Review report, state of Georgia, Skidaway Institute of Oceanography, 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 SKIDAWAY INSTITUTE OF OCEANOGRAPHY SAVANNAH, GEORGIA YEAR ENDED JUNE 30, 1994

SKIDAWAY INSTITUTE OF OCEANOGRAPHY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALL FUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

ALL FUND GROUPS

4

C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

6

D NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

E COMBINING BALANCE SHEET

CURRENT FUNDS- UNRESTRICTED

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

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

OTHER ORGANIZED ACTIVITIES

22

2

LOTTERY FOR EDUCATION

24

3 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

25

4 CASH AND CASH EQUIVALENTS

26

5 ACCOUNTS RECEIVABLE

27

6 CHANGES IN INVESTMENT IN PLANT

29

7 SCHEDULE OF FUND BALANCES

CURRENTFUNDSANDPLANTFUNDS

30

SKIDAWAY INSTITUTE OF OCEANOGRAPHY -TABLE OF CONTENTS-

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

8 SCHEDULE OF REVENUES

CURRENT FUNDS

32

SCHEDULES OF EXPENDITURES aY OBJECT

9

CURRENT FUNDS

33

10

PLANT FUNDS

34

11 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

35

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

~epartment of J\uhiti
254 WASHINGTON STREET, SW. ROOM 214
J\thmht, Qi)eorgia 30334-8400
September 29, 1994

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

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Board ofRegents ofthe University System of Georgia
and Honorable Herbert L. Windom, Director Skidaway Institute of Oceanography
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 Skidaway Institute of Oceanography as of and 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 of the management of Skidaway Institute of Oceanography.
A review consists principally of inquiries of Institute personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, with the exception of the matters described in the fourth and fifth paragraphs, we are not aware 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 Institute 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, encumbran,ces 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.

94ARL-57

As described in Note 1 to the financial statements, the Institute 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 of expressing 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 11) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements, and except for the effects of the matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto.
Respectfully submitted,
L~C
Claude L. Vickers State Auditor
CLV:gp 94ARL-57

FINANCIAL STATEMENTS - 1-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30. 1994

ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Investment in Plant
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities Cash Overdraft Accounts Payable Deferred Revenue Rents
Total Liabilities
Fund Balances Net Investment in Plant Restricted Unrestricted
Total Fund Balances
Total Liabilities and Fund Balances

CURRENT FUNDS UNRESTRICTED RESTRICTED
$ 314,248.26 48,407.32 $ 369,090.16 117 .60 5,747.37
$ 368,520.55$ 369,090.16
============= =============
$ 220,380.35 $ 362,696.20
475.00
------------- -------------
$ 363,171.20 $ 220,3B0.35
------------- -------------
$ 148,709.81 $ 5,349.35
------------- -------------
$ 5,349.35 $ 148,709.Bl
------------- -------------
$ 368,520.55 $ 369,090.16
"~=========== =============

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.
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EXHIBIT "A"

UNEXPENDED

PLANT FUNDS
RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$ 257,213.76$ 14,268.15

679.73 $
$ 7,164,317.34

$ 572,141.75

709.31

432,474.94

117. 60

5,747.37

7,164,317.34

$ 271,481.91 $

679.73 $7,164,317.34$

709.31 $ 8,174,799.00

========-===- ============= ============= ============= =============

$ 265,018.60 $ 265,018.60

$

6,463.31 $

$

6,463.31 $

$

709.31 $ 221,089.66

627,714.80

475.00
------------- -------------

$

709.31 $ 849,279.46

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

$ 7,164,317.34 679.73

$ 7,164,317.34 148,709.81 12,492.39

679.73 $ 7,164,317.34

$ 7,325,519.54

$ 271,481.91 $

679.73 $ 7,164,317.34 $

709.31 $ 8,174,799.00

- 3-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY 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
Regular Lottery Proceeds Federal Grants and Contracts State Grants and Contracts Other States Grants and Contracts Private Gifts, Grants, and Contracts Investment Income Adjustments Prior Years' Expenditures/Accounts Payable Funded by the Board of Regents of the University System of Georgia
Prior Year's Unrestricted Fund Balance Deficit
Expended for Plant Facilities Current Funds Plant Funds Unexpended
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 System of Georgia Prior Year's Unrestricted Fund Balance Surplus
Expended for Plant Facilities Capitalized Non-Capitalized
Disposals/Deletions/Adjustments
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements
Net Increase/(Decrease) for the Year
FUND BALANCES JULY l, 1993

