Review report, state of Georgia, Macon College, Macon, Georgia, year ended June 30, 1994

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A30o
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1993-94
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334 -

REVIEW REPORT STATE OF GEORGIA MACON COLLEGE MACON, GEORGIA YEAR ENDED JUNE 30, 1994

MACON COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALL FUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

ALL FUND GROUPS

4

C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

6

D NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

E COMBINING BALANCE SHEET

CURRENT FUNDS - UNRESTRICTED

19

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

20

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

21

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

22

2

LOTTERY FOR EDUCATION

24

3 SCHEDULE OF OPERATIONS

LOAN FUNDS

25

4 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

26

5 CASH AND CASH EQUIVALENTS

28

6 ACCOUNTS RECEIVABLE

29

7 CHANGES IN INVESTMENT IN PLANT

30

8 SCHEDULE OF FUND BALANCES

CURRENTFUNDSANDPLANTFUNDS

32

MACON COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

9 SCHEDULE OF REVENUES

CURRENT FUNDS

34

SCHEDULES OF EXPENDITURES BY OBJECT

10

CURRENT FUNDS

35

11

PLANT FUNDS

36

12 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

37

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
TAX RATIO (404) 656-0494

~epnrtment of ~uh-its
254 WASHINGTON STREET. S W. ROOM 214
J\tbmta, ~eor_gia 30334-8400
August 17, 1994

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

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe Board of Regents ofthe University System of Georgia
and Honorable S. Aaron Hyatt, President Macon College
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies a~d Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through D) of Macon College as of and for the year ended June 30, 1994, 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 Macon College.
A review consists principally of inquiries of College personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, with the exception of the matters described in the fourth, fifth and sixth paragraphs, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.
As 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.

94ARL-57X

As described in Note I 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.
As more fully discussed in Section II, Findings and Improper or Questioned Costs, material discrepancies were noted in the equipment inventory records of Macon College. Equipment inventory represents a significant portion of the College's investment in plant and we were unable to determine the effects these discrepancies may have on the financial statements.
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 I through 12) 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, fifth and sixth paragraphs, we are not aware of any material modifications which should be made thereto.
Respectfully submitted,
~/~
Claude L. Vickers State Auditor
CLV:jy 94ARL-57X

FINANCIAL STATEMENTS - 1-

MACON COLLEGE COMBINED BALANCE SHEET
All FUND GROUPS JUNE 30. 1994
ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Investment in Plant
Total Assets
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
Net Investment in Plant Restricted Unrestricted
Total Fund Balances
Total liabilities and Fund Balances

CURRENT FUNDS UNRESTRICTED RESTRICTED

$ 1,293,363.63 398,134.55 $ 222,602.90 253.34

318,294.70

$ 1,914,354.42 $ 318,294.70
============= =============

$ 305,993.95 $ 183,931.35
627,208.70
------------- -------------
$ 811,140.05 $ 305,993.95
------------- -------------
$ 12,300.75 $ 1,103,214.37
------------- -------------
$ 1,103,214.37 $ 12,300.75
------------- -------------
$ 1;914,354.42 $ 318,294.70
============= =============

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"

LOAN FUNDS

UNEXPENDED

PLANT FUNDS
RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$

1,016.60 $

7,261.92

0.00 $

192,558.86

$

$17,504,238.72

382,739.38 $1,869,678.47

315.50

724,006.67

222,602.90

253.34

17,504,238.72

$

8,278.52 $

0.00 $ 192,558.86 $17,504,238.72 $ 383,054.88 $20,320,780.10

============- =========-===

============= =-===========

$

2,410.31

27,036.30

$ 29,446.61

$ 308,404.26

$ 301,267.27

512,234.92

627,208.70

81,787.61

81,787.61

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

$ 383,054.88 $ 1,529,635.49
------------- -------------

$

8,278.52

$17,504,238.72

$ -29,446.61 $ 192,558.86
------------- ------------- ------------- -------------

$

8,278.52 $ -29,446.61 $ 192,558.86 $17,504,238.72

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

$

8,278.52

17,504,238.72

12,300.75

1,266,326.62

$18,791,144.61

$

8,278.52 $

0.00 $ 192,558.86 $17,504,238.72 $ 383,054.88 $20,320,780.10

- 3-

MACON COLLEGE
COMBINED STATEMENT OF CHANGES IN FUND BALANCES ALL FUND GROUPS
YEAR ENDED JUNE 30 1 1994

REVENUES AND OTHER ADDITIONS

CURRENT FUNDS UNRESTRICTED RESTRICTED

Unrestricted Current Fund Revenues State Appropriations - Lottery Proceeds Federal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Investment Income
Other Adjustments
Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided
Expended for Plant Facilities Current Funds
Plant Funds Unexpended Renewals and Replacements
Georgia State Financing and Investment Commission

$15,254,525.90 $ 2,328,294.79 314,750.59 132,910.04
3,708.02 845.01

Total Revenues and Other Additions

$15,259,078.93$ 2,775,955.42

EXPENDITURES AND OTHER DEDUCTIONS

Educational and General Expenditures Auxiliary Enterprises Expenditures Refunds to Granter 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 Administrative and Collection Costs
Expended for Plant Facilities Capitalized Non-Capitalized
Disposals/Deletions/Adjustments

