Or\ A<30o .g\ NbLf I99 3-9.t.f STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 AUDIT REPORT STATE OF GEORGIA NORTH GEORGIA COLLEGE DA!Il,ONEGA, GEORGIA YEAR ENDED JUNE 30, 1994 NORTH GEORGIA COLLEGE - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION EXHIBITS FINANCIAL STATEMENTS A COMBINED BALANCE SHEET ALL FUND GROUPS 2 B COMBINED STATEMENT OF CHANGES IN FUND BALANCES ALL FUND GROUPS 4 C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, AND OTHER CHANGES 6 D NOTES TO THE FINANCIAL STATEMENTS 7 SUPPLEMENTARY INFORMATION E COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED 20 F COMBINING STATEMENT OF CHANGES IN FUND BALANCES CURRENT FUNDS - UNRESTRICTED 21 G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, AND OTHER CHANGES UNRESTRICTED 23 SCHEDULES SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 1 RESIDENT INSTRUCTION 24 2 LOTTERYFOREDUCATION 26 SCHEDULES OF OPERATIONS 3 LOAN FUNDS 27 4 ENDOWMENT FUNDS 28 5 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS AGENCY FUNDS 29 6 CASH AND CASH EQUIVALENTS 30 7 INVESTMENTS 31 8 ACCOUNTS RECEIVABLE 32 9 CHANGES IN INVESTMENT IN PLANT 34 10 SCHEDULE OF FUND BALANCES CURRENTFUNDSANDPLANTFUNDS 36 NORTH GEORGIA COLLEGE - TABLE OF CONTENTS - SECTION I FINANCIAL SUPPLEMENTARY INFORMATION SCHEDULES 11 SCHEDULE OF REVENUES CURRENT FUNDS 38 SCHEDULES OF EXPENDITURES BY OBJECT 12 CURRENT FUNDS 40 13' PLANT FUNDS 42 14 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL 43 SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUD110R (404) 656-2174 TAX RATIO (404) 656-0494 ;!0epartment .of ~uhits 254 WASHINGTON STREET, S.W. ROOM 214 ~tbmbt, ~enrgia 30334-8400 September 23, 1994 FINANCIAL AUDITS (404) 656-2180 PROGRAM AUDliS (404) 656-2006 Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Board of Regents ofthe University System of Georgia and Honorable Delmas l Allen, President North Georgia College INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Ladies and Gentlemen: We have audited the accompanying financial statements (Exhibits A through D) ofNorth Georgia College as of and for the year ended June 30, 1994. These financial statements are the responsibility of the College's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the College to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation offund balance. The effects on the financial statements ofthis departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material. As described 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. 94ARL-52 In our opinion, except for the effects on the financial statements ofthe matters discussed in the third and fourth paragraphs, the financial statements referred to above present fairly, in all material respects, the financial position of North Georgia College as of June 30, 1994, 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 supplementary information (Exhibits E through G and Schedules 1 through 14) is presented for purposes ofadditional analysis and is not a required part ofthe financial statements ofNorth Georgia College. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, except for the effects of the matters discussed in the third and fourth paragraphs, such information is fairly presented in all material respects in relation to the financial statements taken as a whole. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:gp 94ARL-52 FINANCIAL STATEMENTS - 1- NORTH GEORGIA COLLEGE COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30 1 1994 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Prepaid Items Investment in Plant Total Assets LIABILITIES AND FUND BALANCES Liabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Deposits Held for Others Total Liabilities Fund Balances U. S. Government Grants Refundable Institutional Loans - Restricted Endowment Net Investment in Plant Restricted Unrestricted Total Fund Balances Total Liabilities and Fund Balances CURRENT FUNDS UNRESTRICTED RESTRICTED $ 2,736,379.71 $ 71,846.39 630,637.51 558,322.52 114,857.96 111,959.20 ------------- ------------- $4,040,197.70$ 183,805.59 ============= ============= $ 731,070.03 194,242.62 938,152.98 $1,863,465.63 $ 183,805.59 $ 2,176,732.07 $2,176,732.07$ 183,805.59 $4,040,197.70$ 183,805.59 The notes to the financial statements are an integral part of this statement. - 2- EXHIBIT "A" LOAN FUNDS ENDOWMENT FUNDS UNEXPENDED PLANT FUNDS RENEWALS AND REPLACEMENTS INVESTMENT IN PLANT AGENCY FUNDS TOTAL (Memorandum Only) $ 88,486.07 $ 148,516.92 $ 468.75 1,414,774.71 826,665.95 44,501.66 56,831.97 $ 51,001.10 927,574.03 $ $36,894,081.55 390,031.30$ 4,419,666.39 1,415,243.46 2,561.46 1,667,326.88 558,322.52 114,857.96 36,894,081.55 $ 915,620.77 $1,607,793.29 $ 107,833.07$ 927,574.03 $36,894,081.55$ 392,592.76 $45,069,498.76 ===~r~======= ============= ============= ============= ============= ============= ============= $ 107,815.07 $ 33,100.00 $ 107,815.07 $ 33,100.00 $ 361,176.06$ 1,233,161.16 194,242.62 31,416.70 938,152.98 31,416.70 $ 392,592.76$ 2,396,973.46 $ 816,755.78 98,864.99 $1,607,793.29 $ $ 915,620.77 $1,607,793.29 $ $36,894,081.55 18.00 $ 894,474.03 18.00 $ 894,474.03 $36,894,081.55 $ 816,755.78 98,864.99 1,607,793.29 36,894,081.55 183,805.59 3,071,224.10 $42,672,525.30 $ 915,620.77 $1,607,793.29 $ 107,833.07 $ 927,574.03 $36,894,081.55$ 392,592.76 $45,069,498.76 ============= ============= ============= ============= ============= ============= ====~======== - 3- NORTH GEORGIA COLLEGE COMBINED STATEMENT OF CHANGES IN FUND BALANCES ALL FUND GROUPS YEAR ENDED JUNE 30. 1994 REVENUES AND OTHER ADDITIONS Unrestricted Current Fund Revenues State Appropriations - Lottery Proceeds Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Investment Income Endowment Other Realized Gains on 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 Insurance Recoveries Late Fees Proceeds from Sale of Plant Assets Total Revenues and Other Additions EXPENDITURES AND OTHER DEDUCTIONS Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered Refund to Granter Remittances to the Board of Regents of the University srstem of Georgia Prior Years Unrestricted Fund Balance Surplus Adjustments Prior Years' Revenues/Accounts Receivable Loans Assigned to Federal Government Loan Cancellations and Write-offs Administrative and Collection Costs Expended for Plant Facilities Capitalized Non-Capitalized Disposals/Deletions/Adjustments Total Expenditures and Other Deductions TRANSFERS BETWEEN FUNDS Mandatory Investment Income for Princi~al Investment Income Allocated for Loans Nonmandatory Renewals and Replacements Capital Projects Total Transfers Between Funds Net lncrease/(Decrease) for the Year FUND BALANCES JULY 1, 1993 FUND BALANCES JUNE 30. 