CURRENT FUNDS UNRESTRICTED RESTRICTED
$ 2,123,405.07
$1,580,006.76 383,860.29 117,475.92 55,891.13
1,360.96
3,496.19
$ 2,128,262.22 $ 2,137,234.10
$ 2,119,228.00 $ 1,775,373.52 7,191.34 570,253.83

$ 2,126,419.34 $ 2,345,627.35

$

-626.95

$

1,215.93 $ -208,393.25

4,133.42

357,103.06

FUND BALANCES JUNE 30, 1994

$ 5,349.35 $ 148,709.81

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 "B"

PLANT FUNDS

------------------------------------------- TOTAL

RENEWALS AND INVESTMENT (Memorandum

UNEXPENDED
-------------

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

---IN---PL-A-N--T---

Only)
-------------

$

0.00

$ 250,000.00 6,500.00
14,268.15

6,463.31

$ 2,123,405.07
250,000.00 6,500.00
1,594,274.91 383,860.29 117,475.92 55,891.13 6,463.31
1,360.96

3,496.19

$ 233,799.90

233,799.90

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

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

----2-7-0-,-0-6-5-.6--2

270,065.62
-------------

$ 277,231.46 $

0.00 $ 503,865.52 $ 5,046,593.30

$

$

7,126.42

270,065.62 702.53

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

$ 277,894.57 $
-------------

0.00

$ 3,894,601.52

7,191.34

570,253.83

$ 46,074.85

7,126.42
270,065.62 702.53
46,074.85

0.00 $ 46,074.85 $ 4,796,016.11

$

$

-663.11 $

7,126.42

626.95

$

0.00

626.95 $ 457,790.67 $ 250,577.19 52.78 6,706,526.67 7,074,942.35

$

6,463.31 $

679.73 $ 7,164,317.34 $ 7,325,519.54

- 5-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES
YEAR ENDED JUNE 30. 1994

EXHIBIT "C"

UNRESTRICTED RESTRICTED

TOTAL
(Memorandum Only)

REVENUES

State Appropriations Federal Grants and Contracts State Grants and Contracts Other States Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues

$ 1,474,854.00

$ 1,474,854.00

351,499.54 $ 1,284,196.46 1,635,696.00

78,369.66

305,490.63

383,860.29

52,491.83

129,653.54

182,145.37

87,892.80

56,032.89

143,925.69

762.18

762.18

77,535.06

77,535.06

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

$ 2,123,405.07 $ 1,775,373.52 $ 3,898,778.59

EXPENDITURES

Educational and General Research Public Service Academic Support Institutional Support Operation and Maintenance of Plant
Auxiliary Enterprises Student Housing
Total Expenditures
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)

$ 605,614.43 $ 1,602,547.07 $ 2,208,161.50

118. 00

118.00

119,512.37

172,826.45

292,338.82

602,712.94

602,712.94

791,270.26

791,270.26

7,191.34

7,191.34

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

$ 2,126,419.34 $ 1,775,373.52 $ 3,901,792.86
------------- ------------- -------------

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

$ -208,393.25 $ -208,393.25

$

-626.95

-626.95

1,360.96

1,360.96

3,496.19

3,496.19

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

$

4,230.20 $ -208,393.25 $ -204,163.05

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

Net Increase/(Decrease) in Fund Balances

$

1,215.93 $ -208,393.25 $ -207,177.32

------------- ---=--======= -------------

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.
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SKIDAWAY INSTITUTE OF OCEANOGRAPHY NOTES TO THE FINANCIAL STATEl\ffiNTS JUNE 30, 1994