$14,585,762.92 $ 2,783,969.43 341,953.57
9,569.36 878.32

Total Expenditures and Other Deductions

$14,938,164.17 $ 2,783,969.43

TRANSFERS BETWEEN FUNDS

Nonmandatory Renewals and Replacements

$ -77,637.00

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

$ 243,277.76$ 859,936.61

-8,014.01 20,314.76

FUND BALANCES JUNE 30, 1994

$ 1,103,214.37 $ 12,300.75
============= =============

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
- 4-

EXHIBIT "B"

PLANT FUNDS

------------------------------------------ TOTAL

LOAN

RENEWALS AND INVESTMENT (Memorandum

FUNDS

UNEXPENDED REPLACEMENTS

IN PLANT

Only)

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

$

0.00

$

0.00

$ 13,000.00

$15,254,525.90 13,000.00
2,328,294.79 314,750.59 132,910.04

30,954.38

30,954.38

3,708.02 845.01

$ 342,876.96

342,876.96

197,000.17

197,000.17

368,534.96

368,534.96

1, 985, 148. 12 1,985,148.12

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

$

0.00

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

$ 43,954.38
-------------

$ ----------0-.0--0

$ 2,893,560.21
-------------

$20,972,548.94
-------------

$

70.00

$17,369,732.35 341,953.57 70.00

$

1,595.01

11,164.37

87.50

-654.63

223.69 87.50

197,000.17 $ 368,534.96

565,535.13

1,286.80

1,286.80

$ 46,310.44

46,310.44

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

$

157.50 $ 199,227.35 $ 368,534.96 $ 46,310.44 $18,336,363.85

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

$ 77,637.00

$

0.00

$

-157.50 $ -155,272.97 $ -290,897.96 $ 2,847,249.77 $ 2,636,185.09

8,436.02

125,826.36

483,456.82 14,656,988.95 16,154,959.52

$ 8,278.52 $ -29,446.61 $ 192,558.86 $17,504,238.72 $18,791,144.61

- 5-

MACON 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 Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues

$ 9,892,448.00

$ 9,892,448.00

4,694,730.76

4,694,730.76

$ 2,336,602.61 2,336,602.61

314,010.98

314,010.98

133,355.84

133,355.84

11,516.13

11,516.13

399,976.13

399,976.13

255,854.88

255,854.88

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

$15,254,525.90 $ 2,783,969.43 $18,038,495.33

EXPENDITURES

Educational and General Instruction 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
Total Expenditures
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)

$ 8,101,321.46 $ 77,647.80 $ 8,178,969.26

1,206,944.07

471,172.59 1, 678,116. 66

923,789.54

14,796.73 938,586.27

2,323,950.27

67,386.42 2,391,336.69

1,503,428.83

1,503,428.83

526,328.75 2,152,965.89 2,679,294.64

127,931.22

127,931.22

101,322.93

101,322.93

112,475.10

112,475.10

224.32

224.32

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

$14,927,716.49 $ 2,783,969.43 $17,711,685.92
------------- ------------- -------------

Excess of Restricted Receipts over Transfers to Revenues
Transfers for Renewals and Replacements Prior Period Adjustments (Net) Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance Surplus
Total Other Transfers and Additions/(Deductions)

$ $ -77,637.00
3,674.71

-8,014.01 $ -8,014.01 -77,637.00 3,674.71

-9,569.36

-9,569.36

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

$-----8--3-,5-3--1-.6--5 $------8--,0-1-4--.0-1- $-----9--1-,5-4--5-.6--6

Net Increase/(Decrease) in Fund Balances

$ 243,277.76 $ -8,014.01 $ 235,263.75
============= ============= =============

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

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Macon College is one ofthirty-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 Macon 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. Macon College does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Macon College is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial 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 funa" 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-

MACON 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.
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 of institutional 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 of the fiscal period.
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 of encumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
- 8-

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING

Compensated absences represent obligations of the College relating to employees' rights to receive

compensation for future absences based upon services already rendered. This obligation relates only to vesting

accumulated leave in which payment is probable and can be reasonably estimated. The.compensated absences

liability of$386,145.63, salary-related fringe benefits liabilities of approximately $29,540.14, 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 of the 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 of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations 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 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.

CASH AND CASH EQUIVALENTS Cash cind Cash Equivalents consist of petty cash, demand deposits, certificates of deposit and temporary i'nvestments in authorized financial institutions.

- 9-

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTS RECEIVABLE Accounts receivable consist ofallotments due from the Board ofRegents of the University System of Georgia, 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 first-in, first-out method.
Inventories of goods for resale are valued at cost based on the first-in, first-out method.
PREPAID ITEMS Prepaid items are payments made to vendors in advance of the receipt of goods 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 of the data.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral 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 of the 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 of the State of Georgia.

- 10 -

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and 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) 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 of Regents ofthe 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 of the University System of Georgia.

COLLATERALIZATION OF DEPOSITS For purposes of analysis of custodial 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 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the College or by its agent in the College's name.

