Review report, state of Georgia, Skidaway Institute of Oceanography, Savannah, Georgia, year ended June 30, 1999

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REVIEW REPORT STATE OF GEORGIA SKIDAWAY INSTITUTE OF OCEANOGRAPHY SAVANNAH, GEORGIA YEAR ENDED JUNE 30,1999
l
~~-------------------
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

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

7

D NOTES TO THE FINANCIAL STATEMENTS

8

SUPPLEMENTARY INFORMATION

E COMBINING BALANCE SHEET

CURRENTFUNDS- UNRESTRICTED

20

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

21

G. COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

22

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

23

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

2

RESIDENT INSTRUCTION

24

3

OTHERORGANIZED ACTIVITIES

25

4

LOTTERY FOR EDUCATION

27

5 CHANGES IN INVESTMENT IN PLANT

28

6 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANTFuNDS

30

SKIDAWAY INSTITIJTE OF OCEANOGRAPHY - TABLE OF CONTENTS -
SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR 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 214 Atlanta, Georgia 30334-8400
August 27, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly ofGeorgia Members ofthe Board ofRegents of the University System ofGeorgia
and Honorable Herbert L. Windom, Director Skidaway Institute of Oceanography

INDEPENDENT ACCOUNTANT'S COMBlNED 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, 1999, in accordance with Statements on Standards for Accoun,ting 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 ofOceanography.

A review consists principally ofinquiries ofInstitute 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 ofwhich 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 ofthe matters described inthe 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 disclosed in Note 1 to the financial statements, generally accepted accounting principles require

encumbrances to be recorded as a reservation of fund balance. However, in accordance with Georgia Law

and State budgetary policy, management recorded encumorances as expenditures and liabilities. The effects

of this departure from generally accepted accounting principles on the fin3.llcial statements were not

reasonably determinable.

'

99ARL-67

As disclosed 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. If compensated absences were reported, liabilities would be increased and fund balance would be decreased by $325,993.02 as of June 30, 1999, and the net change in fund balance for the year ended June 30, 1999, would be decreased by $62,205.53.
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 confonnity with generally accepted accounting principles. The year 2000 supplementary information on Schedule" I" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. The accompanying combining statements (Exhibits E through G) and the financial schedules (Schedules 2 through 6) are presented for supplementary analysis purposes. Such information"has been subjected to the inquiries and analytical procedures applied in the review ofthe 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,
~.~W.~ Russell W. Hinton State Auditor
RWH:gp 99ARL-67

FINANCIAL STATEMENTS - 1-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30, 1999

ASSETS Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant
Total Assets
LIABILITIES AND FUND BALANCES Liabilities
cash Overdraft Accounts Payable Due to Other Fund Groups
Total Liabilities Fund Balances
Net Investment in Plant Restricted Unrestricted
Total Fund Balances
Total Liabilities and Fund Balances

CURRENT FUNDS UNRESTRICTED RESTRICTED

$

15,067.39 $ 1,025,859.12

153.25

12,227.40

719,618.62

$

747,066.66 $ 1,025,859.12

$

24,839.59

$

740,392.82

751,895.89

$

740,392.82 $ 776,735.48

$ 249,123.64

$

6,673.84

$

6,673.84 $ 249,123.64

$

747,066.66 $ 1,025,859.12

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

EXHIBIT "A"

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$

10,953.22 $ 1,051,879.73

153.25

. 12,227.40

$

39,515.24 $

3,611.12

_ _ _ _ _ _ $ 10,395,172.44

762,744.98 10,395,172.44

$

39,515.24 $ ========3=,6=1:::::1.:::::12= $ 10,395,172.44 $

10,953.22 $ 12,222,177.80

$

39,515.24

$

39,515.24

$

0.00 $

$

0.00 $

$

24,839.59

$

104.13

780,012.19

10,849.09

762,744.98

$

10,953.22 $ 1,567,596.76

$ 10,395,172.44 3,611.12 3,611.12 $ 10,395,172.44

$ 10,395,172.44 249,123.64 10,284.96
$ 10,654,581.04

$

39,515.24 $ -========3=,6.1.1.=1.2. $ 10,395,172.44 $

10,953.22 $ 12,222,177.80

-3-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY COMBINED STATEMENT OF CHANGES IN FUND BALANCES
ALL FUND GROUPS YEAR ENDED JUNE 30.1999