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Skidaway Institute ofOceanography, a unit ofthe University System of Georgia (an organizational unit ofthe State ofGeorgia), conducts oceanographic research that is coordinated with other marine research activities of the University of Georgia. The accompanying financial statements reflect the operations of Skidaway Institute of Oceanography 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. Skidaway Institute of Oceanography does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Skidaway Institute of Oceanography is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING In order to ensure observance oflimitations and restrictions placed on the use of the resources available to the Institute, the accounts of the Institute 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 Institute'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 Institute retains full control to use for purposes of performing the primary functions of the Institute, i.e., research, public service, and auxiliary enterprises.
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.
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SKIDAWAY INSTITUTE OF OCEANOGRAPHY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
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 Institute. Net Investment in Plant is an equity account showing the total book value ofphysical properties belonging to the Institute less the amount of any indebtedness to others.
AGENCY FUNDS
The fund used to account for resources held by the Institute 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 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 of the fiscal period.
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based in part on the unexecuted portion of contracts for goods and services. The recognition of encumbrances of this nature as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording ofencumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Compensated absences represent obligations of the Institute 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$206,891.39, salary-related fringe benefits liabilities of approximately $15,827.19, and the related
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SKIDAWAY INSTITUTE OF OCEANOGRAPHY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING current year expenditure, which was not reasonably determinable, have not been reported in the current funds as required by generally accepted accounting principles.
Prior period adjustments are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with the State budgetary basis of accounting, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation 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 Institute. Fixed assets donated to the Institute are recorded at fair market value at the date ofthe gift and disposals are deleted at recorded cost. Depreciation on phy~ical 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 Act of 1993-1994. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises which is not subject to appropriation. The budget allocation and disbursement of these funds is made to the various organiz.ational 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, and temporary investments in authorized . financial institutions.
ACCOUNTS RECEIVABLE Accounts receivable consist ofreimbursements due from Federal, State, local and private grants and contracts and other receivables disclosed from information available.

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SKIDAWAY INSTITUTE OF OCEANOGRAPHY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXIIlBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES No inventories of expendable supplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase.
Inventories of goods for resale are valued at cost based on the firstin, first-out method.
PREPAID ITEMS Prepaid items are payments made to vendors in advance of the receipt of goods 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" 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.
NOTE 2: DEFICIT FUND BALANCE
At June 30, 1994, Other Organized Activities, an Unrestricted Current Fund, had a deficit fund balance of $5,040.40 which is not readily apparent in the accompanying financial statements. The deficit will be eliminated by additional funding from the Board of Regents of the University System of Georgia in the subsequent year.
NOTE 3: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State of Georgia 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 of indebtedness or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities . ofthe State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
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SKIDAWAY INSTITUTE OF OCEANOGRAPHY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

NOTE 3: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

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 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 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.

COLLATERALIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, the Institute's bank balances are categorized below to give an indication of the level of risk assumed by the Institute at year-end:

Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Institute or by its agent in the Institute's name.

Category 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the Institute'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 Institute's name, and amounts uncollateralized.

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

S 35005209 S 49600090 S 10000000 $===000- S 39600090

NOTE 4: INVESTMENT IN PLANT

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

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SKIDAWAY INSTITUTE OF OCEANOGRAPHY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

NOTE 4: INVESTMENT IN PLANT

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

$ 449,460.00 1,739,405.93 1,364,229.62 3,481,034.87 130,186.92

Total Investment in Plant

$7,164,317.34

NOTE 5: DEFERRED COMPENSATION PLAN

The State of Georgia offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the
plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the State of Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor of
the State of Georgia 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 of Personnel Administration for the year ended June 30, 1994.

NOTE 6: RETIREMENT PLANS

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 of creditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the
age of 55 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 of service multiplied by the number of years of creditable service
up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or fraction thereofby which the member has less than 30 years of service. The
normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

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SKIDAWAY INSTITUTE OF OCEANOGRAPHY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXI-IlBIT "D"

NOTE 6: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS PLAN DESCRIPTION Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date of death or up to the time of disability.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Institute's payroll for employees covered by TRS for the year ended June 30, 1994, was $1,495,937.60; total payroll was $1,931,590.09.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Institute who are covered by TRS are required to pay 6% of their gross earnings to TRS. The Institute 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 Institute 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 $284,522.55, of which $194,765.98 was made
by the Institute and $89,756.57 was made by employees. These contributions represented 13.02% (Institute)
and 6% (employees) of covered payroll.
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:

- 13 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1994

EXHIBIT "D"

NOTE 6: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS FUNDING STATUS AND PROGRESS

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 Institute's contribution for the year ended June 30, 1994, of $194,765.98 was actuarially determined and represented .0384% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

TRS RELATED-PARTY INVESTMENTS During the fiscal year 1994 and as ofJune 30, 1994, the TRS held no securities issued by the Institute 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.

