SAVANNAH STATE UNNERSITY - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION 
 
EXHIDITS 
 
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 
 
22 
 
G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, 
 
AND OTHER CHANGES 
 
UNRESTRICTED 
 
24 
 
SCHEDULES 
 
SCHEDULESOFREVENUESANDEXPENDTILffiESCONWAREDTOBUDGET 
 
1 
 
RESIDENT INSTRUCTION 
 
26 
 
2 
 
LOTTERY FOR EDUCATION 
 
29 
 
3 CHANGES IN INVESTMENT IN PLANT 
 
30 
 
4 SCHEDULE OF FUND BALANCES 
 
CURRENT FUNDS AND PLANT FUNDS 
 
32 
 
5 RECONCILIATION OF SALARIES AND TRAVEL 
 
34 
 
 SAVANNAH STATE UNIVERSITY - TABLE OF CONTENTS - 
SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
SECTIONID CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 RUSSELL W. HINTON 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 2]4 Atlanta, Georgia 30334-R400 
December 14,2000 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members of the Board of Regents ofthe University System of Georgia 
and Honorable Carlton E. Brown, President Savannah State University 
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) of Savannah State University as of and for the year ended June 30, 2000. These financial statements are the responsibility ofthe University'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 ouroplmon. 
As described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the University to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the financial statements of this departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material. 
 
00ARL-62 
 
 As disclosed in Note 1 to the financial statements, the University did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles. If compensated absences were reported, liabilities would be increased and fund balance would be decreased by $902,834.15 as of June 30, 2000, and the net change in fund balance for the year ended June 30, 2000, would be increased by $27,699.20. 
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 ofSavannah State University as ofJune 30, 2000, and the changes in fund balances and the current operating funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting principles. 
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying combining statements (Exhibits E through G) and the financial schedules (Schedules 1 through 5) are presented for purposes ofadditional analysis and are not a required part ofthe fmancial statements ofSavannah State University. Such information has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, except for the effects of the matters discussed in the third and fourth paragraphs, such information is fairly presented in all material respects in relation to the financial statements taken as a whole. 
Respectfully submitted, 
~-~eOllSWL. Hintown .<!J,.:k: State Auditor 
RWH:jb 00ARL-62 
 
 FINANCIAL STATEMENTS - 1- 
 
 Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant 
 
SAVANNAH STATE UNIVERSITY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30, 2000 
 
CURRENT FUNDS 
 
UNRESTRICTED 
 
RESTRICTED 
 
LOAN FUNDS 
 
ENDOWMENT AND SIMILAR 
FUNDS 
 
$ 
 
808,374.83 
 
$ 
 
23,432.34 $ 
 
941,498.81 
 
734,249.56 $ 
 
799,777.46 
 
874,424.07 
 
631,037.65 
 
28,537.82 
 
961,475.70 
 
The notes to the financial statements are an integral part of this statement. 
2 
 
 EXHIBIT "A" 
 
UNEXPENDED 
 
PLANT FUNDS RENEWALS AND REPLACEMENTS 
 
INVESTMENT IN PLANT 
 
AGENCY FUNDS 
 
TOTAL (Memorandum 
Only) 
 
$ 1,309,838.91 $ 355,464.39 
 
832,992.58 
 
$ 
 
$ 74,095,923.66 
 
564,359.16 $ 
 
4,480,496.63 2,763,915.48 
631,037.65 28,537.82 
961,475.70 74,095,923.66 
 
$ 1,665,303.30 $ 
 
832,992.58 $ 74,095,923.66 $ 564,359.16 $ 82,961,386.94 
 
$ 1,663,338.61 $ 1,663,338.61 
 
$ 
 
1,964.69 $ 
 
$ 
 
1,964.69 $ 
 
$ 169,952,33 $ 3,821,162,23 
 
204,947.00 
 
99,675.00 
 
394,406.83 
 
394,406.83 
 
961,475.70 
 
$ 564,359.16 $ 5,481,666.76 
 
$ 74,095,923.66 832,992.58 832,992.58 $ 74,095,923.66 
 
$ 822,655.60 75,200.81 718,014.36 223,484.45 
74,095,923.66 -161,698.24 1,706,139.54 
$ 77,479,720.18 
 
$ 1,665,303.30 $ 
 
832,992.58 $ 74,095,923.66 $ 564,359.16 $ 82,961,386.94 
 
-3- 
 
 SAVANNAH STATE UNIVERSITY COMBINED STATEMENT OF CHANGES IN FUND BALANCES 
ALL FUND GROUPS YEAR ENDED JUNE 30. 2000 
 
 EXHIBIT"B" 
 
$ 
 
41,168.62 
 
$ 
 
41,168.62 
 
$ 
 
95,803.87 $ 
 
845,694.94 
 
$ 
 
941,498.81 $ 
 
$ $ 8,169.59 $ -6,204.90 
 
$ 
 
188,274.45 
 
188,274.45 
 
$ 
 
194,643.45 $ 6,119,939.36 $ 
 
638,349.13 67,975,984.30 
 
0.00 0.00 0.00 5,987,966.19 71 ,491,753.99 
 
1,964.69 $ 
 
832,992.58 $ 74,095,923.66 $ 77,479,720.18 
 
-5- 
 
 SAVANNAH STATE UNIVERSITY STATEMENT OF CURRENT FUNDS REVENUES,EXPENDITURES, 
AND OTHER CHANGES YEAR ENDED JUNE 30, 2000 
 
EXHIBIT"C" 
 
UNRESTRICTED 
 
RESTRICTED 
 
TOTAL (Memorandum 
Only) 
 
REVENUES 
 
State Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Endowment Income Sales and Services of Auxiliary Enterprises Other Sources 
 
$ 
 
19,549,956,00 
 
$ 19,549,956,00 
 
5,844,107,64 
 
5,844,107,64 
 
241,906,53 $ 17,205,201.89 
 
17,447,108.42 
 
630,78 
 
563,795,29 
 
564,426.07 
 
14,460,93 
 
14,460.93 
 
5,290.92 
 
243,906.64 
 
249,197.56 
 
10,794.00 
 
10,794.00 
 
4,178,615.65 
 
4,178,615.65 
 
623,583,01 
 
623,583.01 
 
Total Revenues 
 
$ 30,444,090.53 $ 18,038,158.75 $ 48,482,249.28 
 
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 Mandatory Transfers for: Investment Income for Endowment Principal 
Auxiliary Enterprises Student Housing Faculty and Staff Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units 
 
$ 
 
12,657,615.54 $ 
 
391,702.09 $ 13,049,317.63 
 
13,381.72 
 
1,075,303.91 
 
1,088,685.63 
 
368,028.70 
 
1,585,419.15 
 
1,953,447.85 
 
2,764,957.56 
 
435,042.21 
 
3,199,999.77 
 
2,099,801.11 
 
154,905.71 
 
2,254,706.82 
 
4,607,418.38 
 
997,838.11 
 
5,605,256,49 
 
3,222,267.32 
 
3,222,267.32 
 
375,068.00 
 
13,397,947.57 
 
13,773,015.57 
 
41,168,62 
 
41,168.62 
 
988,044.70 6,891.06 
1,351,965.64 193,060.49 
1,131,242,97 316,443.82 
 
988,044.70 6,891.06 
1,351,965.64 193,060.49 
1,131,242.97 316,443,82 
 
Total Expenditures and Mandatory Transfers 
 
$ 30,096,187,01 $ 18,079,327.37 $ 48,175,514.38 
 
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS) 
 
Excess of Restricted Receipts over 
Transfers to Revenues 
Refunded to Grantors 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) 
 
$ 
 
-278,865.61 $ 
 
-278,865.61 
 
-22,977.81 
 
-22,977.81 
 
$ 
 
-188,274.45 
 
~188,274.45 
 
17,331.62 
 
17,331.62 
 
-271,769.29 
 
-271,769.29 
 
Total Other Transfers and Additions/(Deductions) $ 
 
-442,712,12 $ 
 
-301,843.42 $ 
 
-744,555.54 
 
Net Increase/(Decrease) in Fund Balances 
 
$ 
 
-94,808.60 $ 
 
-343,012.04 $ 
 
-437,820.64 
 
The notes to the financial statements are an integral part of this statement. -6- 
 
