MEDICAL COLLEGE OF GEORGIA -TABLEOFCONTENTS- 
 
Page 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION 
 
EXHIBITS 
 
FINANCIAL STATEMENTS 
 
A COMBINED BALANCE SHEET 
 
ALL FUND GROUPS 
 
2 
 
B COMBINED STATEMENT OF CHANGES IN FUND BALANCES 
 
ALL FUND GROUPS 
 
4 
 
C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, 
 
AND OTHER CHANGES 
 
6 
 
D NOTES TO THE FINANCIAL STATEMENTS 
 
7 
 
SUPPLEMENTARY INFORMATION 
 
E COMBINING BALANCE SHEET 
 
CURRENT FUNDS - UNRESTRICTED 
 
22 
 
F COMBINING STATEMENT OF CHANGES IN FUND BALANCES 
 
CURRENT FUNDS - UNRESTRICTED 
 
24 
 
COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, 
 
AND OTHER CHANGES 
 
G 
 
UNRESTRICTED 
 
26 
 
H 
 
RESTRICTED 
 
29 
 
SCHEDULES 
 
SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 
 
1 
 
RESIDENT INSTRUCTION 
 
30 
 
2 
 
LOTTERY FOR EDUCATION 
 
33 
 
3 
 
OTHER ORGANIZED ACTIVITIES 
 
 
 
34 
 
4 CHANGES IN INVESTMENT IN PLANT 
 
38 
 
5 SCHEDULE OF FUND BALANCES 
 
CURRENT FUNDS AND PLANT FUNDS 
 
40 
 
  
FINANCIAL 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 6562174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
November 10, 2000 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the University System of Georgia 
and Honorable Francis J. Tedesco, President Medical College of Georgia 
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 of and for the year ended June 30, 2000. 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 OpI nIOn. 
As described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the College to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the financial statements ofthis departure from generally accepted accounting principles were not reasonably determinable, but are believed to . be material. 
 
OOARL-63 
 
 As disclosed in Note 1 to the financial statements, the College did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles. If compensated absences were reported, liabilities would be increased and fund balance would be decreased by $16,898,743.17 as ofJune 30, 2000, and the net change in fund balance for the year ended June 30, 2000, would be increased by $6,013,734.85. 
As disclosed in Note 6 to the financial statements, the College did not report pension expense for the Early Retirement Program in the current funds equal to annual pension cost as required by generally accepted accounting principles. If pension expense equal to annual pension cost were reported, expenditures would be decreased and fund balance would be increased by approximately $13.5 million. 
In our opinion, except for the effects on the financial statements ofthe 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, 2000, and the changes in fund balances and the current operating funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting principles. 
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5) are presented for purposes ofadditional analysis and are not a required part ofthe financial statements ofMedical College ofGeorgia. Such information has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, except for the effects ofthe 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. 
~R,espectfullysubmitted, 
 
w. 
R sell W. Hinton State Auditor 
RWH:gp 
OOARL-63 
 
 FINANCIAL STATEMENTS 
 
- 1- 
 
 MEDICAL COLLEGE OF GEORGIA COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30, 2000 
 
ASSETS 
Cash and Cash Equivalents Investments Accounts Receivable (Net of Allowance for Uncollectibles) Inventories Prepaid Items Investment in Plant 
 
Total Assets 
 
CURRENT FUNDS 
 
UNRESTRICTED 
 
RESTRICTED 
 
LOAN FUNDS 
 
$ 40,679,233.68 $ 13,451,035.45 $ 1,315,685.43 
 
100,234,965.93 2,696,463.99 1,235,439.47 
 
7,260,888.69 
 
7,008,389.44 
 
$ 144,846,103.07 $ 20,711,924.14 $ 8,324,074.87 
 
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 
Total Liabilities and Fund Balances 
 
$ 25,779,240.99 
2,423,737.07 
 
$ 28,202,978.06 
 
$ 7,019,805.75 
1,304,269.12 
 
$ 20,711,924.14 $ 116,643,125.01 
$ 116,643,125.01 $ 20,711,924.14 $ 8,324,074.87 
 
$ 144,846,103.07 $ 20,711,924.14 $ 8,324,074.87 
 
The notes to the financial statements are an integral part of this statement. - 2- 
 
 EXHIBIT wAw 
 
ENDOWMENT AND SIMILAR 
FUNDS 
 
UNEXPENDED 
 
PLANT FUNDS RENEWALS AND REPLACEMENTS 
 
INVESTMENT IN PLANT 
 
AGENCY FUNDS 
 
TOTAL (Memorandum 
OnIX/-)- - 
 
$ 5.362.790.49 $ 
 
406,839.09 
 
$ 27,892.142.76 $ 89,107,726.90 
 
$ 7.985.861.02 
 
7,985,861.02 
 
114.504.244.06 
 
2,696,463.99 
 
26.963,700.81 
 
28,199.140.28 
 
______ $ 547,761,577.09 
 
547.761.577.09 
 
$ 7,985,861.02 $ 32.326,491.30 $ 
 
406.839.09 $ 547,761,577.09 $ 27,892,142.76 $ 790.255,013.34 
 
$ 5.346,691.88 $ 
 
142,179.17 
 
$ 26.529.507.56 $ 57,797.619.60 
 
_ _ _ _ _ _ $ _---:...1,~46~0:..:.04=3.~57=- 
 
1,362.635.20 
 
2.423,737.07 1.362.635.20 1,460,043.57 
 
$ 5,346.691.88 $ 
 
142.179.17 $ 1,460.043.57 $ 27.892,142.76 $ 63.044.035.44 
 
$ 1.758,044.09 
6.227.816.93 
 
$ 546.301,533.52 
 
_ _ _ _ _ $ 26,979,799.42 $ _ _..;20;;;64..;.;.""6.;:;.:59:;.;.90;;;2;.. 
 
