Audit report, state of Georgia, Macon State College, Macon, Georgia, year ended June 30, 1998

\1/1
Atoc
,fi I
NP-
1~~1 ~~'6

"'------

AUDIT REPORT STATE OF GEORGIA MACON STATE COLLEGE MACON, GEORGIA YEAR ENDED JUNE 30, 1998

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

MACON STATE COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALL FUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

ALL FUND GROUPS

4

C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

6

D NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

E COMBINING BALANCE SHEET

CURRENT FUNDS - UNRESTRICTED

20

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

21

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

23

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

24

2

LOITERY FOR EDUCATION

27

3 CHANGES IN INVESTMENT IN PLANT

28

4 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

30

5 RECONCILIATION OF SALARIES AND TRAVEL

32

SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

MACON STATE COLLEGE - TABLE OF CONTENTS-
SECTIONm CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
September 18, 1998

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the University System of Georgia
and Honorable David Bell, President Macon State College
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements (Exhibits A through D) of Macon State College as of and for the year ended June 30, 1998. These financial statements are the responsibility of the College's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the College to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the fmancial statements of this departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material.
As disclosed 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. If compensated absences were reported, liabilities would be increased and fund balance would be decreased by $501,343.65 as of June 30, 1998, and the net change in fund balance for the year ended June 30, 1998, would be increased by $29,266.26.
98ARL-62

In our opinion, except for the effects on the financial statements of the matters discussed in the third and fourth paragraphs, the financial statements referred to above present fairly, in all material respects, the financial position of Macon State College as of June 30, 1998, and the changes in fund balances and the current operating funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the fmancial statements taken as a whole. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 5) is presented for purposes of additional analysis and is not a required part ofthe fmancial statements of Macon State College. Such information has been subjected to the auditing procedures applied in the audit ofthe fmancial statements and, in our opinion, except for the effects of the matters discussed in the third and fourth paragraphs, such information is fairly presented in all material respects in relation to the fmancial statements taken as a whole.
Respectfully submitted,
d~~
Claude L. Vickers State Auditor
CLV:jb 98ARL-62

FINANCIAL STATEMENTS - 1-

MACON STATE COLLEGE COMBINED BALANCE SHEET
ALL FUND GROUPS JUNE 30,1998

ASSETS
Cash and Cash Equivalents Investments Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Deferred Revenue Tuition and Fees Unclaimed Property Deposits Held in Custody for Others Due to Other Fund Groups
Total Liabilities
Fund Balances U. S. Govemment Grants Refundable Institutional Loans - Restricted Term Endowment Net Investment in Plant Restricted Unrestricted
Total Fund Balances
Total Liabilities and Fund Balances

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$ 1,077,306.71

$ 31,503.59

$ 185,819.26

272,344.82

217,556.36

7,261.92

237,641.90

5,721.37

192,242.21

$

1,785,257.01 $ 403,375.62 $ 38,765.51

$

87,308.85

491,453.40 4,760.19

$ 192,242.21

$

583,522.44 $ 192,242.21

$ 8,278.52 30,486.99

$ 211,133.41 $ 1,201,734.57
$ 1,201,734.57 $ 211,133.41 $ 38,765.51

$

1,785,257.01 $ 403,375.62 $ 38,765.51

The notes to the financial statements are an integral part of this statement. -2-

EXHIBIT "A"

ENDOWMENT AND SIMILAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$ $ 916,045.41

