Review report, state of Georgia, Savannah State College, Savannah, Georgia, year ended June 30, 1994

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

REVIEW REPORT STATE OF GEORGIA SAVANNAH STATE COLLEGE SAVANNAH, GEORGIA YEAR ENDED JUNE 30, 1994

SAVANNAH STATE COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXlilBITS

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 COMBININGBALANCESHEET

CURRENT FUNDS - UNRESTRICTED

18

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

19

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

21

SCHEDULES

SCHEDULESOFREVENUESANDEXPENDITURESCOMPAREDTOBUDGET

1

RESIDENT INSTRUCTION

22

2

LOTTERY FOR EDUCATION

24

SCHEDULES OF OPERATIONS

3

LOAN FUNDS

25

4

ENDOWMENT AND SIMILAR FUNDS

26

5 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

27

6 CASH AND CASH EQUIVALENTS

28

7 ACCOUNTS RECEIVABLE

29

8 CHANGES IN INVESTMENT IN PLANT

30

9 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

32

SAVANNAH STATE COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

10 SCHEDULE OF REVENUES

CURRENT FUNDS

34

SCHEDULES OF EXPENDITURES BY OBJECT

11

CURRENT FUNDS

35

12

PLANT FUNDS

36

13 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

37

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
TAX RATIO (404) 656-0494

~eparhuent nf ~uhits
254 WASHINGTON STREET. SW. ROOM 214
J\thmta, <lii.eorgia 30334-8400
December 9, 1994

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe Board ofRegents of the University System ofGeorgia
and Honorable John T. Wolfe, President Savannah State 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 Savannah State College as ofand for the year ended June 30, 1994, 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 ofthe management of Savannah State College.
A review consists principally ofinquiries 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.
The financial statements for the year ended June 30, 1993, were audited by us and we expressed a qualified opinion on such financial statements in our report dated Novemper 16, 1993. Our opinion was qualified on the basis of the College's policies of recording encumbrances as expenditures and liabilities in the financial statements and not recording the liability and related expenditure for compensated absences in the current funds. We have not performed procedures sufficient to comprise an audit since that date.
Based on our review, with the exception ofthe matters described in the fifth and sixth paragraphs, we are not aware of any 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 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
94ARL-57X

generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the financial statements ofthis departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material.
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.
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 13) 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 fifth and sixth paragraphs, we are not aware of any material modifications which should be made thereto.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-57X

FINANCIAL STATEMENTS - 1-

SAVANNAH STATE COLLEGE COMBINED BALANCE SHEET
All FUND GROUPS JUNE 30. 1994

ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Investment in Plant

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$ l,OB6,586.19 154,317.94$ 525,208.80 16,581.70

$ 305,188.14

27,038.02 793,274.19

Total Assets

$1,782,694.63 $ 305,188.14 $ 820,312.21

LIABILITIES AND FUND BALANCES
-----------------------------
Liabilities Cash Overdraft 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 Term Endowment Net Investment in Plant Restricted Unrestricted
Total Fund Balances

$ 190,245.44 $ 419,788.25
53,280.00
501,822.78
------------- -------------
$ 974,891.03 $ 190,245.44
------------- -------------
$ 746,073.74 74,238.47
$ 114,942.70 $ 807,803.60
------------- ------------- -------------
$ 807,803.60 $ 114,942.70 $ 820,312.21
------------- ------------- -------------

Total liabilities and Fund Balances

$1,782,694.63 $ 305,188.14 $ 820,312.21

See Independent Accountant's 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)

$ 550,594.01

$ 792,458.06

$ 247,173.92 $ 2,703,850.20

$ 197,152.92

1,449,933.19

525,208.80

16,581.70

$43,372,553.76

43,372,553.76

$ 550,594.01 $ 197,152.92 $ 792,458.06 $43,372,553.76$ 247,173.92 $48,068,127.65
============= ============= ============= ============= ============= =============

$ 102,295.32 94,787.60$ 103,930.00
$ 197,082.92 $ 103,930.00

$ 292,540.76

$ 138,234.74

756,740.59

53,280.00

108,939.18

501,822.78 108,939.18

$ 247,173.92 $1,713,323.31

$ 368,063.36 182,530.65
$
$ 550,594.01 $

$43,372,553.76 70.00 $ 688,528.06
70.00 $ 688,528.06 $43,372,553.76

$ 746,073.74 74,238.47
368,063.36 182,530.65 43,372,553.76 114,942.70 1,496,401.66
$46,354,804.34

$ 550,594.01 $ 197,152.92 $ 792,458.06 $43,372,553.76$ 247,173.92 $48,068,127.65
============= ============= ============= ============= ============= =============

- 3-

SAVANNAH STATE 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 Private Gifts, Grants, and Contracts Investment Income Endowment Other Interest on Loans Receivable Adjustments Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Prior Years' Endowment Income Prior Years' Revenues/Accounts Receivable Funded by the Board of Regents of the University srstem of Georgia Prior Years Unrestricted Fund Balance Deficit Expended for Plant Facilities Current Funds Plant Funds Unexpended Renewals and Replacements Georgia State Financing and Investment Commission Other Additions Recovery of Prior Years' Cancelled Loans Total Revenues and Other Additions
EXPENDITURES AND OTHER DEDUCTIONS Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered Remittances to the Board of Regents of the University srstem of Georgia Prior Years Unrestricted Fund Balance Suq>l us 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 Principal Nonmandatory Renewals and Replacements Total T_ransfers Between Funds Net Increase/(Decrease) for the Year
FUND BALANCES JULY 1, 1993

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$22,402,788.92 $ 5,912,395.20 111,939.27 150,346.18$ 17,775.12

16,104.12 552.45
7,528.17

-85,381.94

3,512.65 12,272.42

$22,426,973.66$ 6,107,073.83 $

1,943.00 17,72B.07

$18,082,555.64 $ 6,333,630.53 3,910,062.63 158,067.25 34,14B.40 $

560.11 3,336.70 4,240.76

$22,026,766.67 $6,491,697.78$ 8,137.57

$ -8,212.07
$----2-4--6-,2-3--5-.1--9 ------------$----2-4--6-,2-3--5-.1--9 $------8--,2-1--2-.0--7
$ 153,971.80 $ -392,836.02 $