$ 7,985,861.02 $ 26.979,799.42 $ 
 
264,659.92 $ 546,301.533.52 
 
$ 7,019,805.75 
1.304,269.12 1,758,044.09 6,227,816.93 546,301,533.52 20,71 1,924.14 143,887,584.35 
$ 727.210,977.90 
 
406.839.09 $ 547,761,577.09 $ 27,892.142.76 $ 790,255,013.34 
 
-3- 
 
 MEDICAL COLLEGE QF GEORGIA COMBINED STATEMENT OF CHANGES IN FUND BALANCES 
ALL FUND GROUPS YEAR ENDED JUNE 30, 2000 
 
REVENUES AND OTHER ADDITIONS 
Unrestricted Current Fund Revenues State Appropriations Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Investment Income 
Endowment Other Rental Income Net Decrease in Fair Value of Investments Interest on Loans Receivable Adjustments Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Expended for Plant Facilities Current Funds Plant Funds 
Unexpended Renewals and Replacements Georgia State Financing and Investment Commission Other Additions Recovery of Prior Years' Cancelled Loans 
Total Revenues and Other Additions 
EXPENDITURES AND OTHER DEDUCTIONS 
Educational and General Expenditures Auxiliary Enterprises Expenditures Hospital Expenditures Indirect Costs Recovered Refunded to Grantors Remittances to the Board of Regents of the 
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) 
Loan Cancellations and Write-Ofts Administrative and Collection Costs Expended for Plant Facilities 
Capitalized Noncapitalized Disposals/Deletions/Adjustments 
Total Expenditures and Other Deductions 
TRANSFERS BETWEEN FUNDS 
Nonmandatory Renewals and Replacements Capital Projects 
Total Transfers Between Funds 
Net Increase/(Decrease) for the Year 
FUND BALANCES JULY 1, 1999 
 
CURRENT FUNDS 
 
UNRESTRICTED 
 
RESTRICTED 
 
LOAN FUNDS 
 
$ 414,838,538.24 
$ 21,040,006.18 $ 101,491,669.22 692,440.56 44,883,613.94 
204,646.88 
 
68,746.00 20,606.00 34,427.54 
 
2,696,400.86 6,643.05 
 
182,507.42 
 
193,528.77 $ 417,541,582.15 $ 168,312,376.78 $ _---:.49:::.:9~,8~1;::.:5.7.:..;:3:-. 
 
$ 181,574,596.04 $ 159,967,609.37 4,166,964.52 
212,803,392.87 5,219.321.63 $ 
 
377.968.00 
 
533,058.92 
 
232,559.63 5,829.43 
 
$ 399,078,012.35 $ 165,186,931.00 $ _--,6:..:1~6"",3~57:..;..:.;06:;... 
 
$ 
 
-245,672.13 
 
-9,011,405.19 
 
$ -9,257,077.32 
 
$ 9.206,492.48 $ 
 
107,436,632.53 
 
3.125,445.78 $ 
17,586,478.36 
 
-116,541.33 8,440,616.20 
 
FUND BALANCES JUNE 30, 2000 
 
$ 116,643,125.01 $ 20,711,924.14 $ 8,324,074.87 
 
The notes to the financial statements are an integral part of this statement. 
 
-4- 
 
 EXHIBIT "B" 
 
ENDOWMENT AND SIMILAR 
FUNDS 
 
UNEXPENDED 
 
PLANT FUNDS RENEWALS AND REPLACEMENTS 
 
INVESTMENT IN PLANT 
 
TOTAL (Memorandum 
On1>1_ _ 
 
$ 
 
2,080,000.00 
 
14,087,550.00 
 
$ 414,838,538.24 
 
2,080,000.00 
 
21,108,752.18 
 
101,491,669.22 
 
692,440.56 
 
$ 
 
412,790.45 
 
59,404,560.39 
 
$ -512.626.81 
 
5,484,768.24 
 
331,846.76 
 
 
 
204,646.88 5,519,195.78 
331,846.76 -512,626.81 182,507.42 
 
3,535,854.35 $ 
 
7,761.14 
 
6,240,016.35 6,643.05 
 
7,025,191.11 
 
7,025,191.11 
 
7,872,434.65 187,278.14 
21,604,286.20 
 
7,872,434.65 187,278.14 
21,604,286.20 
 
193,528.77 
 
$ -512,626.81 $ 
 
$ 
 
$ 
 
0.00 
 
$ 341.542,205.41 
 
4,166,964.52 
 
212,803,392.87 
 
5,219,321.63 
 
377,968.00 
 
$ 0.00 $ 
 
8,862.12 
 
7,872,434.65 $ 
 
187,278.14 
 
388,471.39 
 
138,153.87 
 
______ $ 
 
8,269,768.16 $ 
 
325,432.01 $ 
 
36,923,116.89 36,923,116.89 $ 
 
541,921.04 232,559.63 
5,829.43 . 
8,059,712.79 526,625.26 
36,923,116.89 
610,399,617.47 
 
$ $ _--=9::..;,0::..:1~1,1;,:,4.::,:05:.:,.1.:.::9:- 
 
245,672.13 
 
$ 
 
0.00 
 
0.00 
 
$ 
 
9,011 ,405.19 $ _ _...:2:::4:.::::5&:::,6~72.::.:.:13::... 
 
$ 
 
.:::;O.:.::::OO~ 
 
$ -512,626.81 $ 26,261,656.38 $ 
 
-71,998.74 $ 
 
178,863.66 $ 38,071,291.42 
 
8,498,487.83 
 
718,143.04 
 
336,658.66 546,122,669.86 
 
689,139,686.48 
 
26,979.799.42 $ _......,;;;264;,,;,,659.92 $ 546,301,533.52 $ 727,210,977.90 
 
-5- 
 
 MEDICAL COLLEGE OF GEORGIA STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, 
AND OTHER CHANGES YEAR ENDED JUNE 30, 2000 
 
EXHIBIT 'C' 
 
UNRESTRICTED 
 
RESTRICTED 
 
TOTAL (Memorandum 
Only)_ _ 
 
REVENUES 
 
State Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Endowment Income Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Sales and Services of Hospital Other Sources 
 
$ 139,192,290.00 
10,870,081.95 
4,434,363.87 $ 
1,666.28 
785,763.48 
4,800,420.89 3,757,962.25 245,469,695.50 5,526,294.02 
 
$ 
16,827,892.40 97,875,246.01 
817,055.66 44,306,315.00 
141,100.30 
 
139,192,290.00 10,870,081.95 21,262,256.27 97,876,912.29 817,055.66 45,092,078.48 141,100.30 4,800,420.89 3,757,962.25 
245,469,695.50 5,526,294.02 
 
Total Revenues 
 
$ 414,838,538.24 $ 159,967,609.37 $ 574,806,147.61 
 
EXPENDITURES 
 
Educational and General Instruction Research Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships 
Auxiliary Enterprises Student Housing Food Services Stores and Shops 
 Other Service Units Hospital 
Medical College of Georgia Hospital Georgia War Veteran Nursing Home Georgia Correctional Health Care 
 
$ 78,514,697.83 $ 
3,193,144.80 53,969,096.03 11,830,518.08 
1,799,367.97 22,495,336.21 
8,425,805.45 1,346,629.67 
906,085.53 38,059.21 
384,538.21 2,838,281.57 
212,803,392.87 
 
44,819,760.78 $ 
17,740,592.30 
655,139.52 
1,835,423.16 
1,107,748.00 
 
123,334,458.61 20,933,737.10 53,969,096.03 12,485,657.60 1,799,367.97 24,330,759.37 8,425,805.45 2,454,377.67 
 