Category 2 - Amounts collateralized with securities (at market value) held by the 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

Carrying Amount

Bank Balances

Risk Categories

2

3

$ 15567442) $ 2)7464630 $ 35942780 $ 18)52)850 $===0"=0.,,.0

- 11 -

MACON 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 Equipment Library Books and Collections

$ 483,411.84
10,943,405.93
1,578,118.93 2,430,662.74 2,068,639.28

Total Investment in Plant NOTE 4: DEFERRED COMPENSATION PLAN

$ 17,504 238. 72

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 of their 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 of the State of Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor of the State ofGeorgia 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.

NOTES: RETIREMENTPLANS

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 retirement and survivors 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 of creditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the age of 55 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 of service 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 of age shall receive a benefit which is reduced by the lessor of 1/12 of7% for each month the member is below

- 12 -

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTES: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS PLAN DESCRIPTION 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.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The College's payroll for employees covered by TRS for the year ended June 30, 1994, was $7,304,947.20; total payroll was $9,105,254.50.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the College who are covered by TRS are required to pay 6% of their gross earnings to TRS. The College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994, the employer contribution rate was 11.81 % for covered employees. In addition, the College contributed 5.60% 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 made during fiscal year 1994 amounted to $1,358,195.78, of which $919,896.44 was made by the College and $438,299.34 was made by employees. These contributions represented 12.59% (College) and 6% (employees) of covered payroll.
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 standardized 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:
- 13 -

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTES: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS FUNDING STATUS AND PROGRESS

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 of the 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$919,896.44 was actuarially determined and represented .1812% 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.

State legislation requires that the employee contribute 6% and the employer contribute 4% of the participating employee's earnable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The College's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1994, was $1,021,105.65; total payroll was $9,105,254.50. The College and the covered employees made the required contributions of$40,844.31 (4%) and $61,266.28 (6%), respectively.

GEORGIA DEFINED CONTRIBUTION PLAN The State of Georgi~ provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Teachers Retirement 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

- 14 -

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTES: RETIREMENTPLANS
GEORGIA DEFINED CONTRIBUTION PLAN the employer. The College's payroll for employees covered by the Georgia Defined Benefit Plan for the year ended June 30, 1994, was $184,846.40; total payroll was $9,105,254.50. Total contributions from the covered employees of the College during fiscal year 1994 amounted to $13,863.76 (7. 5%). Amounts attributable 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 of Trustees, 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 of 65 with the option of receiving 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 funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994.
NOTE 6: 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.
NOTE 7: 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 Macon College (as a unit of the Board of Regents of the University System of Georgia), if any, 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 of purchased 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 of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994.

- 15 -

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXI-llBIT "D"

NOTE 8: BONDING INFORMATION

The President and all employees of Macon College are bonded under a Public Employees Blanket Bond written by the Employers Insurance of Wausau, their Bond No. 1450-00-110723, on which the premium has been paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures Macon 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 ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.

All employees of Macon 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 has been 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.

NOTE9: ENROLLMENT

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

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

3,077 2,891 2,623

Average

Summer School, 1993

- 16 -

SUPPLEMENTARY INFORMATION - 17 -

MACON COLLEGE COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED
JUNE 30, 1994

EXHIBIT "E"

ASSETS
Cash al)d Cash Equivalents Accounts Receivable Inventories Prepaid Items
Total Assets

RES ID ENT

AUXILIARY

STUDENT

INSTRUCTION ENTERPRISES ACTIVITIES

TOTAL

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

$ 565,460.22 $ 706,611.81 $ 21,291.60 $ 1,293,363.63

369,804.91

28,329.64

398,134.55

15,632.23 206,970.67

222,602.90

253.34

253.34

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

$ 951,150.70 $ 941,912.12 $ 21,291.60 $1,914,354.42
============= ============= =-=====--==== =============

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

$ 177,153.86 $ 6,777.49

$ 183,931.35

594,216.90

14,796.60 $ 18,195.20

627,208.70

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

$ 771,370.76 $ 21,574.09 $ 18,195.20 $ 811,140.05

179,779.94 920,338.03

3,096.40 1,103,214.37

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

Total Liabilities and Fund Balances$ 951,150.70 $ 941,912.12 $ 21,291.60 $ 1,914,354.42

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 19 -

MACON COLLEGE COMBINING STATEMENT OF CHANGES IN FUND BALANCE
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 1994

EXHIBIT "F"

RESIDENT INSTRUCTION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

REVENUES AND OTHER ADDITIONS

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

$14,601,400.71 $ 517,666.97 $ 135,458.22 $15,254,525.90

4,138.16 812.01

-948.00 10.00

517.86 23.00

3,708.02 845.01

Total Revenues and Other Additions $14,606,350.88 $ 516,728.97 $ 135,999.08 $15,259,078.93

EXPENDITURES AND OTHER DEDUCTIONS

Educational and General Expenditures

$14,446,050.60

Auxiliary Enterprises Expenditures

$

Remittance to the Board of Regents of the

University System of Georgia

Prior Year's Unrestricted Fund Balance

Surplus

9,569.36

Adjustments

Prior Years' Revenues/Accounts Receivable

156.00

$ 341,953.57
589.32

139,712.32 $14,585,762.92 341,953.57

133.00

9,569.36 878.32

Total Expenditures and Other Deductions

$14,455,775.96 $ 342,542.89 $ 139,845.32 $14,938,164.17

TRANSFERS BETWEEN FUNDS

Nonmandatory Renewals and Replacements
Net Increase/(Decrease) for the Year
FUND BALANCES JULY 1, 1993