9,590.50

653,831.80 507,778.72 810,721.71

FUND BALANCES JUNE 30, 1994

$ 807,803.60 $ 114,942.70$ 820,312.21

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 4-

EXHIBIT "8"

ENDOWMENT AND SIMILAR

----------------R-EPNL-AE-WN--TA-L-SFU--NA-ND-DS-----IN-V--ES-T-M--E-N-T--

TOTAL (Memorandum

FUNDS

UNEXPENDED REPLACEMENTS IN PLANT

Only)

$ 6,500.00 232,984.94

$ 85,381.94

31,236.90 $

3,123.06

$22,402,788.92 6,500.00
6,145,380.14 111,939.27 153,858.83 17,775.12 31,236.90 12,272.42 19,227.18 552.45 0.00 7,528.17

2,976.87 $ 85,381.94$ 273,698.71 $

$ 711,073.03 270,008.44 291,765.64 426,494.58

2,976.87 711,073.03 270,008.44 291,765.64 426,494.58
1,943.00

3,123.06$ 1,699,341.69 $30,613,320.96

$

0.00

$24,416,186.17 3,910,062.63 158,067.25

$ 270,008.44 $ 291,765.64 643.40 $ 185,829.07

34,148.40 560.11
3,336.70 4,240.76 561,774.08
643.40 185,829.07

$

0.00 $ 270,651.84$ 291,765.64$ 185,829.07 $29,274,848.57

$

8,212.07

------------$------8-,2--1-2-.0--7
$ 93,594.01 $

457,000.00

$

0.00

$----2-4-6-,-2-3-5-.1--9

----------0-.-0-0

$ ----2-4-6-,-2-3-5-.1--9

$ ----------0-.0--0

3,046.87 $ -42,407.39 $ 1,513,512.62 $ 1,338,472.39

-2,976.87

730,935.45 41,859,041.14 45,016,331.95

$====5=5=0=,5==9=4=.0=1=

$=========7=0=.=0=0

$ 688,528.06
=============

$43,372,553.76
=============

$46,354,804.34
=============

- 5-

SAVANNAH STATE 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 Private Gifts, Grants, and Contracts Endowment Income Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources

$12,277,209.00

$12,277,209.00

6,309,082.45

6,309,082.45

160,750.44 $ 5,869,773.56 6,030,524.00

112,081.13 112,081.13

346,775.84 346,775.84

5,000.00

5,000.00

25,157.59

25,157.59

3,187,881.56

3,187,881.56

442,707.88

442,707.88

Total Revenues

$22,402,788.92 $ 6,333,630.53 $28,736,419.45

EXPENDITURES AND MANDATORY TRANSFERS

Educational and General Instruction Research Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships
Auxiliary Enterprises Student Housing Faculty and Staff Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units
Mandatory Transfers Investment Income for Principal
Total Expenditures and Mandatory Transfers
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)

$ 8,778,999.25 $ 227,869.86 $ 9,006,869.11

173,987.05 173,987.05

70,648.14 1,118,224.14 1,188,872.28

1,650,195.53

288,763.54 1,938,959.07

1,511,711.23

131,788.45 1,643,499.68

3,191,170.89

715,778.84 3,906,949.73

2,793,894.44

2,793,894.44

85,936.16 3,677,218.65 3,763,154.81

1,006,997.55 15,605.17
1,542,037.22 143,131.57 876,768.61 325,522.51

1,006,997.55 15,605.17
1,542,037.22 143,131.57
876,768.61 325,522.51

8,212.07

8,212.07

------------- ------------- -------------

$21,992,618.27 $ 6,341,842.60 $28,334,460.87
------------- ------------- -------------

Excess of Restricted Receipts over Transfers to Revenues
Transfers for Renewals and Replacements Prior Period Adjustments (Net) Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance Surplus
Total Other Transfers and Additions/(Deductions)

$ -384,623.95 $ -384,623.95

$ -246,235.19

-246,235.19

24,184.74

24,184.74

-34,148.40

-34,148.40

------------- ------------- -------------

$ -256,198.85
-------------

$ -384,623.95
-------------

$___-6__4_0_,8__2,2__.8__0

Net Increase/(Decrease) in Fund Balances

$ 153,971.80 $ -392,836.02 $ -238,864.22
============= ============= =============

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

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

- 6-

SAVANNAH STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Savannah State College is one ofthirty.;four (34) State supported member institutions ofhigher education in Georgia which comprise the University System ofGeorgia. an organiz.ational unit ofthe State of Georgia. The accompanying financial statements reflect the operations of Savannah State 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. Savannah State College does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Savannah State 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 ofthe 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, research, public service, 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-

SAVANNAH STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
LOANFUNDS
The fund used to account for resources which have been made available for financial loans to students.
ENDOWMENT AND SIMILAR FUNDS
The fund used to account for endowment funds and term 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 of a particular event, all or part ofthe principal may be expended.
PLANT FUNDS
UNEXPENDED - the fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes.
RENEWALS AND REPLACEMENTS - the fund used to account for resources set aside for the renewal and replacement of institutional properties.
INVESTMENT IN PLANT - the fund which shows the total amounts representing the book value of all physical properties owned by the College. Net Investment in Plant is an equity account showing the total book value ofphysical properties belonging to the College less the amount of~Y indebtedness to others.
AGENCY FUNDS
The fund used to account for resources held by the College as custodian or fiscal agent for individual students, faculty, staff members and organizations.
BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute 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.

