Review report, state of Georgia, Macon College, Macon, Georgia, year ended June 30, 1995

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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, 1995

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

20

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

21

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

23

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

24

2

LOTTERY FOR EDUCATION

26

3 SCHEDULE OF OPERATIONS

LOAN FUNDS

27

4 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

28

5 CASH AND CASH EQUIVALENTS

30

6 ACCOUNTS RECEIVABLE

31

7 CHANGES IN INVESTMENT IN PLANT

32

8 SCHEDULE OF FUND BALANCES

CURRENTFUNDSANDPLANTFUNDS

34

MACON COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

9 SCHEDULEOFREVENUES

CURRENT FUNDS

36

SCHEDULES OF EXPENDITURES BY OBJECT

10

CURRENT FUNDS

38

11

PLANT FUNDS

40

12 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

41

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
September 13, 1995

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe Board ofRegents ofthe University System ofGeorgia
and Honorable S. Aaron Hyatt, President Macon College
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through D) ofMacon College as of and for the year ended June 30, 1995, 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 ofMacon 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 ofthe matters described in the fourth, fiah, and sixth 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 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.

95ARL-69

As discussed in Note 1 to the financial statements, the College did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles. Ifcompensated absences were reported, liabilities would be increased and fund balance would be decreased by $423,928.26 as ofJune 30, 1995, and the net change in fund balance for the year ended June 30, 1995, would be decreased by $8,242.49.
As more fully discussed in Section II, Findings and Improper or Questioned Costs, material discrepancies were noted in the equipment inventory records ofMacon College. Equipment inventory represents a significant portion ofthe College's investment in plant. 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 1 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:gp 95ARL-69

FINANCIAL STATEMENTS - 1-

MACON COLLEGE COMBINED BALANCE SHEET
ALL FUND GROUPS JUNE 30 1995

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

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

LOAN FUNDS

$

863,866.23 $

750,000.00 $

150,953.11

894,416.88

213,996.74

2,529.34

858,878.66

1,016.60 7,261.92

Total Assets

$

2,090,224.08 $

1,644,416.88 $

8,278.52

LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Deferred Revenue Tuition and Fees Deposits Held in Custody for Others Due to Other Fund Groups
Total Liabilities
Fund Balances U. S. Government Grants Refundable Net Investment in Plant Restricted Unrestricted
Total Fund Balances

$

503,246.87

530,109.28

$

$

1 033,356.15 $

$

$

1056867.93

$

1 056,867.93 $

858,878.66 858,878.66
$ 785,538.22
785 538.22 $

8,278.52 8,278.52

Total Liabilities and Fund Balances

$

2,090,224.08 $

1,644,416.88 $

8,278.52

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

EXHIBIT"A"

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$

329,661.48 $

268,529.81

$

244,382.12 $ 2,457,456.24

34,498.82

2,653.45

1,089,784.18

213,996.74

2,529.34

858,878.66

$ 23 370,406.63

23,370,406.63

$

364,160.30 $

268,529.81 $ 23,370,406.63 $

247,035.57 $ 27,993,051.79

$

235,578.89

$

235 578.89

$

141,230.88 $

880,056.64

105,804.69

530,109.28 105,804.69 858,878.66

$

247 035.57 $ 2,374,849.27

$ 23,370,406.63

$

128,581.41 $

268,529.81

$

128,581.41 $

268,529.81 $ 23 370 406.63

$

8,278.52

23,370,406.63

785,538.22

1,453,979.15

$ 25,618,202.52

$

364,160.30 $

268,529.81 $ 23,370,406.63 $

247,035.57 $ 27,993,051.79

"3"

MACON COLLEGE
COMBINED STATEMENT OF CHANGES IN FUND BAI ANCES
ALL FUND GROUPS YEAR ENPEP JUNE 30 1995

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues State Appropriations
Regular Federal Grants and Contracts State Grants and Contrac:1s Private Gifts, Grants, and Contracts Investment income
Other Adjustments
Prior Years' Expendttures/Accounts Payable FLllded by the Board of Regents of the
University System of Georgia Prior Yeafs Unrestricted Fund Balance (Deficit)
Expended for Plant Facilities Current Funds Plant Funds Unexpended Georgia State Financing and Investment Commission
Other Additions Insurance Recoveries
Total Revenues and other Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expendttures Auxiliary Enterprises Expendttures Indirect Costs Recovered Refunded to Granters Remittances to the Board of Regents of the
University System of Georgia Prior Yeafs Unrestricted Fund Balance (Surplus)
Expended for Plant Faciltties C&pttalized Noncapttalized
Total Expendttures and other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements Capttai Projects
Total Transfers Between Funds
Net increase/(Decrease) for the Year
FUND BALANCES JULY 1 1994

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

LOAN FUNDS

16,492,831.91

$

0.00

2,854,492.08 838,199.72 426,214.57

6,134.07

$ 16,498,965.98 $

4 118,906.37 $

0.00

$ 15,872,302.73 $

3,324,144.94 $

0.00

367,792.25

21,280.00

243.96

162,545.75

$ 16,402,640.73 $

3 345,668.90 $

0.00

$

-75,234.69

-67,437.00

$

-142,671.69

$

-46,346.44 $

1,103,214.37

TT3,237.47 $ 12,300.75

0.00 8,278.52

FUND BALANCES JUNE 30 1995

$

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.

1,056867.93 $

785,538.22 $

8,278.52

EXHIBIT"B"

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

$

475,000.00

21,009.12 $

154,332.59

8,144.07 858,485.78 $

736.26

$ 16,492,831.91
475,000.00 2,854,492.08
838,199.72 426,214.57
21,745.38
6,134.07

$ 736.26 $

774,938.26 566,799.80 4,524,429.85
5,866,167.91 $

154,332.59 774,938.26 566,799.80 4,524,429.85
8,144.07 27,143,262.30

$

$

566,799.80

1,094.96

567,894.76 $

0.00 $ 0.00 $

0.00 $

19,196,447.67 367,792.25 21,280.00 243.96

0.00 $

162,545.75
566,799.80 1,094.96
20,316,204.39

$

75,234.69

0.00

$

67,437.00

0.00

$

67,437.00 $

75,234.69

$

0.00

$

158,028.02 $

75,970.95 $

5,866,167.91 $

6,827,057.91

29,446.61

192,558.86

17,504,238.72

18,791,144.61

128,581.41 $

268529.81 $ 23,370 406.63 $ 25,618,202.52

. 5.