1994 CURRENT FUNDS UNRESTRICTED RESTRICTED $19,723,088.06 $ 939,108.54 347,343.78 67,190.53 408,081.63 91,019.56 2,526.81 590.00 $19.726.204.87 $1,852,744.04 $15,336,570.95$ 1,736,455.55 3,539,304.30 4,655.00 3,264.56 50.00 $18,879,189.81 $ 1,741,110.55 $ $ -259,805.09 -649.908.68 $ -909 I 713 77 $ $ -62,698.71 $ 2,239,430.78 -68,978.82 -10,603.80 -79.582.62 32,050.87 151. 754. 72 $ 2,176,732.07 $ 183,805.59 The notes to the financial statements are an integral part of this statement. - 4- EXHIBIT "B" LOAN FUNDS ENDOWMENT FUNDS UNEXPENDED PLANT FUNDS RENEWALS AND REPLACEMENTS INVESTMENT IN PLANT TOTAL (Memorandum Onlyl $ 4,216.00 750.00 $ 16,977.61 987.94 $ 22,931.55 $ $ 4,735.53 4,735.53 $ 11,300.00 43,888.18 $ 18.00 10,509.95 3,626.Q8 69,342.21 $ $19,723,088.06 11,300.00 943,324.54 347,343.78 67,940.53 $ 8,339.50 416,421.13 32,568.80 91,019.56 76,456.98 4,735.53 16,977.61 2,544.81 590.00 666,529.40 666,529.40 711,257.05 711,257.05 211,363.75 211,363.75 3,855,523.56 3,855,523.56 10,509.95 987.94 3,626.08 32,568.80$ 5,453,013.26 $27,161;540.26 $ 0.00 $ 290.79 $17,073,026.50 3,539,304.30 4,655.00 290.79 13,504.19 3,974.92 16,069.08 $ 33,838.98 $ $ 0.00 $ 711,257.05$ 7,975.84 719,232.89 $ 211,363.75 21,598.41 $ 232,962.16 $ 3,264.56 50.00 13,504.19 3,974.92 16,069.08 378,631.42 922,620.80 29,574.25 378,631.42 378,631.42 $21,984 I 965 81 $ 68,978.82 $ 10,603.80 $ 0.00 0.00 $ 259,805.09 0.00 $ 649,908.68 0.00 $ 10,603.80$ 68,978.82 $ 649,908.68$ 259,805.09 $ 0.00 $ -303.63 $ 73,714.35 $ 18.00 $ 59,411.73 $ 5,074,381.84 $ 5,176,574.45 915,924.40 1,534,078.94 0.00 835,062.30 31,819,699.71 37,495,950.85 $ 915,620.77 $ 1,607,793.29 $ 18.00 $ 894,474.03 $36,894,081.55 $42,672,525.30 - 5- NORTH GEORGIA COLLEGE STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, AND OTHER CHANGES YEAR ENDED JUNE 30. 1994 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 Other Sources $10,456,029.00 4,755,715.29 19,366.23$ 7,000.00 19,611.69 2,500,146.44 1,965,219.41 $10,456,029.00 4,755,715.29 933,207.99 952,574.22 327,213.45 327,213.45 77,062.48 77,062.48 388,846.38 395,846.38 10,125.25 10,125.25 19,611.69 2,500,146.44 1,965,219.41 Total Revenues $19,723,088.06$ 1,736,455.55 $21,459,543.61 EXPENDITURES AND MANDATORY TRANSFERS Educational and General Instruction Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Auxiliary Enterprises Student Housing Faculty and Staff Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units Mandatory Transfers Investment Income for Principal Investment Income Allocated for Loans $9,077,164.84$ 410,733.42 $ 9,487,898.26 1,065,066.47 14,800.71 1,079,867.18 1,422,118.84 11,127.52 1,433,246.36 2,189,564.86 129,740.48 2,319,305.34 1,534,731.94 1,534,731.94 47,924.00 1,170,053.42 1,217,977.42 1,118,266.75 47,655.03 1,427,746.01 150,162.07 233,500.41 561,974.03 1,118,266.75 47,655.03 1,427,746.01 150,162.07 233,500.41 561,974.03 68,978.82 10,603.80 68,978.82 10,603.80 Total Expenditures and Mandatory Transfers $18,875,875.25$ 1,816,038.17 $20,691,913.42 OTHER TRANSFERS ANO 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 $ $ -259,805.09 -649,908.68 3,066.81 111,633.49 $ 111,633.49 -259,805.09 -649,908.68 3,066.81 -3,264.56 -3,264.56 Total Other Transfers and Additions/(Deductions) $ -909,911.52 $ 111,633.49 $ -798,278.03 Net Increase/(Oecrease) in Fund Balances $ -62, 698. 71 $ 32,050.87 $ -30,647.84 ============= ============= ============= The notes to the financial statements are an integral part of this statement. - 6- NORTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY North 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 of North Georgia College as a separate reporting entity. The Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions. and the authority to prescribe accounting systems and administrative policies for member institutions. North Georgia College does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, North 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 of fund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group. Within each fund group, the College's fund balance allocations and designations represent those portions of the fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies. 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, i.e., instruction, auxiliary enterprises, and student activities. RESTRICTED - the fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes. - 7- NORTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "D" NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FUND ACCOUNTING LOAN FUNDS The fund used to account for resources which have been made available for financial loans to students. ENDOWMENT FUNDS The fund used to account for gifts that are subject to the restrictions by the donors requiring that the principal be invested in perpetuity and income only be utilized. PLANT FUNDS UNEXPENDED - the fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes. RENEWALS AND REPLACEMENTS - the fund used to account for resources set aside for the renewal and replacement ofinstitutional properties. INVESTMENT IN PLANT - the fund which shows the total amounts representing the book value ofall physical properties owned by the College. AGENCY FUNDS The fund used to account for resources held by the College as custodian or fiscal agent for individual students, faculty, staff members and organizations. BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants Industry Audit Guide, Audits ofColleges and Universities. 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 ofthe fiscal period. Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based in part on the unexecuted portion of contracts for goods and services. The recognition of encumbrances of this nature 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 - 8- NORTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIIlBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING principles, which provide for the recording ofencumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles. Compensated absences represent obligations of the College relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated leave in which payment is probable and can be reasonably estimated. The compensated absences liability of$523,346.98, salary-related fringe benefits liabilities of approximately $40,036.04, and the related current year expenditure, which was not reasonably determinable, have not been reported in the current funds as required by generally accepted accounting principles. Prior period adjustments are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with the State budgetary basis of accounting, 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 ofthe 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. Fixed assets donated to the College are recorded at fair market value at the date ofthe gift and disposals are deleted at recorded cost. Depreciation on physical plant and equipment is not recorded. It is the policy of North Georgia College to record assets acquired through capital leases as additions to Investment in Plant when received at the total acquisition cost including interest. This presentation differs from generally accepted accounting principles in that the assets and the related liability resulting from capital leases should be recorded in Investment in Plant at the inception of the agreement at the net present value of the future minimum lease payments, not to exceed the fair value of the leased property. The effect of this departure is deemed to be immaterial to the fair presentation ofthe financial statements. 