- 8-

SAVANNAH STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING Contractual obligations for services which have not been perfonned 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 ofcontracts for goods and services. The recognition ofencumbrances of this nature as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia. but is not consistent with generally accepted accounting principles, which provide for the recording ofencumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
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$602,l 19.35, salary-related fringe benefits liabilities of approximately $46,062.13, 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 ofcurrent 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 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 ofthe 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.
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-

SAVANNAH STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXlllBIT "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.
ACCOUNTS RECEIVABLE Accounts receivable consist ofreimbursements 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 using the weighted average method.
Inventories ofgoods for resale are valued at cost based on the first-in, first-out method.
PREPAID ITEMS Prepaid items are payments made to vendors in advance of the receipt ofgoods and services that will benefit periods subsequent to the balance sheet date.
TOTAL COLUMNS ON FINANCIAL STATEMENTS 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 of the data.

- 10 -

SAVANNAH STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

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 of Georgia Annotated Section 50-17-59:
(I) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or ofthe State of Georgia.
(2) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State ofGeorgia.
(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 of development authorities created by the laws ofthe State of Georgia.
(5) Bonds, bills, certificates ofindebtedness, 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 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 ofthe 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.
COLLATERALIZATION OF DEPOSITS For purposes ofanalysis ofcustodial credit risk, the College's bank balances are categorized below to give an indication of the level of risk assumed by the College at year-end:
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.

- 11 -

SAVANNAH STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS 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 collateralized 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.

Cuh Depoaits

Carrying Amount

Bank Balances

Risk Categories

2

3

S 1734126 29 S 2 960 497 8!! S 306 677 30 S 4S4 667 OS S 2 199.1S3S0

CATEGORIZATION OF INVESTMENTS At June 30, 1994, the carrying amount and market value ofthe College's total investments was $630,891.15 and consisted entirely of funds in the Board ofRegents Short-Term Investment Fund which are not required to be categorized since the College did not own any specific identifiable securities in the pool.

NOTE 3: INVESTMENT IN PLANT

The following is a summary of Investment in Plant fixed assets at June 30, 1994:

Land Buildings Improvements Other Than Buildings Egmpment Library Books and Collections
Total Investment in Plant

$ 325,975.16 28,626,307.44
5,145,776.37 5,708,159.09 3,566,335.70 $43,372,553.76

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 of their salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts 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 of the 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.

- 12 -

SAVANNAH STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1994

EXIIlBIT "D"

NOTES: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by units of the 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).
TRS provides service retirement, disability retirement and survivors 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 ofage, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number ofyears of creditable service up to 40 years. Any member who has between 25 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% for each year or fraction thereofby which the member has less than 30 years of service. The nonnal 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 ofdisability.
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 $10,071,441.07; total payroll was $13,294,700.15.
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 of Trustees 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 $1,900,189.23, ofwhich $1,299,351.28 was made by the College and $600,837.95 was made by employees. These contributions represented 12.90% (College) and 6% (employees) of covered payroll.

- 13 -

SAVANNAH STATE 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 The amount of the 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 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 standardized 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 $1,299,351.28 was actuarially determined and represented .2560% oftotal 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.

- 14 -

SAYANNAH STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

NOTES: RETIREMENTPLANS
REGENTS RETIREMENT PLAN State legislation requires that the employee contribute 6% and the employer contribute 4% ofthe participating employee's eamable 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 $2,082,911.45; total payroll was $13,294,700.15. The College and the covered
employees made the required contributions of$83,316.47 (4%) and $124,975.28 (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 Contribution Plan for the
year ended June 30, 1994, was $420,483.43; total payroll was $13,294,700.15. Total contributions from the
covered employees of the College during fiscal year 1994 amounted to $31,605.47 (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 of continuous State service with maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1- Basis of Accounting (Compensated Absences)
Employees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.
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.
- 15 -

SAVANNAH STATE COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE 7: CONTINGENCIES

Litigation, claims and assessments filed against Savannah State College (as a unit of the 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 of Savannah State 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 was paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures Savannah State College to a maximum ofSl,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 oftheir position or employment.

All employees of Savannah State 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 was 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.

NOTE9: ENROLLMENT

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

Regular Term Fall Quarter, 1993 Winter Quarter, 1994 Spring Quarter, 1994

3,166 3,145 2,955

Average

Summer School, 1993

- 16 -

SUPPLEMENTARY INFORMATION - 17 -

SAVANNAH STATE COLLEGE COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED
JUNE 30 1 1994

EXHIBIT "E"

ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items

RESIDENT

AUXILIARY

STUDENT

INSTRUCTION ENTERPRISES ACTIVITIES

TOTAL

------------- ------------- ------------- -------------

$ 700,258.03 $ 312,637.55 $ 73,690.61 $ 1,086,586.19

71,625.35

79,266.71

3,425.88 154,317.94

85,988.71

439,220.09

525,208.80

16,581.70

16,581.70

------------- ------------- ------------- -------------

Total Assets

$ 874,453.79 $ 831,124.35 $ 77,116.49 $1,782,694.63
============= ============= ============= =============

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

$ 406,968.52 $ 2,445.05 $ 10,374.68 $ 419,788.25

53,280.00

53,280.00

359,475.00 122,609.78

19,738.00 501,822.78

------------- ------------- ------------- -------------

$ 766,443.52 $ 178,334.83 $ 30,112.68 $ 974,891.03

108,010.27 652,789.52

47,003.81

807,803.60

------------- ------------- ------------- -------------

Total Liabilities and Fund Balances$ 874,453.79 $ 831,124.35$ 77,116.49 $1,782,694.63

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 18 -

SAVANNAH STATE COLLEGE COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 1994

EXHIBIT "F"

RESIDENT

AUXILIARY

STUDENT

INSTRUCTION ENTERPRISES ACTIVITIES

TOTAL

REVENUES AND OTHER ADDITIONS

Unrestricted Current Fund Revenues Adjustments
Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Prior Years' Revenues/Accounts Receivable
Total Revenues and Other Additions

$17,821,721.72 $4,311,077.76$ 269,989.44 $22,402,788.92

1,434.27

9,695.45 4,974.40

16,104.12

552.45

552.45

-1,344.24

8,872.41

7,528.17

------------- ------------ ----------- -------------

$17,822,364.20 $4,320,773.21 $ 283,836.25 $22,426,973.66

EXPENDITURES AND OTHER DEDUCTIONS

Educational and General Expenditures Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance Surplus