State legislation requires that the employee contribute 6% and the employer contribute 4% ofthe participating employee's earnable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The Institute's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1994, was $323,135.85; total payroll was $1,931,590.09. The Institute and the covered employees made the required contributions of $12,925.36 (4%) and $19,388.16 (6%), respectively.

GEORGIA DEFINED CONTIUBUTION PLAN The State of Georgia 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% of their gross salary, with no matching contribution by

- 14 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

NOTE 6: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN the employer. The Institute's payroll for employees covered by the Georgia Defined Benefit Plan for the year ended June 30, 1994, was $30,048.55~ total payroll was $1,931,590.09. Total contributions from the covered employees of the Institute during fiscal year 1994 amounted to $2,253.61 (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 of receiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board of Trustees ofthe 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 7: LEAVE POLICIES
Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or 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 8: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Institute expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Skidaway Institute of Oceanography (as a unit ofthe Board ofRegents ofthe University System of Georgia), ifany, are generally considered to be actions against the State ofGeorgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased 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 of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994.

- 15 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

NOTE 9: BONDING INFORMATION
The Director and all employees of Skidaway Institute of Oceanography are bonded under a Public Employees Blanket Bond written by the Employers Insurance of Wausau, their Bond No. 1450-00-110723, on which the premium has been paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures Skidaway Institute of Oceanography to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the Institute to a maximum of $100,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
All employees of Skidaway Institute of Oceanography are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium has been paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Institute to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 16 -

SUPPLEMENTARY INFORMATION - 17 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY COMBINING BALANCE SHEET
CURRENT FUNDS - UNRESTRICTED JUNE 30. 1994

EXHIBIT "E"

ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items

OTHER

ORGANIZED

LOTTERY FOR

AUXILIARY

ACTIVITIES

EDUCATION

ENTERPRISES

TOTAL

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

$ 303,501.11 $

0.00 $ 10,747.15 $ 314,248.26

48,407.32

48,407.32

117.60

117. 60

5,747.37

5,747.37

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

Total Assets

$ 357,655.80 $

0.00 $ 10,864.75 $ 368,520.55
============= =============

LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Deferred Revenue Rents
Total Liabilities
Fund Balances Unrestricted

$ 362,696.20 $

0.00

$ 362,696.20

$

475.00

475.00

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

$ 362,696.20 $

0.00 $

475.00 $ 363,171.20

-5,040.40

0.00

10,389.75

5,349.35

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

Total Liabilities and Fund Balances$ 357,655.80$

0.00 $ 10,864.75 $ 368,520.55

============= ==-=====-==== ============= =============

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

SKIDAWAY INSTITUTE OF OCEANOGRAPHY COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 1994

EXHIBIT "F"

OTHER ORGANIZED ACTIVITIES

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

TOTAL

REVENUES AND OTHER ADDITIONS

Unrestricted Current Fund Revenues

$ 2,037,826.64 $

Adjustments

Prior Years' Expenditures/Accounts Payable

1,360.96

Funded by the Board of Regents of the

University System of Georgia

Prior Year's Unrestricted Fund Balance

Deficit

3,496.19

75,000.00 $

10,578.43 $ 2,123,405.07 1,360.96
3,496.19

Total Revenues and Other Additions $ 2,042,683.79 $ 75,000.00 $ 10,578.43 $ 2,128,262.22

EXPENDITURES AND OTHER DEDUCTIONS

Educational and General Expenditures Auxiliary Enterprises Expenditures
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS

$ 2,044,228.00 $ 75,000.00

$ 2,119,228.00

$ 7,191.34

7,191.34

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

$ 2,044,228.00 $ 75,000.00 $ 7,191.34 $ 2,126,419.34
------------- ------------- ------------- -------------

Nonmandatory Renewals and Replacements
Net Increase/(Decrease) for the Year
FUND BALANCES JULY 1, 1993

$

-626.95 $

-626.95

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

$ -1,544.21 $

0.00 $ 2,760.14 $ 1,215.93

-3,496.19

0.00

7,629.61

4,133.42

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

FUND BALANCES JUNE 30, 1994

$ -5,040.40 $

0.00 $ 10,389.75 $ 5,349.35

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

SKIDAWAY INSTITUTE OF OCEANOGRAPHY COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES UNRESTRICTED
YEAR ENDED JUNE 30, 1994

EXHIBIT "G"