MACON COLLEGE STATEMENT OF CURRENT FUNDS REVENUES EXPENDITURES
AND OTHER CHANGES YEAR ENDED JUNE 30 1995

EXHIBIT"C"

~
s - Appropriations
Tuition and Fees Federal Grants and Contracts S - Grants and Contracts Priva1B Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues
EXPENDITURES
Educational and General Instruction Academic Support Student Sarvices 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)
Excess of Restricted Receipts over Transfers to Revenues Refunded to Grantors Transfers for Renewals and Replacements
Transfers for Capital Projects Prior Period Adjustments (Net)
Remittances to the Board of Regents of the University System of Georgia
Prier Yea~s Unrestricted Fund Balance (Surplus)
Total Other Transfers and Additions/(Deductions)

UNRESTRICTED

RESTRICTED

TOTAL (Memorandum
Onll'.)

$ 11,516,479.00 4,148,486.15 15,832.00 $
5,448.00 12,067.71 522,289.12 272,229.93
$ 16,492,831.91 $

$ 2,340,627.79
838,199.72 145,117.43
3,324,144.94 $

11,516,479.00 4,148,486.15 2,356,659.79 838,199.72 150,565.43 12,067.71 522,289.12 272,229.93
19,816,976.B5

$

8,714,050.49 $

1,396,492.50

1,135,796.99

2,511,623.52

1,775,139.23

339,200.00

146,568.02 105,073.46 115,886.92
263.B5

$ 16,240,094.98 $

124,438.12 $ 765,076.96 60,437.39 63,595.00 2,310,597.47
3,324,144.94 $

8,838,488.61 2,161,569.46 1, 196,234.38 2,575,218.52 1,775,139.23 2,649,797.47
146,568.02 105,073.46 115,886.92
263.B5
19,564,239.92

$

$

-75,234.69

-s-7,437.00

6,134.07

-162,545.75

$

-299,083.37 $

773,481.43 -243.96
773,237.47 $

773,481.43 -243.96
-75,234.69 -s-7,437.00
6,134.07
-162,545.75
474,154.10

Net lncrease/(Decrease) in Fund Balances

$

-46,346.44 $

773,237.47 $

726,891.03

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 1995

EXIIlBIT "D"

NOTE I: 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 ofMacon 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.
Fund groups and funds presented in the accompanying financial statements are as follows:
CURRENT FUNDS
UNRESlRICTED - 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, auxiliary enterprises, and student activities.
RESTRICTED - the fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes.

- 7-

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"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 ofinstitutional properties.
INVESTMENT IN PLANT - the fund which shows the total amounts representing the book value of all physical properties owned by the College. Net Investment in Plant is an equity account showing the total book value ofphysical properties belonging to the College less the amount of any indebtedness to others.
AGENCY FUNDS
The fund used to account for resources held by the College as custodian or fiscal agent for individual students, faculty, staff members, and organizations.
BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants' 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 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 as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording ofencumbrances 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 1995

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 accunrulated leave in which payment is probable and can be reasonably estimated. The compensated absences liability of$423,928.26 and the related current year expenditure of$8,242.49 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 of the State ofGeorgia, 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 fi:".ance 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. 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.
BUDGET The Board ofRegents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units ofthe University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 19941995. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The budget a}Jocation and disbursement of these 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 in::lude these funds in the budget filed with the Administrative Central Office.
A comparison of anticipated funds available and budgeted expenditures by budget unit object class indicates that the following object classes were overspent by the amounts iden,ified below:

- 9-

MACON COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.

BUDGET

Operating Expenses: Education, General and Departmental Services
Capital Outlay Equipment, Technology and Constmction Trust Fund

$ 4103346 $ 16 457 76 $ 110252

These overexpenditures of budget constitute a violation of Board ofRegents 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, certificates of deposit and temporary investments in authorized financial institutions.

ACCOUNTS RECEIVABLE Accounts rxeivable consist ofreimbursements due from Federal, State, and private grants and contracts, and other receivables disclosed from information available. No provision has been made for an allowance for doubtful accounts within the accompanying financial statements.

INVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost based on the first-in, first-out method.

Inventories of 3oods for resale are valued at cost based on the first-in, first-out method.

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. The columns do not present information that reflects financial position or changes in financial position in confonnity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

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:

- 10 -

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities ofthe State ofGeorgia.
(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia.
(5) Bonds, bills, certificates ofindebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan 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 ofGeorgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which includes organizational units of the Board of Regents 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 ofJune 30, 1995, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:
Category I - 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 pledging financial institution's trust department or agent in the College's name.
- 11 -

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXIIlBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

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

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

S 2 4S3 22s 24 S J J3S 33S 1s S 443741 J6 S,_ _.....,ooo..., s 2 621 5'/U2

Included in Category 3 above were temporary investments in the amount of $650,000.00 that were uncollateralized. Exemption from the State collateralization requirements granted by the State Depository Board extends only to demand deposits.

NOTE 3: INVESTMENT IN PLANT

The following is a summary oflnvestment in Plant fixed assets as ofJune 30, 1995:

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

$ 483,411.84 16,001,900.99 1,610,853.52 3,045,692.13 2 228 548.15

Total Investment in Plant

$23 370 406 63

NOTE 4: OPERATING LEASES

Macon College has entered into certain agreements to lease buildings and equipment 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 of the lease, the College has the option of renewing the lease on a year-to-year basis. Future minimum lease payments for operating leases as ofJune 30, 1995, 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
1996

$ 186 672 71

Expenditures for rental of buildings and equipment under operating leases for the year ended June 30, 1995, totaled $180,896.37.

