Review report, state of Georgia, South Georgia College, Douglas, Georgia, year ended June 30, 1995

GA A800 i.R1
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA SOUTII GEORGIA COLLEGE DOUGLAS, GEORGIA YEAR ENDED JUNE 30, 1995

SOUTH GEORGIA COLLEGE 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

20

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS UNRESTRICTED

21

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

23

SCHEDULES

SCHEDULESOFREVENUESANDEXPENDITURESCOMPAREDTOBUDGET

1

RESIDENT INSTRUCTION

24

2

LOTTERY FOR EDUCATION

26

SCHEDULES OF OPERATIONS

3

LOAN FUNDS

27

4

ENDOWMENT FUNDS

28

5 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

29

6 CASH AND CASH EQUIVALENTS

30

7 ACCOUNTS RECEIVABLE

31

8 CHANGES IN INVESTMENT IN PLANT

32

9 SCHEDULE OF FUND BALANCES

CURRENTFUNDSANDPLANTFUNDS

34

SOUTH GEORGIA COLLEGE - TABLE OF CONTENTS -

SECTION!

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

10 SCHEDULE OF REVENUES

CURRENT FUNDS

36

SCHEDULES OF EXPENDITURES BY OBJECT

11

CURRENT FUNDS

38

12

PLANT FUNDS

40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
September 1, 1995

Honorable Zell Miller, Governor Members of the General Assembly ofGeorgia Members ofthe Board ofRegents ofthe University System of Georgia
and Honorable Edward D. Jackson, Jr., President South Georgia College
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through D) of South Georgia College as ofand for the year ended June 30, 1995, 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 South Georgia College.
A review consists principally of inquiries of College personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, with the exception of the matters described in the fourth and fifth paragraphs, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.
As described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the College to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the financial statements of this departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material.

95ARL-67

As discussed in Note 1 to the financial statements, the College did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles. Ifcompensated absences were reported, liabilities would be increased and furid balance would be decreased by $238,627.36, as ofJune 30, 1995, and the net change in fund balance for the year ended June 30, 1995, would be decreased by $4,492.79.
Our review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 12) 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.
:;,,,:~

CLV:gp 95ARL-67

Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

SOUTH GEORGIA COLLEGE COMBINED BALANCE SHEET
ALL FUND GROUPS JUNE 30 1995

ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

$

107,75524

$

90,967.19

232,471.28 $

265,135.35

1,062,108.86

91,206.43

45,476.31

Total Assets

$

476,909.26 $

265,135.35 $ 1,153,076.05

LIABILITIES AND FUND BALANCES

Liabilities

Accounts Payable

$

Deferred Revenue

Tuition and Fees

Deposits Held in Custody for Others

Due to Other Fund Groups

Total Liabilities

$

Fund Balances

U. S. Government Grants Refundable

Institutional Loans - Restricted

Endowment

Net Investment in Plant

Restricted

Unrestricted

$

Total Fund Balances

$

187,553.67 $ 165,578.13 74,969.15 428,100.95 $

854.94
212,610.28 213,465.22

$ 1,126,312.72 26,763.33

$ 48,808.31
48,808.31 $

51,670.13 51,670.13 $ 1,153,076.05

Total Liabilities and Fund Balances

$

476,909.26 $

265,135.35 $ 1,153,076.05

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

EXHIBIT"A"

ENDOWMENT FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$ 182,000.00 $

291,397.41 $ 15,478.00

319,257.97

457,475.90

$

$ 21,082,711.78

79,264.12 $

1,208,859.86 1,575, 193.49
91,206.43 45,476.31 319,257.97 21,082,711.78

$ 182,000.00 $ 626,133.38 $

457 475.90 $ 21,082,711.78 $ 79,264.12 $ 24,322,705.84

$ 626,132.96 $
$ 31,678.54 $ 31,678.54 $ 626,132.96 $

$ 150,321.46
$ $ 150,321.46 $

0.42 $ 0.42 $

90,723.91 90,723.91

$ 29,470.07 $ 934,735.55

49,794.05

165,578.13 49,794.05 319,257.97

$ 79,264.12 $ 1,469,365.70

$ 21,082,711.78 366,751.99 366,751.99 $ 21,082,711.78

$ 1,126,312.72 26,763.33 150,321.46
21,082,711.78 51,670.13
415,560.72
$ 22,853,340.14