OTHER

ORGANIZED LOTTERY FOR AUXILIARY

ACTIVITIES

EDUCATION ENTERPRISES

TOTAL

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

REVENUES
--------

State Appropriations

'$ 1,399,854.00 $ 75,000.00

$ 1,474,854.00

Federal Grants and Contracts

351,499.54

351,499.54

State Grants and Contracts

78,369.66

78,369.66

Other States Grants and Contracts

52,491.83

52,491.83

Private Gifts, Grants, and Contracts

87,892.80

87,892.80

Sales and Services of Auxiliary Enterprises

$

762 .18

762.18

Other Sources

67,718.81

9,816.25

77,535.06

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

Total Revenues

$ 2,037,826.64 $ 75,000.00 $ 10,578.43 $ 2,123,405.07

EXPENDITURES

Educational and General Research Public Service Academic Support Institutional Support Operation and Maintenance of Plant
Auxiliary Enterprises Student Housing

$ 530,614.43 $ 118.00
119,512.37 602,712.94 791,270.26

75,000.00 $

$ 605,614.43 118.00
119,512.37 602,712.94 791,270.26

7,191.34

7,191.34

Total Expenditures

$ 2,044,228.00 $ 75,000.00 $

7,191.34 $ 2,126,419.34

OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)

Transfers for Renewals and Replacements

Prior Period Adjustments (Net)

$

Funded by the Board of Regents of the

University System of Georgia

Prior Year's Unrestricted Fund Balance

Deficit

1,360.96 3,496.19

$

-626.95 $

-626.95

1,360.96

3,496.19

Total Other Transfers and Additions/(Deductions)

$

4,857.15

$

-626.95 $

4,230.20

Net Increase/(Decrease) in Fund Balances

$ -1,544.21 $

0.00 $

2,760.14$

1,215.93

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

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
OTHER ORGANIZED ACTIVITIES YEAR ENDED JUNE 30. 1994

REVENUES State Appropriations Other Revenues Retained
EXPENDITURES Personal Services:
Education, General and Departmental Services Sponsored Operations Operating Expenses: Education, General and Departmental Services Sponsored Operations Capital Outlay
Excess of Revenues over Expenditures

CURRENT FUNDS UNRESTRICTED RESTRICTED
$1,399,854.00 637,972.64 $ 1,775,373.52
$ 2,037,826.64 $1,775,373.52

$1,593,433.87 $ 928,248.68

450,794.13

847,124.84

$2,044,228.00$ 1,775,373.52

$ -6,401.36 $

0.00

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

SCHEDULE "l"

PLANT FUNDS
RENEWALS AND UNEXPENDED REPLACEMENTS

TOTAL (Budget Basis)

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 250,000.00 20,731.46 $

$ 1,649,854.00$ 1,649,854.00$

0.00

0.00 2,434,077.62 2,565,089.00 -131,011.38

$ 270,731.46 $

0.00 $ 4,083,931.62 $ 4,214,943.00 $ -131,011.38

$ 264,268.15$ $ 264,268.15$

$ 1,593,433.87 $ 1,615,361.00 $

928,248.68

980,731.00

21,927.13 52,482.32

450,794.13

516,582.00

65,787.87

847,124.84

769,269.00

-77,855.84

0.00

264,268.15

333,000.00

68,731.85

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

0.00 $ 4,083,869.67 $ 4,214,943.00 $ 131,073.33

$

6,463.31 $

0.00 $

61. 95

$

61. 95

- 23 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION YEAR ENDED JUNE 30 1 1994

SCHEDULE "2"

REVENUES State Appropriations

CURRENT FUNDS PLANT FUNDS

VARIANCE -

------------- ------------- TOTAL

FAVORABLE

UNRESTRICTED UNEXPENDED (Budget Basis) BUDGET

(UNFAVORABLE)

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

$ 75,000.00 $ 6,500.00$ 81,500.00 $ 81,500.00$

0.00

EXPENDITURES

Equipment, Technology and Construction Trust

Fund

$ 75,000.00

$ 75,000.00 $ 75,000.00 $

0.00

Distant Learning - Satellite Dishes

$ 6,500.00

6,500.00

6,500.00

0.00

$ 75,000.00$ 6,500.00 $ 81,500.00 $ 81,500.00 $

0.00

Excess of Revenues over Expenditures

$

0.00 $

0.00 $

0.00

$

0.00

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

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 30, 1994

SCHEDULE "3"