- 12 -

MACON COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"D"

NOTE 5: DEFICIT FUND BALANCE
The Lotteiy for Education Fund, a part ofUnrestricted Current Funds, has a deficit fund balance of $1,102.52 which is not readily apparent from the financial statements.
NOTE 6: RISK MANAGEMENT
Macon College is a participant in the Board of Regents of the University System of Georgia Health Benefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees of the University System of Georgia. The College and participating employees and retirees pay premiums to the Health Benefits Plan for this health insurance coverage. The Health Benefits Plan is included in the 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 ofthe 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 services 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 College, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of
Georgia reporting entity, and as such, is covered by the State of Georgia risk management program
administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment.
A self-insured program of professional liability for its employees was established by the Board of Regents of the University System of Georgia under powers authorized by the Official Code of Georgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out ofthe performance oftheir duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund.
NOTE 7: 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 of the State of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income
- 13 -

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "D"

NOTE 7: DEFERRED COMPENSATION PLAN
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 of Georgia in an amount equal to the fair market value of the deferred account for each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1995.
NOTES: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Macon College participates in the Teachers Retirement System of Georgia {TRS), a cost-sharing multipleemployer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The College's payroll for the year ended June 30, 1995, for employees covered by TRS was $7,810,956.85. The College's total payroll for all employees was $9,666,968.79.
Benefits TRS provides seivice retirement, disability retirement, and survivor's benefits for its members. A member is eligible for seivice retirement after the member {l) has attained the age of60 years and has at least ten years ofcreditable service, (2) has at least 30 years ofcreditable service, regardless ofage, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofseivice multiplied by the number ofyears of creditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or fraction thereofby which the member has less than 30 years of service. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date ofdeath or up to the time ofdisability.
Members become fully vested after ten years of service. If a member terminates with less than ten years of seivice, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
Contributions Required and Contributions Made Employees of the College who are covered by TRS are required to pay 5% of their gross earnings to TRS. The College makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees
- 14 -

MACON COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
nJNE 30 1995

EXHIBIT "D"

NOTES: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Contributions Required and Contributions Made as advised by their independent actuary. For fiscal year 1995, the employer contribution rate was 11.81% for covered employees. In addition, the College contributed 5.60% to the TRS on behalfof 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 1995 amounted to $1,373,905.70, of which $983,359.27 was made by the College and $390,546.43 .was made by employees. These contributions represented 12.59% (College) and 5% (employees) ofcovered 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 ofcredited 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 ofthe 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.

The total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, which was the latest information available, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14 254 785 000.00

Unfunded pension benefit obligation

$ I 058 958 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available for benefits were valued as ofthe same date. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers.

Retirement System Contributions Total contributions from all employers to TRS for the year ended June 30, 1995, were $565,117,811.00. The College's contribution for the year ended June 30, 1995, of $983,359.27 was actuarially determined and represented .1740% of total contributions made by all participating employers.

- 15 -

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "D"

NOTES: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Trend Information Historical trend infonnation is presented in the financial report of TRS for the year ended June 30, 1995. This infonnation gives an indication of the 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 contnbute 4% and the employee contribute 5% ofthe 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, 1995, was $1,087,236.16. The College's total payroll for all employees was $9,666,968.79.
The College and the covered employees made the required contributions of$43,555.64 (4%) and $54,444.89 (5%), respectively.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Macon College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia in July 1993 for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. The College's payroll for the year ended June 30, 1995, for employees covered by GDCP was $204,166.69. The College's total payroll for all employees was $9,666,968.79.
Benefits A member may retire and elect to' receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. If a member has less than$ 3,500.00 credited to his/her account, the Board of Trustees has the option ofrequiring 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.

- 16 -

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "D"

NOTE 8: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN
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 tennination ofemployment, the amount of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1995 amounted to $15,312.90 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
NOTE 9: 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 I - 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 10: 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 an organizational unit of the Board of Regents ofthe University System of Georgia), if any, are generally considered to be actions against the State ofGeorgia. 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, 1995.

- 17 -

MACON COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "D"

NOTE 11: POSTE:MPLOYMENT 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 of Georgia has established group health and life insurance programs for employees of the University System of Georgia. It is the policy of the Board of Regents 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 ofGeorgia pay the employer portion for group insurance for affected individuals.

As of June 30, 1995, there were 17 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1995, Macon College recogniud as incurred $21,454.00 ofexpenditures, which was net of$10,971.14 of participant contributions.

NOTE 12: 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, 1995. 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 $1,000,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment.

All employees of Macon College are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626011675 2 and 626 012294 4, on which the premiums have been paid to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the College to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

NOTE13: ENROLLMENT

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

Regular Term Fall Quarter, 1994 Winter Quarter, 1995 Spring Quarter, 1995

2,712 2,563 2308

Average

~

Summer School, 1994

- 18 -

SUPPLEMENTARY INFORMATION - 19 -

MACON COLLEGE COMBINING BALANCE SHEET CURRENT EUNQS ~ UNRFSTBICTEP
JUNE !!Q 1$95

EXHIBIT"E"

Ml!m
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups

RESIDENT LOTTERY FOR AUXILIARY INSTRUCTION EDUCATION ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$

14,629.17 $

116,921.10

15,011.87

2,529.34

858,878.66

13,317.48 $

807,846.64 $ 34,032.01 198.-.87

28,072.94 $

863,866.23 150,953.11 213,996.74
2,529.34 858,878.66

Total Assets

$ 1,007,970.14 $

13,317.48 $ 1,040,863.52 $

28,072.94 $ 2,090,224.08

Lli!i61LITIES i!iNP E!..!NQ aeil ANCE
Uabililios Accounts Payable Deferred Revenue Tuition and Fees
Total Liabilities
Fund Balances Unrestricted