 SAVANNAHSTATE~ERSITY 
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2000 
 
EXHIBIT"D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY Savannah State University is one ofthirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System o_fGeorgia, an organizational unit ofthe State of Georgia. The accompanying financial statements reflect the operations of Savannah State University as a separate reporting entity. 
The Board of Regents has constitutional authority to govern, control and manage the University System ofGeorgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. Savannah State University does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Savannah State University is considered an organizational unit ofthe Board ofRegents ofthe University System of Georgia reporting entity for financial reporting purposes because ofthe significance ofits legal, operational, and financial relationships with the Board ofRegents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. 
FUND ACCOUNTING In order to ensure observance of limitations and restrictions placed on the use of the resources available to the University, the accounts of the University 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 obj ectives 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 University's fund balance allocations and designations represent those portions ofthe fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies. 
Fund groups and funds presented in the accompanying financial statements are as follows: 
CURRENT FUNDS 
UNRESTRICTED - The fund used to account for those economic resources over which the University retains full control to use for purposes of performing the primary functions of the University, e.g., instruction, research, public service, etc. 
RESTRICTED - The fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes. 
-7- 
 
 SAVANNAHSTATE~ERSITY 
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2000 
 
. EXHIBIT "D" 
 
NOTEl: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
FUND ACCOUNTING 
LOAN FUNDS 
The fund used to account for resources which have been made available for financial loans to students. 
ENDOWMENT AND SIMILAR FUNDS 
The fund used to account for endowment funds and term endowment funds. Endowment funds are subject to the restrictions of gift instruments requiring that the principal be invested in perpetuity and income only be utilized. Term endowment funds are similar to endowment funds except that upon the passage ofa stated period oftime or the occurrence ofa particular event, all or part of the 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 University. Net Investment in Plant is an equity account showing the total book value ofphysical properties belonging to the University less the amount of any indebtedness to others. 
AGENCY FUNDS 
The fund used to account for resources held by the University 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 of accounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants' audit guide reporting model. The modified accrual basis ofaccounting is defined as that method ofaccounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures of the fiscal period. 
- 8- 
 
 SAVANNAHSTATEUNITVERSITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHIBIT"D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF ACCOUNTING Contractual obligations for goods and services which have not been received at the end ofthe fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation 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 ofthe University relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability of $902,834.15 and a related net reduction of current year expenditures of $27,699.20 have not been reported in the current funds as required by generally accepted accounting principles. 
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation of the financial statements. 
To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made for plant facilities expended by the Georgia State Financing and Investment Commission on behalfofthe University. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on physical plant and equipment. 
The Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to present the results of operations or the net income or loss for the period as would a statement of income or a statement of revenues and expenses. 
 
- 9- 
 
 SAVANNAH STATE UNNERSITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHffiIT"D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
BUDGET The Board ofRegents ofthe University System ofGeorgia - Administrative Central Office receives State appropriation allotments for units of the University System of Georgia. The appropriated budget is adopted at the Board level and represents appropriations provided by the Amended Appropriations Act of 1999-2000. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The allocation ofthe appropriated budget is made to the University by the Administrative Central Office. In addition, the University receives Federal funds and other funds directly and includes these funds in the budget filed with the Administrative Central Office. 
 
A comparison ofanticipated funds available and budgeted expenditures by budget unit object class indicates that the following object classes were overspent by the amounts identified below: 
 
Resident Instruction Operating Expenses: Education, General and Departmental Services Capital Outlay Year 2000 Project 
 
$ 110.529.71 $ 580.165.92 $ 42.327.00 
 
These overexpenditures of budget constitute a violation of Board of Regents policy, but do not constitute statutory violations of budget authority. Statutory violations of budget authority are reported at the Board object class level. 
 
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits, certificates of deposit and temporary investments in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts. 
 
INVESTMENTS Investments are reported at fair value. Funds received by the University as endowments or for restricted purposes are invested according to conditions stipulated by the donor, grantor, or in accordance with the Board of Regents authorizing resolutions. Gains and losses on investment transactions are accounted for in the funds where such assets are recorded. 
 
ACCOUNTS RECEIVABLE Accounts receivable consist ofallotments due from the Board ofRegents ofthe University System of Georgia - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. No provision has been made for an allowance for doubtful accounts within the accompanying financial statements. 
 
- 10- 
 
 SAVANNAHSTATE~ERSITY 
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2000 
 
EXHIBIT "D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
INVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the weighted average method. 
Inventories of goods for resale are valued at cost using the first-in, first-out method. 
PREPAID ITEMS Prepaid items are payments made to vendors in advance ofthe receipt ofgoods and services that will benefit periods subsequent to the balance sheet date. 
MEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: 
(1) Bonds, bills, certificates ofindebtedness; notes, or other direct obligations ofthe United States or of the State of Georgia. 
(2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. 
(3) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. 
(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia. 
 
- 11 - 
 
 SAVANNAHSTATE~RSITY 
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2000 
 
EXHIBIT "D" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
 
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. 
 
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which includes organizational units of the Board of Regents of the University System of Georgia) the option of exempting demand deposits from the collateral requirements. 
 
The treasurer ofthe Board ofRegents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia. 
 
CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 2000, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk: 
 
Category 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the University or by its agent in the University's name. 
 
Category 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the University's name. 
 
Category 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent but not in the University's name, and amounts uncollateralized. 
 
Total Cash Deposits 
 
Carrying Amount 
 
Bank Balances 
 
Risk Categories 
 
2 
 
3 
 
$ 3330688.71 $ 5 028 661.88 $ 30596827 $ 371 471 79 $ 4.351 221.82 
 
CATEGORIZATION OF INVESTMENTS The carrying amounts of investment balances as of June 30, 2000, are as follows: 
 
- 12- 
 
 SAVANNAHSTATEUNNERSITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHIBIT"D" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
 
CATEGORIZATION OF INVESTMENTS 
Board of Regents Short-Tenn Fund Total Return Fund 
Total Investments 
 
$ 247,182.17 895,299.71 
$ 1.142.481.88 
 
Funds invested in an investment pool managed by another governmental entity are not required to be categorized since the University did not own any specific, identifiable investment securities of the pool. 
 
NOTE 3: INVESTMENT IN PLANT 
 
The following is a summary of Investment in Plant fixed assets as of June 30, 2000: 
 
Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections 
 
$ 325,975.16 48,592,996.34 
7,963,515.26 12,276,148.71 4,937,288.19 
 
Total Investment in Plant 
 
$74,095,923.66 
 
NOTE 4: RISK MANAGEMENT 
 
Savannah State University is a participant in the Board of Regents of the University System of Georgia Health Benefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees of the University System of Georgia. The University and participating employees and retirees pay premiums to the Health Benefits Plan for this health insurance coverage. The Health Benefits Plan is included in the financial statements of the Board of Regents of the University System ofGeorgia - Administrative Central Office. All units ofthe University System of Georgia share the risk of loss for claims of the Health Benefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of $1,000,000.00 per person and dental coverage up to an annual maximum of $1,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield ofGeorgia to process claims in accordance with the Health Benefits Plan as established by the Board of Regents. 
 
