Audit report, state of Georgia, Medical College of Georgia, Augusta, Georgia, year ended June 30, 1996

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

AUDIT REPORT STATE OF GEORGIA MEDICAL COLLEGE OF GEORGIA AUGUSTA, GEORGIA YEAR ENDED JUNE 30, 19%

MEDICAL COLLEGE OF GEORGIA - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALL FUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

ALL FUND GROUPS

4

C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

6

D NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

E COMBINING BALANCE SHEET

CURRENT FUNDS - UNRESTRICTED

22

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

23

COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

G

UNRESTRICTED

24

H

RESTRICTED

25

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

26

2

LOTTERY FOR EDUCATION

29

3

OTHER ORGANIZED ACTMTIES

30

SCHEDULES OF OPERATIONS

4

LOAN FUNDS

34

5

ENDOWMENT AND SIMILAR FUNDS

36

6 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

37

SCHEDULES OF OTHER ORGANIZED ACTMTIES

7

BALANCE SHEET

40

8

CHANGES IN FUND BALANCES

41

9

REVENUES, EXPENDITURES, AND OTHER CHANGES

42

MEDICAL COLLEGE OF GEORGIA - TABLE OF CONTENTS-

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

10 CASH AND CASH EQUIVALENTS

43

11 INVESTMENTS

44

12 ACCOUNTS RECEIVABLE

45

13 CHANGES IN INVESTMENT IN PLANT

46

14 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

48

SCHEDULES OF REVENUES

15

CURRENT FUNDS

50

16

OTHER ORGANIZED ACTIVITIES ,

53

SCHEDULES OF EXPENDITURES BY OBJECT

17

CURRENT FUNDS

54

18

PLANT FUNDS

60

19

OTHER ORGANIZED ACTIVITIES

61

20 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

63

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
October 15, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe Board ofRegents ofthe University System of Georgia
and Honorable Francis 1. Tedesco, President Medical College ofGeorgia
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) ofMedical College of Georgia as ofand for the year ended June 30, 1996. These financial statements are the responsibility of the College's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the College to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation offund balance. The effects on the financial statements of this departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material.
As 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. Ifcompensated absences were reported, liabilities would be increased and fund balance would be decreased by $20,486,582.91 as of June 30, 1996, and the net change in fund balance for the year ended June 30, 1996, would be decreased by $1,132,013.21.
96ARL-63X

As more fully discussed in Section n, Findings and Improper or Questioned Costs, material discrepancies were
noted in the equipment inventory records ofthe College. Equipment inventory represents a significantportion ofthe College's investment in plant and we were unable to determine the effects these material discrepancies may have on the financial statements.
In our opinion, except for the effects on the financial statements of the matters discussed in the third, fourth, and fifth paragraphs, the financial statements referred to above present fairly, in all material respects, the financial position ofMedical College ofGeorgia as ofJune 30, 1996, 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.
As discussed in Note 1 to the financial statements, the College changed its method of recognizing revenue for patient services for the year ended June 30, 1996. This change is in accordance with generally accepted
.accounting principles.
Our audit was made for the purpose offorming an opinion on the financial statements taken as a whole. The accompanying supplementary infonnation (Exhibits E through H and Schedules 1 through 20) is presented for purposes of additional analysis and is not a required part of the financial statements ofMedical College of Georgia. Such information has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, except for the effects of the matters discussed in the third, fourth, and fifth paragraphs, such information is fairly presented in all material respects in relation to the financial statements taken as a whole.

CLV:cm 96ARL-63X

Claude L. Vickers State Auditor

FUNANCU\LSTATE~TS
- 1-

MEDICAL COLLEGE OF GEORGIA COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30. 1996

ASSETS
Cash and Cash Equivalents Investments Accounts Receivable (Net of Allowance for Uncollectibles) Inventories Prepaid Items Investment in Plant

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$ 33,7-07,603.77 $ 12,093,766.23 $ 1,307,781.08

95,437,537.93 2,605,467.54 688,833.00

4,282,442.54

7,835,083.75

Total Assets

$ 132,439,442.24 $ 16,376,208.77 $ 9,142,864.83

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

$ 27,160,457.12 1,143,318.43

$ 28,303,775.55

$ 7,928,025.77 1,214,839.06

$ 16,376,208.77 $ 104,135,666.69
$ 104,135,666.69 $ 16,376,208.77 $ 9,142,864.83

Total Liabilities and Fund Balances

$ 132,439,442.24 $ 16,376,208.77 $ 9,142,864.83

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)

$ 10,984,542.36 $

738,449.29

$ 5,507,158.32 $ 64,339,301.05

$ 5,316,874.42

5,316,874.42

1,075,790.00

108,630,854.22

2,605,467.54

11,187,138.53

11,875,971.53

_ _ _ _ _ _ $ 419,588,197.65

419,588,197.65

$ 5,316,874.42 $ 23,247,470.89 $

738,449.29 $ 419,588,197.65 $ 5,507,158.32 $ 612,356,666.41

$ 12,051,175.98 $
$ 12,051,175.98 $
$ 1,230,986.50 4,085,887.92 $ 11,196,294.91 $
$ 5,316,874.42 $ 11,196,294.91 $

367,403.14
$ 367,403.14 $

$ 4,744,052.02 $ 44,323,088.26

333,452.18

763,106.30

1,143,318.43 763,106.30 333,452.18

333,452.18 $ 5,507,158.32 $ 46,562,965.17

$ 419,254,745.47 371,046.15 371,046.15 $ 419,254,745.47

$ 7,928,025.77 1,214,839.06 1,230,986.50 4,085,887.92
419,254,745.47 16,376,208.77
115,703,007.75
$ 565,793,701.24

$ 5,316,874.42 $ 23,247,470.89 $

738,449.29 $ 419,588,197.65 $ 5,507,158.32 $ 612,356,666.41,

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MEDICAl. COLlEGE OF GEORGIA
COMBINED STATEMENT OF CHANGES IN FUND BALANCES ALl FUND GROUPS
'fEAR ENDED JUNE 30. 1996

REVENUES ANP OTHER ADDITIONS
Unrestricled Current Fund Rft8IlUM State Appropriations
Major RepairsIRehabililalion Funds Lottery Proceeds Federal Grants and Contracts State Grants and ContracIs Local Grants and Contracts Private Gills, Grants, and Contracts Inwstmenllncome
Endowment Other
Reniallncome Realized Gains onlnwslmenls Intet'elIt on Losns R-wable Adjustments
Prior Veers' Expenditures/Accounts Payable Prior Years' Checks Voided Expended for Plant Facilities Current Funds PIIInt Funds
Ut.xpended Renewals and Replacements Georgia State Financing and InYMImeni Commission Other Additions R8CCMIlY cI Prior Veers' Cancelled Losns
Total Rft8IlUM and OIher Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Hospital Expenditures Indirect Costs R_ed Refunded 10 Grantors Remillances to the 808rd of Regents of the
University System cI Georgia Prior Veer's Unrestricted Fund Baiance (Surplus)
Losn Cancellations and Wrile-Olfa CoIlec1ion Coats Expended for Plant Facilities
Capitalized Noncapitalized DiapoaalalDeletionalAdjuatments
Total Expenditures and OIher Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and RepIacernenIs Capital Projects
Total Transfers Between Funds
Nellncreaae1(Decreaae) for the Year
FUND BAlANCES JULV 1 1995
Rft8Ilue for Patient Services (Note 1)
FUND BALANCES JULV 1, 1995 <RESTATEP>

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN
FUNDS

$ 381,643,347.75

$ 16,402,3n.65 $ 12.229,758.64 563,422.87 36,799,844.78
237,792.30

163,574.00 33,541.00 65,063.38

338,518.02 9,827.97

182,637.87

$ 381,991.693.74 $ 66,253,196.24 $

4,744.87 449,561.12

$ 180,882,965.67 $ 54,666,721.90

3,735,516.86

182,637,271.36

7,279,376.00

3,672,285.58

$

122,000.00

121,445.24

66,916.32 4,728.13

$ 367,377,199.13 $ 65,618,383.48 $ 193,644.45

$

-310,338.36

-5,076,528.55

$ -5,386,666.91

$ 9,227,627.70 $ 634,812.76 $ 255,916.67

$ 13,746,494.61 $ 15,741,396.01 $ 8,886,948.16

81,161,544.38

$ 94,908,038.99 $ 15,741,396.01 $ 8,886,948.16

FUND BALANCES JUNE 30, 1996 The notes 10 the financial alatements are an integral part of this statement.
-4-

$ 104,135,666.69 $ 16,376,208.77 $ 9,142,864.83

EXHIBIT-s"

ENDOWMENT ANDSMLAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

$ ",670,000.00 815,000.00

$ 307,063.86

",362,<401.02 $ 282,701.27

20.366.19

$ 307.063.86 $ 10.150,<468.<48 $

$ 381,643,347.75

".670.000.00

815,000.00

16,565,951.65

12,229,758.6<4

583."22.87

$

100,599.95

36,933,985.73

296,2<45.00

237.792.30 ",723,709.<40
282,701.27 307,063.86 182.637.87

11.122.<45

370,006.66 9.827.97

21,909.818.50 21.909.818.50

10,0<48,192.88 502,752.19
12,212,352.72

10,0<48,192.88 502,752.19
12,212,352.72

",744.87

307.367.<45 $ 44.773.716.2" $ 50<4.233.067.13

$ 37,527.<48
10,0<48,192.88 $ 15,096.501.7" $ 25,182,222.10 $

$ 235,5<49.687.57 3.735.516.86
189.916,6<47.36 3,672,285.58 122.000.00

158.972.72 66.916.32 ",728.13

502.752.19 21,561.71
$

-5.<438.797.59

10.550.9<45.07 15.118.063.<45 -5,<438,797.59

52",313.90 $ -5,<438,797.59 $ <453,<456,965"'7

$ $ 5.076.528.55 $ 5.076,528.55 $ $ 307.063.86 $ -9.955.225.07 $ $ 5.009,810.56 $ 21,151,519.98 $
$ 5.009.810.56 $ 21,151.519.98 $

310,338.36

$

0.00

0.00

310,338.36

$

0.00

93,391.91 $ 50.212,513.83 $ 50.776.101.66

277,65<4.2" $ 369.0<42,231.6<4 $ <433,856.oss.2O

81.161.544.38

277.65<4.2" $ 369.0<42,231.6<4 $ 515.017.599.58

$ 5,316.87.....2 .$ 11,196.294.91 $

371.0<46.15 $ 419,25<4.745"'7 $ 565.793,701.24

5 -

MEDICAL COLLEGE OF GEORGIA STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES YEAR ENDED JUNE 30, 1996

EXHIBITC

Net Increasel(Decrease) in Fund Balances

$

9,227,627.70 $

634,812.76 $

9,862,440.46

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

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MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "0"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Medical College ofGeorgia is one ofthirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an orgm:rlzational unit ofthe State of Georgia. The accompanying financial statements reflect the operations of Medical College of Georgia as a separate reporting entity.
The Board ofRegents 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. Medical College ofGeorgia does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Medical College of Georgia is considered an organizational unit ofthe Board ofRegents ofthe University System of Georgia reporting entity for financial reporting purposes because ofthe significance ofits legal, operational, and financial relationships with the Board ofRegents 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 ofthe resources available to the College, the accounts ofthe College are maintained in accordance with the principles offund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group.
Within each fund group, the 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 of performing the primary functions of the College, e.g., instruction, research, public service, hospital support, auxiliary enterprises, and student activities.
RESTRICTED - The fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes.
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MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 3D. 1996

EXHIBIT "0" .