137,550.35 $

371,616.04

$ 544,705.94 $ 2,162,682.63

1,101,864.67

6,869.28

504,032.38

237,641.90

5,721.37

192,242.21

_ _ _ _ _ _ $ 28,093,421.11

28,093,421.11

$ 916,045.41 $ 144,419.63 $

371,616.04 $ 28,093,421.11 $ 544,705.94 $ 32,297,606.27

$

90,989.03

$

90,989.03

$ 916,045.41

$ $ 916,045.41 $

53,430.60 $ 53,430.60 $

$ 334,713.78 $ 513,011.66

209,992.16

491,453.40 4,760.19
209,992.16 192,242.21

$ 544,705.94 $ 1,411,459.62

$ 28,093,421.11 371,616.04 371,616.04 $ 28,093,421.11

$

8,278.52

30,486.99

916,045.41

28,093,421.11

211,133.41

1,626,781.21

$ 30,886,146.65

$ 916,045.41 $ 144,419.63 $

371,616.04 $ 28,093,421.11 $ 544,705.94 $ 32,297,606.27

- 3-

MACON STATE COLLEGE COMBINED STATEMENT OF CHANGES IN FUND BALANCES
ALL FUND GROUPS YEAR ENDED JUNE 30 1998

REVENUES AND OTHER ADDITIONS

Unrestricted Current Fund Revenues

State Appropriations

Regular

Federal Grants and Contracts

State Grants and Contracts

Private Gifts, Grants, and Contracts

Investment Income

",

Endowment Other

Net Increase/Decrease in Fair Value of Investments

Adjustments

Prior Years' Expenditures/Accounts Payable

Prior Years' Checks Voided

Funded by the Board of Regents ofthe

University System of Georgia

Prior Year's Unrestricted Fund Balance (Deficit)

Expended for Plant Facilities

Current Funds

Plant Funds

Unexpended

Renewals and Replacements

Georgia State Financing and Investment Commission

Total Revenues and Other Additions

EXPENDITURES AND OTHER DEDUCTIONS

Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (SurplUS)
Adjustments Prior Years' Revenues/Accounts Receivable
Expended for Plant Facilities Capitalized Noncapitalized
Disposals/Deletions/Adjustments

Total Expenditures and Other Deductions

TRANSFERS BETWEEN FUNDS

Nonmandatory Renewals and Replacements Gain on Investments for Object of Trust For Student Loans

Total Transfers Between Funds

Net Increasel{Decrease) for the Year

FUND BALANCES JULY 1,1997 (Restated - see Note.1)

FUND BALANCES JUNE 30 1998

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

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$ 17,231,024.31

$

$ 2,650,532.91 884,465.07 27,331.75
20,156.35
217.47
16,052.06 7,742.64

18,291.92

0.00

$ 17,273,110.93 $ 3,582,703.55 $

0.00

$ 16,816,223.69 $ 3,525,389.33 $ 315,411.05 20,577.00
608.81

0.00

$ 17,132,243.55 $ 3,545,966.33 $

0.00

$

-73,780.47

$ 106,308.05

-30,486.99

$ 30,486.99

$

-104,267.46 $ 106,308.05 $ 30,486.99

$

36,599.92 $ 143,045.27 $ 30,486.99

1,165,134.65

68,088.14

8,278.52

$

1,201,734.57 $ 211,133.41 $ 38,765.51

EXHIBIT"B"

ENDOWMENT AND SIMILAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

$ 411,500.00

$ 116,265.25

79,072.29 $

$ 116,265.25 $ 490,572.29 $

4,376.95

$ 17,231,024.31
411,500.00 2,650,532.91
884,465.07 27,331.75
20,156.35 83,449.24 116,482.72
16,052.06 7,742.64

18,291.92

$ 578,236.70

578.236.70

451.897.02 45,805.92 377,659.69

451,897.02 45,805.92 377,659.69

4,376.95 $ 1,453,599.33 $ 22.920,628.30

$

0.00

$

743.49

$ 20,341,613.02 315,411.05 20,577.00
1,352.30

451,897.02 $

45,805.92

67,435.76

------$

179,346.76

497,702.94 67,435.76
179,346.76

$

0.00 $ 520,076.27 $

45,805.92 $ 179,346.76 $ 21,423,438.83

$ $ -106,308.05

$ -106,308.05

$

9.957.20 $

906.088.21

$ -29,503.98 $ 82,934.58

73,780.47

$

0.00

0.00

0.00

73,780.47

$

0.00

32,351.50 $ 1,274,252.57 $ 1,497,189.47

339,264.54

26,819,168.54

29.388,957.18

$ 916,045.41 $

53,430.60 $

371,616.04 $ 28,093,421.11 $ 30,886,146.65

- 5-

MACON STATE COLLEGE STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES YEAR ENDED JUNE 30. 1998

EXHIBIT"cn

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
EXPENDITURES
Educational and General Instruction Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships
Auxiliary Enterprises Food Services Stores and Shops Other Service Units
Total Expenditures
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)
Excess of Restricted Receipts over Transfers to Revenues
Transfer Investment Income for Principal Transfers for Renewals and Replacements Transfer for Student Loans Prior Period Adjustments (Net) Funded by the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Deficit)
Total Other Transfers and Additions/(Deductions)

UNRESTRICTED

RESTRICTED

TOTAL (Memorandum
Only)