$17,810,893.63

$ 271,662.01 $18,082,555.64

$3,910,062.63

3,910,062.63

34,148.40

34,148.40

Total Expenditures and Other Deductions

$17,845,042.03 $3,910,062.63 $ 271,662.01 $22,026,766.67

TRANSFERS BETWEEN FUNDS

Nonmandatory Renewals and Replacements

$ -246,235.19

$ -246,235.19

Net Increase/(Decrease) for the Year $ -22,677.83 $ 164,475.39 $ 12,174.24 $ 153,971.80

FUND BALANCES JULY 1, 1993

130,688.10 488,314.13 34,829.57 653,831.80

FUND BALANCES JUNE 30, 1994

$ 108,010.27 $ 652,789.52 $ 47,003.81 $ 807,803.60
============= ============ =========== =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 19 -

SAVANNAH STATE COLLEGE COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
ANO OTHER CHANGES
UNRESTRICTED YEAR ENDED JUNE 30. 1994

EXHIBIT "G"

RESIDENT

AUXILIARY

STUDENT

INSTRUCTION ENTERPRISES ACTIVITIES

TOTAL

REVENUES

State Appropriations Tuition and Fees Federal Grants and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources

$12,277,209.00

$12,277,209.00

5,141,802.78$ 949,113.84$ 218,165.83 6,309,082.45

160,750.44

160,750.44

25,157.59

25,157.59

3,187,881.56

3,187,881.56

216,801.91 174,082.36 51,823.61 442,707.88

Total Revenues

$17,B21,721.72 $4,311,077.76$ 269,989.44 $22,402,788.92

EXPENDITURES

Educational and General Instruction Public Service 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
Total Expenditures

$ 8,778,999.25 70,648.14
1,650,195.53 1,258,752.38 3,191,170.89
2,793,894.44 67,233.00

$ 8,778,999.25

70,648.14

1,650,195.53

$ 252,958.85 1,511,711.23

3,191,170.89

2,793,894.44

18,703.16

85,936.16

$1,006,997.55
15,605.17 1,542,037.22
143,131.57 876,768.61 325,522.51
------------- ------------

-----------

1,006,997.55 15,605.17
1,542,037.22 143,131.57 876,768.61 325,522.51
-------------

$17,810,893.63 $3,910,062.63 $ 271,662.01 $21,992,618.27

OTHER TRANSFERS ANO AODITIONS/(OEDUCTIONS)

Transfers for Renewals and Replacements Prior Period Adjustments (Net) Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance
Surplus

$ -246,235.19

$ -246,235.19

$

642.48

9,695.45$ 13,846.81

24,184.74

-34,148.40

-34,148.40

Total Other Transfers and Additions/

(Deductions)

$ -33,505.92 $ -236,539.74 $ 13,846.81 $ -256,198.85

Net Increase/(Decrease) in Fund Balances

$ -22,677.83 $ 164,475.39 $ 12,174.24 $ 153,971.80
============= ============ =========== =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 21 -

SAVANNAH STATE COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30, 1994

REVENUES
State Appropr;at;ons Other Revenues Reta;ned

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS
RENEWALS AND UNEXPENDED REPLACEMENTS

$12,277,209.00

5,544,512.72 $ 6,333,630.53 $ 264,221.84$

0.00

$17,821,721.72 $ 6,333,630.53 $ 264,221.84 $

0.00

EXPENDITURES

Personal Serv;ces:

Educat;on, General and Departmental Serv;ces $14,829,095.79

Sponsored Operat;ons

$1,367,504.53

Operat;ng Expenses:

Educat;on, General and Departmental Serv;ces 2,981,797.84

Sponsored Operat;ons

4,966,126.00

Capital Outlay

$

264,151.84 $

291,765.64

$17,810,893.63 $ 6,333,630.53 $ 264,151.84 $ 291,765.64

Excess of Revenues over Expend;tures

$ 10,828.09 $

0.00 $

70.00 $ -291,765.64

============= ============= ============ =============

(1) To el;minate tuition waivers not budgeted and to reclassify prior year reserves budgeted as revenues.

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 22 -

SCHEDULE "l"

TOTAL

ADJUSTMENTS

TOTAL

(1)

(Budget Basis)

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$12,277,209.00

$12,277,209.00 $12,277,209.00$

0.00

12,142,365.09$ 224,532.64 12,366,897.73 12,782,374.00 -415,476.27

$24,419,574.09 $ 224,532.64 $ 24,644,106.73 $25,059,583.00$ -415,476.27
------------- ------------- -------------- ============= -------------

$14,829,095.79 1,367,504.53
2,981,797.84$ 4,966,126.00
555,917.48

$14,829,095.79 $14,855,616.00$ 1,367,504.53 1,419,184.00

-67,233.00

2,914,564.84 4,966,126.00
555,917.48

2,897,158.00 5,407,911.00
479,714.00

26,520.21 51,679.47
-17,406.84 441,785.00 -76,203.48

$24,700,441.64$ -67,233.00 $ 24,633,208.64 $25,059,583.00$ 426,374.36
------------- ------------- -------------- ============= -------------

$ -280,867.55 $ 291,765.64 $ 10,898.09
============= ============= ==============

$ 10,898.09
=============

- 23 -

SAVANNAH STATE COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION YEAR ENDED JUNE 30. 1994

SCHEDULE "2"

REVENUES State Appropriations
EXPENDITURES Distant Learning - Satellite Dishes
Excess of Revenues over Expenditures

PLANT FUNDS ------------UNEXPENDED

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$

6,500.00$

6,500.00$

0.00

$

6,500.00$

6,500.00$

0.00

$

0.00

$

0.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 24 -

SAVANNAH STATE COLLEGE SCHEDULE OF OPERATIONS
LOAN FUNDS YEAR ENDED JUNE 30. 1994

SCHEDULE "3"