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
LOAN FUNDS
The fund used to account for resources which have been made available for financial loans to students.
ENDOWMENT AND SIMILAR FUNDS
The fund used to account for endowment funds and quasi-endowment funds. Endowment funds are subject to the restrictions ofgift instruments requiring that the principal be invested in perpetuity and income only be utilized. While quasi-endowment funds have been established by the College for the same purposes as endowment funds, any portion of quasi-endowment funds may be expended. Restricted quasi-endowment funds may be expended only for the purposes established by the source ofsuch funds.
PLANT FUNDS
UNEXPENDED - The fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes.
RENEWALS AND REPLACEMENTS - The fund used to account for resources set aside for the renewal and replacement ofinstitutional properties.
INVESTMENT IN PLANT - The fund which shows the total amounts representing the book value ofall 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 ofany 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 ofCertified Public Accountants' audit guide reporting model. . The modified accrual basis ofaccounting is defined as that method of accounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures of the fiscal period.

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MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING Contractual obligations for goods and services which have not been received at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition ofencumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Effective for fiscal year 1996, the College began recording revenue for patient services when earned rather than when cash was received. An adjustment ofS81,161,544.38 was made to restate the fund balance of Unrestricted Current Funds at July 1, 1995.
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 ofS20,486,582.91 and the related current year expenditure ofSl,132,013.21 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 of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation of the financial statements.
To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made for plant facilities expended by the Georgia State Financing and Investment Commission on behalf of the 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.
It is the policy ofMedical College of Georgia to record assets acquired through capital leases as additions to Investment in Plant when received at the total acquisition cost including interest. The liability for such leases at fiscal year-end is recorded in Investment in Plant including interest. This presentation differs from generally accepted accounting principles in that the assets and the related liability resulting from capital leases should be recorded in Investment in Plant at the inception of the agreement at the net present value of the future" minimum lease payments, not to exceed the fair value of the leased property. The effect ofthis departure is deemed to be immaterial to the fair pres,entation of the financial statements.
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MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING The Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to present the results of operations or the net income or loss for the period as would a statement of income or a statement of revenues and expenses.

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

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

Resident Instruction Special Funding Initiative
Other Organized Activities Medical College of Georgia Hospital and Clinics Operating Expenses: Sponsored Operations

$ 1.238.97 $ 59.659,11

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, and cash management pools that have the general characteristics of demand deposit accounts.

INVESTMENTS Investments are recorded at cost or in the case of gifts at fair market value on the date of the gift. Funds received by the 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.

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MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXJDBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ACCOUNTS RECEIVABLE Accounts receivable consist of allotments due from the Board of Regents of the University System of Georgia - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. The College has recorded its accounts receivable for patient services net of allowance for uncollectibles as follows:

Gross Receivables Allowance for Uncollectible Accounts

$154,100,941.91 -64,375,824.39

Net Receivables

$ 89,725,117.52

INVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the weighted average or the first-in, first-out methods.

Departments within the College use several costing methods for determining valuations of inventories for resale. Inventories of goods for resale are valued at cost using the first-in, first-out, or weighted average methods.

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

MEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:

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

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MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXIllBIT "0"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities ofthe State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State ofGeorgia, 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 ofthe State of Georgia.
(5) Bonds, bills, certificates ofindebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home ~oan Bank, the Federal Intermediate Cr~it Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
(6) Guarantee or insurance ofaccounts provided by the Federal Deposit Insurance Corporation.
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which includes organizational units of the Board ofRegents 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, 1996, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:
Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the 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.
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.
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MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT liDII

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS
carrying Amount

Bank Balances

Risk Categories

2

3

Cash Deposits Investment Portfolio Accounts

$63,096,638.92 $78,893,550.50 $ 614,143.53 $74,557,534.55 $ 3,721,872.42

459,198.66

459.198.66

101.831.42

357367.24

Total Cash Deposits

$63 555 837 58 $79352749.16 $ 71597495 $74 557 534 55 $ 4 079239.66

Included in Category 3 above were temporary investments in the amount of $1,258,626.69 that were

uncollateralized. Exemption from the State collateralization requirements granted by the State Depository

Board extends only to demand deposits.

.

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.

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 ofJune 30, 1996, are categorized below:

Type ofInvestment

Risk Categories

2

3

Carrying Amount

Market Value

Common Stock

$

Corporate Bonds

U. S. Government Securities

0.00 $ 2,123,06627 $ 401,264.00
2,092,970.32

0.00 $ 2,123,06627 $ 2,529,618.38

401,264.00

382,250.00

2,092,970.32 2,166,874.88

$,===o~oo~ $ 4 617300 59 $===O~OO~ $ 4,617,300.59 $ 5,078,743.26

Investment Portfolio Accounts Mutual Funds Real Estate
State Investment Pool

226,875.17 13,500.00
1.202,559.13

340,987.86 19,000.00
1.202.559.13

Total Investments

$ 6 060234 89 $ 6 64129025

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

- 13 -

MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXlllBIT "D"

NOTE 3: INVESTMENT IN PLANT

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

Land Buildings Improvements Other Than Buildings Egwpment Library Books and Collections Construction in Progress
Total Investment in Plant

$ 8,998,281.93 234,576,427.56 4,601,985.68 159,663,828.11 8,782,029.91 2.965.644.46
$419.588,197.65

NOTE 4: CAPITAL LEASES

Medical College of Georgia acquires certain equipment through multi-year capital leases with varying terms and options. These agreements contain fiscal funding clauses in accordance with Official Code of Georgia Annotated Section 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution ifappropriated funds are not available. Ifrenewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes.

As ofJune 30, 1996, future minimum lease payments under capital leases are as follows:

Fiscal Year Ending June 30
1997 1998 1999 2000
Total Future Minimum Lease Payments
NOTE 5: RISK MANAGEMENT

$ 122,640.49 94,903.50 74,138.89 41.769.30
$ 333.452.18

Medical College of Georgia is a participant in the Board of Regents of the University System of Georgia Health Benefits Plan, which is a self-insurance program ofhealth and dental benefits for employees and retirees ofthe 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.

- 14 -

MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXIllBIT "D"

NOTE 5: RISK MANAGEMENT
The Department ofAdministrative SeIVices (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 offi~' 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 seIVicing and claims payment.
A self-insured program of professional liability for its employees was established by the Board ofRegents of the University System ofGeorgia under powers authorized by the Official Code 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.
The College has obtained commercial insurance for risk of loss associated with Professional Liability (Malpractice) in excess ofthe DOAS "Georgia Tort Claims Act" $1,000,000.00 cap and the "Georgia Broad Form" $1,000,000.00 cap. The shared excess aggregate limit for faculty is $10,000,000.00 and for housestaff is $3,000,000.00. The shared excess each loss limit for faculty is $10,000,000.00 and for housestaff is $3,000,000.00.
The College's commercial insurance for Professional Liability excludes coverage for sexual misconduct, default judgements, violation of law and knowing transmission of or exposure to certain infectious diseases.
NOTE 6: DEFERRED COMPENSATION PLAN
The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue' Code Section 457. The plan, available to employees of the State ofGeorgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the State of Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor 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 pr~sented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
- 15 -

MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"D"

NOTE 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Medical College ofGeorgia participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers ofthe State of Georgia. The College's payroll for the year ended June 30, 1996, for employees covered by TRS was $154,960,645.27. The College's total payroll for all employees was $219,844;983.16.
Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2%of the average of the member's two consecutive highest paid years ofservice multiplied by the number ofyears of creditable service up to 40 years. Any member who has between 25 ~d 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 70/'0 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 ofthe 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 of disability.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
Contributions Required and Contributions Made Employees ofthe College who are covered by TRS are required to pay 5% oftheir gross earnings to TRS. The College makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. For fiscal year 1996, the employer contribution rate was 11.81% for covered employees. In addition, the College contributed 4.87% 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 1996 amounted to $27,706,645.97, of which $19,958,613.71 was made by the College and $7,748,032.26 was made by employees. These contributions represented 12.87% (College) and 5% (employees) of covered payroll.
- 16 -

MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIllBIT "D"

NOTE 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

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 of the PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS.

The total unfunded pension benefit obligation ofTRS as ofJune 30, 1995, which was the latest information available, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585,541.000.00

The measurement ofthe total pension benefit 9bligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available for benefits were valued as ofthe same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Retirement System Contributions Total contributions from all employers to TRS for the year ended June 30, 1996, were $607,274,559.00. The College's contribution for the year ended June 30, 1996, of$19,958,613.71 was actuarially determined and represented 3.2865% oftotal contributions made by all participating employers.

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

REGENTSRETIREMENTPLAN

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.

- 17 -

MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE 7: RETIREMENT PLANS
REGENTS RETIREMENT PLAN
State legislation requires that the employer contribute 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, 1996, was $33,900,093.23. The College's total payroll for all employees was $219,844,983.16.
The College and the covered employees made the required contributions of $1,356,003.73 (4%) and $1,695,006.02 (5%), respectively.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Medical College ofGeorgia 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. The College's payroll for the year ended June 30, 1996, for employees covered by GDCP was $2,043,090.82. The College's total payroll for all employees was $219,844,983.16.
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. Ifa 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 ofmaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount ofthe member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1996 amounted to $153,232.52 which represents 7.50% of covered payroll. These contributions met the requirements of the plan.

- 18 -

MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXlDBITID"

NOTE 8: LEAVB 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 ofcontinuous State service with maximum accumulation offorty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1- Basis of Accounting (Compensated Absences)
Employees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.
NOTE 9: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the College expects such amounts, ifany, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Medical College of Georgia (as an organizational unit ofthe Board ofRegents ofthe University System of Georgia), ifany, are generally considered to be actions against the State ofGeorgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
NOTE 10: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board ofRegents ofthe University System ofGeorgia has established group health and life insurance programs for regular employees ofthe University System of Georgia. It is the policy .ofthe Board ofRegents to permit employees ofthe University System ofGeorgia eligible for retirement or that become permanently and totally disabled to continue as members ofthe group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System of Georgia and who have at least ten years of service with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the' employer portion for group insurance for affected individuals.
As ofJune 30, 1996, there were 1,841 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1996, Medical College of Georgia recognized as incurred $1,391,031.29 ofexpenditures, which was net of$311,921.95 of participant contributions.