The Department of Administrative Services (DOAS) has the responsibility for the State ofGeorgia ofmaking and carrying out decisions that will minimize the adverse effects ofaccidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of 
 
- 13- 
 
 SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHIBIT"D" 
 
NOTE 4: RISK MANAGEMENT 
loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The University, as an organizational unit ofthe Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity; and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. 
A self-insured program of professional liability for its employees was established by the Board of Regents of the University System of Georgia under powers authorized by the Official Code of Georgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out of the performance of their duties or in any way connected therewith. The program is administered by DOAS as a SelfInsurance Fund. 
NOTE 5: RETIREMENT PLANS 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
Plan Description Savannah State University participates in the Teachers Retirement System ofGeorgia (TRS), a costsharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System ofGeorgia issues a separate stand alone fmancial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
Funding Policy Employees ofthe University who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The University makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2000, the employer contribution rate was 11.29% for covered employees. In addition, the University contributed 2.35% to the TRS on behalf of employees electing to participate in the Regents Retirement Plan. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
- 14- 
 
 SAVANNAHSTATE~ERSITY 
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2000 
 
EXHffiIT"D" 
 
NOTE 5: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
 
Funding Policy 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2000 1999 1998 
 
100% 100% 100% 
 
$ 1,462,846.34 $ 1,462,909.44 $ 1,474,701.16 
 
REGENTS RETIREMENT PLAN 
 
Plan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan established and administered by the Board of Regents of the University System of Georgia, under which it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts. 
 
Funding Policy Member contribution requirements are established by the Board of Trustees of the Teachers Retirement System. Employer contributions are established by statute and may be amended only by the General Assembly ofthe State of Georgia. The employer contributes 8.79% ofthe participating employee's earnable compensation. Employees contribute 5% of their earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times. 
 
The University and the covered employees made the required contributions of$337,901.96 (8.79%) and $192,208.52 (5%), respectively. 
 
GEORGIA DEFINED CONTRIBUTION PLAN 
 
Plan Description Savannah State University participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and parttime and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. 
 
- 15 - 
 
 SAVANNAHSTATEU}ITVERSITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHIBIT "D" 
 
NOTE 5: RETIREMENT PLANS 
GEORGIA DEFINED CONTRIBUTION PLAN 
Benefits A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. If a member has less than $ 3,500.00 credited to hislher account, the Board ofTrustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to hislher account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. 
Contributions and Vesting Member contributions are seven and one-halfpercent (7.5%) ofgross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. 
Total contributions made by employees during fiscal year 2000 amounted to $25,887.49 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. 
NOTE 6: LEAVEPOUCffiS 
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, except as noted in the subsequent paragraph. 
Certain employees who retire with a minimum ofthree months ofunused sick leave are entitled to additional service credit in the Teachers Retirement System of Georgia. 
NOTE 7: CONTINGENCffiS 
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 ofexpenditures which may be disallowed by the grantor cannot be determined at this time although the University expects such amounts, if any, to be immaterial to its overall financial position. 
- 16- 
 
 SAVANNAHSTATE~ERSITY 
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2000 
 
EXHIBIT tiD" 
 
NOTE 7: CONTINGENCffiS 
 
Litigation, claims and assessments filed against Savannah State University (an organizational unit of the Board of Regents of the University System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2000. 
 
NOTE 8: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS 
 
Pursuant to the general powers conferred by the Official Code ofGeorgia Annotated Section 20-331, the Board of Regents ofthe University System of Georgia has established group health and life insurance programs for regular employees ofthe University System ofGeorgia. It is the policy ofthe Board ofRegents to permit employees ofthe University System ofGeorgia eligible for retirement or that become permanently and totally disabled to continue as members of the group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System ofGeorgia and who have at least ten years ofservice with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals. 
 
As ofJune 30, 2000, there were 140 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 2000, Savannah State University recognized as incurred $313,471.88 of expenditures, which was net of $105,009.51 of participant contributions. 
 
NOTE 9: ENROLLMENT 
 
The equivalent full-time student enrollment of Savannah State University was as follows: 
 
Regular Term Fall Semester, 1999 Spring Semester, 2000 
 
1,713 1,781 
 
Average 
 
Summer School, 1999 
 
- 17 - 
 
 SUPPLEMENTARY INFORMATION - 19- 
 
 SAVANNAH STATE UNIVERSITY COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED 
JUNE 30, 2000 
 
ASSETS 
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups 
 
RESIDENT INSTRUCTION 
 
LOTTERY FOR EDUCATION 
 
$ 
 
599,064.71 $ 
 
365,611.22 
 
110,793.18 
 
28,537.82 
 
1,058,764.70 
 
63,875.81 
 
Total Assets 
 
$ 2,162,771.63 $===63;,;;,8;,;,7,;;;;5.=81= 
 
LIABILITIES AND FUND BALANCES 
Liabilities Accounts Payable Salaries Payable Student Deposits Due to Other Fund Groups 
Total Liabilities 
Fund Balances Unrestricted 
Total Liabilities and Fund Balances 
 
$ 1,712,301.54 $ 204,947.00 
 
61,210.61 
 
$ 1,917,248.54 $ 245,523.09 
 
61,210.61 2,665.20 
 
$ 2,162,771.63 $==6=3~,8=7=5.=81== 
 
See notes to the financial statements. 
 
- 20- 
 
 EXHIBIT"E" 
 
AUXILIARY ENTERPRISES 
 
STUDENT ACTIVITIES 
 
TOTAL 
 
$ 145,434.31 $ 808,374.83 
 
$ 
 
360,403.55 
 
8,234.79 
 
734,249.56 
 
520,244.47 
 
631,037.65 
 
28,537.82 
 
1,058,764.70 
 
$ 
 
880,648.02 $ 153,669.10 $ 3,260,964.56 
 
$ 
 
187,537.58 $ 26,821.56 $ 1,987,871.29 
 
204,947.00 
 
99,675.00 
 
99,675.00 
 
97,289.00 
 
97,289.00 
 
$ 
 
384,501.58 $ 26,821.56 $ 2,389,782.29 
 
496,146.44 
 
126,847.54 
 
871,182.27 
 
$ 
 
880,648.02 $ 153,669.10 $ 3,260,964.56 
 
- 21 - 
 
 SAVANNAH STATE UNIVERSITY COMBINING STATEMENT OF CHANGES IN FUND BALANCES 
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 2000 
 
REVENUES AND OTHER ADDITIONS 
Unrestricted Current Fund Revenues Adjustments 
Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided 
Total Revenues and Other Additions 
EXPENDITURES AND OTHER DEDUCTIONS 
Educational and General Expenditures Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the 
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) 
Adjustments Prior Years' Revenues/Accounts Receivable 
Total Expenditures and Other Deductions 
TRANSFERS BETWEEN FUNDS 
Nonmandatory Renewals and Replacements 
Net Increase/(Decrease) for the Year 
FUND BALANCES JULY 1,1999 
FUND BALANCES JUNE 30. 2000 
 
RESIDENT INSTRUCTION 
 
LOTTERY FOR EDUCATION 
 
$ 25,540,770.62 $ 
34,726.37 4,817.43 
$ 25,580,314.42 $ 
 
378,606.00 378,606.00 
 
$ 25,486,312.91 $ 
 
375,940.80 
 
270,893.09 16,732.73 
 
876.20 
 
$ 25,773,938.73 $ 
 
376,817.00 
 
$ 
 
-193,624.31 $ 
 
439,147.40 
 
1,789.00 876.20 
 
$ 
 
245,523.09 $ ==~2::.;,6~6.;.;5.,;;;;20;;,. 
 
See notes to the financial statements. 
 
- 22- 
 
 EXHIBIT"F" 
 
- AUXILIARY ENTERPRISES 
 
STUDENT ACTIVITIES 
 
TOTAL 
 
$ 4,250,484.78 $ 274,229.13 $ 30,444,090.53 
 
2,862.38 2,508.74 
 
946.96 
 
38,535.71 7,326.17 
 
$ 4,255,855.90 $ 275,176.09 $ 30,489,952.41 
 
$ 246,284.62 $ 26,108,538.33 
 
$ 3,987,648.68 
 
3,987,648.68 
 
11,775.28 
 
22.25 
 
271,769.29 28,530.26 
 
$ 3,999,423.96 $ 246,306.87 $ 30.396,486.56 
 
$ _ _-1.:...:8:..:::8.!:,2~47..:.;.4..:.;5::... 
 