$ 182,000.00 $ 626,133.38 $

457 475.90 $ 21,082,711.78 $ 79,264.12 $ 24,322,705.84

-3-

SOUTH GEORGIA COl LEGE COMBINED STATEMENT OF CHANGES IN FUND RAI ANCFS
AL I FUND GRQUP
YEAR ENDED JUNE 30 1995

REVENUES AND OTHER ADDITIONS
Unrestricted Current Fund Revenues State Appropriations
Major Repairs/Rehabilitation Funds Federal Grants and Contracts State Grants and Contracts 1"""81ment Income
Endowment Other Interest on Loans Receivable Adjustments Prior Years' Expenditures/Accounts Payable Expended for Plant Facilities Current Funds Plant Funds
Unexpended Renewals and Replacements Georgia State Financing and Investment Commission
Total Revenues and Other Additions
EXPENDITURES AND OTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered Refunded to Grantors Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Adjustments Prior Years' Revenues/Accounts Receivable
Loan Cancellations and Write-Offs Administrative and Collection Costs Expended for Plant Facilities
Capltalized Noncapitalized Disposals/Deletions/Adjustments
Total Expenditures and other Deductions
TRANSFERS BEJWEEN FUNDS
Nonmandatory Renewals and Replacements Capltal Projects
Total Transfers Between Funds
Net lncrease/(Decrease) for the Year
FUND BALANCES JULY 1 1994

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

7,828,251.49

$ 1,394,250.58 241,020.69 9,770.65 $
1,135.02

9,953.20 13,900.B9

7,829,388.51 $ 1,645,041.92 $

23,854.09

$

7,095,514.92 $ 1,599,405.43

693,038.40

39,411.84

$

67,880.00

8,627.18 2,984.48

8,115.59 2,455.62

$

7,B00,164.98 $ 1,638,817.27 $

78,451.21

$

-53,900.16

-5,025.64

$

-58,925.80

-29,704.27 $

6,224.65 $

-54,597.12

78,512.58

45,445.48

1,207,673.17

FUND BALANCES JUNE 30 1995
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lnfonnation.
Toe notes to the financial statements are an integral part of this statement. -4 -

48,808.31 $

51,670.13 $ 1,153,076.05

EXHIBIT"B"

ENDOWMENT FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

$

0.00

$

$ 661,909.00

17,463.67

$

0.00 $ 679.372.67 $

0.00
$ 0.00 $

$ 7,828,251.49

661,909.00 1,394,250.58
241,020.69

9,770.65 27,416.87 13,900.89

1,135.02

181,362.24

181,362.24

666,204.43 196,142.26 674.736.31

666,204.43 196,142.26 674.736.31

1.718,445.24 $ 11.896,100.43

$

0.00

$ 8,694,920.35 693,038.40 39,411.84 67,880.00

$

1,043.60

666,204.43 $ 18,193.46
0.00 $ 685,441.49 $

196,142.26 3,000.84
199.143.10 $

9,670.78

2,984.48 8,115.59 2,455.62

153.634.98

862,346.69 21,194.30
153.634.98

153.634.98 $ 10.555,653.03

$
0.00 $ 150.321.46

5,025.64 5.025.64 $ -1,043.18 $ 1,043.60

53,900.16

0.00

0.00

53.900.16

0.00

-145,242.94 $ 1,564,810.26 $ 1.340,447.40

511,994.93

19,517,901.52 21.512.892.74

$ 150,321.46 $

0.42 $

366,751.99 $ 21,082,711.78 $ 22.853.340.14

-5-

SOUTH GEORGIA CO! I EGE STATEMENT OF CURRENT FUNDS REVENUES EXPENDITURES
AND OTHER CHANGES YEAR ENDED JUNE 30 1995

EXHIBIT"C"

UNRESTRICTED

RESTRICTED

TOTAL (Memorandum
On!}'.)