$

12,017,767.00

4,446,804.59

20,577.00 $

300,666.05 396,884.74
48,324.93

$

17,231,024.31 $

$ 2,579,966.21
925,693.05 19,730.07
3,525,389.33 $

12,017,767,00 4,446,804,59 2,600,543.21 925,693.05 19,730.07 300,666.05 396,884.74 48,324.93
20,756,413.64

$

8,281,378.68 $

292,022.88

1,809,741.68

1,462,870.68

2,436,480.58

1,874,781.99

658,947,20

136,586.21 161,119.66
17,705.18

$

17,131,634.74 $

177,617.49 $ 111,097.71 329,052.06 92,038,00 2,815,584.07
3,525,389.33 $

8,458,996.17 403,120.59
2,138,793.74 1,462,870.68 2,528,518.58 1,874,781.99 3,474,531.27
136,586.21 161,119.66
17,705.18
20,657,024.07

$

36,737.22 $

36,737.22

106,308.05

106,308.05

$

-73,780.47

-73,780.47

-30,486.99

-30,486.99

23,794.70

23,794.70

17,683.11

$

-62,789.65 $

143,045.27 $

17,683.11 80,255.62

Net Increase/(Decrease) in Fund Balances

$

36,599.92 $

143,045.27 $ =====1.7..=9,::64=5=.1",,9=

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

MACON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Macon State College is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Macon State College as a separate reporting entity.
The Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. Macon State College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Macon State College is considered an organizational unit ofthe Board ofRegents ofthe University System of Georgia reporting entity for financial reporting purposes because ofthe significance of its legal, operational, and fmancial 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 of limitations 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
UNRESTRICTED - The fund used to account for those economic resources over which the College retains full control to use for purposes ofperforming the primary functions ofthe College, e.g., instruction, public service, etc.
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 STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

FUND ACCOUNTING

LOAN FUNDS

The fund used to account for resources which have been made available for financial loans to students.

",

ENDOWMENT AND SIMILAR FUNDS

The fund used to account for term endowment funds. Endowment funds are subject to the restrictions of gift instruments requiring that the principal be invested in perpetuity and income only be utilized. This term endowment fund is similar to endowment funds except that upon the passage of a stated period of time or the occurrence of a particular event, all or part of the principal may be expended.

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 fmancial statements are prepared on the modified accrual basis of accounting, 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 of accounting is defmed as that method ofaccounting 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 goods and services which have not been received at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with

-8-

MACON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING accounting practices prescribed or pennitted 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 detennined in accordance with generally accepted accounting principles.
Compensated absences represent obligations of the College relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability of $501 ,343.65 and a related net reduction of current year expenditures of $29,266.26 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 pennitted by statutes and regulations of the State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation of the fmancial statements.
To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made for plant facilities expended by the Georgia State Financing and Investment Commission on behalf ofthe College. 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.
RESTATEMENT OF PRIOR YEAR FUND BALANCE In fiscal year 1998, Macon State College implemented GASB Statement 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools". The statement requires certain investments to be reported at fair value rather than at cost. As a result, the beginning fund balance of the Current Funds - Restricted has been increased by $1,744.59 and the beginning fund balance of the Endowment and Similar Funds has been increased by $97,995.05 to implement this change i~ accounting principle.

- 9-

MACON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units of the University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 19971998. The appropriated budget covers current funds and plant funds, except forAuxiliary Enterprises and Student Activities which are not subject to appropriation. The budget allocation 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 include 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 identified below:

Resident Instruction Personal Services Education, General and Departmental Services

$ 134,393.87

Capital Outlay

$ 76,638.70

Lottery for Education Equipment, Technology and Construction Trust Fund

$ 31.298.41

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

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

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

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

- 10-

MACON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the first-in, first-out method.
Inventories of goods for resale are valued at cost using the first-in, first-out method.
MEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
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 anyone or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose. -
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
(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, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
- 11 -

MACON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES 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 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 of the Board of Regents is responsible for all details relative to furnishing the required

depository protection for all units ofthe University System of Georgia.

CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 1998, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:

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

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

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

Carrying Amount

Bank Balances

Risk Categories

2

3

Cash Deposits

$ 2,157,535.63 $ 740,444.01 $ 300,000.00 $

Investment Portfolio Accounts

71,606.54

71,606.54

71,606.54

0.00 $ 440,444.01

Total Cash Deposits

$ 2,22914217 $ 812,050.55 $ 371,606,54 $

000 $ 44044401

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

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

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

- 12 -

MACON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

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

The carrying amounts of investment balances as of June 30, 1998, are categorized below:

Type of Investment

Risk Categories

2

3

Carrying Amount

Common Stock Corporate Bonds Preferred Stock U. S. Government Securities Unit Investment Trusts Accrued Money Fund Dividends Accrued Bond Dividends

$ 569,395.22 $ 220,905.74 27,375.30 185,706.76 21,909.36 137.91 4,827.84

0.00 $

0.00 $ 569,395.22 220,905.74 27,375.30 185,706.76 21,909.36 137.91 4,827.84

$ 1.030.258.13 $

0.00 $==~O~.O~O $1.030.258.13

NOTE 3: INVESTMENT IN PLANT

The following is a summary of Investment in Plant fixed assets as of June 30, 1998:

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

$ 483,411.84 18,434,410.08 2,173,938.78 4,401,694.52 2,599,965.89

Total Investment in Plant

$28,093.421.11

NOTE 4: RISK MANAGEMENT

Macon State 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 of Regents ofthe University System of Georgia - Administrative Central Office. All units of the University System of Georgia share the risk of loss for claims of the Health Benefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of $1,000,000.00 per person and dental coverage up to an annual maximum of $1,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the Health Benefits Plan as established by the Board of Regents.

- 13-

MACON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT "D"

NOTE 4: RlSK MANAGEMENT

The Department of Administrative Services (DOAS) has the responsibility for the State of Georgia of making

and carrying out decisions that will minimize the adverse effects of accidental losses that involve State

government assets. The State believes it is more economical to manage its risks internally and set aside assets

for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed,

including general liability, property and casualty, workers' compensation, unemployment compensation, and

law enforcement officers' indemnification. Limited amounts of commercial 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 various state

organizations 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 of the performance of their duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund.

NOTE 5: DEFERRED COMPENSAnON PLAN

The State of Georgia 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 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 of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights ofthe State of Georgia subject only to the claims ofthe 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 will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1998.

A change in the Internal Revenue Code Section 457, effective August 20, 1996, requires that by January 1, 1999, all existing eligible deferred compensation plans must be held in trust for the exclusive benefit of participants and their beneficiaries. The State of Georgia's plan was converted effective July 1, 1998;

- 14-

MACON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT "D"

NOTE 6: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description Macon State College participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone fmancial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

Funding Policy Employees of the College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1998, the employer contribution rate was 11.81% for covered employees. In addition, the College contributed 3.91% to the TRS on behalf of employees electing to participate in the Regents Retirement Plan. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1998 1997 1996

100% 100% 100%

$ 1,047,100.69 $ 1,021,227.78 $ 1,017,309.62

REGENTS RETIREMENT PLAN

Plan Description The Regents Retirement Plan, a single-employer defmed contribution plan, is an optional retirement plan established and administered by the Board of Regents of the University System of Georgia, under which it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts.

Funding Policy Member contribution requirements are established by the Board of Trustees of the Teachers Retirement System. Employer contributions are established by statute and may be amended only by the General Assembly of the State of Georgia. The employer contributes 7.75% of the participating employee's earnable compensation. Employees contribute 5% oftheir earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times.

- 15 -

MACON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT"D"

NOTE 6: RETIREMENTPLANS
REGENTS RETIREMENT PLAN
Funding Policy The College and the covered employees made the required contributions of $82,963.71 (7.75%) and $53,524.93 (5%), respectively.
,. GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Macon State College participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia.
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 of Trustees. If a member has less than $ 3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making 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. Benefit provisions are established by State statute.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1998 amounted to $24,718.97 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan.
NOTE 7: LEAVE POLICIES
Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with maximum accumulation of forty-five .. days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1- Basis of Accounting (Compensated Absences)
Employees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment, except as noted in the subsequent paragraph.
- 16-

MACON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT "D"

NOTE 7: LEAVE POLICIES
Effective July 1, 1998, certain employees who retire with a minimum of three months of unused sick leave are entitled to additional service credit in the Teachers Retirement System of Georgia.
NOTE 8: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies.
This could result in refunds to the grantor agency for any expenditures which are disallowed under grant
terms. The amount ofexpenditures 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 State College (an organizational unit of the Board of Regents ofthe University System of Georgia), ifany, are generally considered to be actions against the State of Georgia. 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, 1998.
NOTE 9: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board of Regents of the University System of Georgia has established group health and life insurance programs for regular employees of the University System of Georgia. It is the policy of the Board of Regents to permit employees of the University System of Georgia eligible for retirement or that become permanently and totally disabled to continue as members of the 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 ofservice with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals.
As of June 30, 1998, there were 27 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1998, Macon State College recognized as incurred $50,772.00 of expenditures, which was net of$25,150.56 of participant contributions.

