,000.00 192.69 400.00
1,947.29
15,408.43 4,488.05 1,193.99
245.00

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

KENNESAW STATE UNIVERSITY SCHEDULE OF CASH RECEIPTS AND PISBURSEMENTS
AGENCY FUNDS YEAR ENPED JUNE 30 1996

SCHEDULE "5"

B.lliQ
OTHER FUNDS
Kennesaw Association of Educational Office Professionals Kennesaw College Opera Theater Kennesaw State College in Mexico 96 Kennesaw State College Qaxaco Nursing Practice 96 Kennesaw State College Roehampton 96 Kennesaw State College Staff Caucus Kennesaw State College Teacher Education King, salova Foundation Mathematics Toumament Fund Matriculation Deposits Minority Enterprise Institute Minority Staff Luncheon Mock Trail Competition National French Test Nursing Advertising Campaign Nursing Fees Olfice of Educational Research and Assessment One Tune Scholarship Account Organization of American Historians Owls Booster Club Pell Grant Recoveries Perkins Loan Funds - Matching Phi Eta Sigma National Honor Society Physical Education - Class Trip 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 RISE Conference Rowdy OM Club Scholarships
Regents' Opportunity Grants Regents' Scholarship Fund Other Scholarship (List on File) Society of Legal Studies Stafford Loan STRIVE Summer in France Summer in Mexico Summer Program for Gifted Summer Science Camp Sunshine Committee Superintendent Conference System India Center Teacher Center - Activity Fees Teacher Leaming Assessment "The Kennesaw Review" Unclaimed Properties University System Center Urban Enterprise Center Voting System Certification Year ofthe Constitution

BALANCE JULY 1,1995

RECEIPTS

BALANCE DISBURSEMENTS JUNE 30, 1996

$

120.00 $

$

3,066.85

34,330.09

18,523.66

48,120.00

487.94

4,760.00

225.84

5,843.78

267.10

525.00

66,070.41

36,891.02

337.37

655.94

1,000.00

373.32

250.00

119.90

8.00

8,839.70

7,667.00

295.27

1,887.55

69,858.n

500.00

17;074.57

19,030.00

187.91

18.77

1;761.54

1,004.00

3,124.15

2,505.76

479.02

605.00

1,939.32

6,314.75

4,898.55

360.00

1,358.00

4,650.00

-3,062.15

132,974.31

626.88

100.00

42.43 $
29,177.n 17,735.87 47,966.50
285.29 3,205.99 5,085.00
50.00 60,300.41 44,574.28
337.37 1,439.27
466.17
5,140.90
68,602.06
7,346.n
754.50 3,318.30
336.37 605.00 3,480.82
2,401.99 140,599.68
100.00

77.57 3,066.85 5,152.37
787.79 153.50 202.65 1,554.01 984.62 742.10 5,770.00 -7,683.26
216.67 157.15 127.90 11,365.80 295.27 3,144.21 500.00 28,757.85 187.91 18.77 2,011.04 2,311.61 142.65
4,773.25 4,898.55
360.00 3,606.01 -10,687.52
626.88

1,224.00 1.00
75,560.49 449.30
64,786.15 133.29 710.17
9,577.75 139.41 310.00
120.70
1,318.54 1,222.69
225.42 4,120.06 5.188.55
2.916.01 937.28

22,500.00 13,750.00 250,959.92
11,421,898.81 148.61
445.00 3,200.00
853.34
159.00 921.56
295,846.40 2,217.15

23,338.00 10,952.00 230,461.31
11,103,237.53
710.17 9,577.75
275.00
692.50 477.76
203.01
838.35 295,846.40

386.00 2,799.00 96,059.10
449.30 383,447.43
281.90
139.41 35.00 445.00 120.70 2,507.50 1,694.12 1,222.69 181.41 5.041.62 4,350.20
5,133.16 937.28

$

26.594.51 $ 15.523,628.47 $ 15.522,360.11 $

27,862.87

$ 264,207.17 $ 36,962,660.52 $ 36,963.462.07 $ 263,405.62
See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
33

KENNESAW STATE UNIVERSITY CASH AND CASH EQUIVALENTS
JUNE 30. 1996

SCHEDULE "6"

INTEREST BEARING ACCOUNTS
NationsBank, Atlanta, Georgia
Commercial Interest Checking Account (1.60%)
SunTrust Bank, Atlanta, Georgia
Cash Management Pools Board of Regents Legal Fund Board of Regents Short-Term Investment Fund