REVENUES

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

$ 4,934,461.00

$ 4,934,461.00

1,413,493.63

1,413,493.63

39,411.84 $ 1,354,838.74

1,394,250.58

241,020.69

241,020.69

3,546.00

3,546.00

672,197.85

672,197.85

730,496.02

730,496.02

38191.15

38191.15

Total Revenues

$ 7 828 251.49 $ 1 599 405.43 $ 9427656.92

EXPENDITURES

Educational and General Instruction Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships
Auxiliary Enterprises Student Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units

$ 3,534,363.65 $

2,500.00 $ 3,536,863.65

457,325.31

457,325.31

526,173.07

167,283.64

693,456.71

1,416,191.87

161,196.02

1,577,387.89

1,152,000.02

1,152,000.02

9,461.00

1,268,425.77

1,277,886.77

266,875.33 271,837.82
49,485.38 101,178.02
3661.85

266,875.33 271,837.82
49,485.38 101,178.02
3,661.85

Total Expendttures

$ 7 788 553.32 $ 1,599,405.43 $ 9,387,958.75

OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS}

Excess of Restricted Receipts over Transfers to Revenues Transfers for Renewals and Replacements Transfers for Capital Projects Prior Period Adjustments (Net) Remtttances to the Board of Regents of the
University System of Georgia Prior Yea(s Unrestricted Fund Balance (Surplus)

$

6,224.65 $

6,224.65

$

-53,900.16

-53,900.16

-5,025.64

-5,025.64

-1,849.46

-1,849.46

-8,627.18

-8627.18

Total Other Transfers and Additions/(Deductions) $

-69402.44 $

6,224.65 $ -63,177.79

Net lncrease/(Decrease) in Fund Balances

$

-29,704.27 $

6,224.65 $ -23,479.62

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement. -6-

SOUTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY South Georgia College is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of South Georgia College as a separate reporting entity.
The Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. South Georgia College does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, South Georgia College is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because ofthe significance ofits legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING In order to ensure observance oflimitations and restrictions placed on the use of the resources available to the College, the accounts ofthe College are maintained in accordance with the principles of fund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group.
Within each fund group, the College's fund balance allocations and designations represent those portions of the fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies.
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 College retains full control to use for purposes of performing the primary functions of the College, i.e., instruction, auxiliary enterprises, and student activities.
RESTRICTED - the fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes.
- 7-

SOUTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
LOAN FUNDS
The fund used to account for resources which have been made available for financial loans to students.
ENDOWMENT FUNDS
The fund used to account for gifts that are subject to the restrictions by the donors requiring that the principal be invested in perpetuity and income only be utilized.
PLANT FUNDS
UNEXPENDED - the fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes.
RENEWALS AND REPLACEMENTS - the fund used to account for resources set aside for the renewal and replacement ofinstitutional properties.
INVESTMENT IN PLANT - the fund which shows the total amounts representing the book value of all physical properties owned by the College. Net Investment in Plant is an equity account showing the total book value ofphysical properties belonging to the College less the amount of any indebtedness to others.
AGENCY FUNDS
The fund used to account for resources held by the College as custodian or fiscal agent for individual students, faculty, staff members, and organizations.
BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute ofCertified Public Accountants' audit guide reporting model. 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 as expenditures and liabilities is in confonnity with accounting practices prescribed or pennitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which
- 8-

SOUTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING provide for the recording ofencwnbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Compensated absences represent obligations of the College relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accwnulated leave in which payment is probable and can be reasonably estimated. The compensated absences liability of$238,627.36, and the related current year expenditure of$4,492.79 have not been reported in the current funds as required by generally accepted accounting principles.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State 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 of the financial statements.
To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made for plant facilities expended by the Georgia State Financing and Investment Commission on behalf of the College. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on physical plant and equipment.
The Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to present the results of operations or the net income or loss for the period as would a statement of income or a statement of revenues and expenses.
BUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units of the University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 19941995. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The budget allocation and disbursement ofthese funds is made to the various organizational units by the Administrative Central Office. In addition, the organizational units receive Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office.