$ 
 
68,157.49 $ 
 
427,988.95 
 
$ 28,869.22 $ 
97.978.32 
 
-188,274.45 -94,808.60 965.990.87 
 
$ 
 
496,146.44 $ 126.847.54 $ ======8=7=11::::,1=82=.2=7= 
 
- 23- 
 
 SAVANNAH STATE UNIVERSITY COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, 
AND OTHER CHANGES UNRESTRICTED 
YEAR ENDED JUNE 30, 2000 
 
Net Increase/(Decrease) in Fund Balances 
See notes to the financial statements, 
 
- 24- 
 
$ 
 
-193,624,31 $===1=,7,;:,89=,0...0. = 
 
 EXHIBIT"G" 
 
AUXILIARY ENTERPRISES 
 
STUDENT ACTIVITIES 
 
TOTAL 
 
$ 19,549,956.00 
 
$ 238,424.68 
 
5,844,107.64 
 
241,906.53 
 
630.78 
 
5,290.92 
 
$ 4,178,615.65 
 
4,178,615.65 
 
71,869.13 
 
35,804.45 
 
623,583.01 
 
$ 4,250,484.78 $ 274,229.13 $ 30,444,090.53 
 
$ 12,657,615.54 
 
13,381.72 
 
368,028.70 
 
2,764,957.56 
 
$ 246,284.62 
 
2,099,801.11 
 
4,607,418.38 
 
3,222,267.32 
 
375,068.00 
 
$ 
 
988,044.70 
 
6,891.06 
 
1,351,965.64 
 
193,060.49 
 
1,131,242.97 
 
316,443.82 
 
988,044.70 6,891.06 
1,351,965.64 193,060.49 
1,131,242.97 316,443.82 
 
$ 3,987,648.68 $ 246,284.62 $ 30,096,187.01 
 
$ -188,274.45 -6,404.16 $ 
 
$ 924.71 
 
-188,274.45 17,331.62 
 
$ -194,678.61 $ 
 
-271,769.29 924.71 $ _ _-4;..;4=2,,-,-7..;.;;12=.1.;.;;2;;... 
 
$ 
 
68,157.49 $ 28,869.22 $ ==-..,;;9=4=,8=08:=.6=:0,== 
 
- 25- 
 
 SAVANNAH STATE UNIVE:RSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 
RESIDENT INSTRUCTION YEAR ENDED JUNE 30, 2000 
 
REVENUES 
State Appropriations Other Revenues Retained 
 
CURRENT FUNDS 
 
UNRESTRICTED 
 
RESTRICTED 
 
PLANT FUNDS 
 
RENEWALS AND 
 
UNEXPENDED 
 
REPLACEMENTS 
 
$ 19,171,350.00 
 
$ 
 
6,369,420.62 $_~18~,O~3~8.:.!,1~58~'l.:75~ 
 
1,456,300.00 488,359.09 $ _ _---'1~0.:::;O,<.:.14~0::.::.5~2=_ 
 
$ 25,540,770.62 $ 18,038,158.75 $ 
 
1,944,659.09 $ _ _--e1,.;;,0-'-'O,=-14..;.;0;.;..5;;.:2;.,. 
 
EXPENDITURES 
Personal Services: Education, General and Departmental Services $ Sponsored Operations 
Operating Expenses: Education, General and Departmental Services Sponsored Operations 
Capital Outlay Special Funding Initiative Year 2000 Project 
 
19,639,456.74 $ 
5,136,414.71 
635,534.46 74,907.00 
 
1,841,685.67 
16,196,473.08 
$ 
 
1,942,694.40 $ 
 
93,771.52 
 
Excess of Revenues over Expenditures 
 
$ 25,486,312.91 $ 18,038,158.75 $ 
 
1,942,694.40 $ 
 
$ 
 
54,457.71 $ 
 
0.00 $ 
 
1,964.69 $ 
 
9;:.,:3"",7c.;,7..:..1.:,;:52=6.,3;,;;6._9.;,;;0.0.. 
 
(1) To eliminate tuition waivers not budgeted. 
 
See notes to the financial statements. 
 
- 26- 
 
 SCHEDULE "1" 
 
TOTAL 
 
ADJUSTMENTS (1) 
 
TOTAL (Budget Basis) 
 
BUDGET 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ 20,627,650.00 24,996,078.98 $ 
 
$ 20,627,650.00 $ 20,627,650.00 $ 
 
-374,707.00 
 
24,621,371.98 
 
27 ,645,322.00 
 
0.00 -3,023,950.02 
 
$ 45,623,728.98 $ 
 
-374,707.00 $ 45,249,021.98 $ 48,272,972.00 $ 
 
-3,023,950.02 
 
$ 19,639,456.74 1,841,685.67 
5,136,414.71 $ 16,196,473.08 
2,036,465.92 635,534.46 74,907.00 
 
$ 19,639,456.74 $ 19,730,505.00 $ 
 
1,841,685.67 
 
3,539,708.00 
 
-374,707.00 
 
4,761,707.71 16,196,473.08 
2,036,465.92 635,534.46 74,907.00 
 
4,651,178.00 18,217,053.00 
1,456,300.00 645,648.00 32,580.00 
 
91,048.26 1,698,022.33 
-110,529.71 2,020,579.92 -580,165.92 
10,113.54 -42,327.00 
 
$ 45,560,937.58 $ 
 
-374,707.00 $ 45,186,230.58 $ 48,272,972.00 $ 
 
3,086,741.42 
 
$ 
 
62?91.40 $ 
 
0.00 $ 
 
62,791.40 
 
$ 
 
62.791.40 
 
-27 - 
 
 SAVANNAH STATE UNIVERSITY 
 
SCHEDULE "2" 
 
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET 
 
LOTTERY FOR EDUCATION 
 
YEAR ENDED JUNE 30, 2000 
 
REVENUES State Appropriations 
 
CURRENT FUNDS UNRESTRICTED 
 
BUDGET 
 
VARIANCE FAVORABLE (UNFAVORABLE) 
 
$ 
 
378,606.00 $ 378,606.00 $ 
 
--.-,;o;.;.;.o~O_ 
 
EXPENDITURES 
 
Equipment, Technology and Construction 
 
Trust Fund 
 
$ 
 
Special Funding Initiatives 
 
265,940.80 $ 
110,000.00 
 
268.606.00 $ 
110,000.00 
 
2.665.20 0.00 
 
$ 
 
375.940.80 $ 378.606.00 $ _ _-:---=2;.:.:.6:..;;:,65,;;.;.;;,;20;.,.. 
 
Excess of Revenues over Expenditures 
 
$ ===".;2:1::.6=6=:5.=20=. 
 
$ ====2:!:.6:=65=.=20= 
 
See notes to the financial statements. 
 
- 29- 
 
 SAVANNAH STATE UNIVERSITY CHANGES IN INVESTMENT IN PLANT 
YEAR ENDED JUNE 30. 2000 
 
Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections 
 
ADDITIONS 
 
BALANCE JULY 1,1999 
 
CURRENT FUNDS 
 
UNRESTRICTED 
 
RESTRICTED 
 
$ 
 
325,975.16 
 
44,775,694.48 
 
7,725,366.94 
 
10,449,035.83 $ 
 
1,378,639.26 $ 
 
517,610.81 
 
4,699,911.89 
 
243,376.30 
 
$ 67,975,984.30 $ 
 
1,622,015.56 $ =====51"",7=,6=:10=..8..1. = 
 
See notes to the financial statements. 
 