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues State Appropriations
Regular Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Investment Income
Other Adjustments
Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided 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 DisposalslDeletions/Adjustments
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements
Net Increasel(Decrease) for the Year
FUND BALANCES JULY 1, 1998

CURRENT FUNDS UNRESTRICTED RESTRICTED
$ 3,058,819.74
$ 3,214,249.24 825,386.83 81,549.64 112,396.26
676.01 38.38

$ 3,059,534.13 $ 4,233,581.97
$ 3,038,075.46 $ 3,476,741.49 19,158.86 921,501.66
2,025.01

$ 3,059,259.33 $ 4,398,243.15

$

-1,246.33

$

-971.53 $ -164,661.18

7,645.37

413,784.82

FUND BALANCES JUNE 30, 1999

$

6,673.84 $ 249,123.64

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"

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

$ $ 219,809.00
9,589.85
$ 229,398.85 $

0.00
$ 0.00 $

$
542,901.42 229,398.85 n2,300.27 $

3,058,819.74
219,809.00 3,214,249.24
825,386.83 81,549.64 112,396.26
9,589.85
676.01 38.38
542,901.42
229,398.85
8,294,815.22

$

$

200.00

229,398.85

$ 229,598.85 $

0.00
$ 0.00 $

$ 6,514,816.95 19,158.86
. 921,501.66

62.n 62.n $

2,225.01
229,398.85 62.n
7,687,164.10

$.

$

-200.00 $

200.00

1,246.33 1,246.33 $ 2,364.79

$

0.00

n2,237.50 $

607,651.12

9,622,934.94

10,046,929.92

$

0.00 $ -=

3:=.,.6..1."",1.=12= $ 10,395,172.44 $ 10,654,581.04

-5-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY STATEMENT OF CURRENT FUNDS REVENUES. EXPENDITURES.
AND OTHER CHANGES YEAR ENDED JUNE 30. 1999

EXHIBIT"C"

REVENUES
State Appropriations Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues
EXPENDITURES
Educational and General Research Academic Support Institutional Support Operation and Maintenance of Plant
Auxiliary Enterprises Student Housing Other Service Units
Total Expendttures
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONSl
Excess of Restricted Receipts over Transfers to Revenues
Transfers for Renewals and Replacements Prior Period Adjustments (Net) Remittances to the Board of Regents
ofthe University System of Georgia Prior Year's Unrestricted Fund Balance (SurplUS)
Total Other Transfers and Additions/(Deductions)

UNRESTRICTED

RESTRICTED

TOTAL (Memorandum
Only)

$ 2,022,210.00

$ 2,022,210.00

714,229.49 $ 2,572,573.00

3,286,802.49

139,885.13

685,605.55

825,490.68

54,106.87

152,557.34

206,664.21

13,280.17

66,005.60

79,285.77

20,744.28

20,744.28

94,363.80

94,363.80

$ 3,058,819.74 $ 3,476,741.49 $ 6,535,561.23

$

821,775.65 $ 3,360,736.24 $ 4,182,511.89

507,966.77

116,005.25

623,972.02

645,942.51

645,942.51

1,062,390.53

1,062,390.53

17,503.72 1,655.14

17,503.72 1,655.14

$ 3,057,234.32 $ 3,476,741.49 $ 6,533,975.81

$ -164,661.18 $ -164,661.18

$

-1,246.33

-1,246.33

714.39

714.39

-2,025.01

-2,025.01

$

-2,556.95 $ -164,661.18 $ -167,218.13

Net Decrease in Fund Balances

$ _======-9=7:::.;1.=53= $ -164,661.18 $ -165,632.71

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. -7-

SKIPAWAY INSTITUTE OF OCEANOGRAPHY
NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1999

EXHIBIT "D"

NOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Skidaway Institute of Oceanography, a unit ofthe University System of Georgia (an organizational unit of the State of Georgia), 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 of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. Skidaway Institute of Oceanography does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Skidaway Institute of Oceanography is considered an organizational unit ofthe Board ofRegents of the University System of Georgia reporting entity for financial reporting purposes because ofthe 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 ofGovernmental 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 Institute, the accounts ofthe 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.
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 Institute retains full control to use for purposes of performing the primary functions of the Institute, e.g., research, institutional support and auxiliary enterprises, 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.
-8-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1999

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 ofinstitutional 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, staffmembers, and organizations.
BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis ofaccounting applicable to colleges and universities prescribed in the American Institute ofCertified Public Accountants' audit guide reporting model. The modified acciual 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 ofthe fiscal period.
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 ofcontracts for goods and services. The recognition ofencumbrances 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 offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Compensated absences represent obligations of the Institute 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$325,993.02 and a related net current year expenditure of$62,205.53 have not been reported in the current funds as required by generally accepted accounting principles.
-9-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

EXHIBIT "D"

NOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING Prior period adjustments and certain other items are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation ofthe financial statements.

To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made for'plant facilities expended by the Georgia State Financing and Investment Commission on behalfofthe Institute. 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 ofincome or a statement ofrevenues and expenses.

BUDGET
The Board ofRegents of the University System of Georgia - Administrative Central Office receives State appropriation allotttlents for units ofthe University System of Georgia. The appropriated budget is adopted at the Board level and represents appropriations provided by the Amended Appropriations Act of 1998-1999. 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 Institute by the Administrative Central Office. In addition, the Institute 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

Capital Outlay Other Organized Activities

Personal Services:

Education, General and Departmental Services

Sponsored Operations

Operating Expenses:

Education, General and Departmental Services

Sponsored Operations .

Year 2000 Pro,jFt

:-#~ ~--
~'

-10-

$ 9.589.85
$ 54.089.41 $ 186.461.01
$ 46.776.05 $ 40.280.48 $ 15.000.00

SKIDAWAY INSTITUTE OF OCEANOGRAPHY
NOTES TO THE FINANCIAL STATEMENTS ruNE 30. 1999

EXHIBIT"D"

NOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET These overexpenditures ofbudget constitute a violation of Board of Regents policy, but do not constitute statutory violations ofbudget authority. Statutory violations ofbudget authority are reported at the Board object class level.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist ofpetty cash and demand deposits in authorized financial institutions.
ACCOUNTSRECEIVABLE Accounts receivable consist of allotments due from the Board of Regents of the University System of Georgia - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. No provision has been made for an allowance for doubtful accounts within the accompanying financial statements.
INVENTORIES No inventories ofexpendable supplies are recorded in the current financial statements. Expendable supplies are recorded as expenditures at the time ofpurchase.
Inventories of goods for resale are valued at cost using the first-in, first-out method.
PREPAIDITEMS 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
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 O:tlicial Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations ofthe United States or ofthe State of Georgia.
- 11 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia.
(5) Bonds, bills, certificates ofindebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, 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 ofGeorgia 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 ofRegents ofthe University System of Georgia) the option of exempting demand deposits from the collateral requirements.
The treasurer of the Board of Regents is responsible for all details relative to furnishing the required depository protection for all units ofthe University System of Georgia.
CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30,. 1999, are categorized below in order to provide infonnation 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 Institute or by its agent in the Institute's name.
Category 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the Institute's name.
Category 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent butnot in the Institute's name, and amounts uncollateralized.
-12 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

EXIllBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

CATEGORIZATION OF DEPOSITS

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$ -25,839,59 $ 363,749.95 $ 100,000.00 $,===O;;:;:.O~O $ 263,749.95

NOTE 3: INVESTMENT IN PLANT

The following is a summary of Investment in Plant fixed assets as of June 30, 1999:

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

$ 449,460.00 2,263,378.75 2,081,557.73 5,436,702.19 164,073.77

Total Investment in Plant

$10.395.172.44

NOTE 4: RISK MANAGEMENT

Skidaway Institute of Oceanography is a participant in the Board of Regents of the University System of Georgia Health Benefits Plan, which is a self-insurance program ofhealth and dental benefits for employees and retirees ofthe Uriiversity System of Georgia. The Institute 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 of Georgia - Administrative Central Office. All units ofthe University System ofGeorgia share the risk of loss for claims ofthe 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$I,OOO,OOO.OO per person and dental coverage up to an annual maximum of $1,000.00 per person. The Board ofRegents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the Health Benefits Plan as established by the Board ofRegents.