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SOUTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET A comparison of anticipated funds available and budgeted expenditures by budget unit object class indicates that the following object classes were overspent by the amounts identified below:

Capital Outlay Special Funding Initiative

$_ __.2""6..,3._.J.,.9""'9 $ 57 040 26

These overexpenditures of budget constitute a violation of Board of Regents policy, but do not constitute statutory violations of budget authority. Statutory violations of budget authority are reported at the departmental level.

CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits, certificates of deposit and temporary investments in authorized financial institutions.

ACCOUNTS RECEIVABLE 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 Inventories of consumable supplies are recorded on the consumption method and are valued at cost based on the weighted average cost method.

Inventories of goods for resale are valued at cost based on the weighted average cost method.

PREPAID ITEMS Prepaid items are payments made to vendors in advance of the receipt ofgoods and services that will benefit periods subsequent to the balance sheet date.

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. 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 of this data.

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SOUTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXI-IlBIT "D"

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 any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, 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 of the bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
(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) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which includes organizational units of the Board ofRegents of the University System of Georgia) the option of exempting demand deposits from the collateral requirements.
The treasurer ofthe Board ofRegents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia.
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, 1995, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:

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SOUTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

CATEGORIZATION OF DEPOSITS Category I - Amounts covered by depository insurance or collateralized with securities (at market value) held by the College or by its agent in the College's name.

Category 2 - Amounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the College's name.

Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution, or by its trust department or agent but not in the College's name, and amounts uncollateralized.

Carrying Amount

Bani< Balances

Risk Categories

Cash Deposits

$ ~ $ ~ $ ~ $ ~ $____l!.l!l!

NOTE 3: INVESTMENT IN PLANT

The following is a summary oflnvestment in Plant fixed assets as ofJune 30, 1995:

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

$ 173,321.48 16,731,491.27 1,090,936.10 1,953,287.01 1 133 675.92

Total Investment in Plant

$21 082 71 J 78

NOTE4: RISKMANAGEMENT

South Georgia College is a participant in the Board ofRegents of the University System ofGeorgia Health Benefits Plan, which is a self-insurance program ofhealth and dental benefits for employees and retirees ofthe University System of Georgia. The College 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 audit report ofthe Board ofRegents ofthe University System of Georgia-Administrative Central Office. All units ofthe University System of Georgia share the risk ofloss for claims of the Health Benefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of$1,000,000.00 per person and dental coverage up to an annual maximum of $1,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the Health Benefits Plan as established by the Board of Regents.

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SOU1H GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "D"

NOTE 4: RISK MANAGEMENT
The Department of Administrative Services (DOAS) has the responsibility for the State of Georgia of making 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 services claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts ofcommercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The College, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment.
A self-insured program of professional 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 ofthe performance oftheir duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund.
NOTE 5: DEFERRED COMPENSATION PLAN
The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees ofthe 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 of compensation 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 ofPersonnel Administration for the year ended June 30, 1995.
NOTE 6: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description South Georgia College participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia.
- 13 -

SOUTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"D"

NOTE 6: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description The College's payroll for the year ended June 30, 1995, for employees covered by TRS was $3,254,619.35. The College's total payroll for all employees was $4,013,720.82.
Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless ofage, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number 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"/4 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.
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.
Contributions Required and Contributions Made Employees of the College who are covered by TRS are required to pay 5% of their gross earnings to TRS. The College makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. For fiscal year 1995, the employer contribution rate was 11.81% for covered employees. In addition, the College contributed 5.60% to the TRS on behalf of employees electing to participate in the Regents Retirement Plan. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions to the plan made during fiscal year 1995 amounted to $573,442.83, of which $410,710.65 was made by the College and $162,732.18 was made by employees. These contributions represented 12.62% (College) and 5% (employees) of covered payroll.

