Review report, state of Georgia, Middle Georgia College, Cochran, Georgia, year ended June 30, 1996

GA
A~OO
.RI M5d-\9 Ci5 _Ltb
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA MIDDLE GEORGIA COllEGE COCHRAN, GEORGIA YEAR ENDED JUNE 30, 1996

MIDDLE GEORGIA COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALL FUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

ALL FUND GROUPS

4

C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

6

D NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

E COMBINING BALANCE SHEET

CURRENT FUNDS - UNRESTRICTED

22

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

23

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

25

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

26

2

LOTTERY FOR EDUCATION

28

SCHEDULES OF OPERATIONS

3

LOAN FUNDS .

30

4

ENDOWMENT AND SIMILAR FUNDS

31

5 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

32

6 CASH AND CASH EQUNALENTS

34

7 INVESTMENTS

35

8 ACCOUNTS RECEIVABLE

37

9 CHANGES IN INVESTMENT IN PLANT

38

10 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

40

MIDDLE GEORGIA COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

11 SCHEDULE OF REVENUES

CURRENT FUNDS

42

SCHEDULES OF EXPENDITURES BY OBJECT

12

CURRENT FUNDS

44

13

PLANT FUNDS

48

14 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

49

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

DEPARTl\IENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
December 12, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members of the Board ofRegents of the University System of Georgia
and Honorable Joe Ben Welch, President Middle Georgia College
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through D) of Middle Georgia College as ofand for the year ended June 30, 1996, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of Middle Georgia College.
A review consists principally of inquiries of College personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, with the exception of the matters described in the fourth and fifth paragraphs, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.
As disclosed in Note 1 to the financial statements, generally accepted accounting principles require encumbrances to be recorded as a reservation of fund balance. However, in accordance with Georgia Law and State budgetary policy, management recorded encumbrances as expenditures and liabilities. The effects ofthis departure from generally accepted accounting principles on the financial statements were not reasonably determinable.

96ARL-67

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 $458,033.42 as ofJune 30, 1996, and the net change in fund balance for the year ended June 30, 1996, would be decreased by $52,905.72.
Our review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 14) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements, and except for the effects of the matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 96ARL-67

FINANCIAL STATEMENTS - 1-

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

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

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$

699,724.04

$

19,296.80

440,962.94 $ 245,231.77 101,757.66

834,726.24

166,015.80

$ 1,487.676.41 $ 834,726.24 $ 185,312.60

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

$

327,306.89

19,875.00

301,873.50

23,617.41 $ 746,497.56

$

672,672.80 $ 746,497.56

$ 181,428.06 3,884.54

$

88,228.68

$

815.003.61

$

815,003.61 $

88,228.68 $ 185,312.60

Total Uabilities and Fund Balances

$ 1,487,676.41 $ 834.726.24 $ 185,312.60

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

EXHIBIT "A"

ENDOWMENT AND SIMILAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$

041,929.84 $ 267,332.55 $

611,674.96

$ 128,231.66 $ 1,768,189.85

726,399.39

726,399.39

7,922.96

1,449,627.94

245,231.77

101,757.66

770,114.97

770,114.97

_ _ _ _ _ _ $ 23,266,119.57

23,266,119.57

$ 768,329.23 $ 1,037,447.52 $

619,597.92 $ 23,266,119.57 $ 128,231.66 $ 28,327,441.15

$ 1,036,062.98 $

$ 1,036,062.98 $

$ 245,779.71 0495,226.20 27,323.32
$ $ 768,329.23 $

1,384.54 $ 1,384.54 $

45,740.76
$ 45,740.76 $

$
95,443.91 95,443.91 $

54,082.31 $ 1,463,192.94 19,875.00

74,149.35

301,873.50 74,149.35
770,114.97 95,443.91

128,231.66 $ 2,724,649.67

$ 23,170,675.66 573,857.16 573,857.16 $ 23,170,675.66

$ 181,428.06 3,884.54
245,779.71 495,226.20
27,323.32 23,170,675.66
88,228.68 1,390,245.31
$ 25,602,791.48

$ 768,329.23 $ 1,037.447.52 $

619.597.92 $ 23,266,119.57 $ 128.231.66 $ 28,327.441.15

-3-

MIDDlE GEORGIA COlLEGE
COMBINED STATEMENT Of CHANGES IN FUND BAl..ANCES All FUND GROUPS
YEAR ENDED JUNE 30, 1996

REVENUES AND OTHER APD!TIONS
Unrestricted Current Fund Revenues State Appropriations
Major RepairsIRehabililation Funds LoIIery Proceeds
Fedenli Grants and Contiacts
State Grants and Contracts Privale Gills, Grants, and Contracts Investment Income
Endowment 0Iher Realized Gains on Investments Interest on I.oIIns ReceivlIbie Adjustments
Piior Veers' Expenditures/Accounts Payable
ExpendecI for Plant Facilities Current Funds Plant Funds Unexpended R_1s and Replacements
0Iher Additions Recovery d Prior Vears' Cancelled Loans
ToIal Revenues and Other Additions
~NprrURESANDOTHERDEpucTIQNS
Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered
Remittances to the Board of Regents of the University System of Georgia
Prior Vear's Unrestricted Fund Balance (Surplus) Adjustments
Prior Vears' Revenues/Accounts ReceivlIbie I.oIIn Cancellations and Write-Offs Administrative and'CoIIection Costs ExpendecI for Plant Facilities
Capitalized Noncapitalized DisposalslDeletionslAdjusbnents
ToIal Expenditures and Other Deductions
IRANSEERS BEDNEEN FUNPS
Mandatory Investment Income for Principal
Nonrnandatory R_1s and Replac:ements Capital Projects Endowment Principal for Object of Trust
Tolal Transfers Between Funds
Net Increasel(Decrease) for the Vear
FUND BALANCES JULV 1. 1995