$ -77 ,637. 00
-------------

$ -77,637.00
-------------

$ 150,574.92 $ 96,549.08 $ -3,846.24 $ 243,277.76

29,205.02 823,788.95

6,942.64 859,936.61

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

FUND BALANCES JUNE 30, 1994

$ 179,779.94 $ 920,338.03 $ 3,096.40$ 1,103,214.37
============= ============= ============= =============

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

MACON COLLEGE COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES UNRESTRICTED
YEAR ENDED JUNE 30, 1994

EXHIBIT "G"

RESIDENT INSTRUCTION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

REVENUES

State Appropriations

$ 9,892,448.00

Tuition and Fees

4,471,944.86 $

Sales and Services of Educational Activities

11,516.13

Sales and Services of Auxiliary Enterprises

Other Sources

225,491.72

96,871.00 $
399,976.13 20,819.84

$ 9,892,448.00

125,914.90 4,694,730.76

11,516.13

399,976.13

9,543.32

255,854.88

Total Revenues

$14,601,400.71 $ 517,666.97$ 135,458.22 $15,254,525.90

EXPENDITURES

Educational and General Instruction 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

$ 8,101,321.46 1,206,944.07 923,789.54 2,184,237.95 1,503,428.83 526,328.75
$

$
127,931.22 101,322.93 112,475.10
224.32

$ 8,101,321.46 1,206,944.07 923,789.54
139,712.32 2,323,950.27 1,503,428.83 526,328.75
127,931.22 101,322.93 112,475.10
224.32

Total Expenditures

$14,446,050.60$ 341,953.57 $ 139,712.32 $14,927,716.49

OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)

Transfers for Renewals and Replacements

Prior Period Adjustments (Net)

$

Remittances to the Board of Regents of the

University System of Georgia

Prior Year's Unrestricted Fund Balance

Surplus

$ -77,637.00

4,794.17

-1,527.32 $

-9,569.36

$ -77,637.00

407.86

3,674.71

-9,569.36

Total Other Transfers and Additions/(Deductions)

$ -4,775.19 $ -79,164.32 $

407.86 $ -83,531.65

Net Increase/(Decrease) in Fund Balances

$ 150,574.92 $ 96,549.08 $ -3,846.24 $ 243,277.76

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

MACON 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

$ 9,892,448.00

4,708,952.71 $ 2,783,969.43 $ 30,954.38 $

0.00

$14,601,400.71 $ 2,783,969.43 $ 30,954.38 $

0.00

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

EXPENDITURES
------------

Personal Services: Education, Genera 1 and Departmental Services
Sponsored Operations Operating Expenses:
Education, General and Departmental Services Sponsored Operations Capital Outlay Special Funding Initiative

$11,048,300.18 $ 316,943.70

3,138,753.42 258,997.00
-------------

2,467,025.73 $ 185,286.97 $ 368,534.96
------------- ------------ ------------

$14,446,050.60$ 2,783,969.43 $ 185,286.97 $ 368,534.96

Excess of Revenues over Expenditures

$ 155,350.11 $

0.00 $ -154,332.59 $ -368,534.96

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

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

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

SCHEDULE "1"

TOTAL

ADJUSTMENTS (1)

TOTAL (Budget Basis)

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 9,B92,448.00

$ 9,892,448.00 $ 9,892,448.00 $

0.00

7,523,876.52 $ -157,793.79 7,366,082.73 7,793,376.00 -427,293.27

$17,416,324.52 $ -157,793.79 $17,258,530.73 $17,685,824.00 $ -427,293.27

$11,048,300.18 316,943.70

$ 11,048,300.18 $11,155,139.00 $ 106,838.82

316,943.70

357,217.00

40,273.30

3,138,753.42 $ -526,328.75 2,467,025.73
553,821.93 258,997.00
------------- -------------

2,612,424.67 2,467,025.73
553, B21. 93 258,997.00
--------------

2,739,948.00 2,616,500.00
558,023.00 258,997.00
-------------

127,523.33 149,474.27
4,201.07 0.00
-------------

$17,783,841.96 $ -526,328.75 $17,257,513.21 $17,685,824.00 $ 428,310.79

$ -367,517.44 $ 368,534.96$

1,017.52

============= ============= ======:=======

$

1,017.52

- 23 -

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

SCHEDULE "2"

REVENUES State Appropriations

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

BUDGET

VARIANCE -
FAVORABLE (UNFAVORABLE)

$ 13,000.00 $ 13,000.00 $

0.00

EXPENDITURES Distant Learning - Satellite Dishes

$ 13,000.00 $ 13,000.00 $

0.00

Excess of Revenues over Expenditures

$

0.00 $

$

0.00

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

MACON 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

FUND BALANCE JULY 1, 1993

ADDITIONS

FUND BALANCE DEDUCTIONS JUNE 30, 1994

$

3,106.60 $

5,329.42

$

8,436.02 $

0.00 $ 0.00 $

70.00 $ 87.50

3,036.60 5,241.92

157.50 $ 8,278.52

RECONCILIATION OF STUDENT NOTES RECEIVABLE Balance July 1, 1993 Deduct: Repayment of Loans
Balance June 30, 1994