- 30- 
 
 SCHEDULE "3" 
 
PLANT FUND UNEXPENDED 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
DEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS 
 
BALANCE JUNE 30, 2000 
 
$ 
 
325,975.16 
 
$ 1,699,041.08 $ 
 
3,378,089.44 $ 
 
1,259,828.66 
 
48,592,996.34 
 
238,148.32 
 
7,963,515.26 
 
69,137.19 
 
12,276,148.71 
 
6,000.00 
 
4,937,288.19 
 
$ 1,937,189.40 $ 
 
3,378,089.44 $ 
 
1,334,965.85 $ ==74=,0=9=5=,9=23=.6=6= 
 
- 31 - 
 
 SAVANNAH STATE UNIVERSITY SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS 
JUNE 30, 2000 
 
NET INVESTMENT IN PLANT Investment in Plant Facilities 
RESTRICTED Deficit 
UNRESTRICTED Designated For Bus Replacement Reserve For Intercollegiate Athletics For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures For Uncollectible Accounts Surplus Regular Lottery for Education 
 
RESIDENT INSTRUCTION 
 
CURRENT FUNDS 
 
UNRESTRICTED 
 
LOTTERY FOR 
 
AUXILIARY 
 
EDUCATION 
 
ENTERPRISES 
 
STUDENT ACTIVITIES 
 
$ 
 
98,954,26 
 
$ 
 
-89,265,55 
 
520,244.47 
 
41,560.42 
 
21,997.14 $ 43,170.38 
 
126,502.54 345.00 
 
105,008.41 
 
$ 
 
$ 
 
245,523.09 $ 
 
2,665.20 2,665.20 $ 
 
496,146.44 $ 
 
126,847.54 
 
$ 
 
245,523.09 $ 
 
2,665.20 $ 
 
496,146.44 $ 
 
126,847.54 
 
See notes to the financial statements. 
 
- 32 
 
 SCHEDULE "4" 
 
RESTRICTED 
 
UNEXPENDED 
 
PLANT FUNDS RENEWALS AND REPLACEMENTS 
 
INVESTMENT IN PLANT 
 
TOTAL 
 
$ 74,095,923.66 $ 74,095,923.66 
 
$ -161,698.24 
 
$ _ _-1:.,::6c.:.1,;::;6::::,:98"".2::.4:.. 
 
$ 
 
48,950.58 
 
784,042.00 
 
$ 
 
48,950.58 
 
-89,265.55 
 
619,198.73 
 
784,042.00 
 
148,499.68 
 
85,075.80 
 
$ 
 
1,964.69 
 
$ 
 
1,964.69 $ _ _---=:83::2::.::,90.:;92::.:..::::,:58:.... 
 
106,973.10 2,665.20 
$ 1,706,139.54 
 
$ -161,698.24 $ 
 
1,964.69 $ 
 
832,992.58 $ 74,095,923.66 $ 75,640,364.96 
 
- 33- 
 
 SAVANNAH STATE UNIVERSITY RECONCILIATION OF SALARIES AND TRAVEL 
YEAR ENDED JUNE 30, 2000 
 
SCHEDULE "5" 
 
Totals per Annual Supplement 
 
Accruals June 30, 1999 June 30, 2000 
 
Adjustments 
 
Shared Services on Jointly Staffed Personnel 
 
Armstrong Atlantic State University 
 
Eason, 
 
Thomas 
 
Richardson, Joseph 
 
Georgia Southern University 
 
Davies, 
 
David 
 
Fort Valley State University 
 
Lamhut, 
 
Lester 
 
SALARIES 
$ 17,196,936.23 $ 
 
TRAVEL 413,584.57 
 
-5,637.71 204,947.00 
 
-12,016.00 -7,012.70 -850.00 -1,345.63 
$ 17,375,021.19 $ =====41=3:;::,5:=84=.=57= 
 
See notes to the financial statements. 
 
- 34- 
 
 SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 SAVANNAH STATE UNNERSITY AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
548-96-01 FS-548-98-01 FS-548-98-02 FS-548-98-03 FS-548-98-04 FS-548-98-05 FS-548-98-06 FS-548-98-07 FS-548-98-08 FS-548-99-01 FS-548-99-02 FS-548-99-03 FS-548-99-04 FS-548-99-05 FS-548-99-06 FS-548-99-07 FS-548-99-08 FS-548-99-09 FS-548-99-10 
 
Further Action Not Warranted Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses Further Action Not Warranted Partially Resolved - See Corrective Action/Responses Further Action Not Warranted Previously Reported Corrective Action Implemented Further Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Partially Resolved - See Corrective Actio:r1JResponses Unresolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented 
 
CORRECTIVE ACTIONIRESPONSES 
 
EXPENDITURESILIABTI..,ITIESIDISBURSEMENTS Deficit Cash Balance Finding Control Number: FS-548-98-02 
 
The NROTC Program is extremely important to the Institution. Equally important is the identification of funds to reduce the deficit systematically. Every effort is made to ensure funds are identified for any new awards. The deficit was decreased during the period under review. Management has established a goal of eliminating the deficit over a five-year period. 
 
FUND BALANCE Deficit to be Funded from Subsequent Years' Operation Finding Control Number: FS-548-98-04 
 
Aggressive measures were taken to ensure the deficit did not increase during the year under review. In fact, the deficit was greatly reduced this year. Management fully expects this trend to continue. 
 
- 1- 
 
 SAVANNAHSTATE~ERSITY 
AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRlOR YEAR FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 
PRlOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
CORRECTIVE ACTIONIRESPONSES 
EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Monitor Accounts Payable Finding Control Number: FS-548-99-02 
During the last quarter ofthe fiscal year, a Supervisor ofAccounts Payable was hired. She worked diligently at removing and canceling remaining balances on payables. Journal entries were made where appropriate. 
EMPLOYEE COMPENSATION Inadequate Payroll Procedures . Finding Control Number: FS-548-99-03 
1) Effective 7/1/2000, an identified coding in the computer system corrected this finding. We will continue to monitor this process. 
2) These discrepancies will be immediately corrected. 3) A procedure has been established to verify the beginning and ending dates of leave 
records. 4) Procedures are in place to validate/support the processing of compensation. 5) Procedures have been implemented to process only those time sheets with the 
signatures of the employee and the supervisor. 6) The University has stressed the importance of safeguarding confidential documents. 
This is believed to be an isolated incident and procedures have been implemented to correct this problem. 7) A receivable was set up for the employee, but has not been collected. 
GENERAL LEDGER Balance Sheet Accounts Not Supported by Detail Listings Finding Control Number: FS-548-99-04 
During the year under review, efforts were made by the University in conjunction with the Board of Regents staff members 'to reconcile the Banner Clearing Accounts. Reports are generated out of the Banner Student System and the CUPA system for purposes of reconciliation. An excel spreadsheet is prepared for the reconciliation. 
-2- 
 
 SAVANNAB STATE UNNERSITY AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
CORRECTIVE ACTIONIRESPONSES 
GENERAL LEDGER Deficiencies in Accounting Procedures Finding Control Number: FS-548-99-05 
Over the year, the University worked toward correcting the deficiencies in accounting procedures. 
1) Accounts Payable balances were cancelled by journal entry where appropriate. 2) Strict attention was given to the recognition of revenue in the correct accounts. 3) An accounts receivable was set up for the garnishment of$1,054.50. Garnishments 
have been honored on time. 4) A receivable was set up and requested from the Georgia Department ofRevenue for 
the overpayment of sales taxes. Accounting procedures have been implemented to correct the problem. 5) Salary and travel accounts were reconciled. 6) Expenditure vouchers were placed in locked cabinets and retrieved through a signout process. 
GENERAL LEDGER Failure to Correctly Maintain Payroll Operation Agency Funds Finding Control Number: FS-548-99-06 
Auditors from the Board of Regents were brought on site to assist in the reconciliation process and reconciling items were identified. The University will assign and train a staff member to reconcile the Agency Accounts on a monthly basis. 
GENERAL LEDGER Inadequate Documentation of Journal Entries Finding Control Number: FS-548-99-08 
The University is still experiencing a problem with missing j ournal entries. To resolve this finding, we are in the process of ordering notebooks to house the journal entries. An employee will be required to sign out the entire notebook instead of individual entries. 
-3- 
 
 SAVANNAHSTATE~ERSITY 
AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
CORRECTIVE ACTIONIRESPONSES 
 
GENERAL LEDGER Inadequacies in Travel Advances/Prepaid Travel Finding Control Number: FS-548-99-09 
 
Procedures have been established to monitor Travel Advances and Prepaid Travel accounts on a monthly basis. Travel Regulations have been revised and implemented to reduce the need for advances by employees unless traveling with students. Employees sign an authorization form that allows for a reduction in payroll for outstanding advances. Letters were also sent to employees notifying them of outstanding advances. 
 