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

ENDOWMENT AND SIMILAR
FUNDS

$ 11,895,466.31

$ 1,710,718,14 763,119,76 30,640,44 2,299,13 $
12,185,37

$ 235,200,00

1,000,72 3,370.99

69,012,50

$ , 1,907,651,68 $ 2,506,777,47 $

350,00 4,721,71 $

304,212,50

$ 10,470,083.26 $ 2,508,777,40 1,243,051.86 9,422,76

$

0,00

1,984.30 371.00

$

2,670,00

1,271,15

$ 11,715,490,42 $ 2,518,200,16 $

3,941,15 $

0,00

$

-897.06

$

897.06

$ .146,965,43 .118,525.05

55,825,68

-55,825.68

$ 265.490.48 $ 54,928,62

$ -54,928,62

$

-73,329,22 $ 43,505,93 $

780,56 $ 249,283,88

888,332,83

44,722,75

184,532,04

519,045,35

FUND BALANCES JUNE 30 1996

$

~ Independent Accountants Combined Report on Review of Financial Statements and Supplementary Information,

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

-4-

815,003,61 $

88,228,68 $ 185,312,60 $ 768,329.23

EXHIBIT"S"

UNEXPENDED

PlANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PlANT

TOTAL (Memorandum
Only)

$ 772,681.00 380,000.00 28,990.59 $ 3,246.17
$ 1.184,917.76 $

$ 11,895,466.31

772,681.00 380,000.00 1,710,718.14 763,119.76 265,840.44

2,299.13

0.00

29,991.31

69,012.50

3,370.99

15,431.54

$ 459,10221

459,10221

548,91425 2,245.10

548,91425 2,245.10

350.00

0.00 $ 1,010,261.56 $ 16,918,542.68

$

10.50

548,91425 $ 753,144.02
$ 1,302,068.n $

$ 12,978,860.66 1,243,051.86 9,422.76

2,245.10 240,475.92
$
242,721.02 $

1,994.80

371.00 2,670.00 1,271.15

11,255.12

551,159.35 993,619.94
11,255.12

11,255.12 $ 15,793,676.64

$ $ 118,525.05

$ 118,525.05 $

$

1,374.04 $

10.50

$

0.00

146,965.43

0.00

0.00

0.00

146,965.43

$

0.00

-95,755.59 $ 999,006.44 $ 1,124,866.04

669,612.75 22,171,669.22 24,4n.925.44

$

1,384.54 $

573,857.16 $ 23,170,675.66 $ 25,602,791.48

.5

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

EXHIBITC

REVENUES
State Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Endowment Income Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues
EXPENDITURES AND MANDATORY TRANSFERS
Educational and General InstnJction Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers for: Investment Income for Endowment Principal
Auxiliary Enterprises Student Housing Faculty and Staff Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units
Total Expenditures and Mandatory Transfers
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)
Excess of Restricted Receipts over Transfers to Revenues
Transfers for Renewals and Replacements Transfers for Capital Projects Transfers for Object of Trust 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 Additionsl(Deductions)

UNRESTRICTED RESTRICTED

TOTAL (Memorandum
Only)

$ 8,092,897.00

$ 8,092,897.00

2,106,101.13

2,106,101.13

10,508.56 $ 1,699,035.02

1,709,543.58

756,759.07

756,759.07

28,071.31

28,071.31

24,912.00

24,912.00

15,447.58

15,447.58

1,266,853.58

1,266,853.58

403,658.46

403,658.46

$ 11,895,466.31 $ 2,508,777.40 $ 14,404,243.71

$ 4,850,878.79 $ 357,n4.86 $ 5,208,653.65

580,687.44

83,644.60

664,332.04

992,689.33

8,192.73

1,000,882.06

2,312,030.97

175,110.31

2,487,141.28

1,697,152.73

1,697,152.73

36,644.00

1,884,054.90

1,920,698.90

897.06

897.06

756,683.04 28,280.51 1,056.74
143,669.19 296,796.34
16,566.04

756,683.04 28,280.51 1,056.74
143,669.19 296,796.34
16,566.04

$ 11,713,135.12 $ 2,509,674.46 $ 14,222,809.58

$

-11,422.69 $

-11,422.69

$

-146,965.43

-146,965.43

-118,525.05

-118,525.05

55,825.68

55,825.68

11,814.37

11,814.37

-1,984.30

-1,984.30

$

-255,660.41 $

44,402.99 $ -211,257.42

Net Increase/(Decrease) in Fund Balances

$

-73,329.22 $

43,505.93 $

-29,823.29

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

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 3D. 1996

EXHIBIT "0"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Middle Georgia College is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System ofGeorgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations ofMiddle Georgia College 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. Middle Georgia College does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Middle Georgia College is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because ofthe significance ofits legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING In order to ensure observance oflimitations and restrictions placed on the use of the resources available to the College, the accounts ofthe College are maintained in accordance with the principles 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, auxiliary enterprises, and student activities.
RESTRICTED - The fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditUres when expended for current operating purposes.
- 7-

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
LOAN FUNDS
The fund used to account for resources which have been made available for financial loans to students.
ENDOWMENT AND SIMILAR FUNDS
The fund used to account for endowment funds, term 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. Term endowment funds are similar to endowment funds except that upon the passage of a stated period oftime or the occurrence ofa particular event, all or part ofthe principal may be expended. While quasi-endowment funds have been established by the College for the same purposes as endowment funds, any portion ofquasi-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 an equity account showing the total book value ofphysical properties belonging to the College less the amount of any indebtedness to others.
AGENCY FUNDS
The fund used to account for resources held by the College as custodian or fiscal agent for individual students, faculty, staffmembers, and organizations.
BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants' audit guide reporting model. The modified accrual basis ofaccounting is defined as that method of accounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures of the fiscal period.