$

7,261.92

0.00

$

7,261.92

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

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

SCHEDULE "4" Page 1

BALANCE

BALANCE

FUND

JULY 1, 1993

RECEIPTS

DISBURSEMEN~S JUNE 30, 1994

PAYROLL DEDUCTIONS

F.I.C.A. Federal Income Tax State Income Tax Retirement Group Insurance Garnishments Bibb Teachers Credit Union Georgia Defined Contribution Tax Deferred Annuities Macon College Foundation Miscellaneous

$

-233.08 $ 645,611.16 $ 645,398.51 $

-20.43

-283.47

966,500.98

966,303.51

-86.00

333,260.15

333,294.15

-34.00

499,381.70

417,689.84

81,691.86

5,072.51

130,582.74

124,522.56

11,132.69

15,240.89

14,154.93

1,085.96

190,684.50

190,684.50

13,863.76

13,801.32

62.44

19,366.82

452,831.46

429,499.19

42,699.09

1,974.00

1,795.50

178.50

14,529.97

12,356.51

2,173.46

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

$ 23,922.78$ 3,264,461.31 $3,149,500.52$ 138,883.57

EMPLOYER'S CONTRIBUTIONS

F.1.C.A. Retirement Group Insurance
OTHER FUNDS

$

-233.09 $ 645,611.17 $ 645,398.51 $

-20.43

960,379.77

804,634.25

155,745.52

67,161.38

923,323.25

983,986.88

6,497.75

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

$ 66,928.29 $ 2,529,314.19 $ 2,434,019.64 $ 162,222.84
------------- ------------- ------------- -------------

Academic Bowl

$

Academic Regalia

Application for Degree

Black Student Unification

Cheerleaders

Chief Business Officers

Civitan Club - Circle K

Dean's Conference

Departmental Federal Assistance Financing

System

Economic and Business Service

Georgia Association - Junior Colleges

Georgia History Day

Georgia Nursing Association

Honor Student Association

Impromptu Players

Junior American Dental Hygiene Association

Macon College Singers

Math Olympics

443. 77 $
3,315.01
24.42
9,001.94 405.47

195.00 1,085.05 10,696.94 $
1,215.84 1,800.00
3,714.11

$
7,750.11
606.61 5,587.63

280.00 8,078.86 1,086.94 1,149.11
159.28
333 .18 879.20
85.69

1,914,125.00 2,020.77 7,850.09 98.00 3,449.05 562.57

1,914,125.00
2,590.50 563.72
8,539.08
3,526.98 313.34 648.26

638. 77 1,085.05 6,261.84
24.42 609.23 5,214.31 405.47 3,714.11
280.00 7,509.13
523.22 460.12 159.28
98.00 255.25 565.86

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

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

SCHEDULE "4" Page 2

FUND
OTHER FUNDS
-----------
Middle Georgia Area Teachers' Educational Service
Minority Advisor Program Conference Moms on the Move Music Account National League of Nursing Nursing Liability Insurance Nursing Pin Account Nursing Service Pandora's Box Phi Beta Lambda Phi Theta Kappa Pre-Med Club Public Service Activity Fee Scholarships and Grants
Regents' Scholarship Fund Other Scholarships (List on Fi le) Scholastic Aptitude Test Six Flags Tickets Spanish Club Speech and Debate Team Student Government Association Vocational Inventory Fees

BALANCE

BALANCE

J-U-L-Y---1-'--1-9-9-3-

RECEIPTS
-------------

DISBURSEMENTS
-------------

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

$

3,970.90 $

-743.67 $

1,592.03 $

1,635.20

2,001.38

100.00

2,101.38

124.54

50.00

74.54

71. 98

522.00

593.98

1,767.55

6,240.00

2,326.00

5,681.55

5,190.00

5,190.00

1,021.39

5,435.12

3,566.91

2,889.60

394.87

394.87

44.65

44.65

263.60

150.00

113. 60

163.74

2,712.66

2,281.53

594.87

60.11

14.00

60.75

13.36

5,829.99

19,745.32

18,012.82

7,562.49

16,905.79 5,459.07 5,421.70 295.99 454.00 120.80 1,205.27
-------------

6,200.00 112,012.63
5,580.00 3,798.06
398.73 886.99
42.00 360.00
-------------

5,400.00 106,492.75
6,065.00 7,731.76
573.63 749.07
-------------

800.00 22,425.67
4,974.07 1,488.00
121.09 591. 92 162.80 1,565.27
-------------

$ 70,511.94 $ 2,115,614.51 $ 2,104,493.48 $ 81,632.97
------------- ------------- ------------- -------------

$ 161,363.01 $ 7,909,390.01 $7,688,013.64$ 382,739.38

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

MACON COLLEGE CASH AND CASH EQUIVALENTS
JUNE 30. 1994
NONINTEREST BEARING ACCOUNTS
Trust Company Bank of Middle Georgia, Macon, Georgia
INTEREST BEARING ACCOUNTS
CB&T Bank of Middle Georgia, Warner Robins, Georgia
Certificate of Deposit (3.45%)
First Union National Bank, Atlanta, Georgia
Certificate of Dep?sit (3.10%) NationsBank of Georgia, Macon, Georgia
Certificate of Deposit (3.55%) Trust Company Bank of Middle Georgia, Macon, Georgia
N.O.W. Account (2.03%)
OTHER
Cash on Hand Petty Cash