FUND BALANCE

FUND BALANCE

FUND

JULY 1, 1993 ADDITIONS DEDUCTIONS JUNE 30, 1994

U.S. GOVERNMENT GRANTS REFUNDABLE

Perkins Loan Fund

$ 739,707.48$ 14,215.42 $ 7,849.16$ 746,073.74

INSTITUTIONAL LOANS - RESTRICTED

Alumni Penny Loan Fund Greene, Gertrude Livingston, Student Loan
Appreciation Fund International Homes Loan Fund Roberts, Arthur and Doris, Student Loan Fund Robinson, Robbie E., Loan Fund Student Loan Fund

$ 1,200.00 $ 1,000.00

$

2,200.00

1,200.00 800.00
1,000.00 438.00
66,376.23
------------

2,512.65 $

288.41

----------- ------------

1,200.00
800.00 1,000.00
438.00
68,600.47
-------------

$ 71,014.23 $ 3,512.65 $

288.41 $ 74,238.47

------------ ----------- ------------ -------------

$ 810,721.71 $ 17,728.07 $ 8,137.57 $ 820,312.21
============ =========== ============ =============

RECONCILIATION OF STUDENT NOTES RECEIVABLE
Balance July 1, 1993 Add:
Loans to Students
Deduct: Repayment of Loans Loans Assigned to the Federal Government Loan Cancellations and Write-Offs
For Death For Teaching Services

$ 794,605.49 133,712.68

$ 928,318.17

$131,147.17 560.11

$

100.39

3,236.31

3,336.70 135,043.98

Balance June 30, 1994
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 25 -

$ 793,274.19
============

SAVANNAH STATE COLLEGE SCHEDULE OF OPERATIONS ENDOWMENT AND SIMILAR FUNDS YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

FUND BALANCE ADDITIONS/

FUND BALANCE

FUND

JULY 1, 1993 TRANSFERS DEDUCTIONS JUNE 30, 1994

ENDOWMENT

Donner, Henry, Scholarship Fund General Motors Corporation/Equal Employment
Opportunity Commission Grant Program Iocovozzi, Deonino, Memorial Scholarship
Fund Roberson, David, Scholarship Fund Rosenzweig, Abraham, Scholarship Fund Savannah State National Alumni Scholarship
Fund
TERM ENDOWMENT

$ 10,000.00

$

0.00 $ 10,000.00

250,000.00$ 57,595.14

307,595.14

1,500.00 25,000.00 12,500.00

1,500.00 25,000.00 12,500.00

8,000.00

3,468.22

11,468.22

------------ ------------ ----------- -------------

$ 307,000.00 $ 61,063.36 $

0.00 $ 368,063.36

------------ ------------ ----------- -------------

Endowment Challenge Grant Program

$ 150,000.00$ 32,530.65$

0.00 $ 182,530.65

$ 457,000.00$ 93,594.01 $

0.00 $ 550,594.01

============ ============ =========== =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 26 -

SAVANNAH STATE COLLEGE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 30, 1994

SCHEDULE "5"

FUND PAYROLL DEDUCTIONS
F. I.C.A. Federal Income Tax State Income Tax Retirement Group Insurance Tax Deferred Annuities Savings Bonds Rents Wage Earners Deductions Garnishments Credit Union Internal Revenue Service Miscellaneous
EMPLOYER'S CONTRIBUTIONS F. I.C.A. Retirement Group Insurance
OTHER FUNDS Alumni Support Program Association of Chief Academic Officers Athletic Community Support Fund Business Advisory Fund Campus Chest Career Week Program Centennial Fund Clearing Account Community Support Program Developmental Studies Honors Program Fours and Nines Activities Fund Raising Expenses Inaugural Activity Li bra ry Deposits Mass Communications Activity Mass Communications Fund Raising National Society of Black Engineers 01YJ!lpic Legacy Pell Recoveries - Prior Year President's Discretionary Fund Press Institute Psychology Club Quiz Bowl Radio Station Fund Raising Recruiters' Fair Retired Employees' Insurance Savannah State College Archives SBS-lnternational Forum SSC Entrepreneurial Program Scholarships Georgia Student Incentive Grants Regents' Scholarship Fund Other Scholarships (List on File) Science and Technology Program Senior Class Small Business Conference Social Work Programs Sociology Club Student Deposits Tiger Booster Club Track Construction U. S. Cultural Program Western Hemisphere

BALANCE JULY 1. 1993

RECEIPTS

BALANCE DISBURSEMENTS JUNE 30. 1994

$ -2,530.85 $ 929,290.85$ 926,760.00

-2,157.71 1,317,236.75 1,315,079.04

449,843.40

449,843.40

117. 98

757,417.91

757,418.70$

46,731.97

508,907.81

508,354.38

246,385.78

246,385.78

1,677.50

21,285.00

22,500.00

46,070.00

46,070.00

328.00

16,935.00

17,263.00

391.00

72,246.40

72,637.40

836,515.61 836,515.61

8,433.04

8,433.04

--~5-6_5~.o-o

25.432.97

25,997.97

$ 45.122.89 $ 5,236,000.52 $ 5,233,258.32 $

117.19 47,285.40
462.50
47,865.09

$ -2,530.85 $ 927,181.28$ 924,650.43 1,907.84 1,380,759.91 1,382,667.75
109,714.06 1.532.739.07 1,552,083.48 $ $ 109,091.05$ 3,840,680.26$ 3,859,401.66$

90,369.65 90,369.65

$

5,033.00

$

5,033.00

3,965.00 $ 3,965.00

10,800.00

3,735.00

7,065.00

$

5,469.17

1,750.00

6,672.85

546.32

-64.72

430.00

300.00

65.28

134.83

134.83

166.21

131. 99

298.20

9,645.76

9,645.76

37,431.51

30,168.70

7,262.81

983.14

983 .14

35.00

35.00

-5,976.44

7,826.44

1,850.00

-1,850.00

1,850.00

1,167.53

150.00

800.00

517.53

25.95

25.95

1,335.00

194.88

1,140.12

300.00

275.00

25.00

6,916.00

6,857.82

58.18

509.97

509.97

-1,775.15

16,752.24

14,977.09

9,292.37

8,683.18

17,175.55

800.00

243.38

25.00

218.38

832.79

2,583.47

2,730.96

685.30

242.00

385.00

488.03

138.97

740.00

740.00

13,747.28

78,683.40

82,059.40

10,371.28

-8.34

8.34

504.00

504.00

9,391.00

9,391.00

-1,681.00 30,665.54
9,204.50 2,306.63 1,041.64 -701.99 15,917.07
924.47 353.70

180,546.00 4,100.00
349,098.26 4,105.00 7,475.00
701.99 878,193.44
4,108.00 8.00
8,150.00