- 8-

MIDDLE GEORGIA COLLEGE 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 of encumbrances 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 ofencumbrances as a reseIVation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Compensated absences represent obligations of the College relating to employees' rights to receive compensation for future absences based upon seIVices 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 $458,033.42 and the related current year expenditure of $52,905.72 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 ofthe 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.
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 aliotments for units of the University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 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 of these
- 9-

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT"D"

NOTE 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET funds is made to the various organizational units by the Administrative Central Office. In addition, the organizational units receive Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office. .

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

Operating Expenses: Education, General and Departmental Services
Capital Outlay

$ 104,319.08 $ 1.589.86

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

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

INVESTMENTS Investments are 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.

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. No provision has been made for an allowance for doubtful accounts within the accompanying financial statements.

INVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the weighted average method.

Inventories ofgoods for resale are valued at cost using the first-in, first-out method.

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

- 10 -

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia.

(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities

of the State of Georgia.

"

(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.

(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.

(5) Bonds, bills, certificates of indebtedness, notes, or other obligations ofa 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.

- 11 -

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES 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 oragent but not in the College's name, and amounts uncollateralized.

Cash Deposits Investment Portfolio Accounts
Total Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$ 1,761,989.85 $ 2,775,319.25 $ 260,085.75 $ 106,126.32 $ 2,409,107.18

19,073.26

19,072.00

19,072.00

$ 1.781 063 11 $279439125 $ 2600857S $ 10612632 $ 2 428.179 18

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.

- 12 -

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,1996

EXHIBIT liD"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZAnON OF INVESTMENTS The canying amounts of investment balances as ofJune 30, 1996, are categorized below:

Type ofInvestment
Common Stock Corporate Bonds U. S. Government Securities

Risk Categories 2

$ 578,121.92 $ 63,713.61 65.490.60

0.00 $

$ 70732613 $

000 $

Carrying

Market

3

Amount

Value

0.00 $ 578,121.92 $ 684,131.00

63,713.61

66,459.00

65.490.60

74303.00

000 $ 707326.13 $ 82489300

NOTE 3: INVESTMENT IN PLANT

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

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

$ 18,400.00 16,376,119.04 2,214,959.83 2,763,872.31 1,892,768.39

Total Investment in Plant

$23,266,119.57

NOTE 4: CAPITALLEASES

Middle Georgia College 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 ofJune 30, 1996, future minimum lease payments under capital leases are as follows:

- 13 -

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE 4: CAPITAL LEASES

Fiscal Year Ending June 30

1997 1998 1999 2000

$ 40,338.80 40,338.80 40,338.80 14,677.60

Total Future Minimum Lease Payments Less: Amounts Representing Interest

$ 135,694.00
40,250.09

Present Value ofFuture Minimum Lease Payments

$ 95,443.91

NOTE 5: RISKMANAGEMENT

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

The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS 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.

- 14 -

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "0"

NOTE 5: RISK MANAGEMENT
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.
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 ofthe State of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income 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 presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
NOTE 7: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Middle Georgia College 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 of the State of Georgia. The College's payroll for the year ended June 30, 1996, for employees covered by TRS was $5,755,751.70. The College's total payroll for all employees was $6,784,798.57.
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 of 60 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 ofcreditable 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 of years of creditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below
- 15 -:

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"D"

NOTE 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Benefits age 60, or by 7% for each year or fraction thereofby which the member has less than 30 years of service. The normal retirement pension is payable monthly for life. Options are available for distribution 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 of death or up to the time of disability.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
Contributions Required and Contributions Made Employees of the College who are covered by TRS are required to pay 5% of their gross earnings to TRS. The College makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees 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 behalf of employees electing to participate in the Regents Retirement Plan. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions to the plan made during fiscal year 1996 amounted to $986,527.64, of which $698,896.23 was made by the College and $287,631.41 was made by employees. These contributions represented 12.14% (College) and 5% (employees) of covered payroll.
Funding Status and Progress Pension Benefit Obligation
The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value of credited 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.

- 16 -

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
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 obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available for benefits were valued as of the 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 $698,896.23 was actuarially determined and represented .1151% of total 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 of the progress made in accumulating sufficient assets to pay benefits when due.

REGENTS RETIREMENT PLAN

The State of Georgia provides optional pension benefits for eligible faculty and principal administrators through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings.

State legislation requires that the employer contribute 4% and the employee contribute 5% of the participating employee's earnable compensation. Amounts attributable to all plan contributions are fully vested and nonfotfeitable at all times. The College's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1996, was $400,553.75. The College's total payroll for all employees was $6,784,798.57.

The College and the covered employees made the required contributions of$16,022.29 (4%) and $20,027.70 (5%), respectively.

- 17 -

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"D"

NOTE 7: RETIREMENT PLANS
GEORG"DE~DCONLmrnUTIONPLAN
Plan Description Middle Georgia College participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. The College's payroll for the year ended June 30, 1996, for employees covered by GDCP was $273,747.09. The College's total payroll for all employees was $6,784,798.57.
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 hislher 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 hislher 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 of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1996 amounted to $20,567.42 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan.
NOTE 8: 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 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.