SCHEDULE "5"

$

1,500.00

$

55,283.80

59,349.68 150,791.30 1,289,819.43 1,555,244.21

4,530.00
$1,561,274.21
=============

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

MACON COLLEGE ACCOUNTS RECEIVABLE
JUNE 30, 1994

SCHEDULE "6"

State Appropriations Allotment from the Board of Regents of the University System of Georgia
Federal Grants and Contracts Research and Instruction Student Aid
State Grants and Contracts Research and Instruction
Private Gifts, Grants, and Contracts Research and Instruction
Other Returned Checks Student Accounts Student Notes Vendor Credit Memos Overpayments Payroll Deductions Scholarships

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

AGENCY FUNDS

TOTAL

$ 300,000.00

$ 68,376.07 168,746.00

3,945.00

77,227.63

7,853.51 72,479.00
17,802.04

$ 7,261.92 $

$ 300,000.00

68,376.07 168,746.00

3,945.00

77,227.63

160.86 154.64

7,853.51 72,479.00 7,261.92 17,802.04
160.86 154.64

$ 398,134.55$ 318,294.70 $ 7,261.92 $

315.50 $ 724,006.67

------------- ------------- ------------- ----=-=--==== =---=--=---==

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 29 -

MACON 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 ----------------------------

J-U-L-Y---1-'--1-9-9-3-

UNRESTRICTED
-------------

RESTRICTED
-------------

$ 439,707.17

8,423,747.85

1,526,149.38

2,312, 611. 63 $ 182,124.58 $ 46,886.02

1,954,772.92

113,866.36

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

$14,656,988.95 $ 295,990.94 $ 46,886.02

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

SCHEDULE "7"

ADDITIONS

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

PLANT FUNDS

GEORGIA STATE

FINANCING AND

RENEWALS AND INVESTMENT

UNEXPENDED REPLACEMENTS COMMISSION

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

BALANCE JUNE 30, 1994

$ 43,704.67

$ 483,411.84

86,231.00 $ 368,534.96 $ 1,985,148.12 $ -79,744.00 10,943,405.93

51,969.55

1,578,118.93

15,094.95

126,054.44 2,430,662.74

2,068,639.28

$ 197,000.17 $ 368,534.96 $1,985,148.12 $ 46,310.44 $17,504,238.72

- 31 -

MACON COLLEGE SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30, 1994

NET INVESTMENT IN PLANT
Investment in Plant Facilities
RESTRICTED
Designated for Subsequent Years' Expenditures
UNRESTRICTED
Designated For Bibb County Construction Fund 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

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

$ -13,752.86

$ 13,112.39

206,970.67

4,121.80

726,681.64 $ 438.58

3,096.40

162,545.75 $ 179,779.94 $ 920,338.03 $ 3,096.40

$ 179,779.94 $ 920,338.03 $ 3,096.40

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

SCHEDULE "8"

RESTRICTED

PLANT FUNDS

UNEXPENDED

REGULAR

LOTTERY FOR RENEWALS AND EDUCATION REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$17,504,238.72 $17,504,238.72

$ 12,300.75

$ 12,300.75

$ 124,885.98

$ 192,558.86

$ 124,885.98 -13,752.86 220,083.06 192,558.86 729,778.04 4,560.38

-154,332.59

$

0.00

$ -29,446.61 $

0.00 $ 192,558.86

---------' ---- ------------- -------------

8,213.16 0.00
$1,266,326.62

$ 12,300.75 $ -29,446.61 $

0.00 $ 192,558.86 $17,504,238.72 $18,782,866.09

============= ===----===--- ============= ============= =============

- 33 -

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

SCHEDULE "9"

UNRESTRICTED

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

RESIDENT

AUXILIARY STUDENT

INSTRUCTION ENTERPRISES ACTIVITIES

TOTAL

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

RESTRICTED
-------------
RESIDENT
INSTRUCTION
-------------

TOTAL
-------------

State Appropriations Allotments from the Board of Regents of the University System of Georgia Regular Special Funding Initiative

$ 9,633,451.00
258,997.00
-------------

$ 9,892,448.00
-------------

$ 9,633,451.00 258,997.00
-------------
$ 9,892,448.00
-------------

$ 9,633,451.00 258,997.00
-------------
$ 9,892,448.00
-------------

Other Revenues Retained Tuition and Fees Matriculation Other

$ 3,916,395.91

$ 3,916,395.91

555,548.95 $ 96,871.00$ 125,914.90 778,334.85

$ 3,916,395.91 778,334.85

Federal Grants and Contracts Research and Instruction Student Aid

$ 428,355.72 428,355.72 1,908,246.89 1,908,246.89

State Grants and Contracts Research and Instruction Student Aid

69,291.98 244,719.00

69,291.98 244,719.00

Private Gifts, Grants, and Contracts Research and Instruction

133,355.84 133,355.84

Sales and Services of Educational Activities

11,516.13

11,516.13

11,516.13

Sales and Services of Auxiliary Enterprises

399,976.13

399,976.13

399,976.13

Other Sources Adninistrative Cost Allowances Athletic Sales Cash Over-Short Extension and Public Service Interest Earned Rents Other