- 17 -

MACON STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998

EXHIBIT "D"

NOTE 10: ENROLLMENT

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

Regular Term Fall Quarter, 1997 Winter Quarter, 1998 Spring Quarter, 1998
."
Average
Summer School, 1997

2,440 2,325 2,178
~
Llli

- 18 -

SUPPLEMENTARY INFORMATION - 19-

MACON STATE COLLEGE COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED
JUNE 30, 1998

EXHIBIT"E"

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

",

Total Assets

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$ 315,803.57 $ 211,211.90 19,481.37 5,721.37

48,770.19 $

643,335.28 $ 69,397.67 $ 1,077,306.71

61,132.92

272,344.82

218,160.53

237,641.90

5,721.37

192,242.21

192,242.21

$ 552,218.21 $

48,770.19 $ 1,114,870.94 $ 69,397.67 $ 1,785,257.01

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

$

29,689.11 $

466,456.44 4,760.19

$ 500,905.74 $

48,770.19 $ 48,770.19 $

8,849.55

$ 87,308.85

-13.00 $ 25,009.96

491,453.40 4,760.19

8,836.55 $ 25,009.96 $ 583,522.44

51,312.47

1,106,034.39

44,387.71

1,201,734.57

Total Liabilities and Fund Balances

$ 552,218.21 $

48,770.19 $ 1,114,870.94 $ 69,397.67 $ 1,785,257.01

See notes to the financial statements.

- 20-

MACON STATE COLLEGE COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 1998

EXHIBIT"F"

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues Adjustments
Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Funded by the Board of Regents of the University System of Georgia
Prior Year's Unrestricted Fund Balance (Deficit)
Total Revenues and Other Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements For Student Loans
Total Transfers Between Funds
Net Increasel(Decrease) for the Year
FUND BALANCES JULY 1.1997

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$ 16,287,675,52 $
12,052.56 7,742.64

293,587,00 $

419,597.53 $ 230,164.26 $ 17,231,024.31

3,999,50

16,052,06 7,742.64

18,291.92 $ 16,325,762.64 $

293,587.00 $

18,291.92 423,597,03 $ 230,164.26 $ 17,273,110.93

$ 16,273,392.44 $

324,885.41 $

$ 217,945.84 $ 16,816,223.69

315,411.05

315,411.05

608.81

608.81

$ 16,273,392.44 $

325,494.22 $

315,411.05 $ 217,945.84 $ 17,132,243.55

$

73,780,47

-30,486.99

$

-73,780.47

-30,486.99

$

-104,267.46

$ -104,267.46

$

52,370.20 $

-31,907.22 $

3,918.52 $ 12,218.42 $

36,599.92

-1,057.73

31,907.22

1,102,115.87

32,169.29

1,165,134.65

FUND BALANCES JUNE 30.1998

$

51,312.47 $ _-=-=...0;;,.0;;;,;0= $ 1,106,034.39 $ 44,387.71 $ 1,201,734.57

See notes to the financial statements.

- 21 -

TIUS PAGE LEFT BLAHK

MACON STATE COLLEGE COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES UNRESTRICTED
YEAR ENDED JUNE 30,1998

EXHIBIT"G"

REVENUES
State Appropriations Tuition and Fees Federal Grants and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues
EXPENDITURES
Educational and General Instruction Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships
Auxiliary Enterprises Food Services Stores and Shops Other Service Units
Total Expenditures
OTHER TRANSFERS AND ADDITIONS/IDEDUCTIONS)
Transfers for Renewals and Replacements Transfer for Student Loans Prior Period Adjustments (Net) Funded by/Remittances to the Board of Regents
of the University System of Georgia Prior Year's Unrestricted Fund Balance (SurpluslDeficit)
Total Other Transfers and Additionsl(Deductions)

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$ 11,724,180,00 $ 4.224.964.18 20.577,00 300,666.05
17.288.29
$ 16,287.675,52 $