906,085.53 38,059.21 
384,538.21 2,838,281.57 
 
7,940,937.00 85,868,008.61 
 
212,803,392.87 7,940,937.00 85,868,008.61 
 
Total Expenditures 
 
$ 398,544,953.43 $ 159,967,609.37 $ 558,512,562.80 
 
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS} 
 
Excess of Restricted Receipts over 
 
Transfers to Revenues 
 
Transfers for Renewals and Replacements 
 
$ 
 
Transfers for Capital Projects 
 
Prior Period Adjustments (Net) 
 
Remittances to the Board of Regents 
 
of the University System of Georgia 
 
Prior Year's Unrestricted Fund 
 
Balance (Surplus) 
 
Total Other Transfers and Additions/(Deductions) $ 
 
$ 
-245,672.13 -9,011,405.19 2,703,043.91 
-533,058.92 
-7,087,092.33 $ 
 
3,125,445.78 $ 
 
3,125,445.78 -245,672.13 -9,011,405.19 2,703,043.91 
 
3,125,445.78 $ 
 
-533,058.92 -3,961,646.55 
 
Net Increase/(Decrease) in Fund Balances 
 
$ 9,206,492.48 $ .........-.3,125,445.78 $ 12,331,938.26 
 
The notes to the financial statements are an integral part of this statement. -6- 
 
 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHIBIT "0" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
Medical College ofGeorgia is one ofthirty-four (34) State supported member institutions ofhigher education in Georgia which comprise the University System ofGeorgia, an organizational unit ofthe State ofGeorgia. The accompanying financial statements reflect the operations ofMedical College of Georgia as a separate reporting entity. 
The Board of Regents has constitutional authority to govern, control and manage the University System ofGeorgia. 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 appropriations (surplus) for any given fiscal year. Accordingly, Medical College of Georgia is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 ofthe Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. 
FUND ACCOUNTING 
In order to ensure observance of limitations and restrictions placed on the use of the resources 
available to the College, the accounts ofthe College are maintained in accordance with the principles 
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 ofthe fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies. 
Fund groups and funds presented in the accompanying financial statements are as follows: 
CURRENT FUNDS 
UNRESTRICTED - The fund used to account for those economic resources over which the College retains full control to use for purposes of performing the primary functions of the College, e.g., instruction, research, public service, hospital support, etc. 
RESTRICTED - The fund used to record externally restricted funds which may only be utilized in 
accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes. 
-7- 
 
 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHffiIT "D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
FUND ACCOUNTING 
LOAN FUNDS 
The fund used to account for resources which have been made available for financial loans to students. 
ENDOWMENT AND SIMILAR FUNDS 
The fund used to account for endowment funds and quasi-endowment funds. Endowment funds are subject to the restrictions of gift 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 of such funds. 
PLANT FUNDS 
UNEXPENDED - The fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes. 
RENEWALS AND REPLACEMENTS - The fund used to account for resources set aside for the renewal and replacement of institutional properties. 
INVESTMENT IN PLANT - The fund which shows the total amounts representing the book value of all physical properties owned by the College. Net Investment in Plant is ~ equity account showing the total book value of physical properties belonging to the College less the amount of any indebtedness to others. 
AGENCY FUNDS 
The fund used to account for resources held by the College as custodian or fiscal agent for individual students, faculty, staffmembers, and organizations. 
BASIS OF ACCOUNTING 
Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis of accounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants' audit guide reporting model. The modified accrual basis ofaccounting is defined as that method ofaccounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures of the fiscal period. 
-8- 
 
 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
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 ofthe fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in confonnity with accounting practices prescribed or pennitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures detennined in accordance with generally accepted accounting principles. 
Compensated absences represent obligations ofthe College relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability of $16,898,743.17 and a related net reduction of current year expenditures of $6,013,734.85 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 orpennitted by statutes and regulations ofthe State ofGeorgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation of the financial statements. 
To the extent that Current Funds and Plant Funds are used to 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 behalfofthe 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 of Medical 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 ofthe agreement at the net present value of the future minimum lease payments, not to exceed the fair value of the leased property. The effect of this departure is deemed to be immaterial to the fair presentation of the financial statements. 
- 9- 
 
 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
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 ofrevenues and expenses. 
 
BUDGET 
The Board ofRegents ofthe University System ofGeorgia - Administrative Central Office receives State appropriation allotments for units of the University System of Georgia. The appropriated budget is adopted at the Board level and represents appropriations provided by the Amended Appropriations Act of 1999-2000. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The allocation ofthe appropriated budget is made to the College by the Administrative Central Office. In addition, the College receives Federal funds and other funds directly and includes these funds in the budget filed with the Administrative Central Office. 
 
A comparison of anticipated funds available and budgeted expenditures by budget unit object class indicates that the following object classes were overspent by the amounts identified below: 
 
Resident Instruction Capital Outlay Year 2000 Project 
Other Organized Activities Medical College of Georgia Hospitals and Clinics Operating Expenses: Sponsored Operations 
 
$~12l!286.4l 
 
$ 
 
244.22 
 
$ 805,474.51 
 
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 Board object class 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 reported at fair value. Funds received by the College as endowments or for restricted purposes are invested according to conditions stipulated by the donor, grantor, or in accordance with the Board of Regents authorizing resolutions. Gains and losses on investment transactions are accounted for in the funds where such assets are recorded. 
 
- 10- 
 
 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHffiIT "D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
ACCOUNTS RECEIVABLE 
Accounts receivable consist ofallotments due from the Board ofRegents ofthe 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 accounts receivable for patient services net of allowance for uncollectibles as follows: 
 
Patient Services Gross Receivables Allowance for Uncollectible Accounts Net Receivables 
 
$187,675,033.56  89,431,546.84 
$ 98.243,486.72 
 
INVENTORIES 
Inventories ofconsumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the first-in, first-out; last-in, last-out or weighted average methods. 
 
Departments within the College use several costing methods for determining valuations for inventories for resale. Inventories of goods for resale are valued at cost using the first-in, first-out; last-in, last-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: 
 
- 11 - 
 
 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHffiIT "D" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES 
(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia. 
(2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. 
(3) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. 
(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia. 
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. 
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which includes organizational units of the Board of Regents of the University System of Georgia) the option of exempting demand deposits from the collateral requirements. 
The treasurer ofthe Board ofRegents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia. 
CATEGORIZATION OF DEPOSITS 
For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 2000, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk: 
Category 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the College or by its agent in the College's name. 
Category 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the College's name. 
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 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHIBIT "D" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
 
CATEGORIZATION OF DEPOSITS 
Category 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent but not in the College's name, and amounts uncollateralized. 
 