479,314.66 $ 502,037.28 981,351.96 $

14,420.00 $ 14,420.00 $

9,512.19 12,584.00 $ 22,096.19 $

$ 503,246.87

15.488.00

530,109.28

15,488.00 $ 1,033,356.15

26,618.18

-1,102.52

1,018,767.33

12,584.94 1,056,867.93

Total Liabilities and Fund Balances

$ 1,007,970.14 $

13,317.48 $ 1,040,863.52 $

28,072.94 $ 2,090,224.08

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

MACON COLLEGE COMBINING STATeMfNT OF CHANGES IN FlJND BAI ANCES
CURRENT FUNDS UNRESTRICTED
YEAR ENDED JUNE 30 1995

EXHIBIT"P

B~EN!JES ANQ QTl::ll;B ~tU~!TIQNS
Unrestricted Current Fund Revenues Adjustments
Prior Years' Expendltun,s/Accounts Payable
Total Revenues and Other Additions
f!PENQIIURES eiNg Q!t::IER DEQ!.!Cl]QNS
Educational and General Expenditures Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the
University System of Georgia Prior Yeafs Unrestricted Fund Balance (Surplus)
Total Expenditures and Other Oec:luctions
TRANSFl,RS BE1WE&N FUNQS
Nonmandatory Renewals and Replacements Capital Projects
Total Transfers Between Funds
Net lncrease/(Oecrease) for the Year
FUND BALANCES JULY 1 1994

RESIO~NT INSTRUCTION

LOTTERY FOR EOUCA710N

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

15,581,492.97 $ 6.134.07
15,587.627.04 $

222,700.00 $ 222.700.00 $

541,456.24 $ 541,456.24 $

147,182.70 $ 16,492,831.91 6,134.07
147,182.70 $ 16,498,965.98

$ 15,510,806.05 $ 223,802.52

367,792.25

137,694.16 $ 15,872,302.73 367,792.25

162,545.75

162,545.75

15,673,351.80 $ 223,802.52 $ 367,792.25 $ 137,694.16 $ 16,402,640.73

-67,437.00 --67,437.00 -153,161.76 .; 179,TT9.94

-75,234.69

-1,102.52 $ 0.00

-75,234.69 98,429.30 $ 920,338.03

-75,234.69 -67,437.00
$ -142,671.69 9,488.54 $ -46,346.44 3,096.40 1,103,214.37

FUNQ BALANCES JUN& 30 1995

26,618.1,; $

-1,102.52 $ 1,018,767.33 $

12,584.94 $ 1,056,867.93

See accompanying notes and Independent Accountant's Comb'.:iecl Report on Review of Financial Statements and Supplementary lnform.:'-don.
-21

MACON COi LEGE COMBINING STATEMENT Of CURRENT ELJNP REVENUES EXPENOffiJRfS
AND OTHER CHANGfs
UNRESTRICTED
VEAR ENDED JUNE 30 1995

EXHIBIT"G"

~
state Appropriations TUltion and Fees Federal Grants and Contracts Private Gills, Grants, and Contracts Sales and SelVices of Educational Activities Sales and SelVices of Auxiliary Enterprises Other Sources
Total Revenues
EXPENPm.JRES
Educational and General 1-..:tion Academic Support Student SelVices lnstoutional Support Operation and Maintenance of Plant Scholarships and Fellowships
Auxiliary Enterprises Food Services Stores and Shops Intercollegiate Athletics other Service Units
Total Expendoures
OTHER TRANSFERS AND ADDITIONS/ IDEDUCTIONS}
Transfers for Renewals and Replacements Transfers for Capital Projects Prior Period Adjustments (Net) Remittances to the Board of Regents
of the Unive!$ily System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Total Other Transfers and Addoionst(Deductions)

RESIDENT

LOTTERY FOR

AUXILIARY

INSTRUCTION EDUCATION ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$ 11,293,779.00 $ 4,010,157.15 15,832.00 5,448.00 12,067.71
244,209.11
$ 15 581,492.97 $

222,700.00
$ 222,700.00 $

$
522,289.12 1s.161.12

$ 11,516,479.00

138,329.00 4,148,486.15

15,832.00

5,448.00

12,067.71

522,289.12

a,853.70

2n.229.93

541,456.24 $ 147,182.70 $ 16,492,831.91

$ 8,490,247.97 $ 1,396,492.50 998,102.83 2,511,623.52 1,775, 139.23 339,200.00
$ 15 510,806.05 $

223,802.52 $
223,802.52 $

$ 8,714,050.49 1,396,492.50
$ 137,694.16 1,135,796.99 2,511,623.52 1,775, 139.23 339,200.00

146,568.02 105,073.46 115,886.92
263.85

146,568.02 105,073.46 115,886.92
263.85

367,792.25 $ 137,694.16 $ 16,240,094.98

-67,437.00 6,134.07
-162,545.75 -223,848.68

$ -75,234.69 $ -75,234.69

-75,234.69 -67,437.00
6,134.07
-162,545.75
$ -299,083.37

Net lncrease/(Oecrease) in Fund Baiances

$ -153,161.76 $

1,102.52 $

98,429.30 $

9,468.54 $ -46,346.44

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

MACON COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30 1995

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

$ 11,293,TT9.00

$

4,287,713.97 $ 3,324,144.94

475,000.00 29,153.19 $ _ _ _ _736~.26~

$ 15,581,492.97 $ 3,324,144.94 $

504,153.19 $ _ _ _ _736_.26_

EXPENDITURES

Personal Services:

Education, General and Departmental Services

11,597,434.59

Sponsored Operations

$

398,923.74

Operating Expenses:

Education, General and Departmental Services

3,642,206.46

Sponsored Operations

2,925,221.20

Capital Outlay

$

567,894.76 $

0.00

Special Funding Initiative

271,165.00

$ 15,510,806.05 $ 3,324,144.94 $

567,894.76 $

0.00

Excess of Revenues over Expendttures (1) To eliminate tuttion waivers not budgeted.