14,837.00
-1,461.15 197,345.64
35.00 14,735.23
-------------

1,843.66 -394.76
5,338.79
14,032.15
-----------

9,543.32
-----------

14,837.00 1,843.66 -1,855.91 197,345.64 5,338.79
35.00 38,310.70
-------------

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

14,837.00 1,843.66 -1,855.91 197,345.64 5,338.79
35.00 38,310.70
-------------

$ 4,708,952.71 $ 517,666.97 $135,458.22 $ 5,362,077.90 $ 2,783,969.43 $ 8,146,047.33

$14,601,400.71 $517,666.97 $135,458.22 $15,254,525.90 $ 2,783,969.43 $18,038,495.33
============= =========== ====--===-- =---==---==-- =---==--===-- ---==---==--=
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 34 -

MACON COLLEGE SCHEDULE OF EXPENDITURES BY OBJECT
CURRENT FUNDS
YEAR ENDED JUNE 30, 1994

SCHEDULE "10"

UNRESTRICTED RESIDENT AUXILIARY STUDENT INSTRUCTION ENTERPRISES ACTIVITIES

TOTAL

RESTRICTED RESIDENT INSTRUCTION

TOTAL

PERSONAL SERVICES

Salaries and Wages Employer's Contributions for:
F.I.C.A. Group Insurance Retirement Liability Insurance Unemployment Compensation
Insurance Workers' Compensation
Insurance Drug Testing

$ 8,511,148.19 $142,580.10$

600,687.60 905,539.68 896,256.71 39,585.00

10,336.52 24,712.10 12,949.98

3,678.00

90,530.00 875.00

350.00 $ 8,654,078.29 $ 7.98 611,032.10 930,251.78 909,206.69 39,585.00 3,678.00 90,530.00 875.00

242,393.27 $ 8,896,471.56

18,465.07 28,378.65 27,706.71

629,497.17 958,630.43 936,913.40 39,585.00

3,678.00

90,530.00 875.00

OPERATING EXPENSES
------------------
Travel Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bondinfi Tuition and Scholars ips
1 College Work-Stud Pro$ram
Scholarships, Fel owsh1~s, Prizes, Awards and Ot er
Other Operating Expenses Publications and Printing Equipment Purchases
Non-Inventory Computer Charges Software Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts Equipment Purchases Inventory

$11,048,300.18
-------------

$190,578.70
-----------

$ 357.98
-----------

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

$-1-1-,5--5-6-,1--8-0-.5--6

$ 103,035.66 $ 841.34

$ 103,877.00$

28,145.76

701.57

28,847.33

497,839.94 31,866.34 $ 36,058.88 565,765.16

135,029.98 3,645.55

138,675.53

443,301.61 11,049.84

454,351.45

21,601.04

134.56

896. 03

22,631.63

13,667.32

340.68

14,008.00

5,980.40$ 9,583.51

109,857.40 28,847.33 575,348.67 138,675.53 454,351.45 22,631.63 14,008.00

18,964.58

18,964.58

56,886.42

75,851.00

526,328.75 136,689.03 249,655.02

53,616.11 38,244.07
3.51

51,312.06 13,319.14

579,944.86 2,152,965.89 2,732,910.75

226,245.16

42,050.21 268,295.37

262,977.67

2,128.13 265,105.80

200,101.90 11,468.00 13,621.70 189,500.04 118,461.14

224.41 2,332.97

200,326.31 11,468.00 13,621.70 189,500.04 120,794.11

73,332.32 10,015.24

273,658.63 11,468.00 13,621.70 189,500.04 130,809.35

135,351.01

8,373.92 29,768.23 8,000.00

173,493.16 8,000.00

67,197.59

240,690.75 8,000.00

----2-9-5-,-9-9-0-.9-4-

-----------

---- .------

295,990.94
-------------

46,886.02
-------------

----3-4-2-,8--7-6-.9--6

$ 3,138,753.42 $151,374.87 $139,354.34 $ 3,429,482.63 $ 2,467,025.73 $ 5,896,508.36

OTHER

SPECIAL FUNDING INITIATIVE

Personal Services

Salaries and Wages

$

Employer's Contributions for:

F. I.C.A.

Group Insurance

Retirement

208,782.94 16,018.72 11,361.44 22,833.90

$ 258,997.00

$ 208,782.94 16,018.72 11,361.44 22,833.90
------------$----2-5-8-,9--9-7-.0-0-

$ 208,782.94
16,018.72 11,361.44
-----2-2-,8--3-3-.9--0 $----2-5-8-,9--9-7-.0-0-

$14,446,050.60$ 341,953.57 $139,712.32 $14,927,716.49 $ 2,783,969.43 $17,711,685.92
====-======== ========-== ==--==--=== ============= ============= =============

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

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

SCHEDULE "11"

CAPITAL OUTLAY
--------------
Supplies and Materials Other Expenses Per Diem, Fees and Contracts
Contracts Equipment Purchases
Inventory
OTHER
DISTANT LEARNING - SATELLITE DISHES Other Costs Equipment Purchases Non-Inventory Equipment Purchases Inventory

UNEXPENDED

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

REGULAR

LOTTERY FOR EDUCATION

RENEWALS AND
REPLACEMENTS
------------AUXILIARY

TOTAL

$ 4,231.00 10,654.55
167,019.67
3,381.75
-------------
$ 185,286.97
-------------