$ 3,668,945.59

$ 1,022,999.54
1,514,124.65

2,537,124.19 $ 6,206,069.78

OTHER
Cash on Hand Petty Cash

101,919.74
$ 6,307,989.52

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

KENNESAW STATE UNIVERSITY INVESTMENTS JUNE 30, 1996
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"

$

23,030.98

700,688.94 $ 723,719.92

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information,
- 35-

'~(~k
,OJ -?:>b

KENNESAWSTATEUNNERSITY ACCOUNTSRECENAeLE JUNE 30. 1996

SCHEDULE "S"

State Appropriations Allotment from the Board of Regents of the University System of Georgia
Federal Grants and Contracts Research and Instruction
State Grants and Contracts Research and Instruction Student Aid
Local Grants and Contracts Research and Instruction Student Aid
Private Gifts, Grants, and Contracts Research and Instruction Student Aid
Endowment Income Student Aid
Other Agency Fund Overpayments Department Federal Assistance Financing System Retired and Terminated Employees' Health Insurance Continuing Education Georgia State Financing and Investment Commission Returned Checks Student Accounts Student Notes Vendor Credit Memos Other

CURRENIFUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

PLANT FUNDS AGENCY UNEXPENDED FUNDS

TOTAL

$

73,3n.00

$ 89,700.99

147,351.53 1,065,664.08

14,476.75

$ 73,3n.00
89,700.99
147,351.53 1,065,664.08
14,476.75

47,678.68 2,150.00
16,405.86

47,678.68 2,150.00
16,405.86

269,700.48
15,812.04 237,252.74
91,147.68 76,941.58

$ 608,305.85 10,687.52
$ 180,051.19 $ 352,756.06

608,305.85
10,687.52 269,700.48
180,051.19 15,812.04
237,252.74 352,756.06
91,147.68 78,941.58

$

766,231.52 $ 1,363.427.89 $ 352,756.06 $ 180,051.19 $ 618,993.37 $ 3,301 ,460.03

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
-37 -

KENNESAW STATE UNIVERSITY CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30. 1996

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

BALANCE JULY 1,1995

CURRENT FUNDS UNRESTRICTED RESTRICTED

$ 3,302,820.87

43,064,395.69

3,490,594.94

11,506,950.93 $ 2,337,839.19 $ 273,548.94

8,457,802.22

1,026,926.50

$ 69,822,564.65 $ 3,364,765.69 $ 273,548.94

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

SCHEDULE "9"

ADDITIONS
PLANT FUND UNEXPENDED

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

PRIVATE GIFTS

DEDUCTIONS DISPOSALSI DELETIONSI ADJUSTMENTS

BALANCE JUNE 30, 1996

$ 3,302,820.87

$ 514,381.00 $ 1,325,652.03

44,904,428.72

154,919.69

3,645,514.63

76,007.00

673,274.28

$

850,881.86 14,016,738.48

$

2,109.75

9,486,838.47

$ 745,307.69 $ 1,998,926.31 $

2,109.75 $

850,881.86 $ 75,356,341.17

- 39-

KENNESAW STATE UNIVERSITY SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30, 1996

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

RESIDENT INSTRUCTION

CURRENT FUNDS UNRESTRICTED LOTIERYFOR AUXILIARY EDUCATION ENTERPRISES

STUDENT ACTIVITIES

$ 143,000.00 137,844.50

$ 1n,950.62 712,469.11

1,723,905.42 $ 2,063.64

848,285.67

8,088.68 $
$ 288,933.18 $

0.00 0.00 $ 2,616,388.79 $

848,285.67

$ 288,933.18 $=====0,;;;.0.0 $ 2,616,388.79 $ 848,285.67

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

SCHEDULE "10"

RESTRICTED

PLANT FUNDS

UNEXPENDED

LOTIERY FOR RENEWALS AND

REGULAR

EDUCATION REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 75,356,341.17 $ 75,356,341.17

$ 255,908.74

$ 255,908.74

$

1,091,881.92

15,248.80

$ 1,091,881.92 1n,950.62 855,469.11 15,248.80
2,572,191.09 139,908.14

$

91.00

_____ $

$

91.00 $

$ 255,908.74 $

91.00 $

--=.;O.~OO.:;..
0.00 $

1,107,130.72

8,179.68 0.00
$ 4,860,829.36

0.00 $

1,107,130.72 $ 75,356,341.17 $ 80,473,079.27

- 41 -

State Appropriations Allotments from the Board of Regents of the University System of Georgia Regular Special Funding Initiative Research Consortium Lottery Proceeds
Other Revenues Retained Tuition and Fees Matriculation Other
Federal Grants and Contracts Research and Instruction Student Aid Contract Overhead
State Grants and Contracts Research and Instruction Student Aid Contract Overhead
Local Grants and Contracts Research and Instruction
Private Gifts, Grants, and Contracts Research and Instruction Student Aid
Endowment Income Research and Instruction Student Aid
Sales and Services of Educational Activities
Sales and Services of Auxiliary Enterprises
Other Sources Administrative Cost Allowances cash Over-5hort Extension and Public Service Interest Earned Rents Salvage Sales other