Cash Deposits Investment Portfolio 
Accounts 
Total Cash Deposits 
 
Carrying Amount 
 
Bank Balances 
 
Risk Categ~or~ie:2..s 
 
_ 
 
I 
 
2 
 
3 
 
$20,147,034.10 $37,688,288.51 $ 225,434.48 $ 3,523,713.45 $33,939,140.58 
 
426,763.00 426,763.00 
 
136,733.99 
 
290,029.01 
 
$20,573,797.l.Q $38,U5,05Ln $ 362.~.4.1 $ 3.523.713.4..5. $3A,229,169.59 
 
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 of June 30, 2000, are categorized belo~: 
 
TYPe of Investment 
 
Risk Categories 
 
1 
 
2 
 
3 
 
Carrying Amount 
 
Common Stock 
 
$ 
 
COIporate Bonds 
 
U. S, Government Securities 
 
0.00 $ 4,169,744.09 $ 1,024,356.50 1,865,379.38 
 
0.00 $ 4,169,744.09 1,024,356.50 1,865,379.38 
 
$,==..,,;O~.O~O $ 7,Q59.479.97 $'==dQ~.Q{,M,Q $ 7,059,479.97 
 
Investments Not Subject to Categorizations: 
 
Investment Portfolio Accounts Mutual Funds 
State Investment Pool 
 
499,618,05 68,920,784,80 
 
Total Investments 
 
$76.479,8S2.82 
 
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 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHIBIT "D" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
 
CATEGORIZATION OF INVESTMENTS 
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 ofthe pool. 
 
NOTE 3: INVESTMENT IN PLANT 
 
The following is a summary of Investment in Plant fixed assets as of June 30, 2000: 
 
Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections Construction in Progress 
Total Investment in Plant 
 
$ 8,998,281.93 352,692,885.29 6,597,138.87 166,988,825.93 12,309,273.27 175,171.80 
$247.761.577.09 
 
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 if appropriated funds are not available. If renewal 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 of June 30, 2000, future lease payments under capital leases are as follows: 
 
Fiscal Year Ending June 30 
2001 2002 2003 2004 2005 
. Total Future Lease Payments 
 
$ 379,198.80 
379,198.80 315,730.89 289,435.56 
96,479.52 
$ 1,4{)0.043.57 
 
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 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHmIT "D" 
 
NOTE 5: RISK MANAGEMENT 
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 of health and dental benefits for employees and retirees of the University System of Georgia. The College and participating employees and retirees pay premiums to the Health Benefits Plan for this health insurance coverage. The Health Benefits Plan is included in the financial statements of the Board of Regents of the University System ofGeorgia - Administrative Central Office. All units ofthe University System of Georgia share the risk of loss for claims of the Health Benefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of $1,000,000.00 per person and dental coverage up to an annual maximum of $1,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield ofGeorgia to process claims in accordance with the Health Benefits Plan as established by the Board of Regents. 
The Department ofAdministrative Services (DOAS) has the responsibility for the State ofGeorgia ofmaking and carrying out decisions that will minimize the adverse effects ofaccidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The College, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. 
A self-insured program ofprofessional liability for its employees was established by the Board of Regents of the University System of Georgia under powers authorized by the Official Code of Georgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out of the performance of their duties or in any way connected therewith. The program is administered by DOAS as a SelfInsurance Fund. 
The College has obtained commercial insurance for risk ofloss 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 housestaffis $3,000,000.00. The shared excess each loss limit for faculty is $10,000,000.00 and for housestaffis $3,000,000.00. 
The College's commercial insurance for Professional Liability excludes coverage for sexual misconduct, default judgements, violation oflaw and knowing transmission ofor exposure to certain infectious diseases. 
- 15 - 
 
 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHffiIT "D" 
 
NOTE 6: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
 
Plan Description 
Medical College of Georgia participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State ofGeorgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
Funding Policy 
Employees ofthe College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2000, the employer contribution rate was 11.29% for covered employees. In addition, the College contributed 2.35% to the TRS on behalfof employees electing to participate in the Regents Retirement Plan. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
2000 1999 1998 
 
Percentage Contributed 
100% 100% 100% 
 
Required Contnbution 
$23,757,686.10 $24,795,568.92 $23,526,761.98 
 
REGENTS RETIREMENT PLAN 
 
Plan Description 
The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan established and administered by the Board of Regents of the University System of Georgia, under which it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts. 
 
Funding Policy 
Member contribution requirements are established by the Board of Trustees of the Teachers Retirement System. Employer contributions are established by statute and may be amended onlyby the General Assembly ofthe State ofGeorgia. The employer contributes 8.79% ofthe participating employee's earnable compensation. Employees contribute 5% of their earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times. 
 
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 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHIBIT "D" 
 
NOTE 6: RETIREMENT PLANS 
REGENTS RETIREMENT PLAN 
Funding Policy . 
The College and the covered employees made the required contributions of$4,049,393.73 (8.79%) and $2,303,425.27 (5%), respectively. 
GEORGIA DEFINED CONTRIBUTION PLAN 
Plan Description 
Medical College ofGeorgia participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly ofGeorgia for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and parttime and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. 
Benefits 
A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. Ifa member has less than $ 3,500.00 credited to his/her account, the Board ofTrustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. 
Contributions and Vesting 
Member contributions are seven and one-halfpercent (7.5%) ofgross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount ofthe member's account is refundable upon request by the member. 
Total contributions made by employees during fiscal year 2000 amounted to $286,058.88 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. 
EARLY RETIREMENT PROGRAM 
Plan Description 
The Medical College of Georgia (MCG) Early Retirement Program (ERP) is a single-employer, defined benefit pension plan established by the Board of Regents of the University System of Georgia on August 11, 1999, to offer an early retirement incentive for eligible MCG employees. 
 
- 17 - 
 
 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHIBIT "D" 
 
NOTE 6: RETIREMENTPLANS 
EARLY RETIREMENT PROGRAM 
Funding Policy The program will provide benefits to the retirees. The annual cost necessary to fund this program was originally detennined to be $16.5 million per year for ten years. Subsequent projections revised the annual cost necessary to fund the program to $15.96 million per year for fifteen years. This funding will be provided jointly by the MCG and other associated units. During FY 2000 MCG provided $17,292,695.93 and other associated units provided $482,459.25 to fund the ERP. The $17,292,695.93 recorded on the MCG financial statements as pension expense was greater than the College's required pension cost of$3,749,797.25 for FY 2000. 
NOTE 7: LEAVE POLICIES 
Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or tennination 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 v~st with the employee and is forfeited upon retirement or tennination of employment, except as noted in the subsequent paragraph. 
Certain employees who retire with a minimum ofthree months ofunused sick leave are entitled to additional service credit in the Teachers Retirement System of Georgia. 
 
NOTE 8: CONTINGENCIES 
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant tenns. The amount ofexpenditures which may be disallowed by the grantor cannot be detennined at this time although the College expects such amounts, if any, to be immaterial to its overall financial position. 
Litigation, claims and assessments filed against Medical College ofGeorgia (an organizational unit ofthe Board ofRegents ofthe University System ofGeorgia), ifany, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2000. 
 