- 19 -

MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
ruNE 30. 1996

EXHIBIT"D"

NOTE II: BONDING INFORMATION

The President and all employees ofMedical College ofGeorgia are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-02-110723, on which the premium was paid to October I, 1996. Under this agreement, the public employee dishonesty coverage insures Medical College ofGeorgia to a maximum of$I,OOO,OOO.OO 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 of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment.

All employees ofMedical College of Georgia are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 011675 2 and 626 012294 4, on which the premiums were paid to October I, 1996. 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 and from failure ofits employees to perform faithfully.

NOTE 12: ENROLLMENT

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

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

3,513 3,274 3,191

Average

Summer School, 1995

- 20 -

SUPPLEMENTARY INFORMAnON - 21 -

ME[)ICAI. COLLEGE OF GEORGIA COMBINING BA!..ANCE SHEET
CURRENT FUNDS UNRESTRICTEP JUNE 30. 1996

EXHIBIT"E"

See notes to the financial s1atements.

-22 -

MEDICAl. COllEGE OF GEORGIA COMBINING STATEMENT OF CHANGES IN FUND BA!..ANCES
CURRENT FUNDS - UNRESTRICTED
YEAR ENDED JUNE 30, 1996

EXHIBIT"P'

RESIDENT LOTTERY FOR OTHER ORGANIZED AUXILIARY STUDENT

INSTRUCTION EDUCATION

ACTMTlES

ENTERPRISES ACTMTIES

TOTAL

REVENUES AND OTHER ADD!T!ONS

Unl88tricted Cumtnl Fund Revenues Adjustments
Prior Years' Expenditures/Accounts Payable
Prior Years' ChecIcs Voided

$ 101,024,380,30 $ 988,246,00 $ 275,1n,304.27 $ 4,281,672,43 $ 171,744.75 $ 381,643,347.75

74,154,09 3,579,55

264,289,65 6,148.51

74.28 99,91

338,518,02 9,827!d7

Total Revenues and OIher Additions $ 101,102,113,94 $ 988,246.00 $

275,447,742,43 $ 4.281,846,62 $ 171,744,75 $ 381,991,693,74

EXPENDITURES AND OTHER DEDUCTIONS

Educational and General Expenditures

$ 100,894,745.61 $

Auxiliary Ent8fJlrises Expenditures

Hospital Expenditures

Remittances to the Board of Regents of the

UnMInIity System of Georgia

Prior Year's Unrestricted Fund Balance

(Surplus)

80,336,91

984,389,96 $ .

78,805,154.61

$ 198,675,49 $ 180,882,965.67

$ 3.735,516,86

3,735,516,86

182,637,271.36

182.637,271.36

41,108,33

121,445,24

Total Expenditures and OIher Deductions

$ 100,975,082.52 $ 984,389,96 $ 261,483,534.30 $ 3,735,516.86 $ 198,675.49 $ 367,3n,199.13

TRANSFERS BETWEEN FUNDS

Nonmandatory R_1s and RepIacernent1I Capital Projects
Total Trallllfers aew-n Funds

$ -310,338,36

$

-5,014,480,00

-62,048.55

$

-5,014,480,00 $ -372,386,91

$ -310,338,36 -5.076,528,55
$ -5,386,866,91

NelIncreasel(Oecrease) for the Year

$

127,031.42 $

3,856,04 $

8,949,728,13 $ 173,942,85 $ -26,930,74 $ 9,227,627.70

FUND BALANCES JULY 1, 1995

$

95,099,98 $

0.00 $

12,411,289,56 $ 1,170,085.71 $ 70,019,36 $ 13,746.494.61

Revenue for Patient Services (Nole 1)

81.161,544,38

81,161,544.38

FUND BALANCES JULY 1, 1995 <RESTATEP> $

95,099,98 $

0,00 $

93.572.833.94 $ 1.170,085,71 $ 70,019,36 $ 94.908,038.99

FUNp BALANCES JUNE 30. 1996

$ 222,131,40 $

3,856.04 $

102,522,562.07 $ 1,344,028.56 $ 43,088.62 $ 104,135,666.69

See notes to the financial statements.

23

MEDICAl. COLLEGE OF GEORGIA
COMBINING STATEMENT Of CURRENT FUNDS REVENUES EXPENDITURES,
AND OTHER CHANGES
UNRESTRICTED )'EAR ENDED JUNE 30 1996

EXHIBIT "0"

RESIDENT LOTTERY FOR OTHER ORGANIZED AUXILIARY

STUDENT

INSTRUCTION EDUCATION

ACTMTIES

ENTERPRISES ACTMTIES

TOTAL

REVENUES

State AppropriatIona

$

Tuition and F_

FecIenll GI8rIta and Contracts

State GI8rIta and Contracts

Local Grants and Contracts

PrivlIIe Gifts, Grants, and Contracts

sales and Services d Educational AcIM1ies

sales and Services d Aulliliary Enterprises

sales and Services d HospItal

Other Sources

85,045,066.00 $ 7,481,521.65 3,173,885.21
7,958.24 0.62
490,441.51 4,170,583.92
654,923.15

988,2<16.00 $

Talal R--.ues

$ 101,024,380.30 $ 988.2<16.00 $

55,443,586.00
$ 219,540,218.27
193.500.00

$ 141,476,898.00

$ 153,166.25

7,634,687.80

3,173,885.21

7,958.24

0.62

490,441.51

4,170,583.92

4,281,672.43

4,281,6n.43

219,540,218.27

18,578.50

667,001.65

275.1n,304.27 $ 4,281,672.43 $ 171.744.75 $ 381,643.347.75

EXPENDITURES

Educational and General IMlruction R.-rch Public SeMce Academic Support Student Services Institutional Support Operation and Maintenance d Plant Scholarships and Fellow&hips
Aulliliary Enterprises Student Housing Food Services Stores and Shops Other SeMce Units
HospItal Medical College d Georgia 'Hospital

$ 68,211,024.34 $ 949,717.49 $ 754,070.80

8,790,063.68 1,275,986.18 11,231,793.74 8,682,703.96
949,102.80

34,6n.47

26,525,925.23 52,279,229.38

$ $ 198,675.49

116,686,667.06 754,070.80
52,279,229.38 8,790,063.69 1,474,661.67 11.266,466.21 8,682,703.96 949,102.80

$ 679,762.68 . 780,398.30 321,180.55
1,954,175.33

679,762.68 780,398.30 321,180.55 1,954,175.33

182,637,271.36

182,637,271.36

Talal Expendituras

$ 100,894,745.61 $ 984,389.96 $

261,442,425,97 $ 3,735,516.86 $ 198,675.49 $ 367,255,753.89

OTHER TRANSFERS AND AOO!T!ONSI CDEOUCTIQNS)

Transfers for Renewals and Replacements

Transfers for Capital Projects

Prior Period Adjustments (Net)

$

Remittances to the Board of Regents

d the University System of Georgia

Prior Year's Unrastricted Fund Balance

(Surplus)

n,733.54
-80,336.91

$ -310,338,36

$

-5,014,480.00

-62,048.55

270,438.16

174.19

-41,108.33

$ -310,338.36 -5,076,528.55 348,345.99
-121,445.24

Talal Other Transfers and Additions/(Deduclions)

$

-2,603.27

$

-4,785.150.17 $ -372,212.72

$ -5,159,966.16

Nellncreasel(Decrease) in Fund Balances

$

127,031.42 $

3,856.04. $

8,949,728,13 $ 173,942.85 $ -26,930,74 $ 9,227,627.70

See no4es to the financial statements,

-24-

Net Increase in Fund Balances

$

634,812.76 $

0.00 $ _....6..3..4..,.8..1..2...7..6....

See notes to the financial statements.

- 25 -

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30, 1996

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

$ 85,045,066.00

$

15,979,314.30 $ 54,666,721.90

4,670,000.00 4,645,102.29 $ _ _--=296=,2:.45;.:;..;.:;.00=..

$ 101,024,380.30 $ 54,666,721.90 $ 9,315,102.29 $ _ _--.;;;296;";,,,,;.:;,2;;..45""'.""'00,;..

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

78,013,943,68 $ 41,370,767.80

21,694,565.96
821,875.97 364,360.00

13,295,954.10 $

24,330,023.74 $

524,313.90

$ 100,894,745.61 $ 54,666,721.90 $ 24,330,023.74 $ _ _---.;5;.;;;;2..;.:4,.;;.31.;..;;3.;.;.90~

Excess of Revenues over Expenditures

$

129,634.69 $ ....._ .......-0.0..0.. $ -15,014,921.45 $ _ _....-.2.28==.\,,;;;;068-...90=

(1) To eliminate tuition waivers and MCG Research Institute contract overhead not budgeted, and to reclassify prior year fund balances and current year transfers budgeted as revenues.

See notes to the financial statements.