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 appropriated funds for the organiz.ational units ofthe University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations - 9- NORTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUDGET Act of 1993-1994. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The budget allocation and disbursement ofthese funds is made to the various organizational units by the Administrative Central Office. In addition, the organizational units receive Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office. 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 ofdemand deposit accounts in that the College may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. Certain amounts reflected as Investments in the fiscal year 1993 financial statements are reflected as Cash and Cash Equivalents in the accompanying financial statements. These funds are invested in the Board ofRegents cash management pools and the State Investment Pool. 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, reimbursements due from Federal, State, local and private grants and contracts, and other receivables disclosed from information available. INVENTORIES Inventories ofconsumable supplies are recorded on the consumption method and are valued at cost based on the first-in, first-out method. Inventories ofgoods for resale are valued at cost based on the last-in, first-out method. 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. - 10 - NORTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIIlBIT "D" NOTE l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES MEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned "Memorandum Only" to indicate that these totals are presented only to facilitate :financial analysis. Data in these columns do not present 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 ofthe 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 any one or more ofthe following securities as enumerated in the Official Code ofGeorgia Annotated Section 50-17-59: (1) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or of the State of Georgia. (2) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe 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 ofthe bonds for this purpose. (4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia. (5) Bonds, bills, certificates ofindebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. (6) 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 the Board ofRegents of the University System of Georgia) the option of exempting demand deposits from the collateral requirements. The treasurer ofthe Board ofRegents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia. - 11 - NORTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "D" NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS For purposes ofanalysis ofcustodial credit risk, the College's bank balances are categorized below to give an indication ofthe level of risk assumed by the College at year-end: Category I - Amounts covered by depository insurance or collateraliz.ed 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 financial institution's trust department or agent in the College's name. Category 3 - Amounts collateraliz.ed with securities (at market value) held by the financial institution or by its trust department or agent, but not in the College's name, and amounts uncollateralized. Cash Deposits Careying Amount Bank Balances Risk Categories 2 3 S I 018 S7833 S I 714 344,00 S 300 000,00 S I 414 344 00 S===o00= CATEGORIZATION OF INVESTMENTS Investments are summarized and classified as to custodial credit risk within the categories described below: Category I - Insured or registered, or securities held by the College or its agent in the College's name. Category 2 - Uninsured or unregistered held by the counterparty's trust department or agent in the College's name. Category 3 - Uninsured or unregistered, with securities held by the counterparty, .or by its trust department or agent but not in the College's name. Type ofInvestment Common Stock State ofGeorgia Securities U. S. Govermnent Securities Board ofRegents Short-Tenn Investment Fund State Investment Pool Total Investments Risk Categories 2 3 Careying Amount Market Value $ 78,404.40 $ 1,336,370.31 468.75 0.00 $ 0.00 $ 78,404.40 $ 188,282.38 1,336,370.31 1,382,322.85 468.75 2,762.95 S l.41S.24346 S===ooo= S==""0'00 $ 1,415,243.46 $ 1,573,368.18 204,986.27 3,176,854.54 204,986.27 3.176.854.54 S H2708427 S 42SS 20899 - 12 - NORTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 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 oflnvestment in Plant fixed assets at June 30, 1994: Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections $ 298,401.43 27,665,337.08 2,235,632.05 4,315,238.86 2,379,472.13 Total Investment in Plant $36,894,081.55 NOTE 4: DEFERRED COMPENSATION PLAN The State of Georgia offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts ofcompensation 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 ofGeorgia in an amount equal to the fair market value ofthe deferred account for each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board Merit System ofPersonnel Administration for the year ended June 30, 1994. NOTE 5: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by units ofthe University System of Georgia are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multipleemployer public .employee retirement system (PERS). - 13 - NORTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATE:MENTS JUNE 30, 1994 EXIIlBIT "D" NOTE 5: RETIRE:MENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS PLAN DESCRIPTION TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for seIVice retirement after the member (1) has attained the age of60 years and has at least ten years ofcreditable seIVice, (2) has at least 30 years ofcreditable service, regardless of age, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number ofyears of creditable seIVice up to 40 years. Any member who has between 25 and 30 years ofcreditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by '7/o 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. The College's payroll for employees covered by TRS for the year ended June 30, 1994, was $8,928,808.67; total payroll was $10,650,993.01. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the College who are covered by TRS are required to pay 6% oftheir gross earnings to TRS. The College makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. For fiscal year 1994, the employer contribution rate was 11.81% for covered employees. In addition, the College contributed 5.60% 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 made during fiscal year 1994 amounted to $1,641,435.15, ofwhich $1,105,706.38 was made by the College and $535,728.77 was made by employees. These contributions represented 12.38% (College) and 6% (employees) of covered payroll. TRS FUNDING STATUS AND PROGRESS The amount ofthe total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected - 14 - NORTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "D" NOTE 5: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS FUNDING STATUS AND PROGRESS benefits. This 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. A standardiz.ed measure ofthe pension benefit obligation was adopted by the GASB to enable readers of 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 other PERS and among other employers. Total unfunded pension benefit obligation of TRS as of June 30, 1993, which was the latest information available, was as follows: Total pension benefit obligation $ 13,912,014,000.00 Net assets available for benefits, at cost 12,821,722,000.00 Unfunded pension benefit obligation $ 1,090,292 000,00 The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $507,582,176.00. The College's contribution for the year ended June 30, 1994, of $1,105,706.38 was actuarially determined and represented .2178% of total contributions made by all participating employers. Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. TRS RELATED-PARTY INVESTMENTS During the fiscal year 1994 and as ofJune 30, 1994, the TRS held no securities issued by the College or other related parties. 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. - 15 - NORTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "D" NOTE 5: RETIREMENT PLANS REGENTS RETIREMENT PLAN State legislation requires that the employee contribute 6% and the employer contribute 4% ofthe participating employee's earnable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The College's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1994, was $914,537.12; total payroll was $10,650,993.01. The College and the covered employees made the required contributions of$36,581.48 (4%) and $54,872.22 (6%), respectively. GEORGIA DEFINED CONTRIBUTION PLAN The State ofGeorgia provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Teachers Retirement System of Georgia through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% oftheir gross salary, with no matching contribution by the employer. The College's payroll for employees covered by the Georgia Defined Benefit Plan for the year ended June 30, 1994, was $230,583.01; total payroll was $10,650,993.01. Total contributions from the covered employees of the College during fiscal year 1994 amounted to $17,571.14 (7.5%). Amounts attributable to the plan are fully vested and a member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of65 with the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994. NOTE 6: 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 ofcontinuous State service with maximum accumulation offorty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1- Basis of Accounting (Compensated Absences) Employees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment. NOTE 7: CONTINGENCIES Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the College expects such amounts, if any, to be immaterial to its overall financial position. - 16 - NORTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIIlBIT "D" NOTE 7: CONTINGENCIES Litigation, claims and assessments filed against North Georgia College (as a unit ofthe Board ofRegents of the University System ofGeorgia), ifany, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program ofpurchased insurance and self-insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994. NOTE 8: BONDING INFORMATION The President and all employees ofNorth Georgia College are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-00-110723, on which the premium has been paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures North Georgia College to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the College to a maximum of $100,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment. All employees ofNorth Georgia College are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium has been paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the College to a maximum of$4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. NOTE 9: ENROLLMENT The equivalent full-time student enrollment ofNorth Georgia College was as follows: Regular Term Fall Quarter, 1993 Winter Quarter, 1994 Spring Quarter, 1994 2,668 2,628 2,458 Average ~ Summer School, 1993 l.QQi - 17 - SUPPLEMENTARY INFORMATION - 19 - NORTH GEORGIA COLLEGE COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED JUNE 30, 1994 EXHIBIT "E" ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items RESIDENT LOTTERY FOR AUXILIARY STUDENT INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES TOTAL $ 754,481.08$ 451,125.56 43,690.39 111,331.26 65,273.23 $1,701,364.28$ 178,435.95 514,632.13 968.65 215,261.12$ 2,736,379.71 1,076.00 630,637.51 558,322.52 2,558.05 114,857.96 Total Assets $1,360,628.29 $ 65,273.23 $ 2,395,401.01 $ 218,895.17 $4,040,197.70 ==a:========== :a:============ a:============ ============ =========-=z= LIABILITIES AND FUND BALANCES Liabil i ti es Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Total Liabilities Fund Balances Unrestricted $ 647,490.64$ 65,273.23 $ 8,283.77 $ 10,022.39$ 731,070.03 194,242.62 194,242.62 655,454.38 244,399.52 38,299.08 938,152.98 ------------- ------------- ------------- ------------- ------------- $1,302,945.02$ 65,273.23$ 446,925.91 $ 48,321.47$ 1,863,465.63 57,683.27 0.00 1,948,475.10 170,573.70 2,176,732.07 ------------- ------------- ------------- ------------- ------------- Total Liabilities and Fund Balances$ 1,360,628.29$ 65,273.23$ 2,395,401.01 $ 218,895.17 $ 4,040,197.70 ============= ======== ======= ========== ============= See notes to the financial statements. - 20 - NORTH GEORGIA COLLEGE COMBINING STATEMENT OF CHANGES IN FUND BALANCES ClRRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 1994 EXHIBIT "F" RESIDENT LOTTERY FOR AUXILIARY STUDENT INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES TOTAL REVENUES AND OTHER ADDITIONS Unrestricted Current Fund Revenues Adjustments Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided $14,911,138.57 $ 190,117.00$ 4,343,741.03 $ 278,091.46 $19,723,088.06 1,099.15 447.00 1,004.71 112.00 422.95 31.00 2,526.81 590.00 Total Revenues and Other Additions $14,912,684.72$ 190,117.00$ 4,344,857.74 $ 278,545.41 $19,726,204.87 EXPENDITURES AND OTHER DEDUCTIONS Educational and General Expenditures $14,906,501.45$ Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the University System of Georgia Prior Year's Unrestricted Fund Balance Surplus 3,264.56 Adjustments Prior Years' Revenues/Accounts Receivable 190,117.00 $ $ 3,539,304.30 50.00 239,952.50 $15,336,570.95 3,539,304.30 3,264.56 50.00 Total Expenditures and Other Deductions $14,909,766.01 $ 190,117.00$ 3,539,354.30$ 239,952.50 $18,879,189.81 TRANSFERS BETWEEN FUNDS Nonmandatory Renewals and Replacements Capital Projects $ -259,805.09 -649,908.68 $ -259 ,805.09 -649,908.68 Total Transfers Between Funds $ -909,713.77 $ -909 ,713. 77 Net Increase/(Decrease) for the Year FUND BALANCES JULY 1, 1993 $ 2,918.71 $ 54,764.56 0.00 $ -104,210.33 $ 38,592.91 $ -62,698.71 0.00 2,052,685.43 131,980.79 2,239,430.78 FUND BALANCES JUNE 30, 1994 $ 57,683.27$ 0.00 $1,948,475.10$ 170,573.70$ 2,176,732.07 ========= ========== ============ ========== ======== See notes to the financial statements. - 21 - NORTH GEORGIA COLLEGE COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, AND OTHER CHANGES UNRESTRICTED YEAR ENDED JUNE 30, 1994 EXHIBIT "G" RESIDENT LOTTERY FOR AUXILIARY STUDENT INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES TOTAL REVENUES State Appropriations Tuition and Fees Federal Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources Total Revenues $10,265,912.00$ 4,319,758.64 19,366.23 190,117.00 $ 185,367.80 $ 7,000.00 $10,456,029.00 250,588.85 4,755,715.29 19,366.23 7,000.00 19,611.69 19,611.69 2,500,146.44 2,500,146.44 286,490.01 1,651,226.79 27,502.61 1,965,219.41 ------------- ------------- ------------- ------------- ------------- $14,911,138.57 $ 190,117.00$ 4,343,741.03 $ 278,091.46 $19,723,088.06 EXPENDITURES Educational and General Instruction Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Auxiliary Enterprises Student Housing Faculty and Staff Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units $8,912,842.84 $ 1,039,271.47 1,182,966.34 2,189,564.86 1,534,731.94 47,124.00 164,322.00 25,795.00 $ $ 1,118,266.75 47,655.03 1,427,746.01 150,162.07 233,500.41 561,974.03 $ 9,077,164.84 1,065,066.47 239,152.50 1,422,118.84 2,189,564.86 1,534,731.94 800.00 47,924.00 1,118,266.75 47,655.03 1,427,746.01 150,162.07 233,500.41 561,974.03 Total Expenditures $14,906,501.45$ 190,117.00$ 3,539,304.30$ 239,952.50 $18,875,875.25 OTHER TRANSFERS AND ADOITIONS/(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 1,546.15 -3,264.56 $ -259,805.09 -649,908.68 1,066.71 $ $ -259,805.09 -649,908.68 453.95 3,066.81 -3,264.56 Total Other Transfers and Additions/(Deductions) $ -1,718.41 $ -908,647.06 $ 453.95 $ -909,911.52 Net lncrease/(Decrease) in Fund Balances -=-----= $ 2,918.71 $ 0.00 $ -104,210.33 $ 38,592.91 $ -62,698.71 ====--====- =-=------- ==--=...:---- -------==== See notes to the financial statements. - 23 - NORTH GEORGIA COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET RESIDENT INSTRUCTION YEAR ENDED JUNE 30. 1994 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 Capital Outlay Special Funding Initiative Excess of Revenues over Expenditures (1) To eliminate tuition waivers not budgeted and to reclassify current year transfers and prior year reserves budgeted as revenues. CURRENT FUNDS UNRESTRICTED RESTRICTED $10,265,912.00 4,645,226.57 $1,736,455.55 $14,911,138.57$ 1,736,455.55 $12,522,870.90 $ 142,702.41 2,300,549.55 1,593,753.14 83,081.00 $14,906,501.45$ 1,736,455.55 $ 4,637.12$ 0.00 See notes to the financial statements. - 24 - SCHEDULE "l" PLANT FUNDS RENEWALS AND UNEXPENDED REPLACEMENTS TOTAL ADJUSTMENTS TOTAL (1) (Budget Basis) BUDGET VARIANCE FAVORABLE (UNFAVORABLE) $10,265,912.00 $10,265,912.00 $10,265,912.00$ 0.00 $ 58,024.21 $ 32,568.80 6,472,275.13 $ 803,178.04 7,275,453.17 8,428,759.00 -1,153,305.83 $ 58,024.21 $ 32,568.80 $16,738,187.13 $ 803,178.04 $17,541,365.17 $18,694,671.00 $-1,153,305.83 $12,522,870.90 142,702.41 $12,522,870.90 $12,573,786.00$ 50,915.10 142,702.41 303,981.00 161,278.59 2,300,549.55 $ -47,124.00 1,593,753.14 $ 707,932.89 $ 232,962.16 940,895.05 83,081.00 2,253,425.55 1,593,753.14 940,895.05 83,081.00 2,260,731.00 1,728,135:oo 1,744,957.00 83,081.00 7,305.45 134,381.86 804,061.95 0.00 $ 707,932.89 $ 232,962.16 $17,583,852.05$ -47,124.00 $17,536,728.05 $18,694,671.00$ 1,157,942.95 $ -649,908.68 $ -200,393.36 $ -845,664.92 $ 850,302.04$ 4,637.12 ============= ============= ============= ============= ============== $ 4,637.12 - 25 - NORTH GEORGIA COLLEGE SCHEDULE OF REVENUES AND EXPENDITIRES COMPARED TO BUDGET LOTTERY FOR EDUCATION YEAR ENDED JUNE 30. 1994 SCHEDll.E "2" REVENUES State Appropriations CIRRENT FUNDS PLANT FUNDS VARIANCE - ------------- ------------- TOTAL UNRESTRICTED UNEXPENDED (Budget Basis) BUDGET FAVORABLE (UNFAVORABLE) ------------- ------------- -------------- ------------- ------------- $ 190,117.00$ 11,300.00$ 201,417.00$ 201,417.00$ 0.00 ------------- ------------- -------------- =========== ------------- EXPENDITURES Equipment, Technology and Construction Trust Fund $ 190,117.00 $ 190,117.00$ 190,117.00$ 0.00 Distant Learning - Satellite Dishes $ 11,300.00 11,300.00 11,300.00 0.00 $ 190,117.00$ 11,300.00$ 201,417.00$ 201,417.00 $ 0.00 Excess of Revenues over Expenditures $ 0.00 $ 0.00 $ 0.00 =========== ===-======== ========= $ 0.00 =========== See notes to the financial statenents. - 26 - NORTH GEORGIA COLLEGE SCHEDULE OF OPERATIONS LOAN FUNDS YEAR ENDED JUNE 30. 