- 18 - 
 
 MEDICAL COLLEGE OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHIBIT "D" 
 
NOTE 9: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS 
 
Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-331, the Board ofRegents ofthe University System ofGeorgia has established group health and life insurance programs for regular employees ofthe University System ofGeorgia. 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 ofGeorgia and who have at least ten years ofservice with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals. 
 
As of June 30, 2000, there were 2,255 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 2000, Medical College ofGeorgia recognized as incurred $2,022,974.18 ofexpenditures, which was net of $650,332.24 ofparticipant contributions. 
 
NOTE 10: SUBSEQUENTEVENT 
 
On July 1,2000, MCG Health, Inc., a 501(c) 3 not-for-profit corporation, assumed the operations of the Medical College ofGeorgia Hospitals and Clinics. As part ofthis transaction, MCG Health, Inc. acquired certain assets and liabilities from the University System ofGeorgia Board ofRegents. All hospital and clinic facilities remain the property of the University System of Georgia Board of Regents and operate under lease agreements with MCG Hea1th, Inc. 
 
NOTE 11: ENROLLMENT 
 
The equivalent full-time student enrollment ofMedical College of Georgia was as follows: 
 
Regular Term Fall Semester, 1999 Spring Semester, 2000 
 
3,116 3,043 
 
Average Summer School, 1999 
 
3.080 
l.P71 
 
- 19- 
 
 SUPPLEMENTARY INFORMATION - 21 - 
 
 MEDICAL COLLEGE OF GEORGIA COMBINING BALANCE SHEET 
CURRENT FUNDS - UNRESTRICTED JUNE 30, 2000 
 
ASSETS Cash and Cash Equivalents Accounts Receivable (Net of Allowance 
for Uncollectibles) Inventories Prepaid Items 
Total Assets 
LIABILITIES AND FUND BALANCES Liabilities 
Accounts Payable Deferred Revenue 
Tuition and Fees Total Liabilities 
Fund Balances Unrestricted 
Total Liabilities and Fund Balances 
 
RESIDENT INSTRUCTION 
 
LOTIERY FOR EDUCATION 
 
$ 7,580,361.50 $ 1,657,551.73 
1,936,823.29 133,074.80 28,066.47 
 
$ 9,678,326.06 $ 1,657,551.73 
 
$ 5,493,617.37 $ 1,654,343.04 
 
2,142,775.59 
 
$ 7,636,392.96 $ 
 
1,654,343.04 
 
_..:.2,041,933.10 
 
3,208.69 
 
$ 9,678,326.06 $ 1,657,551.73 
 
See notes to the financial statements. 
 
- 22- 
 
 EXHIBIT "E" 
 
OTHER ORGANIZED ACTIVITIES 
 
AUXILIARY ENTERPRISES 
 
STUDENT ACTIVITIES 
 
TOTAL 
 
$ 30,048,659.07 $ 1,276,807.62 $ 115,853.76 $ 40,679,233.68 
 
98,246,496.40 2,009,303.29 1,207,373.00 
 
51,646.24 554,085.90 
 
 
100,234,965.93 2,696,463.99 1,235,439.47 
 
$ 131,511,831.76 $ 1,882,539.76 $ 115,853.76 $ 144,846,103.07 
 
$ 18,592,012.79 $ $ 18,592,012.79 $ 
 
39,267.79 
249,062.51 $ 288,330.30 $ 
 
$ 
31,898.97 
31,898.97 $ 
 
25,779,240.99 2,423,737.07 
28,202,978.06 
 
112,919,818.97 
 
1,594,209.46 
 
83,954.79 
 
116,643,125.01 
 
$ 131,511,831.76 $ 1,882,539.76 $ 115,853.76 $ 144,846,103.07 
 
- 23- 
 
 MEDICAL COLLEGE OF GEORGIA COMBINING STATEMENT OF CHANGES IN FUND BALANCES 
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 2000 
 
REVENUES AND OTHER ADDITIONS 
Unrestricted Current Fund Revenues Adjustments 
Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided 
Total Revenues and Other Additions 
EXPENDITURES AND OTHER DEDUCTIONS 
Educational and General Expenditures Auxiliary Enterprises Expenditures Hospital Expenditures Remittances to the Board of Regents of the 
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) 
Total Expenditures and Other Deductions 
TRANSFERS BETWEEN FUNDS 
 
Nonmandatory Renewals and Replacements Capital Projects 
Total Transfers Between Funds 
Net Increase/(Decrease) for the Year 
FUND BALANCES JULY 1, 1999 
 
RESIDENT INSTRUCTION 
 
LOTIERY FOR EDUCATION 
 
$ 124,990,460.97 $ 2,001,126.00 
2,130,568.76 1,416.76 
$ 127,122,446.49 $ 2,001,126.00 
 
$ 122,498,524.77 $ 1,799,520.00 
200,000.00 
 
128,485.46 
 
194.10 
 
$ 122,627,010.23 $ 1,999,714.10 
 
$ _---"-8"""'9,,-,,1=2,~66;;;.;5",,",3;;.;;;2;.$ _---"-8"""'9,,-,,1=2,~66;;;.;5",,",3;;.;;;2;.$ -4,417,229.06 $ 
_...-=.6,459,162.16 
 
 
1,411.90 1,796.79 
 
FUND BALANCES JUNE 30, 2000 
 
$ 
 
2,041,933.10 $ ==~3~,2;,;;;,08~.6~9~ 
 
 
 
See notes to the financial statements. 
 
- 24- 
 
 EXHIBIT "F" 
 
OTHER ORGANIZED ACTIVITIES 
 
AUXILIARY ENTERPRISES 
 
STUDENT ACTIVITIES 
 
TOTAL 
 
$ 283,919,312.50 $ 
565,165.18 5,226.29 
$ 284,489,703.97 $ 
 
3,757,962.25 $ 169,676.52 $ . 414,838,538.24 
 
666.92 
 
2,696,400.86 6,643.05 
 
3,758,629.17 $ 169,676.52 $ 417,541,582.15 
 
$ 57,095,497.39 $ 
212,603,392.87 
 
$ 4,166,964.52 
 
181,053.88 $ 
 
181,574,596.04 4,166,964.52 
212,803,392.87 
 
404,379.36 
 
533,058.92 
 
$ 270,103,269.62 $ 4,166,964.52 $ 181,053.88 $ 399,078,012.35 
 
$ 
 
-245,672.13 
 
-98,739.87 
 
$ 
 
-245,672.13 
 
_ _-..:;.;9,011,405.19 
 
$ _----:-3::..;4~4.L..:,4...:.;12:..:.::.:00;... 
 