174,730.79 2,900.00
341,816.34 2,850.00
12,313.41
880,638.95 4,671.03 353.70 1,185.19

4,134.21 1,200.00 37,947.46 1,255.00 4,366.09 2,306.63 1,041.64 13,471.56
361.44 8.00
6,964.81

$ 102,081.29 $1,620,905.26 $1,614,047.37 $ 108,939.18

$ 256,295.23 $10,697,586.04 $10,706.707.35 $ 247,173.92

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 27 -

SAVANNAH STATE COLLEGE CASH AND CASH EQUIVALENTS
JUNE 30, 1994

SCHEDULE 611 11

NONINTEREST BEARING ACCOUNTS
Carver State Bank, Savannah, Georgia
Trust Company Bank of Savannah, Savannah, Georgia
INTEREST BEARING ACCOUNTS
Carver State Bank, Savannah, Georgia
Certificates of Deposit (2.80% - 3.81%)
Trust Company Bank, Atlanta, Georgia
Cash Management Pool Board of Regents Short-Term Investment Fund
Trust Company Bank of Savannah, Savannah, Georgia
N.O.W. Account (2.02%)
Wachovia Bank of North Carolina, Winston-Salem, North Carolina
N.O.W. Account (1.50%)
OTHER
Cash on Hand Petty Cash

$ 3,089.74

-3,089.74 $

0.00

$ 467,407.83 630,891.15
1,263,131.50 3,586.96 2,365,017.44
46,292.00 $ 2,411,309.44

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

SAVANNAH STATE COLLEGE ACCOUNTS RECEIVABLE
JUNE 30. 1994

SCHEDULE "7"

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

PLANT FUNDS ------------UNEXPENDED

TOTAL

Federal Grants and Contracts Research and Instruction Student Aid Plant Additions
State Grants and Contracts Research and Instruction Student Aid
Private Gifts, Grants and Contracts Research and Instruction Student Aid
Other Georgia State Financing and Investment Cannission Returned Checks Student Accounts Student Notes Vendor Credit Manos Other

$ 32,458.16 245,135.10
12,541.15 5,894.00
8,659.73 500.00

$ 32,458.16 245,135.10
$ 149,976.46 149,976.46
12,541.15 5,894.00
8,659.73 500.00

$ 15,663.32 82,715.76
20,137.45 35,801.41

$ 793,274.19

47,176.46

47,176.46 15,663.32 82,715.76 793,274.19 20,137.45 35,801.41

$ 154,317.94$ 305,188.14$ 793,274.19$ 197,152.92$ 1,449,933.19
========= ===:-=:===L-~ --.re"'======== =========== ===========

See accanpanying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Infonnation.
- 29 -

SAVANNAH STATE COLLEGE CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30, 1994

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

CURRENT FUNDS BALANCE JULY 1, 1993 UNRESTRICTED RESTRICTED
-------------
$ 325,975.16

28,142,908.32

4,646,763.43

5,304,242.30 $ 409,770.97 $ 169,988.95

3,439,151.93 107,733.22

23,579.89

$41,859,041.14$ 517,504.19 $ 193,568.84
============= ============= =============

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

SCHEDULE "8"

ADDITIONS

---------------------------------------------

PLANT FUNDS

GEORGIA STATE

FINANCING AND

RENEWALS AND INVESTMENT

UNEXPENDED REPLACEMENTS COMMISSION

DEDUCTIONS
DISPOSALS/ DELETIONS/ ADJUSTMENTS

BALANCE JUNE 30, 1994

$ 325,975.16

$ 128,795.47 $ 290,679.24 $ 63,924.41

28,626,307.44

135,356.37

1,086.40 362,570.17

5,145,776.37

5,856.60

$ 181,699.73 5,708,159.09

4,129.34 3,566,335.70

$ 270,008.44 $ 291,765.64 $ 426,494.58$ 185,829.07 $43,372,553.76

- 31 -

SAVANNAH STATE COLLEGE SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30, 1994

NET 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 For Uncollectible Accounts
Undesignated Surplus Regular Lottery for Education

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

AUXILIARY

STUDENT

ENTERPRISES ACTIVITIES

$ -180,383.94
$ 85,117 .so 439,220.09

11,016.70

363,272.74$ 30,680.63

47,003.81

11,876.07 $ 108,010.27 $ 652,789.52 $ 47,003.81

$ 108,010.27 $ 652,789.52 $ 47,003.81

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 32 -

SCHEDULE "9"

RESTRICTED

PLANT FUNDS

UNEXPENDED

REGULAR

LOTTERY FOR RENEWALS AND EDUCATION REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$43,372,553.76 $43,372,553.76

$ 114,942.70

$ 114,942.70

$ 12,323.42 676,204.64

$ 12,323.42 -180,383.94 524,337.59 676,204.64 410,276.55 41,697.33

$

70.00

$

$

70.00 $

0.00 0.00 $ 688,528.06

11,946.07 0.00
$ 1,496,401.66

$ 114,942.70 $

70.00 $

0.00 $ 688,528.06 $43,372,553.76 $44,983,898.12

============= ============= ============= ============= ============= =============

- 33 -

SAVANNAH STATE COLLEGE SCHEDULE OF REVENUES
CURRENT FUNDS YEAR ENDED JUNE 30. 1994

SCHEDULE "10"

State Appropriations Allotments fran the Board of Regents of the University System of Georgia
Other Revenues Retained Tuition and Fees Matriculation Other