The Department ofAdministrative Services (DOAS) has the respOnsibility for the State of Georgia ofmaking and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk ofloss 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 Institute, as an organizational unit of the Board ofRegents of the University System of Georgia, is part of the State of

-13 -

SKIPAWAY INSTITUTE OF OCEANOGRAPHY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

EXIllBIT "D"

NOTE 4: RISK MANAGEMENT

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 ofprofessional liability for its employees was established by the Board ofRegents 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 perfonnance of their duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund.

NOTES: RETIREMENIPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description Skidaway Institute ofOceanography 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 ofproviding retirement allowances and other benefits for teachers ofthe 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 financial audit report and a copy can be obtained from the Georgia Department ofAudits and Accounts.

Funding Policy Employees ofthe Institute who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1999, the employer contribution rate was 11.95% for covered employees. In addition, the Institute contributed 3.46% to the TRS on behalfofemployees electing to participate in the Regents Retirement Plan. Employer contributions for the currentfiscal year and the preceding two fiscal years are as follows:

Fiscal Year
1999 1998 1997

Percentage Contributed
100% 100% 100%

Required Contribution
$ 263,454.45 $ 234,621.66 $ 200,575.57

-14-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY
NOTES TO THE FINANCIAL STATEMENTS
ruNE 30, 1999

EXHIBIT"D"

NOTE 5: RETmEMENTPLANS
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 ofRegents ofthe University System of Georgia, under which it may purchase annuity contracts for the purpose ofproviding 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 tenns ofthe 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 8.34% ofthe participating employee's earnable compensation. Employees contribute 5% oftheir earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times.
The Institute and the covered employees made the required contributions of $35,418.84 (8.34%) and $21,198.45 (5%), respectively.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Skidaway Institute of Oceanography 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 part-time and are not members ofa public retirement or pension system. GDCP is administered by the Board ofTrustees ofthe Employees' Retirement System of Georgia.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. Ifa member has less than $ 3,500.00 credited to his/her account, the Board ofTrustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death ofa member, a lump sum distribution equaling the amount credited to hislher account will be paid to the member's designated beneficiary. Benefit provisionsare established by State statute.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross 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 ofTrustees. Upon tennination ofemployment, the amount of the member's account is refundable upon request by the member.
- 15-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY
NOTES TO THE FINANCIAL STATEMENTS ruNE 30. 1999

EXHIBIT"D"

NOTE 5: RETIREMENT PLANS

GEORGIA DEFINED CONTRIBUTION PLAN

Contributions and Vesting Total contributions made by employees during fiscal year 1999 amounted to $450.00 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.

NOTE6: 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 ofcontin~ousStateservice with maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or tennination 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 tennination 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: CONTINGENCIES

Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This cou~d result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount ofexpenditures which maybe disallowed by the grantor cannot be determined at this time although the Institute expects such amounts, ifany, to be immaterial to its overall financial position.

Litigation, claims and assessments filed against Skidaway Institute of Oceanography (an organizational unit ofthe Board ofRegents ofthe University System of Georgia), ifany, are generally considered to be actions against the State ofGeorgia. Accordingly, significant litigation, claims and assessments pending against the State ofGeorgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1999.

NOTE 8: POSIEMPWYMENT BENEFITS OTHER THAN pENSION BENEFITS

Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board of Regents of the 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 ofthe group health and life insurance programs. Employees who
are eligible for retirement or disability under the criteria established 1?Y the Teachers Retirement System of

- 16-

SKIPAWAY INSTITUTE OF OCEANOGRAPHY
NOTES TO THE FINANCIAL STATEMENTS
ruNE 3D. 1999

EXHIBIT"D"

NOTE 8: POSTEMPLQYMENT BENEFITS OTHER THAN PENSION BENEmS
Georgia and who have at least ten years ofservice with the University System ofGeorgia 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 of June 30, 1999, there were 15 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1999, Skidaway Institute of
Oceanography recognized as incurred $36,490.99 ofexpenditures, which was net of$11,149.14 ofparticipant
contributions.