-26-

SCHEDULE -1-

TOTAL

ADJUSTMENTS (1)

TOTAL (Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 89,715,066.00

$ 89,715,066.00 $ 89,715,066.00 $

0.00

75,587,383.49 $ -1,:zn,687.98

74,309,695.51

98.597.795.00

-24,288.099.49

$ 165,302,449.49 $ -1,:zn,687.98 $ 164,024,761.51 $ 188.312.861.00 $ -24,288,099.49

$ 78,013,943.68 41,370,767.80

$ 78,013,943.68 $ 78,306,370.00 $

41,370,767.80

43,807,098.00

21,694,565.96 $ 13,295,954.10 24,854,337.64
821,875.97 364.360.00

-1,567,805.43 -9,926,853.97

20,126,760.53 13,295,954.10 14,927,483.67
821,875.97 364,360.00

25,363,737.00 23,720,373.00 15,930.286.00
820,637.00 364,360.00

292,426.32 2,436,330.20
5,236,976.47 10,424,418.90
1,002,802.33 -1,238.97 0.00

$ 180,415,805.15 $ -11,494,659.40 $ 168.921.145.75 $ 188.312.861.00 $ 19,391,715.25

$ -15,113.355.66 $ 10,216.971.42 $ -4.896.384.24

$ -4.896.384.24

- 27-

c~~
fJ ~~

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

MEDICAL COLLEGE OF GEORGIA SCHEPULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EPUCATION YEAR ENDEp JUNE 30,1996

SCHEDULE "'Z'

REVENUES State Appropriations

CURRENT FUNDS PLANT FUNDS

TOTAL

UNRESTRICTED UNEXPENDED (Budget Basis)

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$

988,246,00 $ 815,000,00 $ 1,803,246,00 $ 1.803,246,00 $

0,00

EXPENDITURES

capital Outlay

EqUipment, Technology and Construction

Trust Fund

Georgia Research Alliance

$

Special Funding Initiative

$
949,717,49 34,672,47

134,670,88 $ 500,000.00 180,000,00

134,670,88 $ 135,000,00 $

500,000,00 949,717.49 214,672.47

500,000,00 950,000,00 218.246,00

329,12
0.00 282,51 3.573,53

$

984,389,96 $ 814,670,88 $ 1,799,060,84 $ 1,803.246,00 $

4,185,16

Excess of Revenues over Expenditures

$

3,856,04 $

329.12 $

4.185.16

$

4.185,16

See notes to the financial statements,

-29-

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
OTHER ORGANIZED ACTIVITIES YEAR ENDED JUNE 30. 1996

MEDICAL COLLEGE OF GEORGIA HOSPITAL AND CLINICS
REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

TOTAL

ADJUSTMENTS (1 )

$ 31,697,885.00

$ 31,697,885.00

216,826,294.07 $ 7,279,376.00 224,105,670.07 $

-8,563,573.14

$ 248,524,179.07 $ 7,279,376.00 $ 255,803,555.07 $ -8,563,573.14

EXPENDITURES
Personal Services: Education, General and Departmental Services Sponsored Operations
Operating Expenses: Education, General and Departmental Services Sponsored Operations

$ 150,199,521.62

$ 150,199,521.62

$ 5,321,179.89

5,321,179.89

84,716,979.12

1,958,196.11

84,716,979.12 $ 1,958,196.11

5,014,480.00

$ 234,916,500.74 $ 7,279,376.00 $ 242,195,876.74 $ 5,014,480.00

Excess of Revenues over Expenditures

$ 13,607,678.33 $

0.0...0. $ 13,607,678.33 $ -13,578,053.14

(1) To eliminate revenue for patient billings not budgeted and to reclassify current year transfers budgeted as expenditures.

See notes to the financial statements.

-30-

SCHEDULE "3"

TOTAL (Budget Basis)

. BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 31,697,885.00 $ 31,697,885.00 $ 215,542,096.93 223,600,032.00

0.00 -8,057,935.07

$ 247,239,981.93 $ 255,297,917.00 $ -8,057,935.07

$ 150,199,521.62 $ 154,833,984.00 $

5,321,179.89

5,380,839.00

89,731,459.12 1,958,196.11

93,184,557.00 1,898,537.00

4,634,462.38 59,659.11
3,453,097.88 -59,659.11

$ 247,210,356.74 $ 255,297,917.00 $ 8,087,560.26

$

29,625.19

$

29,625.19

- 31 -

MED!CAI. COLLEGE OF GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
OTHER ORGANIZED ACTMTIES YEAR ENQED JUNE 30, 1996

SCHEDULE "3"

JOINT BOARD OF FAMILY PRACTICE
REVENUES SIIIte Appropriations

CURRENT FUNDS

TOTAl..

UNRESTRICTED RESTRICTED CBudget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABlE)

$ 23,745,701,00 $

0,00 $ 23,745,701.00 $ 23,745,701.00 $

0.00

EXPENDITURES

PersonIII 8ervic:es:

EdllClllion, General and Departmental Services

$

289,595.30 $

Operating Expenses:

EdllClllion, General and Departmental Services

634,961.00

capitation ConIrac:Is for Family Practice Residency

3,548,752.41

Residency Capitation Grants

2,.c&4,809,73

Student PreceptorshIps

143,250.00

Mercer Medical School Grant

6,619,012.00

Morehouse School fA Medicine Grant

5,549,778.00

S.R.E.B.~

4,451 ,950,00

0.00 $ 289,595.30 $ 301,071.00 $.

634,961,00 3,548,752.41 2,484,809.73
143,250.00 6,619,012.00 5,549,778,00 4,451 ,950,00

634,961,00 3,548,759,00 2,484,870,00
146,400.00 6,619,012.00 5,549,778,00 4,460,850.00

11,475.70
0,00 6.59 6027 3,150.00 0,00 0.00 8,900.00

$ 23,722,108,44 $

0.00 $ 23,722,108.44 $ 23,745,701,00 $

23,592.56

Excess fA Revenues over Expenditures

$

23,592.56 $

0,00 $

23,592.56

$

23,592.56

See notes to the financial statements,

-32

MEDICAl.. COlLEGE Of GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
OTHER ORGANIZEPACTMTIES
YEAR ENDED JUNE 30, 1996

SCHEDULE "3"

GEORGIA RADIATION THERAPY CENTER
REVENUES Other Revenues Retained
EXPENDITURES PersonIIl Services:
Education, General and Departmental Services Operating Expenses:
Education, General and Departmental Services
Excess of Revenues over Expenditures

CURRENT FUNDS

TOTAL

UNRESTRICTED RESTRICTED (Budget Basis)

BUDGET

VARIANCEFAVORABlE <UNFAVORABLE)

$

2,907,424.20 $

..:;0"",00.::.. $ 2,907,424.20 $ 3.024,867,00 $ _ _-...:1..:.17,"",44.:.=2"",80.::..

$ 2,065,930.35 $ 737,886.44

$ 2,803,816,79 $

$

103,607.41 $

0.00 $ 2,065,930.35 $ 2,160,347.00 $ 737,886.44 864,520.00

94,416.65 126,633,56

..:;0"",00.::.. $ 2,803,816.79 $ 3,024,867.00 $ _ _-=22:::.1,-",050=.2~1,,-

$ .:::O;;;:,OO~ 103,607,41

$ _ _.:.1,;;;03;,&;.60:;,;,:,7;;:;.4,:,1

See notes to the financial statements.

-33-

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF OPERATIONS LOAN FUNpS YEAR ENDED JUNE 30 1996

SCHEDULE -4-

BlliQ
U, S, GOVERNMENT GRANTS REFUNPABLE
Disadva~ Students Loan Fund Health Professions
Dentistry Medicine Nursing Student Loan Fund Perkins Loan Fund
INSTITUTIONAL LOANS - RESTRICTED
Alexander, carlin, Loan Fund Aven Medical Loan Fund Bard, Raymond, Short-Term Loan Fund Black, William Harmon, Loan Fund Bumette, George, Loan Fund
carr, We&trf, Memorial Dental Student Loan Fund
central savannah River Area Veterans Loan Fund Damon, Meffle S., Loan Fund Davis, Carl 0., Loan Fund Dawkins, Virginia, Loan Fund Emergency Loan Fund Georgia Pediatrics Loan Fund Gulf Oil Loan Fund Hinman, Thomas P., Dental Loan Fund Hudson, John Rice, Memorial Fund International College of Dentistry Loan Fund Johnson, Robert Wood, Loan Fund KelIog, W. K, Loan Fund Lamar Nursing Emergency Loan Fund Low, Frank, Dental Loan Fund Medical College of Georgia
Dean's Loan Fund Dental Faculty Loan Fund Dental Student Loan Fund Foundation Foundation Loan Fund Foundation Matching Medical Loan Fund Medical Memorial Loan Fund Moran Dental Loan Fund Murphy, Eugene E., Loan Fund Myers, Erma C., Loan Fund Nix, Gerald E., Loan Fund Nursing Foundation Loan Fund Nutt, R. L., Loan Fund Radiation Technology Educational Assistance Loan Fund Robinson, Asbury Clark, Loan Fund Stoney MedicaVDentaVPharmaceutical Society Student Loan Fund White, Robert C., Loan Fund Whitehead, Lizzie, Loan Fund Women's Physician Council Loan Fund
see notes to the financial statements.

FUND BALANCE ADDITIONSI DEDUCTIONSI FUND BALANCE

JULY 1,1995

TRANSFERS TRANSFERS

JUNE 30, 1996

$ 234,329,32 $
966,978.71 3,226,709,05
941,352,87 2,350,523,07
$ 7,719,893,02 $

101,112,15
54,998.09 $ 71,229,11 36,364.80 120,694,34
384,398,49 $

$
-7~.97
118,719,84 3,720.88
54,581.99
176,265.74 $

335,441.47
1,022,733.n 3,179,218,32
973,996,79 2A16,635.42
7,928,025,n

$

SO.OO

11,119.51 $

1,439.16

52,744.96

12,961.93

4,664,82

2,166,52

1,024,08

22,881.26

19,521,09

49,800.36

11,920.85

3,213,73

18,876.51

5,690.81

1,678.51

342,612.93

9,153,37

2,086.99

1,262,14

1,091.09 15,050,84 12,928,89 82,646,47 205,978.33 4,335.00 43,152.16 3,820,44 12,037,49 16,267,48 10,902.31 1,254.98 5,131.53 1,116.83

35,747.45 100,486.95
1,037.95 4,636.70 12,401.26 13,105.91 9,055.55

$ 1.167,055.14 $

54,32 13,58 996.05 583,13 49,94 44,76
761.76 158.68
510.~
n.79
.13.38 322.01
7,548,55 $ 140.33 24.61 27,85
616.40 369,47 39,960,80 -332,45 322.00
1,~.92
638.40 484.51 238.07
24,15 55.58
5,042.46 3,851.02
22.25
307,70 483.86
94.19
65,162.63 $

$
3,732.96 4,728,13 8,917.62 17,378.71 $

SO.OO 11,173,83
1,452,74 53,741.01 13,545.06 4,714.76 2,211.28
1,024,08 23,643,02 19,679.n SO,31 0,92 11,998.64
3,213.73 18,889.89 6,012.82 1,678.51 346,428.52 9,293.70 2,111.60 1,289,99
1,091.09 15,667.24 13,298,36 117,879,14 205,645.88 4,657.00 44,809.08 3,820.44 12,675.89 16,751.99 11,140.38 1,279.13 5,187.11 1,116.83
31,8n.29 104,337.97
1,060.20 4,636.70 12,708.96 13,589.n 9,149.74
1,214,839.06

$ 8,886,948.16 $ 449,~1.12 $ 193,644.45 $

9,142,864.83

-34-

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF OPERATIONS LOAN FUNDS YEAR ENpED JUNE 30 1996

RECONCILIATION OF STUDENT NOTES RECEIVABLE

Balance July 1, 1995 Add:
Loans to Students

$ 7,791,520.02 980,434.00

Deduct: Repayment of Loans Loan cancellations and Write-Offs
For Bankruptcy ForPeath For Disability
For Teaching and Nursing services
For Loans Written Off

$ 8,n1,954.02

$ 869,953.95

$

3,732.96

3,505.38

115.41

62,259.79

-2,697.22

66,916.32

936,870.27

Balance June 30, 1996

$ 7,835,083.75

see notes to the financial statements.