$ 
 
$ 14,386,434.35 $ 
 
-752,747.35 $ -11,377.36 $ 
 
9,206,492.48 
 
_...:9;.;;.8,533,384.62 
 
2,346,956.81 _-=9;=.5,332.15 
 
107,436,632.53 
 
$ 112,919,818.97 $ 1,594,209.46 $ 83,954.79 $ 116,643,125.01 
 
- 25- 
 
 MEDICAL COLLEGE OF GEORGIA COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, 
AND OTHER CHANGES UNRESTRICTED 
YEAR ENDED JUNE 3D, 2000 
 
REVENUES 
State Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Sales and Services of Hospital Other Sources 
Total Revenues 
EXPENDITURES 
Educational and General Instruction Research Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships 
Auxiliary Enterprises Student Housing Food Services Stores and Shops 
. Other Service Units Hospital 
Medical College of Georgia Hospital 
Total Expenditures 
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS} 
Transfers for Renewals and Replacements Transfers for Capital Projects Prior Period Adjustments (Net) Remittances to the Board of Regents 
of the University System of Georgia Prior Year's Unrestricted Fund Balance (SurplUS) 
Total Other Transfers and Additions/(Deductions) 
 
Net Increase/(Decrease) in Fund Balances 
See notes to the financial statements. 
 
- 26- 
 
RESIDENT INSTRUCTION 
 
LOTIERYFOR EDUCATION 
 
$ 98,935,047.00 $ 2,001,126.00 
10,713,970.45 4,434,363.87 
1,666.28 785,763.48 4,800,420.89 
5,319,229.00 
$ 124,990,460.97 $ 2,001,126.00 
 
$ 73,588,776.47 $ 1,799,520.00 
3,193,144.80 
11,830,518.08 1,618,314.09 
22,495,336.21 8,425,805.45 1,346,629.67 
 
200,000.00 
$ 122,498,524.77 $ 1,999,520.00 
 
$ -8,912,665.32 
2,131,985.52 
 
-128,485.46 $ $ -6,909,165.26 $ 
 
-1:.:::94.::.:.~1O~ 
-1:.:;:9...:.:4.. :.:1O~ 
 
$ _ _-4;;;:;,417,229.06 $ _ _,.;,1,411.90 
 
 EXHIBIT"G" 
 
OTHER ORGANIZED ACTIVITIES 
 
AUXILIARY ENTERPRISES 
 
STUDENT ACTIVITIES 
 
TOTAL 
 
$ 38,256,117.00 
$ 245,469,695.50 
193,500.00 $ 283,919,312.50 $ 
 
$ 3,757,962.25 3,757,962.25 $ 
 
$ 156,111.50 
13,565.02 
 
139,192,290.00 10,870,081.95 4,434,363.87 1,666.28 785,763.48 4,800,420.89 3,757,962.25 
245,469,695.50 5,526,294.02 
 
169,676.52 $ 414,838,538.24 
 
$ 3,126,401.36 53,969,096.03 
 
$ $ 181,053.88 
 
78,514,697.83 3,193,144.80 
53,969,096.03 11,830,518.08 1,799,367.97 22,495,336.21 8,425,805.45 1,346,629.67 
 
$ 
 
906,085.53 
 
38,059.21 
 
384,538.21 
 
2,838,281.57 
 
906,085.53 38,059.21 384,538.21 2,838,281.57 
 
212,603,392.87 $ 269,698,890.26 $ 
 
212,803,392.87 4,166,964.52 $ 181,053.88 $ 398,544,953.43 
 
$ -245,672.13 
 
-98,739.87 
 
$ 
 
.570,391.47 
 
666.92 
 
$ 
 
-245,672.13 
 
-9,011,405.19 
 
2,703,043.91 
 
-404,379.36 
 
$ 
 
166,012.11 $ -343,745.08 
 
-533,058.92 $ -7,087,092.33 
 
$ _ _1.4...,386,434.35 $ _ _-._75.2.,747.35 $ -11,377.36 $_...00.19,.20-.6,492.48 ~ 27- 
 
 MEDICAL COLLEGE OF GEORGIA COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, 
AND OTHER CHANGES RESTRICTED 
YEAR ENDED JUNE 30, 2000 
 
EXHIBIT "H" 
 
RESIDENT INSTRUCTION 
 
OTHER ORGANIZED ACTIVITIES 
 
TOTAL 
 
REVENUES 
 
Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Endowment Income 
 
$ 16,827,892.40 
 
$ 
 
4,066,300.40 $ 93,808,945.61 
 
817,055.66 
 
44,306,315.00 
 
141,100.30 
 
16,827,892.40 97,875,246.01 
817,055.66 44,306,315.00 
141,100.30 
 
Total Revenues 
 
$ 66,158,663.76 $ 93,808,945.61 $ 159,967,609.37 
 
EXPENDITURES 
 
Educational and General Instruction Research Academic Support Institutional Support Scholarships and Fellowships 
Hospital Georgia War Veterans Nursing Home Georgia Correctional Health Care 
 
$ 44,819,760.78 
 
$ 
 
17,740,592.30 
 
655,139.52 
 
1,835,423.16 
 
1,107,748.00 
 
$ 7,940,937.00 
85,868,008.61 
 
44,819,760.78 17,740,592.30 
655,139.52 1,835,423.16 1,107,748.00 
7,940,937,00 85,868,008.61 
 
Total Expenditures 
 
$ 66,158,663.76 $ 93,808,945.61 $ 159,967,609.37 
 
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONSl 
 
Excess of Restricted Receipts over Transfers to Revenues 
 
 
$ 3,125,445.78 
 
$ _.....::3~,1:.::2:::J5,c:;44~5::.:.;7. :.:;8:... 
 
Net Increase/(Decrease) in Fund Balances 
 
$ _ _3,125,445.78 $ 
 
0.00 $ _....;3~,1.:,:2:;.:;::5,445.78 
 
See notes to the financial statements. 
 
- 29- 
 
 MEDICAL COLLEGE OF GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 
RESIDENT INSTRUCTION YEAR ENDED JUNE 30, 2000 
 
REVENUES 
State Appropriations Other Revenues Retained 
 
CURRENT FUNDS UNRESTRICTED RESTRICTED 
 
PLANT FUNDS RENEWALS AND 
UNEXPENDED REPLACEMENTS 
 
$ 98,935,047.00 
 
$ 2,080,000.00 $ 
 
0.00 
 
26,055,413.97 $ 66,158,663.76 
 
19,904,165.00 
 
$ 124,990,460.97 $ 66,158,663.76 $ 21,984,165.00 $ 
 
 
EXPENDITURES 
 
Personal Services: 
 
Education, General and Departmental Services $ 101,972,482.22 
 
Sponsored Operations 
 
$ 50,799,253.89 
 
Operating Expenses: 
 
Education, General and Departmental Services Sponsored Operations Capital Outlay Research Consortium Special Funding Initiative Student Education Enrichment Program Year 2000 Project 
 
16,274,604.60 
2,027,312.05 1,773,646.68 
365,217.00 85,262.22 
 
15,359,409.87 
$ 
 
8,260,906.04 $ 
 
.::;O..::;OO=_ 325,432.01 
 
$ 122,498.524.77 $ 66,158,663.76 $ 8,260.906.04 $ _ _.::;32::::5:.:.,,4:.:::3::;2..::.01.:.... 
 