-17 -

supPLEMENTARY INFORMATION -19 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY COMBINING BALANCE SHEET
CURRENT FUNDS - UNRESTRICTED JUNE 30, 1999

EXHIBIT"E"

ASSETS Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups
Total Assets

RESIDENT INSTRUCTION

OTHER ORGANIZED ACTIVITIES

LOTIERYFOR EDUCATION

AUXILIARY ENTERPRISES

TOTAL

$ 15,067.39

$ 100,000.00

12,227,40 607,112.42 $

$ 6,700.00

153.25 5,806.20

$ 15,067.39 153,25
12,227.40 719,618.62

$ 100,000.00 $ 634,407.21 $

6,700.00 $

5,959.45 $ 747,066.66

LIABILITIES AND FUND BALANCES

Uabilities Accounts Payable

$ 100,000.00 $ 633,692.82 $

Fund Balances Unrestricted

0.00

714.39

6,700.00

$ 740,392.82

0.00 $_ _-=5:,:::,9.:::;59:.:,,4.:.,:5;...

6,673.84

Total Uabilities and Fund Balances $ 100,000.00 $ 634,407.21 $

6,700.00 $

5,959,45 $ 747,066.66

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-20-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30. 1999

EXHIBIT"F"

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 PriorYear's Unrestricted Fund Balance (Surplus)
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory Renewals and Replacements
Net Increasel(Decrease) for the Year
FUND BALANCES JULY 1, 1998

RESIDENT INSTRUCTION

OTHER ORGANIZED ACTIVITIES

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

TOTAL

$ 215,135.00 $ 2,746,940.46 $
676.01 38.38
$ 215,135.00 $ 2,747,654.85 $

76,000.00 $ 76.000.00 $

20,744.28 $ 3,058,819.74
676.01 38.38
20,744.28 $ 3,059,534.13

$ 215,135.00 $ 2,746,940.46 $

76,000.00
$

$ 3,038,075.46

19,158.86

19,158.86

2,025.01

2,025.01

$ 215,135.00 $ 2,748,965.47 $

76,000.00 $

19,158.86 $ 3,059,259.33

$

0.00 $

-1,310.62 $

0.00

2,025.01

$ 0.00 $
0.00

-1,246.33 $ 339.09 $
5,620.36

-1,246.33 -971.53 7,645.37

fUND BALANCES JUNE 30. 1999

$

0.00 $

714.39 $

0.00 $

5,959.45 $

6,673.84

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

SKIDAWAY INSTITUTE OF OCEANOGRAPHY COMBINING STATEMENT OF CURRENT FUNDS REVENUES. EXPENDITURES.
AND OTHER CHANGES UNRESTRICTED
YEAR ENDED JUNE 30.1999

EXHIBIT"G"

REVENUES
State Appropriations Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Auxiliary Enterprises Other Sources
Total Revenues
EXPENDITURES
Educational and General Research Academic Support Institutional Support Operation and Maintenance of Plant
Auxiliary Enterprises Student Housing Other Service Units
Total Expenditures
OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)
Transfers for Renewals and Replacements Prior Period Adjustments (Net)
Remittances to the Board of Regents
of the University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Total Other Transfers and Additions/(Deductions)

RESIDENT INSTRUCTION

OTHER ORGANIZED ACTIVITIES

LOTIERYFOR EDUCATION

AUXILIARY ENTERPRISES

TOTAL

$ 215.135.00 $ 1,731.075.00 $ 714,229.49 139,885.13 54.106.87 13,280.17
94,363.80
$ 215,135.00 $ 2,746,940.46 $