-35-

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF OPERATIONS
ENDOWMENT AND SIMILAR FUNDS YEAR ENDED JUNE 30,1996

SCHEDULE "5"

FUND

FUND BALANCE JULY 1.1995

ADDITIONSI TRANSFERS

DEDUCTIONSI TRANSFERS

FUND BALANCE JUNE 30.1996

. ENDOWMENT

Bernard. Guy T., Fund

$

Blanchard, Hubert H., Fund

Franklin. Desiree L. Scholarship Fund

Gower, Orien Thomas. Fund

Haddock, Dr. Samuel H., Fund

Linton, Jack H., Fund

Merritt Foundation

Robinson. Josef E. Fund

Young, William J. Library Fund

37,631.56 $ 195,853.97 117,583.45
17,361.27 10,071.23 15,538.75 606,415.14 44.587.50 123.591.11

2.195.20 $ 9.766.69 1.000.15
897.67 623,90 962.60 37,722.78 2.405.39 6,778.14

0.00 $

39.826.76 205.620.66 118.583.60
18.258.94 10,695.13 16,501.35 644,137.92 46,992.89 130,369.25

$ 1,168.633.98 $

62.352.52 $

0,00 $

1.230,986.50

QUASI-ENPOWMENT - RESTRICTED

Charbonnier-Boudre Phinizy Fund Galin, Bertha S., Fund Hunter. Grover C., Trust Fund Whitaker, C. D., Fund

$ 3,549,969.01 $ 212,289.89 $

44,039.20

2.292,70

214.080.14

28.126,45

33,088.23

2,002.30

0.00 $

3,762.258.90 46.331.90
242.206.59 35,090.53

$ 3,841,176.58 $ 244.711,34 $

0,00 $

4,085,887,92

$ 5,009.810.56 $ 307.063.86 $

0,00 $

5.,3-.1.6,.8..7.4..4.-.2

See notes to the financial statements,

- 36-

MEDICAl COLLEGE OF GEORGIA SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE -6"

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE "6'

FUND

BALANCE JULY 1,1995

RECEIPTS

BALANCE DISBURSEMENTS JUNE 30, 1996

OTHER FUNDS

Cash Oller - Short

Cashier's Office - Transactions in Suspense

Continuing Education Advance Registration

$

Continuing Education Program

Debit Card SystBm

Demurrage - Transactions in Suspense

Dental Fee Overpayments

Dental Foundation

Dental Foundation HoIcIing Account

Disability Insurance - Medical Students

Dust Removal and Soil Remediation - Sears

Automotive

Equipment Furnishing BR-40-72

Financial Aid Cleaning

Georgia Board of Dentistry

Georgia War Veterans Nursing Home

P8tients' Benefit Fund

P8tients' Cash Valuables

Special Projects

Graduate Student Hooding Ceremony Breakfast

Graduate Student Research Day Awards Banquet

GSFIC Reimbursement

Gymnasium Fund

Hospitality Cart

Insurance Settlement - Overtime

International Perinatal Society

Investment Transactions

Joint Board of Family Practice

MCG Faculty Executive Committee

MCG Health Food

Major Repair and Renovation

Fiscal Year 1992

Fiscal Year 1993

Fiscal Year 1994

Matriculation Deposits

Meal TICket Deposit Account

Medical Student Well Being Fund

National Respiratory Care Week

Network Electronics and Telephone BR-40-72

Nursing Orientation Fund

Operating Room Fund

Oral Biology - Medical College of Georgia

Foundation

PPG Printing and Advertising

Parking Gate Card Deposits

Patient Cash Valuables

PayroilRec:eivables

Pediatric Share and Care Family Weekend

Physicians Practice Group

Psychiatry Outpatient Key Deposit

Research Center Building Signage

Research Lab

Reticuloendothelial Society

Retumed Checks

$ 450,587.35 51,668.59
2,825.50 72,883,76 .

3,254,72 $ 12,398,611.42
714,940.40 568,289.72
20,162,63 52,74
2,979.22 5,324.14 1,225,052,22 136,540,00

3,254,72 12,398,611.42
806,863.61 $ 535,958,59
13,811.72 52.74
2,875.60 7,147.69 1,297,935.98 136,540,00

131,104.08 1,031,901.82
438,882,50 338,00

131,104.08 1,031,901.82
438,882.50 234.00

13,701.35 16,633,00
2,460.00
1,000,00 155,227,08
489.21
203,24 4,33
5,535,31

22,010,44 108,668.63
49,447.00 1,830.00 ,1,232,00
122,854.29
143,840,96 5,343,32 1,472,29
153,257,124,76 130.28
18,747,21

25,760,16 108,035.70
49,447,00 4,290.00 1,217,00
122,854,29
135,981,89 5,343.32 654.58
153,257,124.76 260.56 4.33
11,992.96

33,750,00
844.27 523,37 885,84

681,821.53 2,350,675.13 3,342,579,45 8,698,368.56
2,840,45 150,00
2,636,88 501,017,54
6,885,40

681,821.53 2,350,675.13 3,342,579,45 8,698,068.56
2,840,45
2,310,00 501,017,54
7,n1,24

441,50 615.20 11,315.78 844.38
1,280,72 1,965.29
475,00
355,74

2,700,00 15,664,95 14,676,08
97,36 38,614.74
50,00 7,147,52 2,500,00
226,78 183,485,83

615,20 40,00
15,201,04 14,676,08
194,72 38,438,95
125.00 7,147,52 2,500,00
428,63 183,485.83

358,664.14 83,999.72 6,350,91 103.62 1,001.95
104.00 9,951,63 17,265.93
15,00 1,000,00 163,086,15 1,306,92
72,96 12,289,56
34,050,00 150,00
1,171.15 523,37
441,50 13,975,78
1,308,29 1,183,36 2,141,08
400,00
153,89

See notes to the finarlCial statements,

-38-

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 30.1996

SCHEDULE "6"

FUND
OTHER FUNDS
Sales Tax Schmidt, Debbie, Memorial Fund Scholarships
Regents' Opportunity Scholarship Regents' Opportunity Scholarship - FY 95
Surplus Regents' Scholarship Fund Regents' Scholarship - Prior Year
other Scholarships (List on File) Service Recognition Activities Sonat Activities
Student Events and Related Programs Student Fee Advance Payment Students for Intercultural Medicine Summer Educational Enrichment Program
Activity Fund Trauma center Fund Unearned Income

BALANCE JULY 1, 1995

RECEIPTS

BALANCE DISBURSEMENTS JUNE 30,1996

$

9,569.20 $

180,733.43 $

143.60

180,967.40 $

9,335.23 143.60

140,000.00

140,000.00

586.50
247.65 . 28.44
130.00 5,866.43 55,629.41
350.00

5,000.00 3,761.89
505.87 877,309.00
54,307.00 31,186.13 537,787.53
252.66

5,000.00 3,842.02
505.87 873,941.00
54,437.00 32,718.16 581,675.49
401.78

506.37
3,615.65 28.44
4,334.40 11,741.45
200.88

850.00 125.71

1,368.00 125,100.36

2,218.00 125,100.36

125.71

$ 916,222.60 $ 196,967,346.16 $ 197,120,462.46 $ 763,106.30

$ 5,952,370.21 $ 342,819,838.70 $ 343,265,050.59 $ 5,507,158.32

See notes to the financial s1atements.

- 39-

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF OTHER ORGANIZED ACTIVITIES
BALANCE SHEET JUNE 30. 1996

SCHEDULE ...,.

ASSETS
Cash and Cash Equivalents Accounts Receivable (Net of Allowance
for Uncollectibles) Inventories Prepaicllterns

MEDICAL COLLEGE OF GEORGIA HOSPITAL AND CLINICS

UNRESTRICTED

JOINT BOARD OF FAMILY PRACTICE

GEORGIA RADIATION THERAPY
CENTER

TOTAL

$ 29,434,374.69 $
90,516,513.85 1,916,178.06 688,833.00

48,726.93 $

457,595.03 $

29,940,696.65
90,516,513.85 1,916,178.06 688,833.00

Total Assets

$ 122,555,899.60 $

48,726.93 $ 457,595.03 $ 123,062,221.56

LIABILITIES AND FUND BALANCES

Liabilities Accounts Payable

$ 20,504,362.51 $

Fund Balances Unrestricted

102,051,537.09

24,542.44 $

10,754.54 $ 20,539,659.49

24,184.49

446,840.49

102,522,562.07

Total Liabilities and Fund Balances

$ 122,555,899.60 $

48,726.93 $ 457,595.03 $ 123,062,221.56

See notes to the financial statements.

-40-

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF OTHER ORGANIZED ACTMTIES
CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 1996

SCHEDULE -8"

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues Adjustments
Prior Years' Expenditures/Accounts Payable
Prior Years' Checks Voided
Talai Revenues and Other Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expenditures Hospital Expenditures Remittance to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Talai Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonrnandatory Capital Projects
Net Increasel(Decrease) for the Year
FUND BALANCES JULY 1, 1995
Revenue for Patient Services (Note 1)
FUND BALANCES JULY 1,1995 (RESTATED)

MEDICAL COLLEGE OF GEORGIA HOSPITAL AND CLINICS

UNRESTRICTED

JOINT BOARD OF FAMILY PRACTICE

GEORGIA RADIATION THERAPY
CENTER

TOTAL

$ 248,524,179.07 $ 23,745,701.00 $ 2,907,424.20 $ 275,177,304.27

263,732.27 5,458.51

91.93 500.00

465.45 190.00

264,289.65 6,148.51

$ 248,793,369.85 $ 23,746,292.93 $ 2,908,079.65 $ 275,447,742.43

$ 52,279,229.38 $ 23,722,108.44 $ 2,803,816.79 $ 78,805,154.61

182,637,271.36

182,637,271.36

41,108.33

41,108.33

$ 234,916,500.74 $ 23,763.216.77 $ 2,803,816.79 $ 261,483,534.30

$ -5,014,480.00 $ 8,862,389.11 $ $ 12,027,603.60 $
81,161,544.38 $ 93,189,147.98 $

-16,923.84 $ 41,108.33 $
41,108.33 $

$ 104,262.86 $ 342,577.63 $
342,577.63 $

-5,014,480.00 8,949,728.13 12,411,289.56 81.161,544.38 93,572,833.94

FUND BALANCES JUNE 30. 1996

$ 102,051,537.09 $

24,184.49 $ 446,840.49 $ 102,522,562.07

See notes to the financial statements.