- 18 -

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXInBIT "DII

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 Middle Georgia College (as an organizational unit of the Board ofRegents ofthe University System ofGeorgia), 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 of the 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 lifeinsurance 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 postemployinent 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, 1996, there were 90 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1996, Middle Georgia College . recognized as incurred $175,638.11 ofexpenditures, which was net of$73,058.12 of participant contributions.
NOTE 11: BONDING INFORMATION
The President and all employees of Middle Georgia College are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-02-110723, on which the premium was paid to October 1, 1996. Under this agreement, the public employee dishonesty coverage insures Middle Georgia College to a maximum of$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 of their position or employment.
All employees ofMiddle Georgia College 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 1, 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.
- 19 -

MIDDLE GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 3D. 1996

EXInBIT "D"

NOTE 12: ENROLLMENT

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

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

1,615 1,493 1.432

Average

Summer School, 1995

- 20 -

SUPPLEMENTARY INFORMATION - 21 -

MIDDLE GEORGIA COLLEGE COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED
JUNE 30 1996

EXHIBIT"E"

ASSETS
cash and cash Equivalents Accounts Receivable Inventories Prepaid Items

RESIDENT LOITERYFOR AUXILIARY

STUDENT

INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES

TOTAL

$ 391,640.02 92,590.35$ 75,185.19 44,757.66

$ 33,000.00

213,866.37 $ 305,629.01 170,046.58 57,000.00

94,217.65 $ 9,743.58

699,724.04 440,962.94 245,231.n 101,757.66

Total Assets

$ 604,173.22 $

33,000.00 $ 746,541.96 $ 103,961.23 $ 1,487,676.41

LIABILITIES AND FUND BALANCES

Liabilities

Accounts Payable

$

Student Deposits

Deferred Revenue

Tuition and Fees

Due to Other FU~ Groups

Total Liabilities

$

Fund Balances Unrestricted

288,486.74 $ 232,881.50 521,368.24 $
82,804.98

7,558.03 $
23,617.41 31,175.44 $

27,654.89 $ 19,875.00

3,607.23 $ 327,306.89 19,875.00

56,370.00

12,622.00

301,873.50 23,617.41

103,899.89 $ 16,229.23 $ 672,672.80

1,824.56

642,642.07

87,732.00

815,003.61

Total liabilities and Fund Balances

$ 604,173.22 $

33,000.00 $ 746,541.96 $ 103,961.23 $ 1,487,676.41

see accompanying notes and Independent Accountanfs Combined Report
on Review of Financial Statements and Supplementary Information.
-22-

MIDDLE GEORGIA COLLEGE COMBINING STATEMENT OF CHANGES IN FUND BALANCeS
CURRENT FUNDS - UNRESTRICTeD YEAR ENDeD JUNE 30, 1996

EXHIBIT-P

FUND BALANCeS JUNE 30 1996

$

82,804,98 $

642,642,07 $ 87,732.00 $ 815,003,61

see accompanying notes and Independent Accountal'lrs Combined Report
on Review of Financial Statements and Supplementary Infonnation,
-23-

MIDDLE GEORGIA COLLEGE COMBINING STATEMENT Of CURRENT fUNDS REYENUES EXPENDITURES
AND OTHER CHANGES UNRESTRICTEP
YEAR ENPED JUNE 30.1996

EXHIBIT"G"

Net IncreaseJ(Decrease) in fund Balances

$

706.79 $

790.35 $

5,949.36 $ -73,329.22

see accompanying notes and Independent Accountanrs Combined Report
on Review of Financial Statements and Supplementary Information.
-25-

MIDDLE GEORGIA COLLEGE 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

$ 7,969,486.00

$ 772,681,00

2,244,928.92 $ 2,508,777,40

28,990,59 $

.....:;O,:.:,OO=..

$ 10,214,414.92 $ 2,508,777.40 $ 801,671.59 $

0_,00_

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

7,981,960,30 $

305,631,80

2,122,894,08 109,049,20

2,203,145,60 $

922,298,84 $

242,721,02

$ 10,213,903.58 .$ 2,508,777.40 $ 922.298,84 $ _ _--.;:2;;.;.42;;;:,,;..;72;;;.;1,;..;,02=

Excess of Revenues over Expenditures

$

511,34 $

0.,00_. $ -120,627,25 $

.-2..4.2:...n..1..,.02-=

(1) To eliminate tuition waivers not budgeted and to reclassify current year transfers and prior year fund balances budgeted as revenues,

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information,
-26-

SCHEDULE -1-

TOTAL

ADJUSTMENTS

TOTAL

(1)

(Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 8,742,167.00 4,782,696.91 $

$ 8,742,167.00 $ 8,742,167.00 $

325,102.07

5,107,798.98

5,226,158.00

0.00 -118,359.02

$ 13,524,863.91 $

325,102.07 $ 13,849,965.98 $ 13,968,325.00 $ _ _-.;.1.;.;18;.:.;,359;;';;"';;";.;;.02;;;.

$ 7,981,960.30 305,631.80
2,122,894.08 $ 2,203,145.60 1,165,019.86
109,049.20

$ 7,981,960.30 $ 8,025,200.00 $

305,631.80

337,152.00

-36,144.00

2,086,750.08 2,203,145.60 1,165,019.86
109,049.20

1,982,431.00 2,342,155.00 1,163,430.00
117,957.00

43,239.70 31,520.20
-104,319.08 139,009.40
-1,589.86 8,907.80

$ 13,887,700.84 $

-36,144.00 $ 13,851,556.84 $ 13,968,325.00 $

116,768.16

$ -362,836.93 $

361,246.07 $

-1,590.86

$

-1,590.86

- 27-

MIDDLE GEORGIA COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION YEAR ENDED JUNE 30,1996

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED

PLANT FUNDS UNEXPENDED

TOTAL

$

123,411.00 $

380,000,00 $ 503,aJ11.00

$

123,411.00 $

380,000.00 $ 503,411,00

EXPENDITURES
Equipment, Technology and Construction Trust Fund
Special Funding Initiatives

$

82,209.65 $

200,000.00 $ 282,209.65

40,411.00

179,759.43

220,170.43

$

122,620.65 $

379,759.43 $ 502,380,08

Excess of Revenues over Expenditures

$

790.35 $

(1 ) To reclassify prior year fund balance budgeted as revenue..

240.57 $ ==1:=,0=3:=0=.9=2

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

SCHEDULE "2"

ADJUSTMENTS (1)

TOTAL (BUdget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ $ _ _---=..11,=034~.O~O

503,411.00 $ 503,411.00 $

1,034.00

1,034.00

$.