FUND
PAYROLL DEDUCTIONS
------------------
F.l.C.A. Federal Income Tax State Income Tax Retirement Group Insurance Disability Insurance Tax Deferred Annuity United Way Garnishments Georgia Defined Contribution Plan
EMPLOYER'S CONTRIBUTIONS
------------------------
F.l.C.A. Retirement Group Insurance
OTHER FUNDS
-----------
Retired Employees' Insurance

BALANCE

BALANCE

J-U-L-Y---1-' --1-9-9-3-

RECEIPTS
-------------

DISBURSEMENTS
-------------

JUNE 30, 1994
-------------

$

D.00 $ 132,680.37 $ 132,680.37 $

0.00

224,748.86

224,748.86

76,132.83

76,132.83

109,144.73 109,144.73

70,615.83

70,615.83

6,471.19

6,471.19

75,033.00

75,033.00

3,349.00

3,349.00

114.00

114. 00

2,253.61

2,253.61

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

$

0.00 $ 700,543.42 $ 700,543.42 $

0.00

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

$

0.00 $ 132,680.37 $ 132,680.37 $

0.00

207,691.34

207,691.34

209,697.60

209,697.60

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

$

0.00 $ 550,069.31 $ 550,069.31 $

0.00

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

$

-47.30 $ 21,469.58 $ 22,131.59 $

-709.31

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

$

-47.30 $1,272,082.31 $1,272,744.32 $

-709.31

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Informat\on.
- 25 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY CASH AND CASH EQUIVALENTS JUNE 30, 1994
INTEREST BEARING ACCOUNT
NationsBank of Georgia, Savannah, Georgia
N.O.W. Account (4.19%)
OTHER
Cash on Hand Petty Cash

SCHEDULE "4"
$ 350,052.09 1,000.00
$ 351,052.09
=============

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

SKIDAWAY INSTITUTE OF OCEANOGRAPHY ACCOUNTS RECEIVABLE JUNE 30, 1994

SCHEDULE "5"

Federal Grants and Contracts Research
State Grants and Contracts Research
Other States Grants and Contracts Research
Private Gifts, Grants, and Contracts Research
Other Insurance Recoveries Other

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS UNEXPENDED

AGENCY FUNDS

TOTAL

$ 159,172.77 $ 14,268.15

115,702.97

43,841.91

50,372.51

$ 24,097.71

24,309.61

$

$ 173,440.92

115,702.97

43,841.91

50,372.51

709.31

24,097.71 25,018.92

$ 48,407.32 $ 369,090.16$ 14,268.15 $

709.31 $ 432,474.94

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

SKIDAWAY INSTITUTE OF OCEANOGRAPHY CHANGES IN INVESTMENT IN PLANT YEAR ENDED JUNE 30, 1994

SCHEDULE "6"

ADDITIONS

DEDUCTIONS

CURRENT FUNDS

PLANT FUNDS DISPOSALS/

BALANCE

DELETIONS/

BALANCE

JULY 1, 1993 UNRESTRICTED RESTRICTED UNEXPENDED ADJUSTMENTS JUNE 30, 1994

Land

$ 449,460.00

$ 449,460.00

Buildings

1,462,469.92

$ 264,209.02 $ -12,726.99 1,739,405.93

Improvements Other Than Buildings 1,365,329.62

1,100.00 1,364,229.62

Equipment

3,308,018.04$ 87,053.33 $ 137,808.74

5,856.60 57,701.84 3,481,034.87

Library Books and Collections

121,249.09

8,937.83

130,186.92

$ 6,706,526.67 $ 95,991.16 $ 137,808.74 $ 270,065.62 $ 46,074.85 $ 7,164,317.34

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 29 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY 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 Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures
Undesignated Surplus/Deficit Regular Lottery for Education

OTHER ORGANIZED ACTIVITIES

CURRENT FUNDS UNRESTRICTED

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

$

117.60

10,272.15

$ -5,040.40 $
$ -5,040.40 $

0.00 0.00 $, 10,389.75

$ -5,040.40 $

0.00 $ 10,389.75

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

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

SCHEDULE "7"

RESTRICTED

PLANT FUNDS

UNEXPENDED

REGULAR

LOTTERY FOR RENEWALS AND EDUCATION REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 7,164,317.34 $ 7,164,317.34