- 41 -

MEDICAl. COllEGE OF GEORGIA SCHEDULE OF OTHER ORGANIZEPACTMTIES
REVENUES, EXPENDITURES, AND OTHER CHANGES
YEAR ENDEp JUNE 30, 1996

SCHEDULE "9"

MEDICAl.. COlLEGE OF GEORGIA HOSPITAL ANDCUNICS

UNRESTRICTED

JOINT BOARD OF FAMILY PRACTICE

GEORGIA RADIATION THERAPY
CENTER

TOTAL

RESTRICTED MEDICAL COlLEGE
OF GEORGIA HOSPITAL
AND CLINICS

TOTAL

REVENUES

Slate Appropriations Slate Grants and ConIrac:ts sales and Services 01 Hospital 0Iher Sources

$ 31,697.885,00 $ 23,745,701,00

$ 55,443,586,00

$ 55,443,586,00

$ 7,279,376,00

7,279,376,00

216,632.794,07

$ 2,907,424.20 219,540,218.27

219,540,218.27

193,500,00

193,SQQ,00

193,500,00

Total Revenues

$ 248,524,179,07 $ 23,745,701,00 $ 2,907,424.20 $ 275,177,304.27 $ 7,279,376,00 $ 282,456,680.27

EXPENDITURES

Educational and General

InsIruc:tion

$ 23,722,108,44 $ 2,803,816,79 $ 26,525,925.23

$ 26,525,925.23

Public Service

$ 52,279,229.38

52,279,229,38

52,279,229.38

Hospital

Medical College 01 Georgia Hospital 182,637,271.36 Georgia War Veterans Nursing Home

182,637,271,36

182,637,271.36

_ _ _ _ _ $ 7.279,376,00

7,279,376,00

Total Expenditures

$ 234,916,500,74 $ 23,722,108,44 $ 2,803,816,79 $ 261,442.425,97 $ 7.279,376,00 $ 268,n1,801,97

OTHER TRANSFERS AND ADPITIONSI
coePUCT!ONS>

Transfers for capital Projects
PriorPeriodAdjustrnenls(Net) Remltlances to the Board of Regents
01 the University System 01 Georgia Prior Year's Unrestric:ted Fund Balance (Surplus)

$ -5,014,480,00 269,190.78 $

591,93 $ -41,108,33

$ -5,014,480.00

655,45

270,438,16

-41,108,33

$ -5,014,480,00 270,438,16
-41,108,33

Toial Other Transfers and Addilionsl(Deductions)

$ -4,745.289,22 $

-40,516,40 $

655,45 $ -4,785,150,17

$ -4,785,150,17

Net IncreaseI(Decrease) in

Fund Balances

$ 8,862,389,11 $ -16,923,84 $ 104,262,86 $ 8,949,n8,13 $

0._,0.0. $ 8,949,n8,13

See notes to the financial statements,

-42

MEDICAL COLLEGE OF GEORGIA CASH AND CASH EQUIVALENTS
JUNE 30.1996

SCHEDULE 10

NONINTEREST BEARING ACCOUNTS
First Union National Bank of Georgia, Augusta, Georgia
SunTrust Bank of Augusta, Augusta, Georgia
Wachovia Bank of Georgia, Augusta, Georgia
INTEREST BEARING ACCOUNTS
First Union National Bank of Georgia, Augusta, Georgia
Certificates of Deposit (5.15% - 5.46%) Passbook Savings Account (1.98%)
Georgia Bank and Trust Company, Augusta, Georgia
Certificate of Deposit (5.25%)
NationsBank of Georgia, Augusta, Georgia
N.O.W. Account (5.21 %)
State of Georgia - Office of Treasury and Fiscal Services State Investment Pool Local Govemment Investment Pool (5.321%)
OTHER
Cash on Hand Petty Cash

$ -1,013,447.45. 4,026,011.49 20,000.00 $ 3,032,564.04
$ 55,005,000.00 4,746.28 $ 55,009,746.28 1,000,000.00 4,054,328.60 1,202,559.13 61,266,634.01
40,103.00

$ 64.339,301.05

See notes to the financial statements.

- 43-

MEDICAL COLLEGE OF GEORGIA INVESTMENTS JUNE 30,1996

SCHEDULE "11"

Investment Accounts
NationsBankofAugus~,
Augusta, Georgia Investment Portfolio Account Money Market Funds . . Mutual Funds Real Estate
SunTrust Bank of Georgia, Augusta, Georgia
Investment Portfolio Account Cash Common Stock Corporate Bonds Money Market Funds U. S. Govemment Securities

$

1,831.42

226,875.17

13,500,00 $ 242,206.59

$ -56,745.76 2,123,066.27 401,264.00 514,113.00 2,092,970.32

5,074,667.83

$ 5,316,874,42

See notes to the financial statements.

-44 -

MEPlCAL COLLEGE OF GEORGIA ACCOUNTS RECEIVABLE JUNE 30,1996

SCHEDULE "12"

State Appropriations Allotment from the Board of Regents of the University System of Georgia
Federal Grants and Contracts Research and Instruction
State Grants and Contracts Research and Instruction
Local Grants and Contracts Research and Instruction
Private Gifts, Grants, and Contracts Research and Instruction
sales and 8ervices of Hospital
Patient Billings
Other Georgia State Financing and Investment Commission Interest Earned Student Accounts Student Nates Vendor Credit Memos Other

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS'

PLANT FUNDS UNEXPENDED

TOTAL

$ 4,000,000,00 $ 1,513,119.75 2,141,704.43 131,610.39 496,007,97
89,725,117.52

$ 250,000.00 $ 4,250,000.00 1,513,119.75 2,141,704.43 131,610.39 496,007.97
89,725,117,52

1,457,967.19
63,291,00
90,592.42 100,569.80

$ 7,835,083.75

825,790,00

1,457,967,19 825,790.00 63,291.00
7,835,083,75 90,592.42 100,569.80

$ 95,437,537,93 $ 4,282.442.54 $ 7,835,083.75 $ 1,075,790.00 $ 108,630,854.22

See nates to the financial statements.

-45-

MEDICAL COLLEGE OF GEORGIA CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30, 1996

Land Buildings Improvements Other Than Buildings Equipment Ubrary Books and Collections Construction in Progress

BALANCE JULY 1,1995

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT UNEXPENDED

$ 8,998,281,93

194,429,684.24 $

509,530.05 $ 886,550.00 $ 8,662,545.85

3,825,690.89

394,788.97

372,on.34

144,523,682.74 --16,644,600.17 2,786,753.82

1,013,569.69

8,094,918.30

687,595.49

10,912,132.02

$ 370,784,390.12 $ 18,236,514.68 $ 3,673,303.82 $ 10,048,192.88

SUMMARY OF INVESTMENT
College Capital Leases

$ 369,042,231.64 $ 18,236,514.68 $ 3,673,303.82 $ 10,048,192.88
1,742,158.48
$ 370,784,390.12 $ 18,236,514.68 $ 3,673,303.82 $ 10,048,192,88

See notes to the financial statements.

- 46-

SCHEDULE "13"

ADDITIONS
FUNDS RENEWALS AND REPLACEMENTS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

CAPITAL LEASES

PRIVATE GIFTS

DEDUCTIONS DISPOSALSI DELETIONSI ADJUSTMENTS

BALANCE JUNE 30, 1996

$ 8,998,281.93

$

472,297.94 $ 10,670,561.92

$ -18,945,257.56 234,576,427.56

10,074.98

646.50

4,601,985.68

20,37927

$ 1,207,047.42 $ .. 100,599.95

6,632,804.95 159,663,828.11

483.88

8,782,029.91

1,541,790.80

9,488,278.36

2,965,644.46

$

502,752.19 $ 12,212,352.72 $ 1,207,047.42 $ 100,599.95 $ -2,823,043.87 $ 419,588,197.65

$

502,752.19 $ 12,212,352.72

$ 100,599.95 $ -5,438,797.59 $ 419,254,745.47

_ _ _ _ _ $ 1,207,047.42

2,615,753.72

333,452.18

$

502,752.19 $ 12,212,352.72 $ 1,207,047.42 $ 100,599.95 $ -2,823,043.87 $ 419,588,197.65

- 47-

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30.1996

NET INVESTMENT IN PLANT Investment in Plant Facilities
RESTRICTED Designated for Subsequent Years' Expenditures
UNRESTRICTED Designated For Capital Projects (GSFIC) For Equipment/Revenue Stabilization Reserve for Georgia Radiation Therapy Center For Hospital Operations For Inventory Reserve For Property Sales Reserve For Renewals and Replacements Reserve For Revenue Stabilization Reserve for Medical College of Georgia Hospital and Clinics For SUbsequent Years' Expenditures Undesignated Surplus Regular Lottery for Education

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

CURRENT FUNDS

UNRESTRICTED

OTHER ORGANIZED AUXILIARY

ACTMTIES

ENTERPRISES .

$

10,872.63

113,375.00

$

446,840.49

89,725,117.52

2,171,769.34 $ 685,946.17

10,154,650.23

658,082.39

97,883.n $
$ 222,131.40 $

3,856.04 3,856.04 $

24,184.49 102,522,562.07 $ 1,344,028.56

$ 222,131.40 $

3,856.04 $ 102,522,562.07 $ 1,344,028.56

See notes to the financial statements.