1,034.00 $ 504,445.00 $ 504,445.00 $

0.00 0.00
..;;.O;.;;..O~O

$

0.00 $ 282,209.65 $ 284,034.00 $

1,824.35

220,170.43 220.411.00

240.57

$

0.00 $

502,380.08 $ 504.445.00 $ _ _---.;2;;.:.,O.;..;6...;.4;.;;..92~

$

1,034.00 $ ===2,=064===:,9:=2

$ ===========2=,064====:,.=92=

- 29-

MIDDLE GEORGIA COLLEGE SCHEDULE OF OPERATIONS
LOAN FUNDS YEAR ENDED JUNE 30,1996

SCHEDULE "3"

FUND U. S, GOVERNMENT GRANTS REFUNDABLE
Perkins Loan Fund INSTITUTIONAL LOANS - RESTRICTED
Thigpen Loan Fund Thomas Loan Fund

FUND BALANCE ADDITIONS! JULY 1,1995 TRANSFERS

DEDUCTIONSI FUND BALANCE TRANSFERS JUNE 30, 1996

$ 180,765.36 $

4,603.85 $

3,941.15 $

181,428.06

$

1,817,68 $

1,949.00

$

3,766.68 $

56,87 $ 60.99
117,86 $

0.00 $ 0.00 $

1,874.55 2,009.99
3,884.54

$ 184,532.04 $

4,721.71 $

3,941.15 $

185,312.60

RECONCILIATION OF STUDENT NOTES RECEIVABLE
Balance July 1, 1995
Add: Loans to Students
Deduct: Repayment of Loans Loan Cancellations and Write-Offs
For Bankruptcy For Teaching and Nursing 5ervic:es
Balance June 30,1996

$ 168,239,87

21,716.00

$ 189,955.87

$ 21,270.07

2,400.00 270.00

23,940.07

$ 166p15.80

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

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

SCHEDULE "4"

FUND

FUND BALANCE ADDITIONSI

JULY 1,1995

TRANSFERS

DEDUCTIONSI FUND BALANCE
TRANSFERS JUNE 30, 1996

ENDOWMENT

Harris, Wallace Memorial Scholarship Fund

Jacob, Anne Martin, Award

$

Jelks, Lila Napier, DAR. Scholarship Fund

Vidosic, Dean and Mrs. J. P. Award

$ 3,250.00 5,000.00 2,261.67

235,200.00 $ 68.04

0.00 $

235,200.00 3,250.00 5,000.00 2,329.71

$

10,511.67 $ 235,268.04 $

0.00 $

245,779.71

TERM ENDOWMENT

Cook, Arch J., Scholarship Fund

$

482,039.38 $

69,012.50 $

55,825.68 $

495,226.20

QUASI-ENDOWMENT - RESTRICTED

Pace, John and Gussie, Scholarship Fund $

26,494.30 $

829.02 $

0.00 $

27,323.32

$

519,045.35 $ 305,109.56 $

55,825.68 $_......7..6...8...,3.2..9....2..3..

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

- 32-

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

SCHEDULE "5"

FUND

BALANCE JULY 1,1995

RECEIPTS

BALANCE DISBURSEMENTS JUNE 30, 1996

OTHER FUNDS

Loan Matching Fund

$

Middle Georgia College Ambassador's Club

Middle Georgia College Business Club

Middle Georgia College Christmas Party

Middle Georgia College Ensemble

Middle Georgia College Film Club

Middle Georgia College French Team

Middle Georgia College Trap/Skeet Club

Nursing Lamps

Off Campus Elderhostel

Orientation

Phi Theta Kappa

President's Discretion Fund

Quintas Stellas Club

Retired Employees' Group Insurance

Rotoract Club

SAT Tests

Scholarships and Grants

Regents' Scholarship Fund

Other Scholarships (List on File)

Single Source Loans

Student Insurance

Student National Education Association

Students Against Drunk Driving

Warriors Club

Young Democrats

3,335,71 $ 890,61 127.24 84.00
2,462.48 250,00
-4,640.43 240,00
14,982.81 1,647.80 529,06 267,61 178,37 3,238.23 895,34 4,125,79
25,580.34
68,01 85,15 122,08 21,89

93,02 1,471,99 $
728,50 1,380,00 17,661.19
500.00 4,640,43
.490,20 108,739.00
13,005,00
8,756,35 852.00
84,694,27
4,020,00
2,600,00 88,265.87 992,046,69
579,84
4,60

$ 785.57 848,37 1,249.50 17,413.01 847.72
240,00 490,20 118,721,81 9,037.42
5,105,81 189,34
82,578,33
3,854,44
2,600,00 85,395,27 995,339,49
555,00
13,78

3,428,73 1,577.03
7.37 214,50 2,710,66 -97,72
5,000,00 5,615,38
529,06 3,918,15
841,03 5,354,17
895,34 4,291,35
28,450,94 -3,292,80
24.84 68,01 85.15 126,68
8.11

$

66,504,78 $ 1,351,436,85 $

1,343,792,28 $

74,149,35

$ 119,851,67 $ 5,823,275.15 $

5,814,895,16 $ 128,231,66

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 33-

MIDDLE GEORGIA COLLEGE CASH AND CASH EqUIVALENTS
JUNE 30, 1996

SCHEDULE "6"

INTEREST BEARING ACCOUNTS
Citizens Bank of Cochran, Cochran, Georgia
Certificate of Deposit (5.50%) Insured Money Market Accounts (2.750/0-3.10%)
State Bank of Cochran, Cochran, Georgia
Insured Money Market Accounts (3.14%) N.O.W. Account (2.12%)
OTHER
Cash on Hand Petty Cash