76.000.00
$ 76,000.00 $

$ 2.022,210.00

714,229.49

139.885.13

54,106.87

13,280.17

20,744.28

20,744.28

94,363.80

20.744.28 $ 3,058,819.74

$ 100.000.00 $ 671.775.65 $

115,135.00

366,831.77

645,942.51

1.062.390.53

$ 215,135.00 $ 2,746,940.46 $

50,000.00 26,000.00
$ 76,000.00 $

$ 821,775.65 507,966.77 645.942.51
1,062,390.53

17,503.72 1,655.14

17,503.72 1,655.14

19,158.86 $ 3,057,234.32

$

714.39

$

-1.246.33 $

-1,246.33

714.39

-2,025.01

$

-1.310.62

-2,025.01

$

-1.246.33 $

-2.556.95

Net IncreaseJ(Decrease) in Fund Balances

$

0.00 $

-1,310.62 $

0.00 $

339.09 $

-971.53

See accompanying notes and Independent Accountanrs Combined Report on Review of Financial Statements and Supplementery Information.
-22-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY

SCHEDULE "1"

SCHEDULE OF REQUIRED SupPLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDED JUNE 30. 1999

The year 2000 issue is the result of shortcomings in many electronic data processing systems and other electronic equipment that may adversely affect the Institute's operations beyond calendar year 1999. Skidaway Institute of Oceanography has completed an inventory of computer systems and other electronic equipment that may be effected by the year 2000 issue and that are necessary to conducting institutional operations. The following stages have been identified as necessary to implement year 2000 compliant systems.

~wareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 Issue.
Assessment Stage - The actual process ofidentifying all systems and individual components ofsystems to check for compliance.
Remediation Stage - The time when changes are made to systems and equipment. .
Validationffesting Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.

It will be necessary for the Institute to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected.

Skidaway Institute of Oceanography has identified the following financial systems requiring year 2000 remediation that are supported by the Board of Regents, University System of Georgia and have been remediated by the Bo~d.

The College and University Fund Accounting System has been remediated, validated and tested.

The Regents Budget Reporting system is reportedly year 2000 compliant. The awareness, assessment, validation! testing phases were completed in 1997.

The payroll system has been assessed, remediated, tested and validated. This system was in current use during fiscal year 1999. This system will be replaced with Peoplesoft software, which has been
certified by the vendor as year 2000 compliant by January 1,2000.

The Regents Property Inventory System is reportedly year 2000 compliant. The awareness, assessment,

validation! testing phases were completed in 1997. .

.

Because ofthe unprecedented nature ofthe year 2000 issue, its effects and the success ofrelated remediation efforts will not be fully detemrinable until year 2000 and thereafter. While management is confident that the Institute will be year 2000 ready, it cannot assume that its remediation efforts will ,be successful in whole or in part, or that parties with whom the Institute does business will be year 2000 ready:

See accompanying notes and Independent Accountant's Combined Report on Review ofFinancial Statements and Supplementary Information.
-23 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30,1999

SCHEDULE "2"

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED

PLANT FUND UNEXPENDED

TOTAL (Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$

215,135.00 $ 219,809.00 $ 434,944,00 $ 434,944.00 $

9,589,85

9,589.85

0.00 9,589.85

$

215,135.00 $ 229,398.85 $ 444,533.85 $ 434,944.00 $

9..;.,5_8_9._85_

EXPENDITURES
Capital Outlay Research Consortium Special Funding Initiative

$ 229,398,85 $ 229,398.85 $ 219,809,00 $

$

100,000.00

100,000.00

100,000.00

115,135.00

115,135,00

115,135.00

-9,589.85 0,00 0.00

$

215,135.00 $ 229,398.85 $ 444,533.85 $ 434,944.00 $

-9;;.:.,5.;..;8...;;.9;.;;..8_5

Excess of Revenues over Expenditures $

0.00 $

0.00 $ ====0.=00=

$ ====0=,0=0=

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

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
OTHER ORGANIZED ACTIVITIES YEAR ENDED JUNE 30, 1999

SCHEDULE "3"

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

TOTAL (Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 1,731,075,00

$ 1,731,075,00 $ 1,731,075,00 $

1,015,865.46 $ 3,476,741.49

4,492,606,95

4,154,000,00

0,00 338,606,95

$ 2,746,940.46 $ 3,476,741.49 $ 6,223.681,95 $ 5.885.075,00 $ _ _.;;.,33""'8.:..6.;;.,06.:.;,9.:.;,5_