293,587.00 $
293,587.00 $

$
396,884.74 22.712.79

$ 221,840,41
8.323.85

12,017,767.00 4,446,804.59
20,577.00 300.666.05 396,884.74
48,324.93

419,597.53 $ 230,164.26 $ 17,231,024,31

$ 8,275.878.68 $ 292,022.88
1.685,554.68 1.239.924,84 2.246,282.17 1,874,781.99
658,947.20
$ 16,273,392.44 $

5,500.00 124.187.00
5,000.00 190,198.41
$
324,885.41 $

$ $ 217.945,84

8.281.378.68 292,022,88
1,809,741.68 1,462.870.68 2,436,480.58 1.874,781.99
658.947.20

136.586.21 161.119.66
17,705,18

136,586.21 161,119.66
17,705.18

315.411.05 $ 217,945.84 $ 17,131,634.74

$

19.795.20

$

-73.780,47

-30,486.99

3,999.50

$

-73.780.47

-30,486.99

23,794.70

18,291.92 $

$

38,087.12 $

-608.81 -608.81 $ -100,267.96

17,683.11

$

-62,789.65

Net Increasel(Decrease) in Fund Balances

$

52,370.20 $ -31.907.22 $

3,918.52 $ 12.218.42 $ .........3..6.=.5=9.9...9..2=

See notes to the financial statements.

-23 -

MACON STATE COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30,1998

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

$ 11,724,180,00

$

4,563,495,52 $ 3,525,389,33

411,500.00 79,072.29 $

...;,4.:.::;,3.;.,.76;:';".=.,;95;..,

$ 16,287,675,52 $ 3,525,389,33 $ 490,572.29 $

4,:..,3_76_._95_

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

$ 12,783,815,87 $ 396,425,32

3,382,527.57 107,049,00

3,128,964.01 $

519,332.78 $

45,805,92

$ 16,273,392,44 $ 3,525,389,33 $ 519,332.78 $

4..;;.5:.:.,8..;..05;;.;,.9,;.;2~

Excess of Revenues over Expenditures

$

14,283,08 $

0,00 $

-28,760.49 $ ===-4=1:.=,4=28:::.:97=

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

See notes to the financial statements.

- 24-

SCHEDULE "1"

TOTAL

ADJUSTMENTS
(1)

TOTAL (Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 12,135,680.00 8,172,334.09 $

$ 12,135,680.00 $ 12,135,680.00 $

-617,518.23

7,554,815.86

8,058,156.00

0.00 -503,340.14

$ 20,308,014.09 $

-617,518.23 $ 19,690,495.86 $ 20,193,836.00 $ - - ---50'3-,34-0-.14-

$ 12,783,815.87 396,425.32
3,382,527.57 $ 3,128,964.01
565,138.70 107,049.00

$ 12,783,815.87 $ 12,649,422.00 $

396,425.32

418,885.00

-658,947.20

2,723,580.37 3,128,964.01
565,138.70 107,049.00

2,919,932.00 3,610,048.00
488,500.00 107,049.00

-134,393.87 22,459.68
196,351.63 481,083.99 -76,638.70
0.00

$ 20,363,920.47 $

-658,947.20 $ 19,704,973.27 $ 20,193,836.00 $

48_8,:.;.,8...;,.62_.7_3_

$

-55,906.38 $

41 ,428.97 $ ======-1=4;.;,4=77:=.4=1=

$ ===-1=4~,4=77=.4=1=

- 25-

THIS PAGE LEFT BLAHK
'( ..

MACON STATE COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTIERY FOR EDUCATION YEAR ENDED JUNE 30.1998

SCHEDULE "2"

REVENUES State Appropriations

CURRENT FUNDS UNRESTRICTED

TOTAL (Budget Basis)

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$

293,587.00 $ 293,587.00 $ 293,587.00 $

~O.~OO~

EXPENDITURES
Equipment, Technology and Construction Trust Fund
Special Funding Initiatives

$

190,198.41 $ 190,198.41 $ 158,900.00 $

-31,298.41

134,687.00

134,687.00

134,687.00

0.00

$

324,885.41 $ 324,885.41 $ 293,587.00 $

-. .,:3. ;. 1,:.; .2. ;.;98;.;. .4.;. 1. ;.

Excess of Revenues over Expenditures

$

-31 ,298.41 $ ==-=3::::!1,,..29=:8::..4=1=

$ ===-=3::::!1,,..29=:8::..4=1=

See notes to the financial statements.