70,686.92 $

0.00 $

-63,741.57 $ ====736==26=

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

SCHEDULE "1"

TOTAL

ADJUSTMENTS

TOTAL (Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 11,768,TT9.00 7641,748.36 $

$ 11,768,TT9.00 $ 11,768,TT9.00 $

-339,200.00

7,302,548.36

7,855,037.00

0.00 -552,488.64

$ 19,410,527.36 $

-339,200.00 $ 19,071,327.36 $ 19,623,816.00 $

-552,488.64

$ 11,597,434.59 398,923.74
3,642,206.46 $ 2,925,221.20
567,894.76 271,165.00

$ 11,597,434.59 $ 11,679,839.00 $

398,923.74

425,127.00

-339,200.00

3,303,006.46 2,925,221.20
567,894.76 271,165.00

3,261,973.00 3,434,275.00
551,437.00 271,165.00

82,404.41 26,203.26
-41,033.46 509,053.80 -16,457.76
0.00

$ 19,402,845.75 $

-339,200.00 $ 19,063,645.75 $ 19,623,816.00 $

560,170.25

$

7,681.61 $

0.00 $

7,681.61

$

7,681.61

-25-

MACON COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION YEAR ENDED JUNE 30 1995

SCHEDULE "2"

REVENUES State Appropriations

CURRENT FUNDS UNRESTRICTED

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$

222,700.00 $ 222,100.00 $ _ _ _ _ _o._o_o

EXPENDITURES
Equipment, Technology and Construction Trust Fund

$ ' 223,802.52 $ 222,700.00 $ _ _ _-,;a1,_10_;.;;2.;.;;.5~2

Excess of Revenues over Expenditures

s ~~~-1_..1.,.0..,2..s..2..

s -~~-1...=10_2_.s,..2

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

MACON COLLEGE SCHEDULE OF OPERATIONS
LOAN FUNDS YEAR ENDED JUNE 30 1995

SCHEDULE "3"

FUND
U. S. GOVERNMENT GRANTS REFUNDABLE
Nursing Student Loan Fund Perkins Loan Fund

FUND BALANCE JULY 1, 1994

ADDITIONS/ TRANSFERS

DEDUCTIONS/ FUND BALANCE

TRANSFERS

JUNE 30, 1995

$

3,036.60 $

5,241.92

0.00 $

0.00 $

3,036.60 5,241.92

$

8,278.52 $

0.00 $

0.00 $

8,278.52

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

7,261.92 0.00

Balance June 30, 1995

$ ===7.,.26=1.=92=

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

MACON COLLEGE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 30 1995

SCHEDULE "4"

FUND
PAYROLL DEDUCTIONS
Federal Income Tax State Income Tax F.1.C.A Retirement Georgia Defined Contribution Plan Tax Deferred Annuities Group Insurance Bibb Teachers Credit Union Garnishments Macon College Foundation Miscellaneous
EMPLOYER'S CONTRIBUTIONS
F.I.C.A Retirement Group Insurance
OTHER FUNDS
Academic Bowl Academic Regalia Application for Degree Black Student Unification Cheerleaders Chief Business Officers CircleK Dean's Conference Departmental Federal Assistance Financing
System Economic and Business Service Georgia Association of Junior Colleges Georgia Association of Nursing Georgia History Day Georgia National Fair Honor Student Association Impromptu Players Junior American Dental Hygiene Association Macon College Association of Respiratory
Education Macon College Singers Math Olympics Middle Georgia Area Teachers' Educational
Service Minority Advisor Program Conference Moms on the Move

BALANCE JULY 1, 1994

RECEIPTS

DISBURSEMENTS

BALANCE JUNE 30, 1995

$

-86.00 $ 1,097,738.52 $

-34.00

368,583.04

-20.43

684,693.53

81,691.86

444,724.48

62.44

15,312.90

42,699.09

226,954.31

11,132.69

404,680.33

166,348.42

1,085.96

15,013.96

178.50

2,584.00

2,173.46

13,898.74

$ 138,883.57 $ 3,440,532.23 $

1,099,902.21 $ 368,549.04 684,649.73 518,441.24 15,375.34 250,827.60 383,931.40 166,299.50 16,501.30 2,678.50 7,059.50
3,514,215.36 $

-2,249.69
23.37 7,975.10
18,825.80 31,881.62
48.92 -401.38
84.00 9,012.70
65,200.44

$

-20.43 $ 684,693.53 $

155,745.52 1,012,026.80

6,497.75

917,297.75

$ 162,222.84 $ 2,614,018.08 $

684,649.73 $ 1,161,392.84
856,821.36
2,702,863.93 $

23.37 6,379.48 66,974.14
73,376.99

$

638.77 $

150.00

1,085.05

1,006.60 $

6,261.84

11,260.00

24.42

609.23

1,684.11

5,214.31

10,687.50

405.47

3,714.11

5,712.65

$ 2,117.60 7,626.17
2,293.35 9,733.09
350.00 8,365.34

280.00 7,509.13
460.12 523.22
159.28 98.00
255.25

2,310,574.00
1,650.00 7,282.15
384.00 191.10
9.00 3,374.51

2,310,574.00 1,257.11 7,228.72 384.00
3,289.07

565.86

170.00 93.03
700.00

220.03 660.00

1,635.20 2,101.38
74.54

5,621.50

4,729.47

788.77 -25.95 9,895.67 24.42
-0.01 6,168.72
55.47 1,061.42
280.00 7,902.02
513.55 523.22
350.38 107.00 340.69
170.00 438.86
40.00
2,527.23 2,101.38
74.54

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

l,lACQN COLLEGE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
,!,GENCY FUNDS YEAR ENDED JUNE 30 1995

SCHEDULE "4"