UNRESTRICTED

RESTRICTED

------------------------------------------------------- ------------

RESIDENT

AUXILIARY

STUDENT

RESIDENT

INSTRUCTION ENTERPRISES ACTIVITIES

TOTAL

INSTRUCTION

TOTAL

------------- ------------ ----------- ------------- ------------ -------------

$12,277,209.00
-------------

$12,277,209.00
-------------

$ 4,319,360.82

$ 4,319,360.82

822,441.96 $ 949,113.84$ 218,165.83 1,989,721.63

$12,277,209.00
-------------
$ 4,319,360.82 1,989,721.63

Federal Grants and Contracts Research and Instruction Student Aid Contract Overhead

160,750.44

$2,470,082.54 2,470,082.54

3,399,691.02 3,399,691.02

160,750.44

160,750.44

State Grants and Contracts Research and Instruction Student Aid

16,903.63 95,177.50

16,903.63 95,177.50

Private Gifts, Grants and Contracts Research and Instruction Student Aid

169,425.71 177,350.13

169,425.71 177,350.13

Endowment Income Student Aid

5,000.00

5,000.00

Sales and Services of Educational Activities

25,157.59

25,157.59

25,157.59

Sales and Services of Auxiliary Enterprises

3,187,881.56

3,187,881.56

3,187,881.56

Other Sources Actninistrative Cost Allowances Athletic Sales Cash Over-Short Extension and Public Service Interest Earned Rents Other

11,951.95
98.76 150,000.00
25.86 12,904.15 41,821.19
-------------

70,095.97 174.08
25,666.64
78,145.67
------------

51,823.61
-----------

11,951.95 70,095.97
272.84 150,000.00 25,692.50 12,904.15 171,790.47
-------------

------------

11,951.95 70,095.97
272.84 150,000.00 25,692.50 12,904.15 171,790.47
-------------

$ 5,544,512.72 $4,311,077.76$ 269,989.44 $10,125,579.92 $6,333,630.53 $16,459,210.45

$17,821,721.72 $4,311,077.76$ 269,989.44 $22,402,788.92 $6,333,630.53 $28,736,419.45
=========== ============ =========== ========== ============ ==========
See accanpanying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Infonnation.
- 34 -

SAVANNAH STATE COLLEGE SCHEDULE OF EXPENDITlRES BY OBJECT
CURRENT FUNDS
YEAR ENDED JUNE 30. 1994

SCHEDULE "11"

RESIDENT INSTRUCTION

UNRESTRICTED AUXILIARY STUDENT ENTERPRISES ACTIVITIES

TOTAL

RESTRICTED RESIDENT INSTRUCTION

TOTAL

PERSONAL SERVICES

Salaries and Wages
En.,loyer's Contributions for: F.I.C.A.
Group Insurance Retiranent Liability Insurance Unen.,lo)'lllent Con.,ensation
Insurance Workers' Con.,ensation
Insurance

$11,260,545.23 $ 919,636.17

794,541.73 1,337,796.30 1,187,566.53
59,305.00

62,097.75 117,529.10 90,018.30

13,028.00

176,313.00

$12,180,181.40 $1,114,518.75 $13,294,700.15

856,639.48
1,455,325.40 1,277,584.83
59,305.00

70,290.71 78,445.75 104,249.32

926,930.19 1,533,771.15 1,381,834.15
59,305.00

13,028.00

13,028.00

176,313.00

176,313.00

$14,829,095.79 $1,189,281.32

$16,018,377.11 $1,367,504.53 $17,385,881.64

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 Purchases
Non-Inventory
Canputer Charges Software
TelecC11111Jnications Per Diem, Fees and Contracts
Per Diem and Fees Contracts Equipment Purchases Motor Vehicle Purchases
Inventory

$ 131,274.68$ 26,820.24

$ 158,094.92 $ 43,606.26$ 201,701.18

47,541.78

7,787.50

55,329.28

55,329.28

344,951.10 171,624.02 $ 49,786.31 566,361.43 82,189.84 648,551.27

357,672.29 56,690.18

715.00 415,077.47 23,245.62 438,323.09

796,309.50 265,436.52

1,061,746.02

1,061,746.02

23,174.79

4,765.35 9,771.75

37,711.89

2,106.13

39,818.02

23,776.55 67,225.23

91,001.78

100.00

91,101.78

39,800.00

39,800.00 386,605.42 426,405.42

67,233.00
118,860.02 59,085.11

434,638.56 18,703.16
180,884.66 116,101.73 11,927.72 26,005.69

520,574.72 3,677,218.65 4,197,793.37

415,846.41 374,273.14 790,119.55

97,018.52

8,249.95 105,268.47

73,873.34
2,175.00 11,758.32 215,955.82

24,338.20 16,024.44

150.00 2,328.37

98,211.54
2,175.00 11,908.32 234,308.63

70,595.52
10,997.73 9,219.07

168,807.06
2,175.00 22,906.05 243,527.70

82,506.05 44,927.77 48,100.00 175,533.82

72,741.70 1,403,295.52

1,476,037.22

84,149.83 259,683.65 1,476,037.22

900.00

900.00

900.00

512,208.79

4,395.40

516,604.19 193,568.84 710,173.03

------------- ------------ ----------- ------------- ------------ -------------

$ 2,981,797.84 $2,720,781.31 $ 271,662.01 $ 5,974,241.16 $4,966,126.00 $10,940,367.16
------------- ------------ ----------- ------------- ------------ -------------

$17,810,893.63 $3,910,062.63 $ 271,662.01 $21,992,618.27 $6,333,630.53 $28,326,248.80
========== ========= =========== ============= =========== ============

See accanpanying notes and Independent Accountant's Canbined Report on Review of Financial Statanents and Supplanentary Infonnation.
- 35 -

SAVANNAH STATE COLLEGE SCHEDULE OF EXPENDITURES BY OBJECT
PLANT FUNDS YEAR ENDED JUNE 30, 1994

SCHEDULE "12"

CAPITAL OUTLAY
Repa;rs and Ma;ntenance Rents (Other than Real Estate) Other Expenses Per o;em, Fees and Contracts
Per o;em and Fees Contracts
OTHER
DISTANT LEARNING - SATELLITE DISHES Other Costs Equ;pment Purchases Non-Inventory Equ;pment Purchases Inventory