- 14 -

SOUTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "D"

NOTE 6: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value of credited projected benefits. This pension 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 and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers ofthe 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 similar PERS.

The total unfunded pension benefit obligation ofTRS as of June 30, 1994, which was the latest information available, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14 254 785 000.00

Unfunded pension benefit obligation

$ I 058 958 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Retirement System Contributions Total contributions from all employers to TRS for the year ended June 30, 1995, were $565,117,811.00. The College's contribution for the year ended June 30, 1995, of $410,710.65 was actuarially determined and represented .0727% of total contributions made by all participating employers.

Trend Information Historical trend information is presented in the financial report ofTRS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.

REGENTS RETIREMENT PLAN

The State of Georgia provides optional pension benefits for eligible faculty and principal administrators through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings.

- 15 -

SOUTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "D"

NOTE 6: RETIREMENT PLANS
REGENTS RETIREMENT PLAN
State legislation requires that the employer contribute 4% and the employee contribute 5% ofthe participating employee's eamable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The College's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1995, was $470,360.66. The College's total payroll for all employees was $4,013,720.82.
The College and the covered employees made the required contributions of$18,909.60(4%) and $23,636.69 (5%), respectively.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description South Georgia College participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia in July 1993 for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. The College's payroll for the year ended June 30, 1995, for employees covered by GDCP was $132,082.93. The College's total payroll for all employees was $4,013,720.82.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. Ifa member has less than$ 3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination ofemployment, the amount of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1995 amounted to $9,906.84 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
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
- 16 -

SOUTII GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "D"

NOTE 7: LEAVE POLICIES
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 College expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against South Georgia College (as an organizational unit of the Board ofRegents ofthe University System ofGeorgia), 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, 1995.
NOTE 9: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board ofRegents ofthe University System of Georgia has established group health and life insurance programs for employees of the University System of Georgia. It is the policy of the Board of Regents to permit employees ofthe University System of Georgia 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 by the Teachers Retirement System of Georgia and who have at least ten years of service with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals.
As of June 30, 1995, there were 62 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1995, South Georgia College recognized as incurred $105,270.26 of expenditures, which was net of$33,164.50 of participant contributions.
NOTE 10: BONDING INFORMATION
The President and all employees of South Georgia College 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
- 17 -

SOUTH GEORGIA COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"D"

NOTE 10: BONDING INFORMATION

been paid to October 1, 1995. Under this agreement, the public employee dishonesty coverage insures South Georgia College to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the College to a maximum of $1,000,000.00 against Joss 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 South Georgia College are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 011675 2 and 626 012294 4, on which the premiums have been paid to October I, 1995. Under these additional public employee dishonesty coverages, the policies insure the College to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

NOTE 11: ENROLLMENT

The equivalent full-time student enrollment of South Georgia College was as follows:

Regular Term

Fall Quarter, 1994

993

Winter Quarter, 1995

974

Spring Quarter, 1995

879

Average

Summer School, 1994

- 18 -

SUPPLEMENTARY INFORMATION - 19 -

QUTtt !iEQR~IA QQI I E~i;
QQM~ININ~ ~~NCI; !:IEE! Q!JRBEHT EU~~ !JNREIBIQTEQ
JUNE ;)O 1995

EXHIBIT"E"

ASSETS Cash and Cash Equivakmts Accounts Receivable Inventories Prepaid Items
Total Assets

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

$

74,841.11 $

213,154.04

16,580.31

43171.81

3,298.95 $

500.00 $ 19,317.24 74,626.12
1 392.00

29,115.18 $ 912.50

107,755.24 232,471.28
91,206.43 45476.31

347747.27 $

3298.95 $

95835.36 $

30027.68 $ 476909.26

LIAl!II ITIES AN!l FUNQ BALANCES
Liabilities Accounts Payable Deferred Revenue Tuition and Fees Due to Other Fund Groups
Total Liabilities
Fund Balances Unrestricted
Total Liabilities and Fund Balances