$ 148,709.81

$ 148,709.81

$

679.73

$

117.60

679.73

10,272.15

$

6,463.31

$

$

6,463.31 $

0.00 0.00 $

679.73

1,422.91 0.00
$ 12,492.39

$ 148,709.81 $

6,463.31 $

0.00 $

679.73 $ 7,164,317.34 $ 7,325,519.54

- 31 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SCHEDULE OF REVENUES CURRENT FUNDS
YEAR ENDED JUNE 30. 1994

SCHEDULE 811 11

OTHER ORGANIZED ACTIVITIES

UNRESTRICTED
LOTTERY FOR AUXILIARY EDUCATION ENTERPRISES

TOTAL

RESTRICTED
OTHER ORGANIZED ACTIVITIES

TOTAL

State Appropriations Allotments from the Board of Regents of the University System of Georgia Regular Lottery Proceeds

$1,399,854.00 $

75,000.00

$ 1,399,854.00 75,000.00

$ 1,399,854.00 75,000.00

$1,399,854.00 $ 75,000.00

$1,474,854.00

$1,474,854.00

Other Revenues Retained

Federal Grants and Contracts

Research

Contract Overhead

$ 351,499.54

State Grants and Contracts Research Contract Overhead

78,369.66

Other States Grants and Contracts Research Contract Overhead

52,491.83

Private Gifts, Grants, and Contracts Research Contract Overhead

87,892.80

Sales and Services of Auxiliary Enterprises

Other Sources Rents Salvage Sales Testing Fees Water Royalties Other

5,525.00 286.60
37,665.80 120.00
24,121.41

$ 637,972.64

$1,284,196.46$ 1,284,196.46

$ 351,499.54

351,499.54

78,369.66

305,490.63

305,490.63 78,369.66

52,491.83

129,653.54

129,653.54 52,491.83

87,892.80

56,032.89

56,032.89 87,892.80

$

762.18

762 .18

762 .18

9,816.25
------------

15,341.25
286.60 37,665.80
120.00 24,121.41
-------------

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

15,341.25 286.60
37,665.80 120.00
24,121.41
-------------

$ 10,578.43 $ 648,551.07 $ 1,775,373.52 $ 2,423,924.59
------------ ------------- ------------- -------------

$ 2,037,826.64 $ 75,000.00 $ 10,578.43 $ 2,123,405.07 $1,775,373.52 $ 3,898,778.59
============= ============ ============ ============= ============= =============

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

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SCHEDULE OF EXPENDITURES BY OBJECT
CURRENT FUNDS YEAR ENDED JUNE 30, 1994

SCHEDULE 911 11

OTHER ORGANIZED ACTIVITIES

UNRESTRICTED LOTTERY FOR AUXILIARY EDUCATION ENTERPRISES

TOTAL

RESTRICTED OTHER
ORGANIZED ACTIVITIES

TOTAL

PERSONAL SERVICES

Salaries and Wages Employer's Contributions for:
F.I.C.A.
Group Insurance Retirement Liability Insurance Unelll)loyment C~ensation
Insurance Workers' C~ensation
Insurance

$ 1,172,700.02
86,957.34 156,624.51 137,666.00
4,716.00
524.00
34,246.00

$

392.96 $1,173,092.98 $ 758,497.11 $1,931,590.09

28.64

86,985.98 156,624.51 137,666.00
4,716.00

46,119.57 53,073.09 70,558.91

133,105.55 209,697.60 208,224.91
4,716.00

524.00

524.00

34,246.00

34,246.00

$ 1,593,433.87

$

421.60 $1,593,855.47 $ 928,248.68$ 2,522,104.15

OPERATING EXPENSES

Travel

$

Motor Vehicle Expenses

Supplies and Materials

Repairs and Maintenance

Utilities

Rents (Other than Real Estate)

Insurance and Bonding

Other Operating Expenses

Publications and Printing

Equipment Purchases

Non-Inventory

Computer Charges

Software

Telecomnunications

Per Diem, Fees and Contracts

Per Diem and Fees

Contracts

Equipment Purchases

Inventory

11,393.96 3,512.84 65,362.18 96,157.89 101,293.76 13,868.89 7,840.30 35,712.09 12,701.16
198. 04 8,032.85 41,882.11
5,396.50 3,399.00
44,042.56