-48-

STUDENT ACTMTIES

RESTRICTED

PLANT FUNDS

UNEXPENDED

LOTTERY FOR RENEWALS AND

REGULAR

EDUCATION REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 419,254,745.47 $ 419,254,745.47

$ 16,376,208.77

$ 16,376,208.77

$ 11,187,138.53

$ 43,088.62

$

371,046.15

$ 11,187,138.53
446,840.49 89,725,117.52
2,868,588.14 113,375.00 371,046.15
10,154,650.23 701,171.01

$ 43,088.62

8,827.26 _____ $ $ 11.195,965.79 $

3:::29:=.:.:..12:.. 329.12 $ _ _3;;,;.7-,"1,.,;;;.046=,-,.1.;;.5

130,895.52 4,185.16
$ 115,703,007.75

$ 43,088.62 $ 16,376,208.77 $ 11,195,965.79 $

329.12 $

371,046.15 $ 419,254,745.47 $ 551,333,961.99

-49-

MEDiCAl COLLEGE OF GEORGIA
SCHEDULE Of REVENUES
CURRENT FUNDS
YEAR ENDED JUNE 30. 1996

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

UNRESTRICTED

OTHER ORGANIZED AUXILIARY

ACTIVITIES

ENTERPRISES

SCHEDULE "15"

STUDENT ACTIVITIES

TOTAL

RESIDENT INSTRUCTION

RESTRICTED OTHER ORGANIZED
ACTIVITIES

TOTAL

TOTAL

$ 116,493,986.00 820,637.00 364,360.00
3,548,759.00 2,484,870.00
1<t6,400.00 6,619,012.00 5,549,778.00 4,<t60,850.00
988,2<t6.00
$ 141,476,898.00

$ 116,493,986.00 820,637.00 364,360.00
3,548,759.00 2,484,870.00
1<t6,400.00 6,619,012.00 5,549,778.00 4,<t60,850.00
988,2<t6.00
$ 141,476,898.00

$ 6,433,575.05

$ 153,166.25

1,201,112.85

$ 12,223,152.48 489,961.00
3,173,885.21

7,958.24

5,250,235.48 $

518,910.17 0.62

490,441.51

35,576,584.96 492,429.00

4,170,583.92 4,281,672.43

85.343.81 30,105.00

213,043.159.37 6,497,058.90

$ 6,433,575.05 1,201,112.85

$ 12,223,152.48 489,961.00

12,223,152.48 489,961.00
3,173,885.21

7,279,376.00 12,529,611.48

12,529,611.48 7,958.24

518,910.17

518,910.17 0.62

35,576,584.96 492,429.00

35,576,584.96 492,429.00 490,441.51

85,343.81 30,105.00

85,343.81 30,105.00
4,170,583.92
4,281.672.43

213,043,159.37 6,497,058.90

5,645.00 2,352.00
10,581.50

693.500.00 5.645.00 2,352.00 18,979.20
146.525.45

$ 171,744.75 $ 240,166,449.75 $ 54,666,721.90 $

$ 171,744.75 $ 381,643,347.75 $ 54,666,721.90 $

693,500.00 5,645.00 2.352.00 18.979.20
146,525.45
7,279,376.00 $ 61,946,097.90 $ 302,112,547.65
7,279,376.00 $ 61.946,097.90 $ 443,589,445.65

- 51 -

rj1Sl~l( S"L

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I .I
I I I I I

MEDICAl.. COlLEGE OF GEORGIA SCHEDULE OF REVENUES
OTHER ORGANIZED ACTMTlES
'fEAR ENDEp JUNE 30, 1996

.'6" SCHEDULE

MEDICAl.. COLLEGE OF GEORGIA HOSPITAl.. AND CLINICS

UNRESTRICTED

JOINT BOARD
OF FAMILY PRACTICE

GEORGIA RADIATION
THERAPY
CENTER

TOTAl..

RESTRICTED MEDICAl.. COLLEGE
OF GEORGIA HOSPITAl..
ANDCUNICS

TOTAl..

Slate Appropri8Iions A1101rnents from the Boerd of Regents of the University System of Georgia Regular
Clipltation ConInIc:ts for F.mlly PrIICtice Residency
Residency CIipItation GrBnts Student PercepCorships Mercer Medal SChool Gnmt Morehouse SChool of Medicine
GrBnt S.R.E.B. P1Iyment:s

$ 31,697,885.00 $ 936,032.00
3,548,759.00 2,4184,870,00
1<46,400,00 6,619,012.00
5,549,n8.00 4,<460,850.00

$ 32,633,917.00
3,548,759.00 2,4184,870.00
1<46,400.00 6,619,012.00
5,549,n8,00 4,<460.850,00

$ 32,633,917.00
3,548,759.00 2,4184,870,00
1~,400.00
6,619,012.00
5,549,n8.00 4,<460.850,00

$ 31,697,885.00 $ 23,745,701,00

$ 55.443,586,00

$ 55,443,586,00

Other Rewnues Retained Slate GrBnts .nd Contrac:ts R_rch .nd Instruction

$ 7,279,376.00 $ 7,279,376,00

SBIes .nd Services of Hospital P81ientBillings Departmental SBIes.nd Setvic:es

$ 210,135.735,17 6,497,058,90

$ 2,907,424.20 $ 213,043,159.37 6,497,058.90

213,043,159.37 6,497,058,90

Other Sources
Indirect Funding - Telecommunications Georgia Department of Administnltive Services

193,500,00

193,500,00

193,500,00

$ 216,826,294,07

$ 2,907,424.20 $ 219,733,718,27 $ 7,279,376,00 $ 227,013,094,27

$ 248,524,179,07 $ 23,745,701,00 $ 2,907,424,20 $ 275,1n,304,27 $ 7,279,376,00 $ 282,456,680,27

See notes to the financial statements,

-53-

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF EXPENDITURES BY OBJECT
CURRENT FUNDS YEAR ENDED JUNE 30. 1996

SCHEDULE-1'7"

STUDENT ACTIVITIES

TOTAL

RESIDENT INSTRUCTION

RESTRICTED OTHER
ORGANIZED ACTIVITIES

TOTAL

TOTAL

$ 18,347.42 $ 180,047,466.36 $ 35,439,152.48 $ 3,941,783.51 $ 39,380,935.99 $ 219,428,402.35

1,228.15 1,724.32 4,858.20

12,905,527.45 17,435,501.69 18,855,694.41 2,189,999.61
76,880.00 1,705,374.00

1,061,524.67 3,403,631.26 1,466,459.39

284,845.84 426,720.68 562,078.86
50,819.00 2,370.00
52,562.00

1,346,370.51 3,830,351.94 2,028,538.25
50,819.00 2,370.00 .
52,562.00

14,251,897.96 21,265,853.63 20,884,232.66
2,240,818.61 79,250.00
1,757,936.00

$ 26,158.09 $ 233,216,443.52 $ 41,370,767.80 $ 5,321,179.89 $ 46,691,947.69 $ 279,908,391.21

$

862,441.87 $ 682,978.12 $

7,882.51 $ 690,860.63 $ 1,553,302.50

88,181.49

3,084.24

4,000.86

7,085.10

95,266.59

$ 138,449.97 45,105,072.66 2,631,834.56

1,028,843.47 3,660,678.03 48,765,750.69

5,761.05 10,978,456.05

258,824.68

278,543.81

537,368.49 11,515,824.54

6,334,255.90

1,357.36

211,264.73

212,622.09

6,546,8n.99

861,758.58

48,962.92

7,712.09

56,675.01

918,433.59

278,008.95

1,025.00

1,025.00

279,033.95

1,246.45 18,332.02

35,108.64 813,748.00 10,093,819.49 2,284,438.23

116,021.54 1,012,495.00 2,985,074.23
113,076.20

277,041.33 10,760.92

116,021.54 1,012,495.00 3,262,115.56
123,837.12

151,130.18 1,826,243.00 13,355,935.05 2,408,275.35

648.42 144.00
2,586.14

2,234,728.19 1,544,443.04
202,647.94 3,612,895.89

684,215.91 117,369.42
11,114.18 174,305.30

10,936.64 329.85
20,538.21

695,152.55 117,699.27 11,114.18 194,843.51

2,929,880.74 1,662,142.31
213,762.12 3,807,739.40

1,261.38

3,715,830.45 3,181,827.49

n8,678.63 898,756.43

13,200.00 n,168.25

791,878.63 975,924.68

4,507,709.08 4,157,752.17

4,087.97

175,696.20 2,509,731.27 14,158,041.97

16,030.50 2?61,n4.88

8,948.44

16,030.50 2,nO,723.32

191,726.70 2,509,731.27 16,928,765.29

$ 172,517.40 $ 109,071 ,132.30 $ 13,295,954.10 $ 1,958,196.11 $ 15,254,150.21 $ 124,325,282.51

$

20,458.53

872.08

105.31

12,211.28 1,982.38

682,600.00

231,487.91

$ 949,717.49

-55-

$

20,458.53

872.08

105.31

12,211.28 1,982.38

682,600.00

231,487.91

$ 949,717.49

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF EXPENDITURES BY OBJECT
CURRENT FUNDS YEAR ENDED JUNE 30, 1996

RESIDENT LOTIERY FOR INSTRUCTION EDUCATION

OTHER

SPECIAL FUNDING INITIATIVE Personal Services Salaries and Wages Employer's Contributions for: F.I.CA Retirement Group Insurance

$

286,560.03

18,643.16 24,871.98 15,592,55

Other Costs Travel Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Expenses Software Equipment Non-Inventory Telecommunications Per Diem, Fees and Contracts Per Diem and Fees
Contracts Equipment
Inventory

$

345,667.72

9,949.82 48,525.20 $
6,825.48 604.90
5,556.73 3,685.41

34.42 798.90

108,506.54 6,558.00

1,180,04 70,293.76

214,522,37

33,839,15

$

821,875,97 $

34,672.47

STUDENT EDUCATION ENRICHMENT PROGRAM

Personal Services

Salaries and Wages

$

Employer's Contributions for:

F.I.CA

Retirement

Group Insurance

130,020,78
9,428.16 12,420.68
7,519.60

$

159,389.22

Other Costs Travel Supplies and Materials Repairs and Maintenance Tuition and Scholarships College Work-8tudy Program Scholarships, Fellowships, Prizes, Awards and Other Other Expenses Publications and Printing Equipment Non-Inventory Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Equipment Inventory

9,435,47 9,588.05
110.00
292.96
135,354,80 6,516.60 6,002.43
1,002.74 60,00
2,506,91
25,224,03
8,876.79

$

364,360.00

See notes to the financial statements,

-56~

UNRESTRICTED

OTHER

ORGANIZED

AUXILIARY

ACTIVITIES

ENTERPRISES

SCHEDULE -1r

STUDENT ACTIVITIES

TOTAL

RESIDENT INSTRUCTION

RESTRICTED OTHER
ORGANIZED ACTIVITIES

TOTAL

TOTAL

$

286,560.03

18,643.16 24,871.98 15,592.55

$ 345,667.n

9,949.82 48,559.62
6,825.48 604.90
5,556.73 4,484.31

108,506.54 6,558.00

1,180.04 70,293.76

248,361.52

$

856,548.44

$

130,020.78

9,428.16 12,420.68
7,519.60

$

159,389.22

9,435.47 9,588.05
110.00

292.96

135,354.80 6,516.60 6,002.43

1,002.74 60.00
2,506.91

25,224.03

8,876.79

$

364,360.00

-57 -

$ 286,560.03
18,643.16 24,871.98 15,592.55
$ 345,667.n
9,949.82 48,559.62
6,825.48 604.90
5,556.73 4,484.31
108,506.54 6,558.00
1,180.04 70,293.76
248,361.52
$ 856,548.44

$ 130,020.78

9,428.16 12,420.68
7,519.60

$

159,389.22

9,435.47 9,588.05
110.00
292.96
135,354.80 6,516.60 6,002.43
1,002.74 60.00
2,506.91
25,224.03
8,876.79
$ 364,360.00

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF EXPENDITURES BY OBJECT
CURRENT FUNDS YEAR ENDED JUNE 30.1996

OTHER
CAPITATION CONTRACTS FOR FAMILY PRACTICE RESIDENCY
Other Costs Per Diem, Fees and Contracts Contracts
RESIDENCY CAPITATION GRANTS Other Costs Per Diem, Fees and Contracts Contracts
STUDENT PRECEPTORSHIPS Other Costs Per Diem, Fees and Contracts Per Diem and Fees Contracts
MERCER SCHOOL OF MEDICINE GRANT Other Costs Per Diem, Fees and Contracts Contracts
MOREHOUSE SCHOOL OF MEDICINE GRANT Other Costs Per Diem, Fees and Contracts Contracts
S.R.E.B. PAYMENTS Other Costs Per Diem, Fees and Contracts Contracts

RESIDENT LOTTERY FOR INSTRUCTION EDUCATION

UNRESTRICTED

OTHER

ORGANIZED

AUXILIARY

ACTIVITIES

ENTERPRISES

$ 3,548,752.41

$ 2,484,809.73

$

46,500.00

96,750.00

$

143,250.00

$ 6,619,012.00

$ 5,549,nS.00

$ 4,451,950.00 $ 1,186,235.97 $ 984,389.96 $ 22,797,552.14

$ 1oo,S94?45.61 $ 984,389.96 $ 261,442,425.97 $ 3,735,516.86

See notes to the financial statements.