- 27-

MACON STATE COLLEGE CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30, 1998

Land

Buildings

Improvements Other Than Buildings

'J.

Equipment

Library Books and Collections

BALANCE JULY 1,1997

CURRENT FUNDS UNRESTRICTED RESTRICTED

$ 483,411,84

17,821,502,32

1,984,093.04

4,063,370.22 $

402,493.24 $ 42,568.69

2,466,791.12

133,174.77

$ 26,819,168.54 $

535,668.01 $ 42,568,69

See notes to the financial statements.

- 28-

SCHEDULE "3"

ADDITIONS
PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

DEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS

BALANCE JUNE 30, 1998

$ 483,411.84

$ 218,820.55 $

16,427.52 $

377,659.69

18,434,410.08

184,369.74

5,476.00

2,173,938.78

48,706.73

23,902.40

$

179,346.76

4,401,694.52

2,599,965.89

$ 451,897.02 $

45,805.92 $

377,659.69 $

179,346.76 $ 28.093,421.11

- 29-

MACON STATE COLLEGE SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30, 1998

NET INVESTMENT IN PLANT Investment in Plant Facilities
RESTRICTED Designated for Subsequent Years' Expenditures
UNRESTRICTED Designated For Bibb County Construction Fund For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures For Uncollectible Accounts Surplus Regular Lottery for Education

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

LOTIERY

FOR

AUXILIARY

EDUCATION

ENTERPRISES

STUDENT ACTIVITIES

$

13,112.39

4,121.80

34,078.28 _____ $

$

51,312.47 $

$

210,307.28

895,405.91 $ 44,387.71 321.20

.;;.;0..;;.;00:.., .;;.;0..;;.;00:- $ 1,106,034.39 $ 44,387.71

$

51,312.47 $ ====0.:=00;", $ 1,106,034.39 $ 44,387.71

See notes to the financial statements.

- 30-

SCHEDULE "4"

RESTRICTED

UNEXPENDED REGULAR

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$

28.093,421.11 $ _.......;;;2""8.c;..09;;..;3;.:..,4;.;;;2..;.;1..;.;1.;.-.1

$ 211.133.41

$ _ _--=.21.:..;1~.1:..::3~3.c.:..41.:-

$

53,430.60

$

371.616.04

$

53,430.60

223,419.67

371.616.04

939.793.62

4.443.00

$

53.430.60 $ _ _--=-37;..;1""'.6;..;.1~6.c;;.04"'_

34.078.28 0.00
$ _ _..;.:1.;;.;62:.;:6""7"..;;.8..;.;1.=-21~

$ 211.133.41 $

53.430.60 $

371.616.04 $

28.093,421.11 $ ======29ii::!.::;93=1,:.;;,3;;;,35;:',;,,;73=

- 31 -

MACON STATE COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 3D, 1998

SCHEDULE "5"

Totals per Annual Supplement
Adjustments Shared Services on Jointly Staffed Personnel University of Georgia Jones, Linda

SALARIES
$ 10,663,711.94 $

TRAVEL 165,752.14

-15,998.00

$

10,647,713.94 $ ====16=5=:,7:::::5.::2'::;,1.4...

See notes to the financial statements.

- 32-

SECTION II AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

MACON STATE COLLEGE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

581-96-01 581-96-02 FS-581-97-01 FS-581-97-02

Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

581-96-03 581-96-05 581-96-06

Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

MACON STATE COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1998
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
REVENUES/RECEIVABLES/RECEIPTS Student Accounts Receivable Not Supported by Financial Aid Finding Control Number: FS-58l-98-0l
On June 30, 1998, the College had $74,123.69 in student accounts receivable which were over one year old and were not supported by approved financial aid. There is no provision in the policies of the Board of Regents for deferments of student accounts without the student having approved documentation of financial aid at the time of registration. This condition occurred because management disregarded the policies of the Board of Regents.
No student should be granted a deferment without having approved financial aid. It is recommended that legal means be used to collect all student accounts receivable, if necessary.
REVENUES/RECEIVABLES/RECEIPTS Improper Student Accounts Receivable Finding Control Number: FS-58l-98-02
A review ofthe student accounts receivable at June 30, 1998, revealed $53,429.69 of credit balances. These account balances are either owed to students or should be applied to other accounts receivable balances as appropriate. This condition occurred because management failed to adequately monitor student accounts receivable. The college should research credit balances in order to either refund the balances or apply them correctly.