FUND
OTHER FUNDS
Music Account National League of Nursing Nursing LiabUity Insurance Nursing Pins Nursing Service Pandoras Box Phi Beta Lambda Phi Theta Kappa Poslsecondary Program Pre-Med Club Public Service Activity Fee Recovery Fee Renaissance Festival Scholarships and Grants
Regents' Scholarship Fund Other Scholarships (List on FUe) Scholastic Aptitude Test Six Flags Tickets Softball Caps Spanish Club Speech and Debate Tearn Student Government Association Vocational Inventory Fees

BALANCE JULY 1, 1994

RECEIPTS

BALANCE DISBURSEMENTS JUNE 30, 1995

$

593.98

$

5,681.55 $

4,896.00

5,958.00

2,889.60

5,612.71

394.87

44.65

113.60

912.00

594.87

3,169.11

7,664.00

13.36

7,562.49

22,307.25

1,815.88

746.50

800.00 22,425.67
4,974.07 1,488.00
121.09 591.92 162.80 1,565.27

6,200.00 117,369.69
5,600.00 4,405.00
40.00 1,860.73
529.00 594.46 250.00

$

81,632.97 $ 2,550,480.48 $

312.28 $ 2,799.25 5,235.00 5,449.69
81.57
595.00 1,360.40 4,161.00
19,455.38
746.50
4,700.00 108,711.63
6,355.00 4,539.00
1,948.86 950.00 80.25
2,526,308.76 $

281.70 7,778.30
723.00 3,052.62
313.30 44.65
430.60 2,403.58 3,503.00
13.36 10,414.36
1,815.88
2,300.00 31,083.73
4,219.07 1,354.00
40.00 32.96 170.92 677.01 1,815.27
105,804.69

$ 382,739.38 $ 8,605,030.79 $

8,743,388.05 $

244,382.12

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

MACON COLLEGE CASH AND CASH EQUIVALENTS
JUNE 30 1995

SCHEDULE "5"

NONINTEREST BEARING ACCOUNTS
Trust Company Bank of Middle Georgia, Macon, Georgia
INTEREST BEARING ACCOUNTS
Bank South, Macon, Georgia
Certificate of Deposit (5.50%)
CB&T Bank of Middle Georgia, Warner Robins, Georgia
Certificate of Deposit (5.40%)
First Union National Bank, Atlanta, Georgia
Certificate of Deposit (5.07%)
NationsBank of Georgia, Macon, Georgia
Certificate of Deposit (5.00%)
Trust Company Bank of Middle Georgia, Macon, Georgia
N.O.W. Account (1.96%)
OTHER
Cash on Hand Petty Cash

$

1,966.17

$ 750,000.00 58,266.10 75,000.00
155,000.00 1,412,992.97 2,451,259.07
4,231.00 $ 2,457,456.24

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

MACON CO! LEGE ACCOUNTS RECEIVABLE
JUNE30 1995

SCHEDULE"6"

Federal Grants and Contracts Research and Instruction Student Aid
state Grants and Contracts Research and Instruction Student Aid
Privale Gifts, Grants, and Contracts Research and Instruction
other Georgia State Financing and Investment Commission Insurance Recoveries Retired Employee's Insurance Returned Checks Student Accounts Student Notes Vendor Credtt Memos other Payroll Overpayments

CURRENT FUNDS

LOAN

PLANT FUNDS

UNRESTRICTED RESTRICTED __.EllliQL UNEXPENDED

AGENCY FUNDS

TOTAL

$ 7,157.66 270,141.99

$ 7,157.66 270,141.99

147,514.24 -,801.92

147,51424 -.801.92

3,801.07

3,801.07

$

5,272.29

9,291.78

124,237.64

12,151.40

$ 7,261.92

26,354.75 8,144.07
$ 2653.45

26,354.75 8,144.07 5,272.~ 9,291.711 124,237.6" 7,261.92 12,151.l
2 653 45

$

150953.11 $ 894 416.88 $ 7 261.92 $ 34498.82 $ 2653.45 $ 1089784.18

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-31-

MACON COLLEGE CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30 1995

Land Buildings Improvements other Than Buildings Equipment Library Books and Collections

BALANCE JULY 1. 1994

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

$

483,411.84

10,943,405.93

1,578,118.93

2,430,662.74 $

398,629.49 $

216,399.90

2,068,639.28

159,908.87

$ 17,504,238.72 $

558,538.36 $

216,399.90

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

SCHEDULE "7''

ADDITIONS
PLANT FUNDS UNEXPEN:JED

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

DEDUCTIONS DISPOSALS/ DELETIONS/ ADJUSTMENTS

BALANCE JUNE 30, 1995

$

0.00 $

483,411.84

$

536"44.98 $

4,522,050.08

16,001,900.99

3(,354.82

2,379.77

1,610,853.52

3,045,692.13

2,228,548.15

-$

566,799.80 $

4,524,429.85 $

0.00 $ 23,370,406.63

-33-

MACON COLLEGE SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30 1995

NET INVESTMENT IN PLANT Investment in Plant Facilities
RESTRICTED Designated for Subsequent Years' Expendttures
UNRESTRICTED Designated For Bibb County Construction Fund For Equipment, Technology and Construction Trust Fund For Intercollegiate Alhtetics For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expendttures For Uncollectible Accounts Undesignated Surplus Regular Lottery for Education

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

LOTTERY FOR

AUXILIARY

EDUCATION ENTERPRISES

STUDENT ACTIVITIES

13,112.39 4,121.80

-1,102.52

-16,887.18 198,984.87

836,231.06 $ 438.58

12,534.94

9,383.99 26.618.18 $

0.00 -1,102.52 $

1.018,767.33 $ --~12~,584_.~94~

26,618.18 $

-1,102.52 $ 1,018,767.33 $ ===12,,,,584==94=

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

SCHEDULE "8"

RESTRICTED

UNEXPENDED REGULAR

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 23 370 406.63 $ 23 370,406.63