1n,422.61 $ 145,466.12 322,888.73 $ 24858.54

3,298.95 $ 3,298.95 $

3,968.40 $
13,938.01 74 969.15
92,875.56 $

2,863.71 $ 6,174.00
9,037.71 $

187,553.67
165,578.13 74969.15
428,100.95

0.00

2 959.80

20989.97

48808.31

347,747.27 $

3,298.95 $

95,835.36 $

30,027.68 $ 476,909.26

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

SOUTH GEORGIA COLLEGE COMBINING STATEMENT QF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESJRICJEP YEAR ENPFP JUNE 30 1995

EXHIBIT"P

REVENUES AND OTHfR AQDITIONS
Unrastrictecl Current Fund Revenues
Adjustments Prior Years' Expendijures/Aceounts Payable
Total Revenues and Other Additions
El!:PENQIT~RES ANQ QTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the
University System of Georgia Prior Yaafs Unrestricted Fund Balance (Surplus)
Adjustmen1s Prior Years' Revenues/Accounts Receivable
Total Expenditures and other Deductions
TMNFER SE;;MEEN FUND
Nonmanclatory Renewals and Replacements Capital Projects
Total Transfers Between Funds
Net lncrease/(Decrease) for the Year
FUND BALANCES JULY 1 1994

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

6,991,291.51 $ 957.08
6 992 248.59 $

35,000.00 $ 35000.00 $

739,925.68 $ 1.50
739927.18 $

62,034.30 $ 7,828,251.49

176.44

1135.02

62 210.74 $ 7 829386.51

6,989,286.41 $

35,000.00 $

683,038.40

71,228.51 $ 7,095,514.92 683,038.40

8,627.18 153.64

2 830.84

8,627.18 2984.48

6 998 067.23 $

35 000.00 $

695 869.24 $

71 228.51 $ 7 800 164.98

-5,818.64 $ 30677.18

0.00 $ 0.00

-53,900.16 -5 025.64
-58 925.80 -14,867.86 $
17 827.66

-9,017.77 $ 30007.74

--53,900.16 -5025.64
-58925.80 -29,704.27
78512.58

FUNQ BALl,NCES JUNo ;iQ 1995

24,858.54 $

0.00 $

2,959.80 $

20989.97 $

48,808.31

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

22

SQ!l!H GEQRGIA !.QI LEGE !.QM(!li':jlN~ TAil;M!aNT QF CURB ENT FUNCllil BEllENU!a !;;XPENDm!RES
A~Q QTt:lf;B ~HAN!;il;S UNRESTRICTED
YEAR ENDED JUNf 3Q 1995

EXHIBIT"G"

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

REVENUES
s - Approprialiona
Tuition and Fees Federal Grants and Contracts Sales and Services of Educational ActiVities Sales and Services of Auxiliary Enterprises Other Sources

$ 4,899,461.00 $ 1,351,844.63 39,411.84 672,197.85
28376.19

35,000.00 $

$
730,496.02 9 429.66

61,649.00 385.30

4,934,461.00 1,413,493.63
39,411.84 672,197.85 730,496.02 38191.15

Total Revenues

$ 6~1~91.51 $

35000.00 $ 739925.68 $

62 004.30 $ 7 828251.49

EXPEl'jDITURES

Educational and General Instruction
- l e Support
Student Services lnotitutlonal Support Operation and Maintenance of Plant Scholanohipe and Fellowships
Auxiliary Enterprises
Student Housing Food Services stores and Shops
Intercollegiate Athletica
Other Service Units

$ 3,519,363.85 $ 437,325.31 454,944.56
1,416,191.87 1,152,000.02
9,461.00

15,000.00 20,000.00
$
$ 266,875.33 271,837.82 49,485.38 101,178.02 3661.85

$ 71,228.51

3,534,363.85 457,325.31 526,173.07
1,416,191.87 1,152,000.02
9,461.00

266,875.33 271,837.82
49,485.38 101,178.02
3661.85

Total Expenditures

$ 6989286.41 $

35 000.00 $ 693038.40 $

71228.51 $ 7788553.32

QTHl;B TBANSFl;B AND ,!,DDITIONS/
U2~QU~QNl
Tranafenl lo< Renewals and Replacements Tranafers lo< Capital Projects Prior Period Adjustments (Net) Refund of Prior Years' Questioned Costs Remittances to the Board of Regents
of the University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)