Letters were sent to employees by the Accounts Payable staffnotifying them ofour intent to cancel outstanding advances unless expenses were claimed by certain dates. 
 
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FA-548-98-02 FA-548-98-03 FA-548-98-04 FA-548-98-05 FA-548-98-07 FA-548-99-01 FA-548-99-02 FA-548-99-03 FA-548-99-04 FA-548-99-05 FA-548-99-06 FA-548-99-07 FA-548-99-08 FA-548-99-09 FA-548-99-10 
 
Unresolved - See Corrective ActionlResponses Further Action Not Warranted Unresolved - See Corrective ActionlResponses Partially Resolved - See Corrective ActionlResponses Unresolved - See Corrective ActionlResponses Unresolved - See Corrective ActionlResponses Unresolved - See Corrective ActionlResponses Unresolved - See Corrective ActionlResponses Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses 
 
-4- 
 
 SAVANNAH STATE UNIVERSITY AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2000 
PRIOR YEAR FEDERAL AWARD FINDINGS AND OUESTIONED COSTS 
CORRECTIVE ACTIONIRESPONSES 
ALLOWABLE COSTS/COST PRINCIPLES Employee Compensation Deficiencies Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-02 
Title III and other Federal funded programs are required to submit time and effort reports on a monthly basis. Individuals responsible for administering these accounts will: 
1) Verify the accuracy of the report. 2) Make sure that the person preparing the r~port as well as his/her supervisor signs them. 3) Ensure that the percent of effort reflected in the report supports the actual work 
performed. 
EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-04 
There was no report from the Department of Education. The finding is unresolved and questioned. 
PERIOD OF AVAILABILITY Unallowable Expenditures Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-05 
Procedures have been established to monitor grant accounts to ensure that funds are spent within the specified time period ofthe grant and to return any unspent funds to the grantor. in a timely fashion. Departments will be required to obtain authorization from funding agencies and carry-over unspent amounts throughout the grant award budget period. 
REPORTING Final Performance Report Prepared with Budget Figures Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-07 
This was a deviation from past practices as a result of turnover in personnel. Future reporting will resume the historical practice ofreflecting actual expenditures. 
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 SAVANNAHSTATEUN[VERSITY AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
CORRECTIVE ACTIONIRESPONSES 
ALLOWABLE COSTS/COST PRINCIPLES Employee Compensation Deficiencies Higher Education - Institutional Aid (CFDA 84.031) Research and Development Cluster Programs Finding Control Number: FA-548-99-01 
Personnel in the Department of Grants and Contracts has been made aware of OMB Circular 21 as it pertains to time and effort reports. Procedures are now in place to make sure that time and effort reports are submitted for all Federal programs on a monthly basis. The Office of Contracts and Grants will verify the accuracy ofthe report. The office will also ascertain that the percent reflected in its report supports its actual work performed. 
DAVIS-BACON ACT Payment of Prevailing Wage Rates not Monitored Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-99-02 
Employees responsible for administering the Federal programs have been made aware of the requirements ofthe Davis-Bacon Act. Future contractual obligations involving Federal funds will be monitored for compliance. 
ELIGIBILITY Overpayment of Student Financial Aid Weaknesses in Internal Control Structure Student Financial Aid Cluster Program Finding Control Number: FA-548-99-03 
Final resolution is contingent upon a response from the United States Department of Education. The Institution has submitted requested information to the Department per its November 20, 2000 letter. 
EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation ofProperty Management System Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-99-05 
There was no report from the Department of Education. The finding is unresolved and questioned. 
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 SAVANNAHSTATE~ERSITY 
AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTIONIRESPONSES REPQRTING Expenditures in Excess of Authorization Federal Pell Grant Program (CFDA 84.063) Finding Control Number: FA-548-99-07 The Office of Contracts and Grants have been working closely with the Office ofFinancial Aid to ensure that the University's records and SPS Summary report reconcile. A remarkable improvement has been made this year. SPECIAL TEST AND PROVISIONS Failure to Disclose Federal Funding in Public Announcement Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-99-1 0 The bid packets contained an announcement stating" ... this project is fully Federally funded" as opposed to "this project is 100% Federally funded in the amount of$ ... " Future notices have been revised to read" ... This project is 100% financed with Federal funds as part of a $1,000,000 Title ill Program." 
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 SECTIONID CURRENT YEAR FINDINGS AND QUESTIONED COSTS 
 
 SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
CASH AND CASH EQUNALENTS REVENUESIRECENABLESIRECEIPTS EXPENDITURESILIABILITIESIDISBURSEMENTS Inadequate Separation of Duties Finding Control Number: FS-548-00-0l 
Our examination ofthe internal accounting control procedures revealed that the University did not provide for adequate separation of duties in the performance ofthe following accounting functions and related procedures: 
l) Cash custody and receipting functions were not separated from cash disbursement and general ledger functions. 
2) Cash collection functions and maintenance of detail accounts receivables records were not separated from general ledger functions. 
3) Deposit preparation functions were not separated from cash receipts functions. 
4) Banner receivable and accounts receivable functions were not separated from the check disbursement functions. 
5) Miscellaneous invoice preparation and accounts receivable functions were not separated from cash receipts and general ledger functions. 
6) Accounts payable and disbursement functions were not separated from general ledger functions. 
7) Check signing functions were not separated from voucher preparation and approval for payment functions. 
These conditions were the result of management not assigning employee duties in a manner to adequately safeguard assets and/or promote efficiency and accuracy in key accounting functions. The University should review the accounting procedures in place, design proc'edures that would enhance segregation of duties relative to the above control categories and implement procedures to strengthen the internal controls over the accounting functions. 
REVENUESIRECENABLESIRECEIPTS Students Accounts Receivable Not Supported by Financial Aid Finding Control Number: FS-548-00-02 
At June 30, 2000, Savannah State University had $295,050.26 in student accounts receivable which were over one year old and not supported by approved financial aid. There is no provision in the 
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 SAVANNAB STATE UNNERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2000 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
REVENUES/RECEIVABLES/RECEIPTS Students Accounts Receivable Not Supported by Financial Aid Finding Control Number: FS-548-00-02 
policies of the Board of Regents for defennents 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 defennent without having approved financial aid. It is recommended that legal means be used to collect all student accounts receivable, if necessary. 
EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Monitor Accounts Payable Finding Control Number: FS-548-00-03 
An examination of the accounts payable subsidiary records was perfonned to test transactions for validity and accuracy. The following deficiencies related to accounts payable were disclosed: 
I) Payments ofaccounts payable were incorrectly charged to expenditure accounts rather than as liquidation of accounts payable. 
2) Residual accounts payable balances were not transferred to the University's surplus account after final payment of all associated invoices. 
These deficiencies occurred because of the University's failure to have procedures in place to adequately monitor accounts payable. The University should develop and implement policies and procedures to ensure that accounts payable are adequately monitored and properly liquidated on a timely basis. 
EMPLOYEE COMPENSATION Inadequate Payroll Procedures Finding Control Number: FS-548-00-04 
For the year under review, our examination of employee compensation records for thirty-four employees revealed the following deficiencies: 
1) A systematic computer programming error allowed all ten-month employees to accrue additional leave during the summer months that they were not eligible to receive. According to an analysis presented by the University, sick leave for Summer 1999 was overstated by 5,217.94 hours. According to the University's policy, ten-month employees are not eligible to earn leave over the summer months. 
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 SAVANNAHSTATEUNNERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
EMPLOYEE COMPENSATION Inadequate Payroll Procedures Finding Control Number: FS-548-00-04 
2) A review of the vacation and sick leave records revealed that: 
a) Eight employees had leave slips in their personnel files but the leave was not posted to the leave report. 
b) Fourteen employees were charged for leave taken, however, no documentation was available to indicate leave taken. 
c) One employee requested vacation leave but sick leave was deducted from the report. 
3) Personnel files did not contain documentation to support summer salaries or stipends. 
4) A review of two employees weekly time sheets for twelve months revealed that: 
a) eight time sheets were signed by someone designated by the supervisor. 
b) fifteen time sheets lacked prior approval for overtime. 
According to the University's sick leave policy, overtime must have prior approval by the Vice President of Business and Finance before being worked. 
These deficiencies were the result of the University's failure to adhere to established policies and procedures concerning accounting for employee compensation. The University should establish internal controls to ensure the above deficiencies are corrected. The University should also determine the excessive sick leave hours granted to ten-month employees and make the necessary corrections. 
GENERAL LEDGER Balance Sheet Accounts Not Supported by Detail Listings Finding Control Number: FS-548-00-05 
For the year under review, the University failed to reconcile the Banner System to the general ledger and could not provide adequate supporting documentation for balance sheet clearing accounts at June 30, 2000 comprised of an accounts receivable balance of $79,482.77, an accounts payable balance of-$380.85, a financial aid balance of-$53,601.59, a returned check balance of$119.10 and an unapplied cash balance of -$206,756.30. Detailed subsidiary records are necessary to support these amounts recorded on the accounting records and financial statements. 
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 SAVANNAHSTATE~ERSITY 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
GENERAL LEDGER Balance Sheet Accounts Not Supported by Detail Listings Finding Control Number: FS-548-00-05 
These account balances resulted primarily from interfaces between the University's Banner Student Registration System and the University's accounting system. Management was unable to produce subsidiary records from the Banner Student Registration System to support the balances recorded on the accounting system's general ledger. 
The University should investigate the balances in the Balance Sheet clearing accounts, determine the cause and make the appropriate adjustments to the accounting records to ensure that assets and liabilities are accurately represented on the accounting records. Procedures should be implemented to ensure that detailed subsidiary records are generated from the Banner Student Registration System that support the balances on the general ledger. 
GENERAL LEDGER Deficiencies in Accounting Procedures Finding Control Number: FS-548-00-06 
Our examination and testing for the year under review revealed the following deficiencies in accounting for various financial transactions by Savannah State University: 
1) Several exceptions were noted in the expenditure sample of seventy-five vouchers. One voucher could not be located, two vouchers did not have adequate documentation and four vouchers were charged to the incorrect account. 
2) Management incorrectly calculated one month's sales tax liability resulting in an overpayment of$4,476.58. 
3) Management failed to receipt and deposit cash and checks in a timely manner. Cash and checks in the amount of $22,163.61 were found in the cashier's office that had not been receipted. Dates on documentation and checks revealed that the cash and checks had been received up to ninety days prior to being found. 
4) Restricted Fund revenues were not recognized in an amount equivalent to the Restricted Fund expenditures. Variances were identified and adjustments were made. 
These deficiencies were the result of management's failure to establish internal control procedures which are necessary to adequately safeguard the University's assets. The University should implement appropriate procedures and controls to ensure that expenditure vouchers are maintained with adequate documentation, payments for sales taxes are correctly made, cash and checks are receipted in a timely manner and revenue is properly recorded. 
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 SAVANNAHSTATE~ERSITY 
SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2000 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
GENERAL LEDGER Failure to Correctly Maintain Payroll Agency Funds Finding Control Number: FS-548-00-07 
During the year under review, management failed to correctly maintain the payroll deductions and employer liability accounts as follows: 
1) Variances existed between monthly receipts and disbursement for many ofthe payroll agency accounts. Management failed to perform monthly reconciliations and to identify variances. 
2) The employee payroll deduction (health, life and dental) accounts had a net deficit of $111,049.14. Also, the U. S. savings bond, garnishments and retirement account had deficit balances totaling $14,546.27. 
3) The employer liability (health and life) accounts had a net balance of $216,544.11 which management could not determine the proper disposition. 
The deficiencies were the result of the management's failure to properly monitor and reconcile the payroll agency funds. Management should implement policies and procedures to ensure payroll changes and adjustments are made timely and monthly reconciliation's ofreceipts and disbursements are performed. 
GENERAL LEDGER Inadequate Documentation of Journal Entries Finding Control Number: FS-548-00-08 
For the year under review, numerous journal entries lacked adequate documentation. This situation occurred because ofthe University's failure to ensure that journal entries were properly documented and maintained. The University should develop procedures to ensure that all journal entry transactions are properly maintained and supported by adequate documentation. 
GENERAL LEDGER Dormant Restricted Funds Finding Control Number: FS-548-00-09 
For the year under review, eleven restricted fund proj ect~ had no activity. It was noted that the grant period had ended on all eleven projects; however, fund balances remained fot these projects at June 30, 2000. 
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 SAVANNAHSTATEU}ITVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30,2000 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
GENERAL LEDGER Donnant Restricted Funds Finding Control Number: FS-548-00-09 
These donnant accounts are a result ofmanagement's failure to monitor the activity occurring in the Restricted Funds and failure to return excess funds promptly to the grantor when the project is complete. The University should implement procedures that will provide proper monitoring ofthe Restricted Fund and grant periods to ensure that funds are returned to the grantor when the project is complete. The University should contact the grantors to detennine ifthe donnant account funds are to be returned. 
GENERAL LEDGER Failure to Monitor Travel Advances Finding Control Number: FS-548-00-10 
For the year under review, an examination of employee travel advances revealed that management failed to monitor employee travel advances and clear outstanding balances in a timely manner. These deficiencies occurred because of management's disregard of the University's travel policy which states "advances must be cleared within three days subsequent to returning to campus or the conclusion ofthe event." The University should follow policies and procedures to ensure that travel advances are monitored and cleared in a timely manner. 
GENERAL LEDGER Agency Fund Deficits and Lack ofPurpose Statements Finding Control Number: FS-548-00-11 
At June 30, 2000, the University had twenty-two agency funds that had deficit balances totaling $89,737.88. In addition, the University failed to provide purpose statements for six of the new individual agency funds. 
The deficiencies were the result ofthe University disbursing funds prior to or in excess ofthe receipt of funds and from management's failure to establish agency funds in accordance with Board of Regents policies and procedures. The University should implement procedures to ensure that all funds are received prior to the disbursement and new accounts are supported by required purpose statements. The University should seek reimbursement for the deficit balances from the organizations involved. 