$ 4,231.00

$

645.00

11,299.55

367,889.96

534,909.63

3,381.75
------------- -------------

$ 368,534.96 $ 553,821.93
------------- -------------

$ 1,286.80 11,713.20
-------------
$ 13,000.00
-------------

$ 1,286.80
11,713.20
-------------
$ 13,000.00
-------------

$ 185,286.97 $ 13,000.00$ 368,534.96 $ 566,821.93

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

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

SCHEDULE "12"

Totals per Annual Supplement
Adjustments Shared Services on Jointly Staffed Personnel DeKalb College Devine, Flora B.
Georgia College Kish, Cheryl Pope
Middle Georgia College Davis, Steven M.
University of Georgia Cunard, Linda P. Stirewalt, Larry K.
Unidentified Variance

SALARIES
AND WAGES

TRAVEL

$ 9,109,713.81 $ 109,857.40

300.00
175.00
-1,200.00
-6,396.00 -6,396.00 9,057.69

Totals per Report

$ 9,105,254.50 $ 109,857.40

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

$ 8,511,148.19 $ 208,782.94 142,580.10 350.00

103,035.66 841.34

242,393.27

5,980.40

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

$ 9,105,254.50 $ 109,857.40

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

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

MACON COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
FOR YEAR ENDED JUNE 30, 1994

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status offindings disclosed in the review report for the year ended June 30, 1993, is summarized below:

Audit Control Number

Status of Finding

581-93-01 581-93-02 581-93-03 581-93-04 581-93-05

No Corrective Action Implemented See Audit Control Number 581-94-01 Corrective Action Implemented See Audit Control Number 581-94-02 See Audit Control Number 581-94-03

PRIOR YEAR/CURRENT YEAR

GENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements Inadequate Equipment Inventory Records Audit Control Number 581-94-01

The review report for the year ended June 30, 1993, noted that an equipment inventory sample of randomly selected items disclosed deficiencies in Macon College's equipment inventory records. For the year under review, an equipment inventory sample of 30 randomly selected items was utilized to test the accuracy and validity of the equipment inventory records. The result of our testing procedures disclosed the following exceptions:

(1) Eight equipment items located on site were deleted from the inventory records during the year under review.

(2) Fiscal year 1992 purchases of $475,488.10 were recorded on the equipment subsidiary records as a lump sum amount.

(3) A portion of fiscal year 1993 purchases in the amount of$197,621.19 were not added to the equipment subsidiary records.

(4) Fiscal year 1994 purchases of$244,105.?5 were not added to the equipment subsidiary records.

It should be noted that the College was able to provide lists of the above fiscal years 1992, 1993 and 1994 purchases not on the equipment subsidiary records. However, no decal or serial numbers were shown.

The College should establish appropriate procedures to strengthen internal accounting controls and to ensure that assets are safeguarded against loss from unauthorized use or disposition.

MACON COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
FOR YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements Inadequate Equipment Inventory Records Audit Control Number 581-94-01
As a result of the discrepancies identified above, we were unable to determine the validity of the total equipment inventory balance, which represents a significant portion of the College's Investment in Plant.
GENERAL LEDGER Detail Listing of Salaries Not Reconciled Financial Statements Audit Control Number 581-94-02
The review report for the year ended June 30, 1993, reported that Macon College did not reconcile the detail listing of salary payments made to employees to the general ledger. During the year under review, it was again noted that the detail listing of salary payments made to employees as submitted by Macon College to the Georgia Department of Audits was not reconciled to the College's general ledger. An unidentified variance of $9,057.69 is reflected on Schedule "12" of this report.
The College should follow established procedures to ensure that the detail listing of salaries and wages 1s reconciled to the accounting records prior to submission to the Georgia Department of Audits.
AUDIT DISTRIBUTION Report Not Submitted to Granter Agency Federal Financial Assistance Promotion ofthe Humanities - State Programs (CFDA 45.129) Black History Month (CFDA 45.0FA) Audit Control Number 581-94-03
The review report for the year ended June 30, 1993, reported that Macon College failed to submit a copy of the fiscal year 1992 review report to the Georgia Humanities Council which provided Federal financial assistance to the College. Our review of the financial statements of Macon College, an organizational unit of the State of Georgia reporting entity, is conducted in conjunction with the Statewide Single Audit of the State of Georgia. During the year under review, the fiscal year 1992 review report was submitted; however, the fiscal year 1993 review report was not submitted to the Georgia Humanities Council as required.
The College should ensure that reports are submitted to granter agencies in accordance with report distribution requirements.

MACON COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
FOR YEAR ENDED JUNE 30, 1994
CURRENT YEAR
FUND BALANCE Deficit to be Funded from Subsequent Years' Operations Financial Statements Audit Control Number 581-94-04
At June 30, 1994, Intercollegiate Athletics had a deficit fund balance of $13,752.86. This deficit has a direct relation to the lack of sufficient funds to meet obligations on a current basis. The Board of Regents' Policy Manual, Section 702.02 states that auxiliary enterprises "shall be placed on a self-supporting basis, and the State willnot make an appropriation to finance its operations". The College should budget and provide for adequate_ funds to cover this deficit.