UNEXPENDED

RENEWALS AND

---------------------------- REPLACEMENTS

LOTTERY FOR -------------

REGULAR

EDUCATION

AUXILIARY

TOTAL

$ 159,822.97 139.40
3,500.00 100,689.47
-------------
$ 264,151.84
-------------

$ 291,693.64 $ 451,516.61

139.40

72.00

72.00

3,500.00 100,689.47
------------- -------------
$ 291,765.64 $ 555,917.48
------------- -------------

$

643.40

5,856.60
-------------

$ 6,500.00
-------------

$

643.40

5,856.60
-------------

$

6,500.00

-------------

$ 264,151.84 $ 6,500.00$ 291,765.64 $ 562,417.48
============= ============= ============= ------==-=---

See accompany;ng notes and Independent Accountant's Comb;ned Report on Rev;ew of F;nanc;al Statements and Supplementary Informat;on.
- 36 -

SAVANNAH STATE COLLEGE RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30. 1994

SCHEDULE "13"

Totals per Annual Supplement

Adjustments

Shared Services on Jointly Staffed Personnel

Armstrong State College

Awan,

ljaz A.

Blake,

Greta

Eason,

Thomas R.

Richardson, Joseph p.

Washington, Daniel L.

University of Georgia

Arnold,

Kanata J.

Other

Drayton,

Antoinette D.

Eke,

Kenoye K.

Totals per Report

DISTRIBUTION BY FUND
CURRENT FUNDS Unrestricted Resident Instruction Auxiliary Enterprises Restricted Resident Instruction

SALARIES AND WAGES

TRAVEL

$13,316,151.56$ 201,701.18

-600.00 -125.00 -8,111.00 -5,082.00 -1,875.00
-7,840.88
1,269.99 912.48

$13,294,700.15 $ 201,701.18
===-========= =============

$11,260,545.23 $ 131,274.68

919,636.17

26,820.24

1,114,518.75

43,606.26

$13,294,700.15 $ 201,701.18

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

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SAVANNAH STATE 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 findings disclosed in the audit report for the year ended June 30, 1993, is summarized below:

Audit Control Number

Status ofFinding

548-93-01 548-93-02 548-93-03 548-93-04

See Audit Control Number 548-94-01 Corrective Action Implemented Corrective Action Implemented See Audit Control Number 548-94-02

PRIOR YEAR/CURRENT YEAR

REVENUE/RECEIVABLES/RECEIPTS Student Accounts Receivable Not Supported by Financial Aid Financial Statements Audit Control Number 548-94-01

The audit report for the year ended June 30, 1993, disclosed that Savannah State College had $49,609.44 in student accounts receivable which were not supported by approved financial aid. On June 30, 1994, the balance had increased to $52,807.18 in student accounts receivable which were not supported by approved financial aid. There is no provision in the policies ofthe Board ofRegents for deferments of student accounts without the student having approved financial aid at the time of registration.

Collections of student 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.

GENERAL LEDGER Inadequate Subsidiary Equipment Inventory Records/Investment in Plant Financial Statements Audit Control Number 548-94-02

The audit report for the year ended June 30, 1993, disclosed that Savannah State College's control accounts maintained in the general ledger were not supported by the subsidiary equipment inventory records. Extensive audit procedures were necessary to reconcile the control accounts to the subsidiary equipment inventory records. For the year under review, no improvements were made and this deficiency continued to exist.

Appropriate accounting procedures should be implemented by the College to ensure that necessary adjustments are made to reconcile the control accounts to the subsidiary equipment inventory records.

SAVANNAH STATE COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
BUDGET PREPARATION/EXECUTION Overexpenditure ofBudget - Resident Instruction Financial Statements
The total approved budget for Resident Instruction of Savannah State College provided for expenditures totaling $25,059,583.00. A comparison ofanticipated revenues and budgeted expenditures to actual revenues and expenditures is summarized on Schedule "1" of this report. This comparison indicates that actual expenditures for Operating Expenses of Education, General and Departmental Services and Capital Outlay exceeded budgeted expenditures by $17,406.84 and $76,203.48, respectively.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Deficit Cash Balance Financial Statements Audit Control Number 548-94-03
For the year under review, Savannah State College had a negative fund balance of $142,433.56 in the Restricted Funds - Naval Science Scholarship Account that cannot be supported by a valid accounts receivable. The College continued to award Naval Science Scholarships without proper funding.
The College should implement procedures to adequately fund this deficit and ensure that Naval Science scholarships are not awarded until funds are available.
FUND BALANCE Deficit to be Funded from Subsequent Years' Operations Financial Statements Audit Control Number 548-94-04
At June 30, 1994, Intercollegiate Athletics had a deficit fund balance of $180,383.94. This deficit has a direct relation to the lack of sufficient funds to meet obligations on a current basis. The Board of Regents' Policy Manual, Section 702.02 states that auxiliary enterprises "shall be placed on a self-supporting basis, and the State will not make an appropriation to finance its operations."
The College should take appropriate action to fund this deficit.

SAVANNAH STATE COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

CURRENT YEAR

AUDIT DISTRIBUTION/RESOLUTION Reports Not Submitted to Grantor Agencies Federal Financial Assistance Audit Control Number 548-94-05

Our audit ofthe fiscal year 1993 financial statements of Savannah State College, an organizational unit ofthe State ofGeorgia reporting entity, was performed in conjunction with the Statewide Single Audit of the State of Georgia. During the year under review, the College failed to furnish a copy of either the 1993 Statewide Single Audit report or the College's fiscal year 1993 audit report to the following grantor agencies:

CFDANumber

Grantor

47.0FA 81.087 84.031 93.0FA
93.793

Gulf Coast Research Laboratory Midwest Research Institute Idaho National Engineering Laboratory National Association for Equal Opportunity
in Higher Education National Collegiate Athletics Association

The College should ensure that reports and corrective action plans are submitted to grantor agencies in accordance with report distribution requirements.