EXPENDITURES
Personal Services: Education, General and Departmental Services $ Sponsored Operations
Operating Expenses: Education, General and Departmental Services Sponsored Operations
capital Outlay Year 2000 Project

1,864,125.41

$ 1,864,125.41 $ 1,810.036,00 $

$ 1,847,736,01

1,847,736,01

1,661,275,00

867,815,05
0,00 15,000.00

1,629,005,48

867,815,05 1,629.005.48
0,00 15,000.00

821,039,00 1.588,725,00
4.000,00 0,00

-54,089.41 -186,461,01
-46,776.05 -40.280,48
4,000.00 -15,000,00

$ 2,746,940,46 $ 3,476.741.49 $ 6.223,681.95 $ 5;885.075,00 $ _ _..;;.,33""'8.:....6...;.06.:..;,,9.-.5_

Excess of Revenues over Expenditures

$

0.00 $

0,00 $ -===0=:,0,;;,;0...

$ ====0=:,0,;;,;0,=

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Infonnation.
25

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION YEAR ENDED JUNE 30,1999

SCHEDULE "4"

REVENUES State Appropriations

CURRENT FUNDS UNRESTRICTED

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$

76,000.00 $

76,000.00 $

0.;..._00_

EXPENDITURES Equipment, Technology and Construction
Trust Fund Special Funding Initiatives
Excess of Revenues over Expenditures

$

50,000.00 $

50,000.00 $

26,000.00

26,000.00

$

76,000.00 $

76,000.00 $

0.00 0.00
0._00_

$ =============0,=00=

$=========0:=,0,,=0

See accompanying notes and Independent Accountanfs Combined Report C?n Review of Financial Statements and Supplementary Information.
-27 -

SKIDAWAY INSTITUTE OF OCEANOGRAPHY CHANGES IN INVESTMENT IN PLANT YEAR ENDED JUNE 30,1999

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

BALANCE JULY 1,1998

ADDITIONS

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

$

449,460.00

2,040,516.67

$

41,143.96

2,033,877.00

4,939,358.08 $

119,841.10

377,565.78

159,723.19

4,350.58

$

9,622,934.94 $

124,191.68 $ ======4=18:=,7==0=9.:=74=

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

SCHEDULE "5"

PLANT FUND UNEXPENDED

DEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS

BALANCE JUNE 30,1999

$

449,460.00

$

181,718.12

2,263,378.75

47,680.73

2,081,557.73

$

62.77

5,436,702.19

164,073.77

$

229,398.85 $=========62=.:.;77= $ 10,395,172.44

-29-

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SCHEDULE OF FUND BALANCES
CURRENT FUNDS AND PLANT FUNDS JUNE 30.1999

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 Surplus Regular Lottery for Education

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

OTHER ORGANIZED LOTIERY FOR

ACTIVITIES

EDUCATION

$

0.00 $

714.39

_______ $

--'-'0.._00'-

$

0.00 $

714.39 $ _'

0.._00,-

$

0.00 $

714.39 $ ============0,=00=

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

SCHEDULE "6"

AUXILIARY ENTERPRISES

RESTRICTED

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 10,395,172.44 $ 10,395,172.44

$ 249,123.64

$ _--=24._9",-,1.-23,,;;.;;.64,;..;.-

$

153.25

5,806.20

$

$ _ _-=5;:.;::,9;.::;59::.;.4.;.=5;.

$

$

5,959.45 $ . 249,123.64 $

$

3,611.12

$

153.25

3,611.12

5,806.20

0.00 0.00 $ _ _---'3;.:.;,6;..;,1._1._12;...

714.39

0.00

$

10~,2;..;,84'_',,;;.;;96_

0.00 $ _ _====3O!:i,.6.1..1...1.2. = $ 10,395,172.44 $ 10,654,581.04

- 31 -

SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FlNDINGS AND QUESTIONED COSTS

SKIDAWAY INSTITUTE OF OCEANOGRAPHY
AUDITEE'S RESPONSE
SUMMARy SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-593-97-01

Further Action Not Warranted