$

28,502.98

177,623.34 $ 206,126.32

$ 106,119.61 1,449,743.92

1,555,863.53 $ 1,761,989.85

6,200.00 $ 1.768,189.85

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

MIDDLE GEORGIA COLLEGE INVESTMENTS JUNE 30, 1996

SCHEDULE '7"

Common Stock 4800 Shares of Coca Cola Stock
Investment Accounts Merrill Lynch, Incorporated Macon, Georgia Investment Portfolio Account Cash Common Stock Corporate Bonds Money Market Funds U. S. Government Securities

$ 235,200.00

$

115.00

342,921.92

63,713.61

18,958.26

65,490.60

491,199.39

$ 726.399.39

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

MIDDLE GEORGIA COLLEGE ACCOUNTS RECEIVABLE JUNE30 1996

SCHEDULE -8"

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

PLANT FUNDS RENEWALS AND REPLACEMENTS

StateAppropriations

Allotment from the Board of Regents of the

University System of Georgia

$

33,000.00

$

Federal Grants and contracts
Research and Instruction Student Aid

$ 210,388.98 559,893.26

State Grants and contracts
Student Aid

64,444.00

Other Georgia Department of Administrative 5ervices Distance Learning Insurance Reimbursement Middle Georgia College Foundation Refunds of Registration Fees Returned Checks Student Accounts Student Notes Summer CampsIPrograms Vendor Credit Memos Other

18,429.59 22,703.96 108,391.40
199.48 35,659.69 91,055.90
58,664.32 72,285.30
573.30

$

7,922.96

$ 166,015.80

TOTAL
33,000.00
210,388.98 559,893.26
64,444.00
26,352.55 22,703.96 108,391.40
199.48 35,659.69 91,055.90 166,015.80 58,664.32 72,285.30
573.30

$

440,962.94 $ 834,726.24 $ 166,015.80 $

7,922.96 $ 1,449,627.94

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

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

Land Buildings Jmprovements Other Than Buildings Equipment Ubrary Books and Collections
SUMMARY OF INVESTMENT College Capital Leases

BALANCE JULY 1, 1995

CURRENT FUNDS UNRESTRICTED RESTRICTED

$

18,400.00

16,183,308.97

2,046,401.63

2,072,032.45 $

313,657.63 $ 104,202.36

1,851,526.17

41,242.22

$ 22,171,669.22 $

354,899.85 $ 104,202.36

$ 22,171,669.22 $

354,899.85 $ 104,202.36

$ 22,171,669.22 $

354.899.85 $ 104,202.36

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 38-

SCHEDULE "9"

ADDITIONS
PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

CAPITAL LEASES

DEDUCTIONS DISPOSALSI DELETIONSI ADJUSTMENTS

BALANCE JUNE 30, 1996

$

18,400.00

$

192,810.07

16,376,119.04

166,509.19 $

2,049.01

2,214,959.83

189,594.99

196.09 $ 161,443.91 $

77,255.12

2,763,872.31

1,892,768.39

$

548,914.25 $=======:i2'524=5=:.1==0 $ 161,443.91 $

77,255.12 $ 23,266,119.57

$

548,914.25 $

2,245.10

$

11,255.12 $ 23,170,675.66

_ _ _ _ _ $ 161,443.91

66,000.00

95,443.91

$

548,914.25 $======:i2'524=5=:.1==0 $ 161,443.91 $

77,255.12 $ 23,266,119.57

- 39-

MIDDLE GEORGIA COLLEGE 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 Bus Replacement Reserve For Equipment, Technology and Construction Trust Fund For Intercollegiate Athletics For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures For Uncollectible Accounts Undesignated SurpluslDeficit Regular Lottery for Education

RESIDENT INSTRUCTION

CURRENT FUNDS UNRESTRICTED LOITERYFOR AUXILIARY EDUCATION ENTERPRISES

STUDENT ACTIVITIES

$

$

74.742.n

1,824.56 $

23,694.27 170,046.58

5,371.12

448,901.22 $

87,732.00

2,691,09

$

82,804.98 $

1.,824.56 $ 642,642.07 $

87,732.00

$

82,804.98 $

1,824.56 $

642,642.07 $ _..-8o7ioo,1,.73.2...0.-.0

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

SCHEDULE "10"

RESTRICTED

PLANT FUNDS

UNEXPENDED

LOTTERY FOR RENEWALS AND

REGULAR

EDUCATION REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 23.170.675.66 $ 23.170.675.66

$' 88,228.68

$ _--=8.=.18.=22::.:8.:.::.6~8

$

82.092.91

491,764.25

$

82,092.91

1,824.56 23,694.27 244,789.35 491.764.25 536,633.22
5,371.12

$

-1,679.48

_ _ _ _ _ $ _ _;:.L3,.:.::064~.02=-

$

-1,679.48 $

3,064.02 $ _ _..;;;5.;.,;73;.r.,8~5~7.;.;..1~6

1,011.61 3,064.02 $ 1,390,245.31

$

88,228.68 $

-1,679.48 $

3,064.02 $

573,857.16 $ 23,170.675.66 $ 24,649.149.65

- 41 -

MIDDLE GEORGIA COLLEGE SCHEDULE OF REVENUES
CURRENT FUNDS
YEAR ENDED JUNE 30, 1996

State Appropriations Allotments from the Board of Regents of the University System of Georgia Regular Special Funding Initiative Lottery Proceeds
Other Revenues Retained Tuition and Fees Matriculation Other
Federal Grants and Contracts Research and Instruction Student Aid Contract Overhead
State Grants and Contracts Research and Instruction Student Aid
Private Gifts, Grants, and Contracts Research and Instruction Student Aid
Endowment Income Student Aid
Sales and Services of Educational Activities
Sales and Services of Auxiliary Enterprises
Other Sources Cash Over-Short Donations Extension and Public Service Interest Eamed Rents Other