Excess of Revenues over Expenditures 
 
$_~2.o;,;;49_1!936.20 $ 
 
....0.0.-.0 $ 13?23,258.96 $ _ _-.3.2..5.,.4.3..2..0..1... 
 
(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. 
 
- 30- 
 
 SCHEDULE "1" 
 
TOTAL 
 
ADJUSTMENTS 
 
TOTAL 
 
_---'W'-__ -.JBudget BasisL 
 
BUDGET 
 
VARIANCE FAVORABLE jUNFAVORABLEt 
 
$ 101.015.047.00 
 
$ 101.015,047.00 $ 101.015.047.00 $ 
 
112,118.242.73 $ -1,903,775.87 
 
110.214,466.86 
 
100,638.051.00 
 
0.00 9.576,415.86 
 
$ 213,133.289.73 $ -1,903,775.87 $ 211,229.513.86 $ 201.653,098.00 $ _--",9.",-57:..,:6..:...4,-,-1.;;.;5'.;;.;86;.;. 
 
$ 101.972.482.22 50.799.253.89 
 
$ 101,972.482.22 $ 105,077.746.00 $ 
 
50.799.253.89 
 
53,605.749.00 
 
16.274.604.60 $ 15.359.409.87 8.586.338.05 2.027.312.05 1.773.646.68 
365.217.00 85.262.22 
 
-2.327.947.75 -345,051.64 
 
13.946.656.85 15.359.409.87 8.241.286.41 2.027.312.05 1.773.646.68 
365.217.00 85,262.22 
 
19,845.114.00 16.394,251.00 2.080.000.00 2.308.000.00 1,892.003.00 
365.217.00 85.018.00 
 
3,105.263.78 2.806.495.11 
5.898.457.15 1.034.841.13 -6.161.286.41 
280.687.95 118.356.32 
0.00 -244.22 
 
$ 197.243.526.58 $ -2.672.999.39 $ 194.570,527.19 $ 201,653.098.00 $ __7.:..:.;;.;08:;;:2::.::.5;.;.7.;;.;0.c:;.8.:..1 
 
$ __1.5.889.763.15 $ _ _7;,,0.69..223.52 $ 16.658.986.67 
 
$ 16.658.986.67 
 
 
 
- 31 - 
 
 MEDICAL COLLEGE OF GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 
LOTIERY FOR EDUCATION 
YEAR ENDED JUNE 30, 2000 
 
SCHEDULE "2" 
 
REVENUES State Appropriations 
 
CURRENT FUNDS UNRESTRICTED 
 
BUDGET 
 
VARIANCE FAVORABLE -.JUNFAVORABLE) 
 
$ 
 
2.001.126,00 $ 2.001,126,00 $ 
 
, 
O~.O;;;.:O:... 
 
EXPENDITURES 
 
 
 
Equipment. Technology and Construction 
 
Trust Fund 
 
$ 
 
Georgia Research Alliance 
 
Special Funding Initiatives 
 
1.594,520.00 $ 
250.000.00 155,000.00 
 
1,596,126.00 $ 
250,000.00 155,000.00 
 
1.606.00 0.00 0.00 
 
Excess of Revenues over Expenditures 
 
$ 
 
1.999.520.00 $ 2,001.126.00 $ 
 
.....;1..:.::.6;.;;.06~.;;;.:00:... 
 
$ = ................,;,1&.;;;,6.-06;;;,;;.0,.0;,.. 
 
$ ......==...;1""'.6=0=6.=00'"= 
 
 
 
See notes to the financial statements. 
 
- 33- 
 
 MEDICAL COLLEGE OF GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 
OTHER ORGANIZED ACTIVITIES 
YEAR ENDED JUNE 30, 2000 
 
MEDICAL COLLEGE OF GEORGIA HOSPITAL AND CLINICS REVENUES 
State Appropriations Other Revenues Retained 
EXPENDITURES Personal Services: 
Education, General and Departmental Services Sponsored Operations Operating Expenses: Education, General and Departmental Services Sponsored Operations 
 
Excess of Revenues over Expenditures 
 
CURRENT FUNDS 
 
UNRESTRICTED 
 
RESTRICTED 
 
$ 38,256,117.00 242,168,104.09 $ 93.808,945.61 
$ 280,424,221.09 $ 93,808,945.61 
 
$ 174,383,585.51 $ 46,878,517.10 
 
92,188,903.39 
 
46,930,428.51 
 
$ 266,572,488.90 $ 93,808,945.61 
 
$ 
 
13,851,732.19 $====O~.,;;;,;OO~ 
 
See notes to the financial statements. 
 
 
- 34- 
 
 SCHEDULE "3" 
 
TOTAL (Budget Basis) 
 
BUDGET 
 
VARIANCE FAVORABLE (UNFAVORABLEL 
 
$ 38,256,117.00 $ 38,256,117.00 $ 
 
335,977,049.70 
 
333,976,114.00 
 
0.00 2,000,935.70 
 
$ 374,233,166.70 $ 372,232,231 .00 $ _ _,;;;.2,:.;,.00,;.;0;,.:.9;,;.;;3..;;.5';.;..70~ 
 
$ 174,383,585.51 $ 179,898,817.00 $ 
 
46,878,517.10 
 
47,327,594.00 
 
92,188,903.39 46,930,428.51 
 
98,880,866.00 46,124,954.00 
 
5,515,231.49 449,076.90 
6,691,962.61 -805,474.51 
 
$ 360,381,434.51 $ 372,232,231.00 $ ---'-11-,8-5'0-,7-9-6-.4-9- 
 
$ 13,851,732.19 
 
$=====1=3':=,;85;;.:1=,7=3=2.=19= 
 
- 35- 
 
 MEDICAL COLLEGE OF GEORGIA 
 
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 
 
OTHER ORGANIZED ACTIVITIES 
 
 
 
YEAR ENDED JUNE 30, 2000 
 
GEORGIA RADIATION THERAPY CENTER REVENUES 
Other Revenues Retained 
EXPENDITURES Personal Services: 
Education, General and Departmental Services Operating Expenses: 
Education, General and Departmental Services 
Excess of Revenues over Expenditures 
 
CURRENT FUNDS 
 
UNRESTRICTED 
 
RESTRICTED 
 
$ 
 
3,495,091.41 $ 
 
O;;.,;,.O.;;.,;O~ 
 
$ 
 
2,285,417.10 $ 
 
840,984.26 
 
0.00 
 
$ 
 
3,126,401.36 $ 
 
0_.0_0_ 
 
$ 
 
368,690.05 $ ====,0:=.0=:0= 
 
 
 
See notes to the financial statements. 
 