$ 785,538.22

$ 785,538.22

124,885.98

$

268,529.81

124,885.98
-1,102.52 -16,887.18 212,097.26 268,529.81 848,816.00
4,560.38

3,695.43 128,581.41 $ _ _ _268~,5_29_.8_1

13,079.42 0.00
$ 1,453,979.15

$ 785,538.22 $

128,581.41 $

268,529.81 $ 23,370,406.63 $ 25,609,924.00

-35-

MACON COLLEGE SCHEDULE OF REVENUES
CURRENT FUNDS YEAR ENDED JUNE 30 1995

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

Private Gifts, Grants, and Contracts Research and Instruction Contract Overhead

Sales and Services of Educational Activities

Sales and Services of Auxiliary Enterprises

other Sources

Administrative Cost Allowances

Cash Over-Short



Extension and Public Service

Interest Earned

other

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

$ 11,022,614.00 271,165.00 $
$ 11,293,779.00 $

222,700.00 222,700.00

$

3,638,095.55

372,061.60

15,832.00

5,448.00 12,067.71

7,739.22 -127.47 229,800.60

6,796.76

$

4,287,713.97

$

522,289.12

-105.74

7,210.86 12,062.00

$

541,456.24

$ 15,581,492.97 $

222,700.00 $

541,456.24

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

SCHEDULE "9"

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$ 11,022,614.00 271,165.00 222,700.00
$ 11,516,479.00

$ 11,022,614.00 271,165.00 222,700.00
$ 11,516,479.00

$

3,638,095.55

$

138,329.00

510,390.60

$

3,638,095.55

510,390.60

$ 15,832.00

630,897.24 1,709,930.55

630,897.24 1,709,930.55
15,832.00

237,532.80 600,666.92

237,532.80 600,666.92

5,448.00 12,067.71 522,289.12

145,117.43

145,117.43 5,448.00
12,067.71
522,289.12

8,853.70

7,739.22 -233.21 229,800.60 7,210.86 27,712.46

7,739.22 -233.21 229,800.60 7,210.86 27,712.46

$

147,182.70 $

4,976,352.91 $

3,324,144.94 $

8,300,497.85

$

147,182.70 $ 16,492,831.91 $

3,324,144.94 $ 19,816,976.85

- 37 -

MACON COLLEGE SCHEPYLF OF EXPsNPITlJBES BY OB.IFCT
CURRENT FUNDS
)'.EAR ENDED JUNE 3Q 1$$5

PfB$QNAL SER\/ICFS
Salaries and Wages Employer's Contributions for:
F.I.CA. Relirament Group Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Drug Testing SeMceo
OPERATING EXPENSES
Tmvel Motor Vehicle Expenses Supplies and Materiah. Repairs and Maintenance Utilities - (Other than Real Eslale) Insurance and Bonding Tuition and Scholarships
College WOJk-Study Program Scholarships, Fellowships, Prizes, Awards and OUter Other Operating Expenses Publications and Printing Equipment Non-lnvento,y Computer Charges Software Real Estate Rentals Telec:ommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts Equipment Inventory
OTHER
EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND Other Costs Supplies and Material& Equipment Non-Inventory Equipment Inventory
SPECIAi. FUNDING INITIATIVES Personal Services Salaries and Wages Employer's Contributions for: F.I.CA. Retirement Group Insurance

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

8,974,503.93
636,591.90 955,138.35 876,723.41
81,016.00 2,984.00
90,342.00 135.00
11,597,434.59

161,433.51 11,570.17 14,668.58 23",05123
210.n3."9

121,303.58 34,436.17
549,279.65 213,926.67 470,190.21
2,Sn.56 14,690.30
23,813.97 339.200.00 395=.59 249.293.83
175,888.21 10,412.38 16,328.49 173,708.37 1s2.ns.os
333.267.46 1,300.00
364,635.96
3,642,206.46

389.ll!i 858.37 24,82023 4,844.05 11,720.07
11.20 308.70
61,095.20 40,795.9'1
4,756.9"
3,158.98 4,309.2'4
157,068.76

224,131.n
14,395.94 21,051.84 11,585.45
271,165.00

19,372.89 10.527.23 193,902.40 223,802.52

15,510,806.05 $

223.802.52 $

367,792.25

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

.38.

SCHEDULE "10-

STUDENT ACTMTIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

9,135,937.44 $
648,162.07 969,806.93 899,774.64 61,016.00
2,98'4.00 90,342.00
135.00
11,608,156.08 $

306,899.58 $ 22,357.92 34,971.86 34.~.38
398,923.74 $

9,442,837.02
670,519.99 1,004,778.79
934,469.02 61,016.00
2,SM.00 90,342.00
135.00
12,207,081.82

38,474.36 864.03
59,677.60 8,978.61
18,799.56 10,900.00 137,694.16 $

121,693.23 $ 35,294.54 612,574.24 21a,110.n 481,910.28
3,447.88 14,999.00
23,813.97 400,295.20 495,706.18 258,272.44
180,645.20 10,412.38 16,328.49
173,706.37 155,885.04
356,376.26 12,200.00
364,635.96
3,936,969.38 $

8,629.55 $ 34,656.98
1,012.50
61,660.00 2,310,597.47
42,026.49 6,058.05
46,972.71 18,932.74 91,701.70 85,160.88
1,410.23 216,399.90 2,925,221.20 $

130,322.78 35,294.54 647,233.22 21a,110.n 481,910.28
4,460.38 14,999.00
85,473.97 2,710,892.67
537,732.67 264,330.49
227,617.91 10,412.38 35,261.23
173,706.37 247,586.74
441,537.14 13,610.23
561,035.86
6,862,190.58

19,3n.69 10,527.23 193.902.-40 223,802.52

19,372.69 10,527.23 193,902.40 223,802.52

224,131.77
14,395.94 21,051.84 11,585.45
271,165.00

22 ,1a1.n
14,395.94 21,051.84 11,585.45
271,165.00

137.~.16 $

16.240,094.98 $

3,324,144.94 $

19,564,239.92

-39-

MACON COLLEGE SCHEDULE OF EXPENDITURES BY OBJECT
PLANT FUNDS YEAR ENDED JUNE 30 1995
CAPITAL OUTLAY
Repairs and Maintenance Equipment
Non-Inventory Per Diem, Fees and Contracts
Contracts