- 58-

SCHEDULE-f7"

STUDENT ACTMTIES

TOTAL

RESIDENT INSTRUCTION

RESTRICTED OTHER
ORGANIZED ACTMTIES

TOTAL

TOTAL

$ 3,548,752.41

$ 3,548,752.41

$ 2,484,809.73

$ 2,484,809.73

$

46,500.00

96,750.00

$

143,250.00

$

46,500.00

96,750.00

$ 143,250.00

$ 6,619,012.00

$ 6,619,012.00

$ 5,549,nS.00

$ 5,549,nS.00

$ 4,451,950.00 $ 24,968,17S.07

$ 4,451,950.00 $ 24,968,17S.07

$ 198,675.49 $ 367,255,753.89 $ 54,666,721.90 $ 7,279,376.00 $ 61,946,097.90 $ 429,201,851.79

-59-

MEPICAL COLLEGE OF GEORGIA SCHEDULE OF EXPENDITURES BY OBJECT
PLANT FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE "18"

UNEXPENDED

LOTTERY FOR

REGULAR

EDUCATION

RENEWALS AND REPLACEMENTS

TOTAL

CAPITAL OUTLAY

Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Expenses Equipment
Non-Inventory Software Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts Equipment Inventory

$ 399,090,20 $
1,009,274.29
58,066.80
58,958.83 3,240.00
333,723.25
187,241.94 21,672,966.07
607,462.36

60.33 $
2,139.88 85,00
9,858.09
114,920.00 7,607.58

76,110.81 $
83,253.54 1,082.72 567.53

475,261.34 1,094,667.71
1,082,72 58,719.33

21,358.03

90,174.95 3,240.00
333,723.25

340.00 321,222.00

187,581.94 22,109,108.07

20,379.27

635,449.21

$ 24,330,023,74 $ 134,670,88 $

524,313.90 $ 24,989,008.52

OTHER

EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND
Other Costs Supplies and Materials Other Expenses Equipment Non-Inventory Software Equipment Inventory

$

15,678.60

248.00

32,369.89 208,177.00

243,526.51

$

15,678.60

248.00

32,369.89 208,177.00

243,526.51

$ 500,000.00

$ 500,000.00

SPECIAL FUNDING INITIATIVE Other Costs Supplies and Materials Other Expenses Equipment Non-Inventory Software Telecommunications Equipment Inventory

$

3,411.46

27.07

13,060.22 1,025.00 7,503.01

154,973.24

$

3,411,46

27,07

13,060.22 1,025.00 7,503.01

154,973.24

$ 180,000.00

$

180,000.00

$ 24,330,023.74 $ 814,670.88 $

See notes to the financial statements.

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524,313.90 $ 25,669,008.52

ME[)ICAI. COLLEGE OF GEORGIA SCHEDULE OF EXPENDITURES BY OBJECT
OTHER QRGANIZEPACTMT!ES
YEAR ENDEp JUNE 30. 1996

SCHEDULE "19"

MEQICA!. COLLEGE OF GEORGIA SCHEDULE OF EXPENDITURES BY OBJECT
OTHER QRGANIZEPACTMTIES )'EAR ENDEp JUNE 30, 1996

SCHEDULE "19"

MEDICAL COLlEGE OF GEORGIA HOSPITAL ANDCUNICS

UNRESTRICTED

JOINT BOARD OF FAMILY PRACTICE

GEORGIA RADIATION
THERAPY
CENTER

TOTAL

RESTRICTED MEDICAL COLlEGE
OF GEORGIA HOSPITAL
ANDCUNICS

TOTAL

MERCER SCHOOL OF MEDICINE GRANT
OIherCosts Per Diem. F_ and Contracts Contracts
MOREHOUSE SCHOOL OF MEDICINE GRANT
OIherCosts Per Diem. F_ and Contracts Contrac:ts
S.R.E.B. PAYMENTS OIherCosts Per Diem. F_ and Contracts Contrac:ts

S 6,619,012.00
s 5.549.n8,00
S 4.451.950.00 S 22,797,552.14'

S 6.619,012,00
s 5,549.n8,00
S 4.451.950,00 S 22.797.552.14

S 6,619.012,00
s 5.549.n8,00
S 4,451.950.00 S 22.797.552.14

S 234,916,500,74 S 23,722,108.44 S 2,803,816.79 S 261,442,425.97 S 7.279,376.00 S 268,n1,801,97

See notes to the financial statements.

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MEDICAL COLLEGE OF GEORGIA RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30, 1996

SCHEDULE "20"

Totals per Annual Supplement
Adjustments Shared Services on Jointly Staffed Personnel Middle Georgia College Clark, Sherry L.

SALARIES AND WAGES

TRAVEL

$ 219,850,753.20 $ 1,572,687.79

-5,770.04

Totals per Report

$ 219,844,983.16 $ 1,572,687,79

DISTRIBUTION BY FUND
CURRENT FUNDS Unrestricted Resident Instruction Regular Special Funding Initiative Student Education Enrichment Program Other Organized Activities ,Auxiliary Enterprises Student Activities Restricted Resident Instruction Other Organized Activities

$ 60,054,711.20 $
286,560,03 130,020.78 117,981,433.65 1,992,974.09
18,347.42
35,439,152.48 3,941,783.51

499,197.00 9,949.82 9,435.47
353,060.24 10,184.63
682,978.12 7,882.51

$ 219,844,983.16 $ 1,572,687.79

See notes to the financial statements.

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SECTIONll FINDINGS AND IMPROPER OR QUESTIONED COSTS

MEDICAL COLLEGE OF GEORGIA SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30, 1996

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR OUESTIONED COSTS

The status ofthe findings disclosed in the audit report for the year ended June 30, 1995, is summarized below:

Audit Control Number

Status ofFinding

512-95-01 512-95-02

See Audit Control Number 512-96-01 See Audit Control Number 512-96-02

PRIOR YEAR/CURRENT YEAR

GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation ofProperty Management System Financial Statements Audit Control Number 512-96-01

The audit report for the year ended June 30, 1995, disclosed deficiencies in Medical College of Georgia's equipment inventory records. For the year under review, an equipment inventory sample of 73 randomly selected items was utilized to test the accuracy and validity ofthe equipment inventory records. The results ofour testing procedures disclosed that fifteen (15) items, with a total cost of$100,612.39 were not located.

In addition to the unlocated items noted above, additional audit procedures disclosed the following deficiencies:

(1) Equipment inventory items in use with a cost of $2,262,235.87 did not have decals and were not on the inventory records.

(2) Equipment inventory items in storage at the College with a cost of$203,353.34 did not have decals and were not on the inventory records.

(3) Equipment inventory items with a cost of $29,956.89 were identified as received by College personnel, but were not on the equipment inventory records.

(4) A variance of $897,119.94 remained unidentified between the College's general ledger and the subsidiary equipment inventory records.

Management stated that these discrepancies were a result ofthe vast number of equipment transactions and the limited number of staffwithin the Property Management division to process them.

The College should take a complete physical inventory ofequipment. In addition, the College should establish appropriate procedures to strengthen internal accounting controls over the property management system to ensure the location of equipment items is properly identified, decals are affixed to all equipment inventory items, inventory items are entered on the records in an accurate and timely manner and subsidiary equipment records are accurately reflected in the accounting records.

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MEDICAL COLLEGE OF GEORGIA SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation ofProperty Management System Financial Statements Audit Control Number 512-96-01
As a result of the discrepancies identified above, we were unable to determine the validity of the total equipment inventory valuation contained in the equipment inventory records, which is a component of the College's Investment in Plant.
DRUG-FREE WORKPLACE ACT Failure to Include Required Provision in Drug-Free Workplace Policy Federal Financial Assistance Audit Control Number 512-96-02
The audit report for the year ended June 30, 1995, disclosed that the College's drug-free workplace policy did not include all ofthe required provisions ofthe Federal Drug-Free Workplace Act of 1988. For the year under review, our examination revealed that the College's drug-free workplace policy again failed to include the requirement that employees notify the employer in writing of any criminal drug statute conviction for a violation occuning in a workplace no later that five calendar days after such conviction. This condition results in noncompliance with the Federal Drug-Free Workplace Act of 1988.
The institution has taken steps to amend the policy in effect to include this required provision; however, the policy's amended draft has not gone to the executive committee nor been signed by the College's president.
The College should implement a drug-free workplace policy which contains all ofthe required provisions.
Memorandum Only Federal Grantor Agencies Affected:
U. S. Department ofDefense U. S. Department ofEducation U. S. Department ofHealth and Human Services U. S. Department ofLabor U. S. Department of Veterans Affairs
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MEDICAL COLLEGE OF GEORGIA SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Audit Control Number 512-96-03 At June 30, 1996, Medical College of Georgia failed to have its 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 ofbalances at individual banks. The College should implement procedures to monitor the collatera1ization ofdeposits to ensure compliance at all times with State laws governing deposits. AUDIT DISTRIBUTIONIRESOLUTION Reports Not Submitted to Grantor Agencies Federal Financial Assistance Audit Control Number 512-96-04 Our audit ofthe fiscal year 1995 financial statements ofMedical College of Georgia, an organizational unit ofthe State ofGeorgia reporting entity, was performed in conjunction with the Statewide Single Audit of the State ofGeorgia. This audit was not distributed to the Medical College of Georgia Research Institute, which provided Federal financial assistance to the College. The College should ensure that reports and corrective action plans are submitted to grantor agencies in accordance with report distribution requirements.
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