- 36- 
 
 SCHEDULE "3" 
 
TOTAL 
(Budget BasisL 
 
BUDGET 
 
VARIANCE FAVORABLE .JUNFAVORABLE) 
 
$ 3,495,091 .41 $ 3,625,81 0.00 $ 
 
 
-....:..:13:..:0:,:.7:,...:.1.::..:8':::.;59::.. 
 
$ 2,285,417.10 $ 2,713,567.00 $ 
 
840,984.26 
 
912,243.00 
 
428,149.90 71,258.74 
 
$ 3,126,401.36 $ 3,625,810.00 $ _ _---:..:49:..:9:.!...,4:...::0.::..:8.~64.:.... 
 
$ ====3:6i:8i::!:i,6=:9=0.=05= 
 
$ ==~36~8~,6;;,;::9~0.~05:::::: 
 
- 37- 
 
 MEDICAL COLLEGE OF GEORGIA CHANGES IN INVESTMENT IN PLANT 
YEAR ENDED JUNE 30, 2000 
 
 
Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections Construction in Progress 
 
BALANCE JULY 1, 1999 
 
CURRENT FUNDS UNRESTRICTED RESTRICTED 
 
PLANT UNEXPENDED 
 
$ 
 
8,998,281.93 
 
285,341,527.04 $ 
 
596,975.09 
 
$ 4,223,568.42 
 
6,318,765.19 
 
160,513.92 
 
180,792,080.32 
 
4,243,694.52 $ 1,938,811.87 
 
2,793,819.41 
 
 11,369,030.74 
 
245,394.63 
 
315.00 
 
694,532.90 
 
53,304,863.56 
 
$ 546,124,548.78 $ 5,086,064.24 $ 1,939,126.87 $ 7,872,434.65 
 
SUMMARY OF INVESTMENT 
College Capital Leases 
 
$ 546,122,669.86 $ 
1,878.92 
 
5,086,064.24 $ 1,939,126.87 $ 7,872,434.65 
 
$ 546,124,548.78 $ 5,086,064.24 $ 1,939,126.87 $ 7,872,434.65 
 
 
 
See notes to the financial statements. 
 
- 38- 
 
 SCHEDULE "4" 
 
ADDITIONS 
FUNDS RENEWALS AND REPLACEMENTS 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
CAPITAL LEASES 
 
PRIVATE GIFTS 
 
DEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS 
 
BALANCE JUNE 30, 2000 
 
$ 
 
8,998,281.93 
 
$ 
 
45,836.78 $ 14,711,489.40 
 
$ -47,773,488.56 
 
352,692,885.29 
 
117,859.76 
 
6,597,138.87 
 
23,581.60 
 
6,815,000.00 $ 1,712,768.34 $ 412,790.45 
 
31,743,720.58 
 
166,988,825.93 
 
12,309,273.27 
 
77,796.80 
 
53,207,488.56 
 
175,171.80 
 
$ 
 
187,278.14 $ 21,604,286.20 $ 1,712,768.34 $ ........4~1;,;;2,790.45 $ 37,177,720.58 $ 547,761,577.09 
 
$ 
 
187,278.14 $ 21,604,286.20 
 
$ 412,790.45 $ 36,923,116.89 $ 546,301,533.52 
 
_ _ _ _ _ _ $ 1,712,768.34 
 
254,603.69 
 
1,460,043.57 
 
$ 
 
187,278.14 $ 21,604,286.20 $ 1,712,768.34 $ .......4...1;,;;;2,790.45 $ 37,177?20.58 $ 547?61,577.09 
 
- 39- 
 
 MEDICAL COLLEGE OF GEORGIA SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PL~NT FU!':JDS 
JUNE 30. 200Q 
 
NET INVESTMENT IN PLANT 
 
RESIDENT INSTRUCTION 
 
LOTTERY FOR EDUCATION 
 
CURRENT FUNDS 
 
UNRESTRICTED 
 
OTHER ORGANIZED 
 
AUXILIARY 
 
ACTIVITIES 
 
ENTERPRISES 
 
Investment in Plant Facilities 
 
RESTRIC1ED 
 
Desi9nated for Subsequent Years' Expenditures 
 
UNRESTRICTED 
 
Designated 
 
For Capital Projects (GSFIC) 
 
For Equipment, Technology and Construction Trust Fund 
 
$ 
 
3,208.69 
 
For EquipmenVRevenue Stabilization Reserve for Georgia Radiation Therapy Center 
For Hospital Operations 
 
$ 
 
1,101,662.88 
 
98,243,486.72 
 
For Insurance Recovery/Restitution Reserve $ 1,699,939.29 
 
For Inventory Reserve 
 
129,152.74 
 
2,166,377.73 $ 
 
554,085.90 
 
For Renewals and Replacements Reserve 
 
For Revenue Stabilization Reserve for Medical College of Georgia Hospital and Clinics 
 
For Subsequent Years' Expenditures 
 
11,407,448.94 
 
1,040,123.56 
 
Surplus 
 
Regular 
 
212,841.07 
 
842.70 
 
Lottery for Education 
 
0.00 
 
$ 2,041,933.10 $ 
 
3,208.69 $ 
 
112,919,818.97 $ _.....ll1,~59~4!l;,2~0!,;;9:.::.4~6,- 
 
$ 2,041,933.10 $ 
 
3,208.69 $ 
 
11.2.,9191818.97 $ _...:.1,594,209.46 
 
See notes to the financial statements. 
 
-40 - 
 
 SCHEDULE "5" 
 
STUDENT ACTIVITIES 
 
RESTRICTED 
 
UNEXPENDED 
 
PLANT FUNDS RENEWALS AND REPLACEMENTS 
 
INVESTMENT IN PLANT 
 
TOTAL 
 
$ 20,711,924.14 
 
$ 26.963,700.81 
 
$ 546,301,533.52 $ 546,301,533.52 $ 20,711,924.14 
$ 26,963,700.81 3,208.69 
 
$ 
 
264,659.92 
 
1,101,662.88 98,243,486.72 
1,699,939.29 2,849,616.37 
264,659.92 
 
$ 83,954.79 $ 83,954.79 
 
16,098.61 
 
$ 26,979,799.42 $ 
 
264,659.92 
 
11,407,448.94 1,124,078.35 
 
229,782.38 0.00 
$ 143,887,584.35 
 
$ 83,954.79 $ 20,711 1924.14 $ 26,979,799.42 $ 
 
264.,659.92. $ 546,301,533.52 $ 710,901,042.01 
 
- 41 -