SCHEDULE "11"

UNEXPENDED REGULAR

$

8,144.07

1,094.96

558,655.73

$

567,894.76

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

MACON COLLEGE RECONCILIATION OF SALARIES AND WAGES AND TRAVEL
YEAR ENDED JUNE 30 1995

SCHEDULE "12''

Totals per Annual Supplement
Adjustments Shared Services on Jointly Staffed Personnel University of Georgia Jones, Linda Thompson, Kimberly other Adams, Barbara Carol Ervin, Hershel! Ramon Fitz, David E. LaFountain, Kitty Loyd, Anne Minter, Doris Reid, Marvin E.
Unidentified Variance
Totals per Report
DISTRIBUTION BY FUND
CURRENT FUNDS Unrestricted Resident Instruction Regular Special Funding Initiative Auxiliary Enterprises Restricted Resident Instruction

SALARIES AND WAGES
$ 9,688,287.78 $

TRAVEL 130,300.32

-6,716.00 -6,716.00
-1,200.00 -1,200.00
-1,200.00 -1,200.00 -1,200.00
-1,886.99

206.00 -183.54

$ 9,666,968.79 $

130,322.78

$ 8,974,503.93 $ 224,131.77 161,433.51
306,899.58

121,303.58 389.65
8,629.55

$ 9,666,968.79 $

130,322.78

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-41 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

MACON COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status offindings disclosed in the review report for the year ended June 30, 1994, is summarized below:

Audit Control Number

Status ofFinding

581-93-01 581-94-01 581-94-02 581-94-03 581-94-04

No Corrective Action Implemented See Audit Control Number 581-95-03 See Audit Control Number 581-95-02 Corrective Action Implemented See Audit Control Number 581-95-01

PRIOR YEAR/CURRENT YEAR

FUND BALANCE Deficit to be Funded from Subsequent Years' Operations Financial Statements Audit Control Number 581-95-01

The review report for the year ended June 30, 1994, reported that Intercollegiate Athletics, a segment of Auxiliary Enterprises, had a deficit fund balance of$13,752.86. For the year under review the deficit increased to $16,887.18 due to disbursing funds in excess of intercollegiate revenues. This deficit has a direct relation to the lack ofsufficient 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 will not make an appropriation to finance its operations". The College should budget and provide for adequate funds to cover this deficit.

GENERAL LEDGER Detail Listing of Salaries Not Reconciled Financial Statements Audit Control Number 581-95-02

The review report for the year ended June 30, 1994, reported that Macon College did not reconcile the detail listing ofsalary payments submitted to the Georgia Department of Audits to the general ledger. For 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 $1,886.99 is reflected on Schedule "12" of this report. This condition occurred because management neglected to identify the variances between the listing of salaries and the general ledger.

The College should follow established procedures to ensure that the detail listing of salaries and wages is reconciled to the accounting records prior to submission to the Georgia Department of Audits.

MACON COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1995
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequate Equipment Inventory Records Financial Statements Audit Control Number 581-95-03
The review report for the year ended June 30, 1994, noted that an equipment inventory sample ofrandomly selected items disclosed deficiencies in Macon College's equipment inventory records. For the year under review, an equipment inventory sample of20 randomly selected items was utilized to test the accuracy and validity of the equipment inventory records. The results of our testing procedures disclosed the following exceptions:
(1) Two items located on site were not on the equipment records.
(2) Two items selected to be traced to their location were found to have improper identifying information on the equipment inventory records.
(3) The College did not perform a reconciliation of the equipment inventory records to the accounting control records. An unidentified variance of$220,604.46 existed between the subsidiary and control records which the College could not identify.
These deficiencies occurred because of management's failure to adequately monitor the subsidiary equipment records. 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.
CURRENT YEAR
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Financial Statements Audit Control Number 581-95-04
During the year under review, the College's accounting procedures were insufficient to provide for adequate internal control over the bank reconciliation process. The following deficiencies were noted:
(1) The monthly bank reconciliations of the payroll account were not performed in a timely manner.
(2) Book errors disclosed through the bank reconciliation process were carried as reconciling items for extended periods of time.
(3) The monthly bank statements for the payroll account were not properly reconciled to the general ledger resulting in an unidentified variance of $3,766.17 between the reconciled bank balance and the book balance.

MACON COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1995
CURRENT YEAR
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Financial Statements Audit Control Number 581-95-04
These deficiencies were the result of management's disregard of proper internal control procedures over cash and bank reconciliations that are necessary to adequately safeguard and report the cash and cash equivalents ofthe College. The College should establish appropriate internal controls to ensure that bank statements are reconciled with the accounting records monthly and that needed adjustments are recorded on a timely basis.
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Audit Control Number 581-95-05
At June 30, 1995, Macon College failed to have its time deposits fully collateralized as provided for by the Official Code of Georgia Annotated Section 50-17-59.
This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The College should implement adequate procedures to monitor the collateralization oftime deposits to ensure compliance at all times with State laws governing deposits.
FEDERAL FINANCIAL REPORTS Report Not Reconciled to Accounting Records Federal Financial Assistance Pell Grant Program (CFDA 84.063) Audit Control Number 581-95-06
A review ofMacon College's Fiscal Operations and Application to Participate (FISAP) Report for the fiscal year ended June 30, 1994, submitted to the U. S. Department of Education did not reconcile with the accounting records. The College's reported expenditures for the Pell Grant Program were based on the grant award rather than actual expenditures. No reconciliation of the reported expenditures for the program was provided by the College. Federal Regulations require the College to ensure that the information is accurate and reconciled to the accounting records.
The College should implement procedures to ensure that the FISAP is accurately completed and supported by the accounting records. Detailed reconciliations should be prepared for any adjusted amounts and maintained as a part of the supporting documentation.