KENNESAW STATE UNIYERSIlY SCHEDULE OF REVENUES CURRENT FUNDS YEAR ENDED JUNE 30 1996

RESIDENT INSTRUCTION

LOTrERYFOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

$ 32,747,589.93 138,917.00 2,200.00 $
$ 32.888.706.93 $

388,864.00 388.864.00

$ 15,670,231.80 2,5n,281.22

69,910.57

9,215.00

88,180.00
839.29 -63.41 2,525,401.11 5,500.00 3,779.95 285,821.67 $ 21,231,097.20

$ 6,838,324.23
132,836.81 53,274.04
$ 7,024,435.08

$ 54,119,804.13 $ 388,864.00 $ 7,024,435.08

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
- 42

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$ 32,747,589.93 138,917.00 2,200.00 388,864.00
$ 33,277,570.93

$ 32,747,589.93 138,917.00 2,200.00 388,864.00
$ 33,277,570.93

$ 1,015,917.75 $ 16,686,149.55 857,509.75 3,429,790.97

$ 16,686,149.55 3,429,790.97

$ 700,532.13 2,045,531.19
69,910.57

700,532.13 2,045,531.19
69,910.57

9,215.00

547,570.93 3,440,147.55

547,570.93 3,440,147.55
9,215.00

327,665.69

327,665.69

187,767.63 120,208.00

187,767.63 120,208.00

88,180.00 6,838,324.23

180,100.98 14,547.00

180,100.98 14,547.00
88,180.00
6,838,324.23

19,009.89 62,771.42

839.29 -63.41 2,525,401.11 151,846.70 5,500.00 3,779.95 '401,867.13

839.29 -63.41 2,525,401.11 151,846.70 5,500.00 3,779.95 401,867.13

$ 1,955,208.81 $ 30,210,741.09 $ 7,564,071.10 $ 37,774,812.19

$ 1,955,208.81 $ 63.488,312.02 $ 7,564,071.10 $ 71,052,383.12

-43-

KENNESAW STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT
CURREN! FUNDS
YEAR ENDED JUNE 30 1996
PERSONAL SERVICES
Slliaries and Wages Employe(s Contributions lor:
F.I.C.A. Retirement Group Insurance Liability Insurance Unemployment Compensation Insurance Workels' Compensation Insurance
OPERADNG EXPENSES
TIaIIIll Molar Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Eslate) Insurance and Bonding Tuition and Scholarships
College. WOfk-study Program Scholarships, Fellowships, Prizes, Awards and Other Other Operating Expenses Publications and Printing Equipment Non-Irwentory Computer Charges Software Real Eslate Rentals Telecommunications Per Diem, Fees and Contracts Per Oiem and Fees Contracts Equipment MoIorVehicie Purchases Irwentory
OTHER
EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND Other Costs Supplies and Materials Software Per Diem, Fees and Contracts Contracts Equipment Inventory
SPECIAL FUNDING INmATIVES Personal Services Salaries and Wages Employe(s Contributions for. F.I.C.A. Retirement Group Insurance
Other Costs Travel Supplies and Materials Other Expenses Publications and Printing Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Equipment Inventory

See accompanying notes and Independent Accountan(s Combined Report on Review of Financial Statements and Supplementary Information.