$ 11,393.96 $ 59,723.07 $ 71,117.03

3,512.84

388.15

3,900.99

$ 1,210.41

66,572.59 131,810.34 198,382. 93

216.11

96,374.00

51,672.79 148,046.79

3,177.14 104,470.90

104,470.90

13,868.89 172,776.91 186,645.80

7,840.30

17,373.00

25,213.30

35,712.09

31,743.97

67,456.06

12,701.16

7,966.56

20,667.72

830.00 1,336.08

830.00 198.04
8,032.85 43,218.19

25,075.00 7,052.00
4,925.15 4,916.21

25,905.00 7,250.04 12,958.00 48,134.40

5,396.50 3,399.00

4,401.67 189,491.28

9,798.17 192,890.28

44,042.56 137,808.74 181,851.30

$ 450,794.13

$ 6,769.74 $ 457,563.87 $ 847,124.84$ 1,304,688.71

OTHER

EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND Other Costs Supplies and Materials Software Equipment Purchases Inventory

$

371. 40

22,680.00

51,948.60

$

371.40

22,680.00

51,948.60

$

371.40

22,680.00

51,948.60

$ 75,000.00

$ 75,000.00

$ 75,000.00

$2,044,228.00$ 75,000.00 $ 7,191.34 $ 2,126,419.34 $ 1.775.373.52 $ 3.901.792.86

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

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SCHEDULE OF EXPENDITURES BY OBJECT
PLANT FUNDS YEAR ENDED JUNE 30, 1994

SCHEDULE "10"

CAPITAL OUTLAY
Repairs and Maintenance Other Expenses Per Diem, Fees and Contracts
Contracts
OTHER
DISTANT LEARNING - SATELLITE DISHES Other Costs Supplies and Materials Equipment Purchases Inventory

UNEXPENDED

REGULAR

LOTTERY FOR EDUCATION

TOTAL

$

59.13

207.90

264,001.12
-------------

$ 264,268.15
-------------

$

59 .13

207.90

264,001.12
-------------

$ 264,268.15
-------------

$

643.40 $

643.40

5,856.60

5,856.60

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

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

$ 264,268.15 $ 6,500.00$ 270,768.15
============= ============= =============

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

SKIDAWAY INSTITUTE OF OCEANOGRAPHY RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30, 1994

SCHEDULE "11"

Totals per Annual Supplement Adjustment Shared Services on Jointly Staffed Personnel Armstrong State College Byrd, James T.
Totals per Report
DISTRIBUTION BY FUND
CURRENT FUNDS Unrestricted Other Organized Activities Auxiliary Enterprises Restricted Other Organized Activities

SALARIES AND WAGES

TRAVEL

$1,926,032.09 $ 71,117.03

5,558.00

$1,931,590.09 $ 71,117.03

$1,172,700.02 $ 392.96
758,497.11

11,393.96 59,723.07

$1,931,590.09 $ 71,117.03

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

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
BUDGET PREPARATION/EXECUTION Overexpenditure ofBudget - Other Organized Activities Financial Statements
The total approved budget for Other Organized Activities of Skidaway Institute of Oceanography provided for expenditures totaling $4,214,943.00. A comparison of anticipated 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 Sponsored Operations exceeded budgeted expenditures by $77,855.84.

SKIDAWAY INSTITUTE OF OCEANOGRAPHY 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 of the findings disclosed in the review report for the year ended June 30, 1993, is summarized below:

Audit Control Number

Status of Finding

593-93-01 593-93-02

See Audit Control Number 593-94-01 Corrective Action Implemented

PRIORYEAR/CURRENTYEAR

ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation of Duties Audit Control Number 593-94-01

The review report for the year ended June 30, 1993, disclosed that Skidaway Institute of Oceanography did not provide for adequate separation of duties in the performance of accounting functions and related procedures. In the year under review, the Institute made some improvements regarding separation of employee duties, but still did not achieve an adequate degree of internal control for certain control categories. These weaknesses in internal control pertain to all funds and programs administered by the Institute. The control categories affected are as follows:

( 1) Cash and Cash Equivalents
(2) Revenue/Receivables/ Receipts

(3) Expenditures/Liabilities/ Disbursements
(4) General Ledger

Separation of duties involving key accounting functions is the basis for achieving an adequate system of internal control.

Memorandum Only Federal Grantor Agencies affected:
National Science Foundation U. S. Department of Commerce U.S. Department of Defense U.S. Department ofEnergy U. S. Department ofNavy