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

$ 7,851,529.00 117,957.00 $
$ 7,969,486.00 $

123,411.00 123,411.00

$ 1,791,845.83 167,678.80

10,508.56

15,447.58
115,10 188,391.63
3,609.77 67,331.65 $ 2,244,928.92

$ 1,266,853.58
107,664.50 1,998.06
30,632.85 $ 1,407,148.99

$ 10.214,414.92 $
See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
-42 -

123,411.00 $ =====1:!:::,4:::07'=:!:,=14=8=.9==9

SCHEDULE "11"

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$ 7,851,529.00 117,957.00 123,411.00
$ 8,092,897.00

$ 7,851,529.00 117,957.00 123,411.00
$ 8,092,897.00

$ 1,791,845.83

$ 146,576.50

314,255.30

$ 1,791,845.83 314,255.30

$ 470,081.12 1,228,953.90
10,508.56

470,081.12 1,228,953.90
10,508.56

127,637.07 629,122.00

127,637.07 629,122.00

27,004.31 1,067.00

27,004.31 1,067.00

15,447.58 1,266,853.58

24,912.00

24,912.00 15,447.58 1,266,853.58

1,586.65 2,328.25

115.10 107,664.50 188,391.63
3,584.71 3,609.77 100,292.75

115.10 107,664.50 188,391.63
3,584.71 3,609.77 100,292.75

$ 150,491.40 $ 3,802,569.31 $ 2,508,777.40 $ 6,311,346.71

$ 150,491.40 $ 11,895,466.31 $ 2,508,777.40 $ 14,404,243.71

- 43-

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

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

PERSONAL SERVICES

Salaries and Wages Employer's Contributions for:
F.I.CA Retirement Group Insurance Uability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance

$ 5,922,233.19
418,345.37 628,794.n 799,357.97
64,536.00 4,953.00 143,740.00

$

525,317,90

35,037.88 52,920.02 90,413,59

$ 7,981,960.30

$

703,689.39

OPERATING EXPENSES

Travel Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Tuition and Scholarships
College Work-Study Program Scholarships, Fellowships, Prizes, Awards and Other Other Operating Expenses Publications and Printing Equipment Non-Inventory Computer Charges Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts Equipment Motor Vehicle Purchases LeaselPurchase of Equipment Inventory

$ 101,301,64 22,012.83 505,859.53 90,237.78
397,339,22 83,982.50 24,811.96
25,787,93 36,144.00 131,749.78 59,210.82
114,303,70 11,067.87 70,425.19
143,368.63
21,175.15 16,640.n
21,197.40 95,508.39 150,768.99

$

9,364.54

8,166.14

114,335.98

11,194,29

136,625.26

10,739.69

36,174.93

97,324.99 64,972.79
1,230.32

4,589.15 16,406.40
28,237,99

$ 2,122,894.08

$

539,362.47

OTHER

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

$

5,795.74

9,902.83 14,052.65

52,458.43

$" 82,209.65

-44 -

SCHEDULE "1Z'

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$

17,353.19 $ 6,464,904.28 $ 241,578.39 $ 6,706,482.67

257.62 141.72 91.76

453,640.87 681,856.51 889,863.32
64,536.00 4,953.00
143,740.00

16,677.00 24,464.35 22,912.06

470,317.87 706,320.86 912,775.38
64,536.00 4,953.00 143,740.00

$

17,844.29 $ 8,703,493.98 $ 305,631.80 $ 9,009,125.78

$

1,771.87 $ 112,438.05 $

8,080.56 $ 120,518.61

30,178.97

30,178.97

55,562.72

675,758.23

36,114.99

711,873.22

185.00

101,617.07

276.05

101,893.12

533,964.48

533,964.48

2,753.99

97,476.18

97,476.18

60,986.89

60,986.89

500.00 11,088.03 2,416.35

25,787.93 133,968.99 207,810.60 62,857.49

77,491.82 1,884,054.90
29,060.55

103,279.75 2,018,023.89
236.,871.15 62,857.49

2,426.41
497.90 1,047.47

116,730.11 11,067.87 75,512.24
160,822.50

40,344.63 16,584.74

157,074.74 11,067.87 92,096.98
160,822.50

33,281.00

82,694.14 16,640.77

6,935.00

89,629.14 '16,640.77

4,184.00

21,197.40 95,508.39 154,952.99

104,202.36

21,197.40 95,508.39 259,155.35

$ 115.714.74 $ 2,777,971.29 $ 2,203,145.60 $ 4,981,116.89

$

5,795.74

9,902.83 14,052.65

52,458.43

$

82,209.65

$

5,795.74

9,902.83 14,052.65

52,458.43

$

82,209.65

- 45-

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

OTHER
SPECIAL FUNDING INITIATIVES Personal Services Salaries and Wages Employer's Conbibutions for: F.I.C.A. Retirement Group Insurance
Other Costs Travel Supplies and Materials Other Expenses Equipment Non-Inventory Software Equipment Inventory

RESIDENT INSTRUCTION

LOTIERYFOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

$

78,315,90

5,629.89 8,596.33 7,878.00

$ 100,420.12

1,308,31 4,773.96 $
82.75

3,359.76

1,915.41 548.65

6,193.60 75.00

30,782.64

$ 109,049.20 $

40,411.00

$ 109,049.20 $ 122,620.65

$ 10,213,903.58 $ 122,620.65 $ 1,243,051.86

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-46 -

SCHEDULE "12"

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

. TOTAL

$

78,315.90

5,629.89 8,596.33 7,878.00

$ 100,420.12

1,308.31 8,133.72
82.75

8,109.01 623.65

30,782.64

$ 149,460.20

$ 231,669.85

$

78,315.90

5,629.89 8,596.33 7,878.00

$ 100,420.12

1,308.31 8,133.72
82.75

8,109.01 623.65

30,782.64

$ 149,460.20

$ 231,669.85

$ 133,559.03 $ 11,713,135.12 $ 2,508,m.40 $ 14,221,912.52

-47 -

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

SCHEDULE "13"