-44

RESIDENT INSTRUCTION

LOTTERY FOR EOUCATION

UNRESTRICTED AUXlUARY
ENTERPRISES

S 33,753,326.99
2,229,019.49 3,302,959.83 2,445,671.55
251,303.00 12,858.00
289283.00
S 42.284 421.86

s 825,583.72
51,944.04 78,108.28 86,279.18
S 1.021 893.20

S 478,468.23 25,794.43
2,837,350.89 304,985.19
1,100,854.53 109,530.86 41,857.15
820,183.44 432,240.00
13,524.89 581,547.42
347,890.70 67,178.47 279,827.55 709,422.18 801,478.28
808,432.89 203,438.98
112,847.00 2,858,832.34
S 12,309 083.18

S

25,802.71

3,197,18

187,012.86

30,859.29

22,482.35

12,312.35

748.88

412,587.78 4,021,800.73
38,420.81
5,859.08
385.21
19,848.87
17,889.08 3,535.38

10283,30 S 4,790 581.82

s 21,912.39
9,914.42
8,840.45
218848.54
S 257,313.80

s 90,500.55
8,153.84 7,881.58 8,091.28
s 112,427.01
1,938.38 3.119.87 S 1,492.34 3,897.00
400.00
3,754.29
9,437.55
s_,",13"8",2"8,4,.2~4~ S
S_,"1,"3"8"2,8,4=.2=4- S

7,988.95 75.00
130.822.05 138,884.00 3981n.80

S 54,729:749.08 S 3981n.80 S 5,812454.82

SCHEOULE"12"

STUDENT AcnYmES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

S 227,331.12 S 34,806,221.83 S 940,887.25 S 35,747,109.08

9,088.02 12,473.00 12,046.47

2,290,051.55 3,393,538.91 2,523,997.18
251,303.00 12,658.00
289,283,00

62,099.36 62,905.53 40,784.47

2,352,150.91 3,476,444.44 2,564,781.65
251,303.00 12,658.00
289283.00

S 260938.61 S 43,567.253.47 S 1.126,876.61 S 44,693,930.08

S

7,207,57 S 509,278.51 S

28,991.59

280,784.10 3,085,147,65

16,378.65

352,223.33

1,123,116.88

55,888.06

1n,709.27

42,403.83

49,978.58 S 216.06
87,191.72 3,838.00
7,541.33

559,257.09 29,207.65
3,172,339.37 356,061.33
1,123,116.88 165,250.60 42,403.83

140,722.55 56,021.39

820,183.44 844,827.76 4,175,846.17 653,989.62

42,347.16 5,620,430.74
163,784.17 21,742.71

862,510.60 6,465,256.50 4,339,632.34
675,732.33

8,414.88 1,960.95 9,617.78

361,964.84 67,178.47 282,173.71
709,422.18 630,940.91

16,716.05 19,457.96 9,291.01

376,660.89 67,178.47
301,631.67 709,422.18 640,231.92

173,720.24 57.75

798,022.21 207,032.09

. 88,537.06 34,773.00

884,559.27 241,805.09

25 696.91

112,847.00 2892,812.55

273.548.94

112,847.00 3.166,361.49

S n8469.01 S 17876093.81 S 6437394.49 S 24,313,488.30

S 21,912.39 9,914.42
6,640.45
218846.54
S 257,313.60

S 21,912.39 . 9,914.42
6,640.45
218,846.54
S 257,313.60

S 90,500.55
6,153.64 7,881.56 8,091.26
S 112,427.01
1,938.38 11,088.62
1,567.34 3,697.00
400.00
3,754.29
140259.60
S 275,128.24
S 532,442.04

S 90,500.55
6,153.84 7,881.56 8091.26
S 112,427.01
1,936.38 11,088.62
1,567.34 3,697.00
400.00
3,754.29
140,259.60
S 275,128.24
$ 532,442.04

S 1,037,407.62 $ 61,975,789.32 $ 7,564,071.10 $ 69,539,860.42

45

KENNESAW STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT
PLANT FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE "13"

CAPITAL OUTLAY
Per Diem, Fees and Contracts Per Diem and Fees Contracts
Equipment Inventory

UNEXPENDED

LOTTERY FOR

REGULAR

EDUCATION

TOTAL

$

32,200.00 $

457,100,69

76,007,00

180,000.00 $

212,200.00 457,100.69
76,007.00

$ 565,307.69 $ 180,000.00 $ 745,307.69

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 46-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

KENNESAW STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR
REVENUEIRECEIVABLESIRECEIPTS Student Accounts Receivable Not Supported by Financial Aid Financial Statements Audit Control Number 543-96-01
An examination ofstudent accounts receivable at June 30, 1996 revealed that $178,371.23 of receivables were not supported by approved financial aid. This condition occurred because of management's failure to obtain approved documentation to support financial aid before disbursement offunds. There is no provision in the policies of the Board of Regents for deferments of student accounts without the student having approved documentation of financial aid at the time of registration.
Collections ofstudent accounts receivable should be made on at least a quarterly basis, and no student should be granted a deferment without having approved financial aid. It is recommended that legal means be used to collect all accounts receivable, if necessary.