1994 SCHEDULE "3" FUND u. s. GOVERNMENT GRANTS REFUNDABLE ---------------------------------- Perkins Loan Fund INSTITUTIONAL LOANS - RESTRICTED -------------------------------- Bedell, Sue M., Loan Fund Brown, Charles M. Loan Fund Garrett, J. w. and Lakotah, Loan Fund Hammock, Asa D. Loan Fund Johnson, Charles B. Loan Fund McNeely Loan Fund Moore, John H. Loan Fund Senior Class Loan Fund Smith, William Manning, Loan Fund Wall er Loan Fund Young, Wi 11 D. Loan Fund FUND BALANCE FUND BALANCE JULY 1, 1993 ADDITIONS DEDUCTIONS JUNE 30, 1994 ------------- ------------- ------------- ------------- $ 829,184.18 $ 21,116.05 $ 33,544.45 $ 816,755.78 ------------- ------------- ------------- ------------- $ 3,461.02 $ 3,461.02 49,869.03 $ 10,130.97 60,000.00 0.00 750.00 750.00 227.21 227.21 10,486.14 651.07 $ 2.51 11,134.70 719.72 719.72 14,993.53 887.26 1. 23 15,879.56 1,568.64 1,568.64 1,372.58 1,372.58 3,751.56 3,751.56 290.79 290.79 0.00 ------------- ------------- ------------- ------------- $ 86,740.22 $ 12,419.30 $ 294.53 $ 98,864.99 ------------- ------------- ------------- ------------- $ 915,924.40$ 33,535.35 $ 33,838.98$ 915,620.77 ============= ============= ============= ============= RECONCILIATION OF STUDENT NOTES RECEIVABLE Balance July 1, 1993 Add: Loans to Students $ 831,882.44 143,065.20 Deduct: Repayment of Loans Loans Assigned To Federal Government Loan Cancellations and Write-Offs For Teaching Services For Loans Written-Off $ 974,947.64 $ 130,802.58 13,504.19 $ 3,971.85 3.07 3,974.92 148,281.69 Balance June 30, 1994 See notes to the financial statements. - 27 - $ 826,665.95 ============= NORTH GEORGIA COLLEGE SCHEDULE OF OPERATIONS ENDOWMENT FUNDS YEAR ENDED JUNE 30. 1994 SCHEDULE "4" FUND Brown, Charles M., Fund Golden Feather - Blaschke Fund Hammock, Asa 0., Fund Hatfield, William A., Fund Ingram, Charles J., Fund Johnson, Charles B., Memorial Fund Moore, John H., Fund Oakes - Freeman Fund Pendergrass Estate Fund Pittard, Lamar, Memorial Fund Rude, Carl, Fund Wood Memorial Fund FUND BALANCE FUND BALANCE JULY 1, 1993 ADDITIONS DEDUCTIONS JUNE 30, 1994 ------------- ------------- ------------- ------------- $ 1,336,812.97 $ 73,571.42 $ 0.00 $ 1,410,384.39 1,000.00 1,000.00 110,721.89 110,721.89 12,671.68 12,671.68 3,873.59 3,873.59 5,536.00 5,536.00 5,000.00 5,000.00 4,800.00 4,800.00 41,079.18 41,079.18 649.70 649.70 2,933.93 142.93 3,076.86 9,000.00 9,000.00 ------------- ------------- ------------- ------------- $1,534,078.94$ 73,714.35$ 0.00 $1,607,793.29 ============= ============= ============= ============= See notes to the financial statements. - 28 - NORTH GEORGIA COLLEGE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS AGENCY FUNDS YEAR ENDED JUNE 30, 1994 SCHEDULE "5" BALANCE BALANCE FUND JULY 1, 1993 RECEIPTS DISBURSEMENTS JUNE 30, 1994 PAYROLL DEDUCTIONS F. I .C.A. Federal Income Tax State Income Tax Retirement Group Insurance Savings Bonds Rent Garnishments Credit Union North Georgia College Foundation Tax Sheltered Annuity Miscellaneous $ 733,523.72 $ 733,523.72 1,128,358.62 1,128,358.62 404,697.52 404,697.52 607,894.71 523,892.25$ 84,002.46 $ 28,571.94 543,544.82 543,892.38 28,224.38 200.00 6,675.00 6,800.00 75.00 101,316.68 101,316.68 959.49 959.49 2,291.70 139,828.56 142,120.26 4,888.50 4,888.50 202,411.25 202,411.25 6,016.56 5,949.06 67.50 $ 31,063.64 $ 3,880,115.43 $3,798,809.73 $ 112,369.34 EMPLOYER'S CONTRIBUTIONS F. I.C.A. Retirement Group Insurance $ 733,523.72 $ 733,523.72 $ 103.77 1,106,491.21 929,165.13 $ 177,429.85 68,828.02 1,423,853.02 1,421,304.17 71,376.87 $ 68,931.79 $3,263,867.95$ 3,083,993.02 $ 248,806.72 OTHER FUNDS ACS Satellite Course Art Field Day $ Athletic Association Bookstore Book Buy-backs Cholesterol Testing Continuing Education Activity Fees Dennis, H. L. Equipment Fund Departmental Federal Assistance Financing System Fine Arts Locker Deposits Flora Identification Fund Georgia Association of Colleges Georgia Association - Student Financial Aid Administration GEAC/Probe Georgia Incentive Scholarship Recoveries Georgia Sales Tax Lock Deposits Lost Government Property National Council - Arab Relations Nursing Conference Nursing Lab Fees R.O.T.C. Student Stipends Recife Program Red Cross Certification Retired Employees' Group Insurance Scholarships Regents' Opportunity Grant Regents' Schol~rship Fund Other Scholarships (List on File) Science Olympiad Summer Camp Meals Testing Account Towel Service Wachovia Student Loan Services Clearing Account $ 96.00 2,823.26 1,874.86 500.00 365.00 50. 77 881.36 549.00 5.18 955.00 339.36 190.00 418.43 2,200.00 1,170.30 8,454.98 50.00 3,807.32 270.97 17,133.11 475.00 227.57 380.00 $ 3.47 266.03 190,000.00 797.75 712.71 3,805.78 110.00 200.00 150.00 13.78 2,500.00 37,317.00 75,153.76 935.00 1,180.67 1,542.51 377. so 1,228.00 85,887.90 4,583.00 3,000.00 149,897.83 871. 77 120,490.72 -8,907.11 220.00 20,125.24 89.25 $ 23.85 266.03 190,000.00 857.17 848.29 3,705.78 25.00 163.93 13.78 2,313.24 37,866.00 77,303.40 520.00 24.34 103.62 418.43 2,200.00 255.67 2,085.00 82,883.37 5,000.00 3,000.00 147,255.15 308. 71 120,490.72 8,226.00 256.00 20,322.81 290.75 75.62 2,763.84 1,739.28 500.00 100.00 450.00 200.00 36.84 1,068.12 -2,144.46 1,370.00 1,495.69 190.00 1,438.89 121. 83 313.30 11,459.51 -417.00 50.00 6,450.00 834.03 439.00 30.00 $ 42,837.47 $ 692,843.31 $ 706,825.54$ 28,855.24 See notes to the financial statements. $====1=4=2=,=8=3=2=.=9=0$==7=,8=3==6=,8=2==6=.6=9= $==7=,5=8==9=,6=2==8=.2=9= $====3=9=0=,=0=3=1=.3==0 - 29 - NORTH GEORGIA COLLEGE CASH AND CASH EQUIVALENTS JUNE 30 1 1994 SCHEDULE "6" INTEREST BEARING ACCOUNTS Bank of Dahlonega, Dahlonega, Georgia Certificates of Deposit (4.50%) N.O.W. Accounts (2.85%) $ 400,000.00 118,578.33 $ 518,578.33 Dawson County Bank, Dawsonville, Georgia Certificate of Deposit (3.80%) 100,000.00 State of Georgia - Office of Treasury and Fiscal Services State Investment Pool Local Government Investment Pool (4.19%) 3,176,854.54 Trust Company Bank, Atlanta, Georgia Cash Management Pools Board of Regents Short-Term Investment Fund 204,986.27 Wachovia Bank of Georgia, Dahlonega, Georgia Certificate of Deposit (3.90%) 400,000.00$ 4,400,419.14 OTHER Cash on Hand Petty Cash 19,247.25 $4,419,666.39 ============= See notes to the financial statements. - 30 - NORTH GEORGIA COLLEGE INVESTMENTS JUNE 30 1 1994 Bonds Georgia General Obligation Bonds Georgia State Highway Authority Bonds United States Savings Bonds Senior Class Loan Funds Common Stock 111 Shares of American Telephone and Telegraph Company 480 Shares of Amoco 504 Shares of Bank of America 881 Shares of Bell South 117 Shares of Dean Witter and Discover Company 65 Shares of Detroit Edison Company 696 Shares of First National City Corporation 200 Shares of General Motors Corporation Common 40 Shares of General Motors Corporation Class E 10 Shares of General Motors Corporation Class H 400 Shares of Pacific Gas and Electric Company 300 Shares Sears, Roebuck and Company 624 Shares Southern California Edison Company SCHEDULE "7" $1,292,582.93 43,787.38 468.75 $1,336,839.06 $ 2,332.93 3,285.00 5,775.00 30,342.28 2,112.00 2,002.00 4,959.00 7,533.00 324.00 243.00 7,245.19 5,875.00 6,376.00 78,404.40 $1,415,243.46 See notes to the financial statements. - 31 - NORTH GEORGIA COLLEGE ACCOUNTS RECEIVABLE JUNE 30, 1994 State Appropriations Allotment from the Board of Regents of the University System of Georgia Federal Grants and Contracts Research and Instruction Student Aid State Grants and Contracts Research and Instruction Local Grants and Contracts Research and Instruction Private Gifts, Grants, and Contracts Research and Instruction Student Aid Other A.R.A. Services, Incorporated Deposit Reimbursement for Expense Equity in GHEAC Loan Funds Student Notes Georgia Department of Administrative Services Surplus Property Georgia State Financing and Investment Commission Returned Checks Student Accounts Student Notes Vendor Credit Memos CURRENT FUNDS UNRESTRICTED RESTRICTED $ 436,000.00 $ 84,433.82 105.00 2,500.00 2,048.00 18,558.38 4,314.00 150,000.00 404.25 1,961.83 19,129.43 23,142.00 $ 630,637.51 $ 111,959.20 See notes to the financial statements. - 32 - SCHEDULE "8" LOAN FUNDS ENDOWMENT FUNDS PLANT FUNDS ------------UNEXPENDED AGENCY FUNDS TOTAL $ 436,000.00 84,433.82 105.00 2,500.00 2,048.00 18,558.38 4,314.00 $ 44,501.66 $ 17,312.04 33,689.06 $ 826,665.95 $ 2,561.46 150,000.00 404.25 44,501.66 17,312.04 33,689.06 1,961.83 19,129.43 829,227.41 23,142.00 $ 826,665.95$ 44,501.66 $ 51,001.10 $ 2,561.46$ 1,667,326.88 ============= ============= ============= ============= ============= - 33 - NORTH GEORGIA COLLEGE CHANGES IN INVESTMENT IN PLANT YEAR ENDED JUNE 30 1 1994 Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections SUMMARY OF INVESTMENT College Capital Leases BALANCE JULY 1, 1993 CURRENT FUNDS UNRESTRICTED RESTRICTED $ 297,251.43 23,014,250.80 2,208,161.55 4,044,685.66 $ , 368,536.85 $ 170,646.34 2,258, 144. 17 127,346.21 $31,822,493.61 $ 495,883.06$ 170,646.34 ============= ============= ============= $31,819,699.71 $ 495,883.06$ 170,646.34 2,793.90 $31,822,493.61 $ 495,883.06$ 170,646.34 ============= ============= ============= See notes to the financial statements. - 34 - SCHEDULE "9" ADDITIONS ------------------------------------------------------------ PLANT FUNDS GEORGIA STATE FINANCING AND RENEWALS AND INVESTMENT PRIVATE UNEXPENDED REPLACEMENTS COMMISSION GIFTS DEDUCTIONS DISPOSALS/ DELETIONS/ ADJUSTMENTS BALANCE JUNE 30, 1994 $ 1,150.00 641,019.75$ 154,542.97 $ 3,855,523.56 27,470.50 41,616.80 56,820.78 $ $ 298,401.43 27,665,337.08 2,235,632.05 3,000.00 $ 370,067.57 4,315,238.86 5,339.50 11,357.75 2,379,472.13 $ 711,257.05$ 211,363.75$ 3,855,523.56$ 8,339.50$ 381,425.32 $36,894,081.55 ============= ============= ============= ============= ============= ============= $ 711,257.05$ 211,363.75$ 3,855,523.56 $ 8,339.50$ 378,631.42 $36,894,081.55 2,793.90 0.00 $ 711,257.05$ 211,363.75$ 3,855,523.56$ 8,339.50$ 381,425.32 $36,894,081.55 ============= ============= ============= ============= ============= ============= - 35 - NORTH GEORGIA COLLEGE SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS JUNE 30, 1994 RESIDENT INSTRUCTION CURRENT FUNDS UNRESTRICTED LOTTERY FOR AUXILIARY STUDENT EDUCATION ENTERPRISES ACTIVITIES INVESTMENT IN PLANT Investment in Plant Facilities RESTRICTED Designated for Subsequent Years' Expenditures UNRESTRICTED Designated For Bus Replacement Reserve For Intercollegiate Athletics For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures Undesignated Surplus Regular Lottery for Education $ 55,000.00 2,683.27 $ $ 54,433.24 514,632.13 1,379,409.73 $ 170,573.70 0.00 $ 57,683.27 $ 0.00 $1,948,475.10$ 170,573.70 $ 57,683.27 $ 0.00 $1,948,475.10$ 170,573.70 ============= ============= ============= ============= See notes to the financial statements. - 36 - SCHEDULE "10" RESTRICTED PLANT FUNDS UNEXPENDED REGULAR LOTTERY FOR RENEWALS AND EDUCATION REPLACEMENTS INVESTMENT IN PLANT TOTAL $36,894,081.55 $36,894,081.55 $ 183,805.59 $ 183,805.59 $ 88,896.16 805,577.87 $ 88,896.16 54,433.24 569,632.13 805,577.87 1,549,983.43 $ 18.00 $ $ 18.00 $ 0.00 0.00 $ 894,474.03 2,701.27 0.00 $3,071,224.10 $ 183,805.59 $ 18.00 $ 0.00 $ 894,474.03 $36,894,081.55 $40,149,111.24 - 37 - NORTH GEORGIA COLLEGE SCHEDULE OF REVENUES CURRENT FUNDS YEAR ENDED JUNE 30. 1994 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 Local Grants and Contracts Research and Instruction Private Gifts, Grants, and Contracts Research and Instruction Student Aid Endowment Income Research and Instruction Student Aid Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources Athletic Sales COBRA Administrative Allowance Commissions Extension and Public Service Insurance Recovery Interest Earned Rents Service Charges Student Activities Sales and Fees Veteran's Administration Reporting Fees Other See notes to the financial statements. - 38 - RESIDENT LOTTERY FOR INSTRUCTION EDUCATION $10,182,831.00 83,081.00 $ 190,117.00 $10,265,912.00$ 190,117.00 $ 4,185,939.05 133,819.59 19,366.23 19,611.69 128.00 277,889.74 751.00 959.82 4,205.25 1,199.00 1,357.20 $ 4,645,226.57 $14,911,138.57 $ 190,117.00 ============= ============= SCHEDULE "11" UNRESTRICTED AUXILIARY ENTERPRISES STUDENT ACTIVITIES TOTAL RESTRICTED RESIDENT INSTRUCTION TOTAL $10,182,831.00 83,081.00 190,117.00 ------------- $10,456,029.00 ------------- $10,182,831.00 83,081.00 190,117.00 ------------- $10,456,029.00 ------------- $ 4,185,939.05 $ 185,367.80$ 250,588.85 569,776.24 $ 4,185,939.05 569,776.24 $ 207,308.38 725,899.61 19,366.23 207,308.38 725,899.61 19,366.23 17,451.60 309,761.85 17,451.60 309,761.85 77,062.48 77,062.48 7,000.00 7,000.00 262,037.92 126,808.46 262,037.92 133,808.46 2,500,146.44 19,611.69 2,500,146.44 2,541.75 7,583.50 2,541.75 7,583.50 19,611.69 2,500,146.44 57,764.48 46,748.53 48,422.67 1,462,241.69 1,970.22 25,532.39 57,764.48 128.00 46,748.53 277,889.74 751.00 51,352.71 1,462,241.69 4,205.25 25,532.39 57,764.48 128.00 46,748.53 277,889.74 751. 00 51,352.71 1,462,241.69 4,205.25 25,532.39 1,199.00 1,199.00 36,049.42 37,406.62 37,406.62 ------------- ------------- ------------- ---------.---- ------------- $ 4,343 , 741. 03 $ 278,091.46$ 9,267,059.06$ 1,736,455.55 $11,003,514.61 ------------- ------------- ------------- ------------- ------------- $ 4,343,741.03 $ 278,091.46 $19,723,088.06$ 1,736,455.55 $21,459,543.61 ============= ============= ============= ============= ============= - 39 - NORTH GEORGIA COLLEGE SCHEDULE OF EXPENDITURES BY OBJECT CURRENT FUNDS YEAR ENDED JUNE 30. 