803.44 -8627.18

$

-53,900.16

-5,025.64

-2,829.34 $

176.44

-53,900.16 -5,025.64 -1,849.46

-8627.18

Total other Transfers and Additions/(Deductions)

-7 823.74

-61 755.14 $

176.44 $ -69 402.44

Net lncrease/(Oecrease) in Fund Balances

$

-5818.64 $

0.00 $ -14 867.86 $

-9017.77 $ -29 704.27

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

SOUTH GEORGIA COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30 1995

REVENUES
$-Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

4,899,461.00

$ 661,909.00

2,091,830.51 $ 1,599,405.43

17,463.67

0.00

6,991,291.51 $ 1,599,405.43 $ 679,372.67 $

0.00

EXPENDITURES
Personal Services: Education, General and Departmental Services Sponsored Operations
Operating Expenses: Education, General and Departmental Services Sponsored Operations
Capital Outlay Special Funding Initiative

4,653,577.71 2,049,417.44
286,291.26

152,501.25
1,446,904.18 $

684,397.89 $

199,143.10

6,989,286.41 $ 1,599,405.43 $ 684,397.89 $ _ _ _199--'-,1_43_.1_0

Excess of Revenues over Expendnures

2.005.10 $

0.00 $

-5.025.22 $ ==-.1.99;;;;.,;,1=43=.1=0

(1) To eliminate tuition waivers not budgeted and to reclassWy current year transfers and prior yaar fund balances budgeted as revenues.

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

SCHEDULE 1

TOTAL

ADJUSTMENTS (1)

TOTAL (Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 5,561,370.00 3,708,699.61 $

$ 5,561,370.00 $ 5,561,370.00 $

194,707.74

3,903.407.35

4,256,095.00

0.00 -352,687.65

$ 9,270,069.61 $

194,707.74 $ 9,464,777.35 $ 9,817,465.00 $

-352,687.65

4,653,577.71 152,501.25
2,049,417.44 $ 1,446,904.18
883,540.99 286,291.26

$ 4,653,577.71 $ 4,875,044.00 $

152,501.25

168,777.00

-9,461.00

2,039,956.44 1,446,904.18
883,540.99 286,291.26

2,056,047.00 1,607,437.00
880,909.00 229,251.00

221,466.29 16,275.75
16.090.56 160,532.82
-2,631.99 -57.040.26

$ 9,472,232.83 $

-9,461.00 $ 9,462,771.83 $ 9,817.465.00 $

354,693.17

$ -202,1'63.22 $

204,168.74 $

2.005.52

2.005.52

-25-

SOUTH GEORGIA COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION YEAR ENDED JUNE 30 1995

SCHEDULE ''2''

REVENUES state Appropriations

CURRENT FUNDS UNRESTRICTED

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$

35,000.00 $

35,000.00 $

0.00

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

$

35,000.00 $

35,000.00 $

$

0.00

$

0.00 0.00

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

SOUTH GEORGIA COL LEGE
SCHEQLJI E OF OPERATIONS
LOAN FUNDS
YEAR ENQEP JUNE 2 1995

SCHEDULE"3"

.El.lliQ
U S !,O'il;RNM!;;NT @RANTS R!;F!,!NDA6LE
Nursing Student Loan Fund Perkins Loan Fund
JNSTIIUIIONAL LOANS BESTBICIEP Athletic Loan Fund General Student Loan Fund