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 SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
FUND EQUITIES Deficit to be Funded from Subsequent Years' Operations Finding Control Number: FS-548-00-12 
At June 30, 2000, the University's Restricted Funds had an overall deficit balance of$161,698.24. This deficit is a result of the Universities lack of sufficient funds to meet obligations on a current basis. The Board ofRegents' Policy Manual Section 703.02 states that "when any situation develops which would create a deficit at an institution, the president shall take the appropriate corrective action". 
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
ALLOWABLE COSTS/COST PRINCIPLES Time and Effort Report Deficiencies Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-00-01 
For the year under review, our examination of forty-three time and effort reports for five employees revealed the following deficiencies: 
1) One report lacked the employee's signature. 
2) One report was signed more than twelve months after the period. 
3) Three reports were signed more than ninety days after the period, 
4) Six reports lacked date of approval. 
5) Seven reports lacked approval. 
OMB Circular A-21, requires that activity reports or other payroll documents used as original documentation for payroll and payroll charges be prepared and signed by the employee and the responsible official when salaries are charged to a Federal program. 
The above conditions occurred because ofmanagement's failure to ensure all time and effort reports were properly prepared by employees. Management should ensure that complete time and effort reports are prepared by all employees whose salaries are charged to a Federal program. Time and effort reports should contain all required elements so that management can rely on the reports to support accounting and payroll records. 
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 SAVANNAHSTATE~ERSITY 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
DAVIS-BACON ACT Payment of Prevailing Wage Rates Not Monitored Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-00-02 
For the year under review, it was noted that the University did not monitor the wages paid by one contractor for working on a Title III construction project. Federal regulations, as reflected in Appendix A to 34 CFR 74, require that all laborers employed by the contractor who work on construction contracts in excess of $2,000.00 financed by Federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates). 
This condition resulted from management's failure to ensure that all individuals at the University were aware of their responsibilities regarding the Davis-Bacon Act and requirements ofthe DavisBacon Act were being met. The University should take steps to ensure that wages paid for construction projects financed with Federal funds are monitored and are in compliance with the provisions of the Davis-Bacon Act. 
ELIGIBllJTY Overpayment of Student Financial Aid Weaknesses in Internal Control Structure Student Financial Aid Cluster Program Questioned Cost: $8,105.39 Finding Control Number: FA-548-00-03 
A sample of forty student files was selected to determine if financial aid was properly calculated, awarded and disbursed to eligible students. The items sampled contained financial aid disbursements of$623,884.19 out ofa population of$13,963,059.99. Our examination revealed that four students received overpayments totaling $8,105.39 as shown below. 
(1) Two students were disbursed a total of$5,386.00 in excess ofneed, based on estimated cost of attendance. Title IV of the Higher Education Act of 1986 states that an institution must coordinate Title IV programs with other Federal and non-Federal student financial aid programs it administers and must establish controls to preclude the awarding ofassistance in excess of a student's financial need. The errors were caused by management's failure to review awards before disbursements were made. 
(2) One student received a refund in excess of the correct amount by $1,155.39. This error resulted from management's failure to review refund calculations prior to disbursement of funds. 
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 SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
ELIGIBILITY Overpayment of Student Financial Aid Weaknesses in Internal Control Structure Student Financial Aid Cluster Program Questioned Cost: $8,105.39 Finding Control Number: FA-548-00-03 
(3) One student was disbursed $1,564.00 ofFederal Work-Study Program funds in excess ofthe approved grant award. This error was caused by management's failure to monitor the student's disbursements. 
A projection of these errors to the total population resulted in likely questioned cost in excess of $10,000.00. 
The University should develop and implement policies and procedures to ensure adequate controls over the eligibility process are in place and that student financial aid awards are properly reviewed and approved prior to disbursement. Also, the University should develop and implement a monitoring process to ensure that the controls are being followed. The University should contact the U. S. Department of Education regarding resolution of these questioned costs. 
Federal Programs/Awards Affected: 
Student Financial Aid Cluster Programs U. S. Department of Education Federal Supplemental Education Opportunity Grant (CFDA 84.007) Federal Work-Study Program (CFDA 84.033) Federal Perkins Loan Program (CFDA 84.038) Federal Pell Grant Program (CFDA 84.063) Federal Direct Student Loan Program (CFDA 84.268) 
EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Higher Education - Institutional Aid (CFDA 84.031) Questioned Costs: $10,030.12 Finding Control Number: FA-548-00-04 
For the year under review, our examination included a review of the internal accounting controls utilized by the University in maintaining their property management system and testing the system for compliance with Federal laws and regulations. The following conditions existed: 
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 SAVANNAHSTATE~ERSITY 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Higher Education - Institutional Aid (CFDA 84.031) Questioned Costs: $10,030.12 Finding Control Number: FA-548-00-04 
1. The University failed to maintain a property management system that identified Federal equipment purchases by Federal grant award number. This deficiency is system-wide and affects all Federal awards. 
2. The University was unable to ensure appropriate Federal agencies were notified when disposing of equipment due to inadequacies in identifying equipment by fund source and grant award number in the property management records. 
3. The Title III Equipment Inventory Report, as presented for audit purposes by the University's Title III Office, contained numerous errors and omissions. The Report listed numerous incorrect locations; incorrect, missing or duplicated University decal numbers; and various omissions ofFederal Share percentage, dates ofpurchase, purchase prices, and manufacturer's serial numbers. 
4. A sample of 53 equipment items was examined. This examination revealed that two items could not be found. One scanner, purchased in March 1997 for $835.00, could not be located. Also, one Tangent computer could not be located. The computer was acquired in July 1995 for $3,165.00 
5. One printer, purchased from Federal funds in June 1999 at a cost of$I,298.12, remained in its original shipping container. This condition was also noted in the audit report for June 30, 1999. 
6. Two computers, totaling $4,732.00, were not being utilized by the Title III program for which they were acquired. This deficiency was noted in the audit report for June 30, 1998 and June 30, 1999. University personnel assert that the computers were being used in the Title III program as required. However, our examination noted that the computers were not being used in the Title III program as alleged by the University. 
The University failed to have internal controls in place and operational to ensure compliance with Federal requirements for equipment as set forth in 34 CFR 74 and OMB Circular A-11O, Subpart C.34. The University should establish policies and procedures to ensure that equipment purchases are identified by fund sources and grant award numbers, property records are maintained in accordance with Federal requirements and physical inventories are conducted. Also, the University should establish policies and procedures to ensure equipment purchases are utilized for the program 
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 SAVANNAH STATE UNNERSITY SCHEDULE OF FINDINGS AND OUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Higher Education - Institutional Aid (CFDA 84.031) Questioned Costs: $10,030.12 Finding Control Number: FA-548-00-04 
acquiring the equipment. The U. S. Department of Education should review these matters and determine appropriate action by the University to resolve this finding. 
PERIOD OF AVAILABILITY Deficit Fund Balances Student Financial Aid Cluster Program Finding Control Number: FA-548-00-05 
At June 30, 2000, the University's Fiscal Year 1999 Federal Pell Grant Program had a deficit fund balance of$120,189.79 and the Fiscal Year 1998 Federal Direct Loan Program had a deficit fund balance of$18,592.96. These deficit fund balances are a result ofmanagement's failureto establish controls to ensure that funds are not disbursed without proper authorization. 
The University should implement procedures to ensure that funds are available to cover valid expenditures. In order to be reimbursed for these excess expenditures, the University, in conformity with Federal statutes, must certify the validity of these payments to the U. S. Department of Education. 
Federal Programs/Awards Affected: 
Student Financial Aid Cluster Programs U. S. Department of Education Federal Pell Grant Program (CFDA 84.063) Federal Direct Student Loan Program (CFDA 84.268) 
SPECIAL TESTS AND PROVISIONS Deficiencies in Student Financial Aid Refund Process. Student Financial Aid Cluster Program Questioned Cost: $2,770.17 Finding Control Number: FA-548-00-06 
Our examination of the University's student financial aid refund process revealed the following deficiencies: 
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 SAVANNAHSTATE~ERSITY 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
SPECIAL TESTS AND PROVISIONS Deficiencies in Student Financial Aid Refund Process. Student Financial Aid Cluster Program Questioned Cost: $2,770.17 Finding Control Number: FA-548-00-06 
(1) Refund amounts were not applied to the appropriate student financial aid programs for four out of eight students selected for refund testing. Three students were issued refund checks rather than management correctly applying the refunds to the Federal Direct Student Loan Program resulting in questioned cost of $1 ,800.17. One student was not disbursed a refund and management failed to charge back the $970.00 refund to a Federal Direct Student Loan Program. 
(2) The University does not calculate a refund for students who do not officially withdraw from the University nor does the University maintain records to ascertain if a student has dropped out and a refund is due. This deficiency was caused by management's failure to implement procedures to determine ira refund of institutional charges is required in accordance with Federal Regulation 34 CFR 668.22. 
The projection of questioned cost could not be readily determined. However, the likely questioned costs are believed to exceed $10,000.00. 
The University should implement procedures to ensure that refunds are correctly calculated and applied to the appropriate accounts in a timely manner. Refunds should be calculated for all "unofficial" withdrawals. The University should contact the U. S. Department of Education regarding resolution of this finding. 
Federal Programs/Awards Affected: 
Student Financial Aid Cluster Programs U. S. Department of Education Federal Supplemental Education Opportunity Grant (CFDA 84.007) Federal Work-Study Program (CFDA 84.033) Federal Pell Grant Program (CFDA 84.063) Federal Direct Student Loan Program (CFDA 84.268) 
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 SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SPECIAL TEST AND PROVISIONS Failure to Disclose Federal Funding in Public Announcement Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-00-07 During the year under review, the University issued one bid solicitation that did not disclose the dollar amount ofFederal funds for the project and the percentage ofthe total cost ofthe project to be financed with Federal funds as required by Attachment S ofthe Federal Grant Award. Management should review Attachment S of the Federal Grant Award and comply with the conditions under Public Law 105-78, Sec. 508. 
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