1994 PERSONAL SERVICES Salaries and Wages Employer's Contributions for: F. I.C.A. Group Insurance Retirement Liability Insurance Unemplorment Compensation Insurance Workers Compensation Insurance OPERATING EXPENSES Travel Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Ut1lities Rents (Other than Real Estate) Insurance and Bonding Tuition and Scholarships College Work-Study Program Scholarships, Fellowsh1ps, Prizes, Awards and Other Other Operating Expenses Publications and Printing Equipment Purchases Non-Inventory Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts Equipment Purchases Motor Vehicle Equipment Purchases Inventory OTHER SPECIAL FUNDING INITIATIVE Personal Services Salaries and Wages Employer's Contributions for: F. I .C.A. Group Insurance Retirement EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND Other Costs Supplies and Materials Equ1pment Purchases Non-Inventory Software Equipment Purchases Inventory RESIDENT LOTTERY FOR INSTRUCTION EDUCATION $ 9,430,337.74 659,589.24 1,205,660.16 1,040,595.76 50,315.00 7,427.00 128,946.00 $12.522.870.90 $ 105,250.25 27,090.15 407,683.96 70,761.23 420,463.62 26,077.22 17,728.88 30,891.53 47,124.00 273,631.20 117,603.16 81,501.52 126,908.47 134,977.35 80,983.14 18,533.46 4,579.00 308.761.41 $ 2.300.549.55 $ 69,790.96 4,912.04 4,877.00 3.501.00 $ 83 .081. 00 $ 695.29 18,189.39 3,489.93 167,742.39 $ 190,117.00 $ 83 p 081. 00 $ 190,117.00 $14 I 906 I 501. 45 $ 1901117.00 See notes to the financial statements. - 40 - SCHEDULE "12" UNRESTRICTED AUXILIARY ENTERPRISES STUDENT ACTIVITIES TOTAL RESTRICTED RESIDENT INSTRUCTION TOTAL $ 1,004,106.77 $ 62,301.65 167,299.34 95,574.59 $ 1,329,282.35 $ 22,769.36 $10,457,213.87 $ 0.72 721,891.61 1,372,959.50 1,136,170.35 50,315.00 7,427.00 128,946.00 22,770.08 $13,874,923.33 $ 123,988.18 $10,581,202.05 6,513.11 10,757.67 1,443.45 728,404.72 1,383,717.17 1,137,613.80 50,315.00 7,427.00 128,946.00 142,702.41 $14,017,625.74 $ 3,232.39 19,565.07 $ 207,974.99 53,639.13 397,208.64 23,001.42 26,701.96 75,423.82 39,069.05 12,600.72 3,722.57 74.44 11,536.84 41,237.95 1,293,986.02 1,046.94 $ 2,210,021.95 $ $ 2,503.75 94,585.09 5,226.83 31,294.42 108,482.64 $ 49,158.97 710,244.04 129,627.19 817,672.26 80,373.06 44,430.84 10,017.45 $ 3,028.05 42,237.89 1,195.35 18,558.85 118,500.09 52,187.02 752,481.93 130,822.54 817,672.26 98,931.91 44,430.84 800.00 10,925.71 20,551.12 30,891.53 123,347.82 323,625.96 150,755.00 92,671.33 1,170,053.42 36,396.50 4,383.72 123,562.86 1,293,401.24 360,022.46 155,138.72 3,136.38 422.30 1,110.50 88,360.47 127,405.21 147,624.69 25,050.63 6,193.33 8,014.77 113,411.10 133,598.54 155,639.46 32,873.00 155,094.09 1,312,519.48 5,305.51 160,399.60 1,312,519.48 13,753.32 4,579.00 323,561.67 170,646.34 4,579.00 494,208.01 217,182.42 $ 4,727,753.92 $ 1,593,753.14 $ 6,321,507.06 $ 69,790.96 4,912.04 4,877.00 3,501.00 $ 83 I 081. 00 $ 69,790.96 4,912.04 4,877.00 3,501.00 $ 83,081.00 $ 695.29 18,189.39 3,489.93 167,742.39 $ 190,117.00 $ 273.198.00 $ 190,117.00 $ 273.198.00 $ 31539,304.30 $ 239.952.50 $18,875,875.25$ 1,736,455.55 $20,612,330.80 - 41 - NORTH GEORGIA COLLEGE SCHEDULE OF EXPENDITURES BY OBJECT PLANT FUNDS YEAR ENDED JUNE 30 1 1994 SCHEDULE "13" CAP IT AL OUTLAY Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Expenses Equipment Purchases Non-Inventory Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts Equipment Purchases Motor Vehicle Equipment Purchases Lease/Purchase of Equipment Inventory OTHER DISTANT LEARNING - SATELLITE DISHES Other Costs Equipment Purchases Non-Inventory Equipment Purchases Inventory UNEXPENDED ---------------------------- LOTTERY FOR REGULAR EDUCATION RENEWALS AND REPLACEMENTS ------------- AUXILIARY TOTAL $ 31,844.47 7,829.97 558.78 176.00 6,773.66 132.50 15,354.31 614,303.00 2,793.90 28,166.30 ------------- $ 707,932.89 ------------- $ 1,003.40 $ 32,847.87 518.40 8,348.37 558.78 515.61 691.61 21,598.41 28,372.07 132.50 850.00 151,655.56 16,204.31 765,958.56 36,820.78 36,820.78 2,793.90 20,000.00 48,166.30 ------------- ------------- $ 232,962.16$ 940,895.05 ------------- ------------- $ 643.40 10,656.60 ------------- $ 11,300.00 ------------- $ 643.40 10,656.60 ------------- $ 11,300.00 ------------- $ 707,932.89 $ 11,300.00$ 232,962.16$ 952,195.05 ============= ============= ============= ============= See notes to the financial statements. - 42 - NORTH GEORGIA COLLEGE RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL YEAR ENDED JUNE 30, 1994 SCHEDULE "14" Totals per Annual Supplement Adjustments Shared Services on Jointly Staffed Personnel Gainesville College Smith, Anita Payne University of Georgia Mitchell, Lawrence Totals per Report DISTRIBUTION BY FUND CURRENT FUNDS Unrestricted Resident Instruction Regular Special Funding Initiative Auxiliary Enterprises Student Activities Restricted Resident Instruction SALARIES AND WAGES TRAVEL $10,683,017.35$ 118,500.09 -9,000.00 -23,024.34 $10,650,993.01 $ 118,500.09 $ 9,430,337.74 $ 69,790.96 1,004,106.77 22,769.36 105,250.25 3,232.39 123,988.18 10,017.45 ------------- ------------- $10,650,993.01 $ 118,500.09 See notes to the financial statements. - 43 - SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS NORTH GEORGIA COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1994 STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS The status. ofthe finding disclosed in the review report for the year ended June 30, 1993, is indicated below: Audit Control Number Status of Finding 545-93-01 See Audit Control Number 545-94-01 PRIOR YEAR/CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Audit Control Number 545-94-01 The review report for the year ended June 30, 1993, disclosed that North Georgia College did not provide for adequate separation ofduties in the performance of accounting functions and related procedures. In the year under review, the College made some improvements regarding separation of duties, but still did not achieve an adequate degree of internal control for certain control categories. These weaknesses in internal control pertain to all funds and programs administered by the College. The control categories affected are as follows: ( 1) General Ledger (2) Inventories (3) General Fixed Assets/Property Management Separation of duties involving key accounting functions is the basis for achieving an adequate system of internal control. Inadequate separation of duties creates an environment which does not provide reasonable assurance that accounting data and financial statements are accurate and complete. Memorandum Only Federal Grantor Agencies affected: Environmental Protection Agency National Foundation on the Arts and the Humanities National Science Foundation Tennessee Valley Authority U.S. Department ofDefense U.S. Department ofEducation U.S. Department ofTransportation