CAPITAL OUTLAY
Supplies and Materials Repairs and Maintenance Utilities Other Expenses Equipment
Non-Inventory Per Diem, Fees and Contracts
Per Diem and Fees Contracts Equipment Inventory
OTHER
EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND Other Costs Supplies and Materials Other Expenses Equipment Non-Inventory Per Diem, Fees and Contracts Per Diem and Fees Contracts Equipment Inventory
SPECIAL FUNDING INITIATIVES Other Costs Supplies and Materials Repairs and Maintenance Other Expenses Equipment Non-Inventory Software Per Diem, Fees and Contracts Per Diem and Fees Contracts Equipment Inventory

UNEXPENDED

LOTIERY FOR

REGULAR

EDUCATION

RENEWALS AND REPLACEMENTS

TOTAL

$ 19,312,67 11,462.00 6,766.26 60.00
23,814.75
46,309.50 753,479.33
61,094.33
$ 922,298.84

$

14,873.97 $ 34,186.64

69,738.63

81,200.63

6,766.26

60.00

15,701.45

39,516,20

31,540.00 110,670.88

n,849.50 864,150.21

196.09

61,290.42

$ --==-=24:2..,:7.2=1:.:0.2.. $ 1,165,019.86

$

1,221.22

211.32

11,043.21

26,348.00 122,353.25

38,823.00

$ 200,000.00

$

3,866.54

10,094.40

2,500.00

36,128.44 76.29

3,500.10 33,916.00

89,6n.66

$ 179,759.43

$

1,221,22

211.32

11,043.21

26,348.00 122,353.25

38,823.00

$ 200,000.00

$

3,866.54

10,094.40

2,500.00

36,128.44 76,29

3,500.10 33,916.00

89,6n.66

$ 179,759.43

$ 922,298.84 $ 379,759.43 $
See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
-48 -

242,721.02 $ 1,544,n9.29

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

SCHEDULE "14"

Totals per Annual Supplement

Accruals June 30, 1995

Adjustments

Shared Services on JoinUy Staffed Personnel

Medical College of Georgia

Clark,

Sherry

Other

Green,

Cherry

Purser,

Ralph

Royal 1M

SALARIES AND WAGES
$ 6,780,769.43 $

TRAVEL 122,042.92

-971,85

5,770.04 -1,740.90

971.85 -216,00

Totals per Report

$ 6,784,798.57 $ 121,826.92

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

$ 5,922,233.19 $ 78,315.90
525,317.90 17,353.19
241,578.39

101,301.64 1,308.31 9,364.54 1,771.87
8,080.56

$ 6,784,798.57 $ 121.826.92

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 49-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

MIDDLE GEORGIA COLLEGE 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 of the findings disclosed in the review report for the year ended June 30, 1995, is summarized below:

Audit Control Numbers

Status ofFindings

584-91-006 584-95-01 584-95-02 584-95-04

No Corrective Action Implemented See Audit Control Number 584-96-01 Corrective Action Implemented Finding Deleted

PRIOR YEAR/CURRENT YEAR

REVENUESIRECEIVABLESIRECEIPTS Student Accounts Receivables Not Supported by Financial Aid Financial Statements Audit Control Number 584-96-01

The review report for the year ended June 30, 1995, reported that Middle Georgia College had $19,600.32 in student accounts receivable which were not supported by approved financial aid. On June 30, 1996, the balance had increased to $39,273.54 in student accounts receivable which were not supported by approved financial aid. There is not provision in the policies ofthe Board of Regents for deferments of student accounts without the student having approved financial aid at the time of registration. This condition occurred because management disregarded the policies ofthe Board ofRegents.

Collection ofstudent accounts receivable should be made on at least a quarterly basis, and no student should be granted a deferment without having approved financial aid. It is recommended that legal means be used to collect all student accounts receivable, if necessary.

CURRENT YEAR

FEDERAL FINANCIAL REPORTS Reports Not Reconciled to Accounting Records Federal Financial Assistance Audit Control Number 584-96-02

For the year under review, amounts reported on the Fiscal Operations and Application to Participate (FISAP) Report submitted by Middle Georgia College to the U. S. Department ofEducation on September 29, 1995, did not reconcile with the accounting records as indicated below:

- 1-

MIDDLE GEORGIA COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996

CURRENT YEAR

FEDERAL FINANCIAL REPORTS Reports Not Reconciled to Accounting Records Federal Financial Assistance Audit Control Number 584-96-02

FISAP Report Item

FISAP Report

Accounting Records

Difference

SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT (CFDA 84.007)

Total Funds to Recipients Non-Federal Share to Recipients Federal Share to Recipients Administrative Cost Allowance

$ 86,787.00 $ 85,699.00 $ 23,580.00 $ 21,424.75 $ 63,207.00 $ 64,274.25 $ 3,689.00 $ 4,284.93

$ 1,088.00 $ 2,155.25 $ -1,067.25 $ -595.93

FEDERAL WORK STUDY PROGRAM (CFDA 84.033)

Institutional Share ofEamed Compensation Federal Share ofEamed Compensation Administrative Cost Allowance

$ 11,996.00 $ 18,664.80 $ 62,108.00 $ 56,000.34 $ 4,356.00 $ 3,636.98

$ -6,668.80 $ 6,107.66 $ 719.02

Federal regulations (34CFR 674.19 and 675.19) require the College to ensure that financial information reported is accurate and reconciled to the accounting records.

The differences between the accounting records and the FISAP Report were not reconciled. The College should implement procedures to ensure that the FISAP Report is accurately completed and supported by the accounting records. Detailed reconciliations should be prepared for any adjusted amounts and maintained as a part of the supporting documentation.

-2-