FUND BALANCE JULY1, 1994

ADDITIONS/ TRANSFERS

DEDUCTIONS/ FUND BALANCE TRANSFERS JUNE 30, 1995

59,760.48 $ 1,123,717.62

394.79 $ 20,891.04

$

1,183,478.10 $

21,285.83 $

16,157.67 $ 62,293.54
78,451.21 $

43,997.60 1,082,315.12
1,126,312.72

$

9,679.67 $

700.50 $

14,515.40

1,867.76

$

24,195.07 $

2,568.26 $

0.00 $ 0.00 $

10,380.17 16,383.16
26,783.33

$

1,207,673.17 $

23,854.09 $

78,451.21 $ 1,153,076.05

BECQNCJLIATION OF STUQENT NOTES RECEIVA6LE
Balance July 1, 1994 Add:
Loans to Students
Deduct: Repayment of Loans Loan Cancellations and Write-Offs
For Disability For Teaching and Nursing Services For Loans Written Off

519.00 6,977.76
618.83

$ 1,069,929.57 119,830.95
1,189,760.52 119,536.07

8,115.59

127,651.66

Balance June 30, 1995

1,062,108.86

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

f.!J.l:fil
Callahan, Albert Lee, Trust Fund
Shannon, Hoy Lovejoy and Kate Smith, Trust Fund

SOUTH GEORGIA CO! l FGE SCHFDULE OF OPERATIONS
ENDOWMENT FUNDS
YEAR ENDED JUNE 30 1995

SCHEDULE "4"

FUND BALANCE JULY!, 1994

ADDITIONS/ TRANSFERS

DEDUCTIONS/ FUND BALANCE

TRANSFERS

JUNE 30, 1995

$

19,400.26 $

0.00 $

0.00 $

19,400.26

130,921.20

130,921.20

$

150,321.46 $

0.00 $

0.00 $

150,321.46

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

SOUTH GEORGIA COi i ft".;I; CHEPYI.E Of CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNQS
YEAR ENDED JUNE 30 1995

SCHEDULE "5"

FUND

PAYROLL DEDUCTIONS

Federal Income Tax

State Income Tax

FJ.CA

Retirament

Georgia Defined Contribution Plan

Tax Deferred Annuities

UnilodWay

Group Insurance

Credit Union
u. s. Savings Bonds

Employee's Life Insurance

Gamishrnents/Tax Levies

Credit Union

Col'- long-Term Care Insurance

South Georgia

Foundaticn, ln<:<><p<>raled

Rents

EMPLOYER'S CONTRIBUTIONS
F.I.CA Retirament Group Insurance

OTHERFUNps
American Association dWomen in Community Colleges American Institute of Banking Association for General and Ubrary Studies a-tding Squad Continuing Education Activities Fees Foderal Funds - Office of Education Federal Funds - Overaward Repayment Health Fair Nursing Insurance Fund Nursing Matching - Local Phi Bola Lambda Club Phi Thola Kappo Club PLUSLoans
~ofFoes Rogiotration Fund - Financial Aid Clearing Account Retird Employees' HeaNh Insurance Returned Check Srvic;e Ch rge Scholarships
Georgia Incentive Soholarship Miscella,_,. Soholarships {Li$t on File) R - Soholarship Fund South Georgia ~ Foundation,
lncorpon,lod, Scholarships (list on File) Science Fair SciencoOlympiad Socioly of Black Unity Club Student Health Insurance Sludent Nurses Association of Georgia Students' Prolassional Association of
Georgia Educators Unclaimed Checlcs - General Operating Unclaimed Checlcs - Payroll

BALANCE JULY1 1994

RECEIPTS

BALANCE DISBURSEMENTS JUNE30 1995

-232.64 $
-133.90 31.19
371.71
6,420.96 1,448.50
25.00 1,885.64
93.50 1,044.64
371.96 7.00

425,094.95 $ 156,823.79 282,509.75 186,365.86
9,907.92 112,670.00
300.00 142,059.88 143,644.50
3,075.00 28,943.28
3,676.50 15,814.28 7,044.41 5,267.00
75.00

11 333.76 $ 1523272.12 $

424,862.31 156,823.79 282,375.85 186,397.05
9,907.92 112,670.00 $
300.00 142,336.33 145,093.00
3,050.00 29,298.22
3,770.00 16,858.92 7,082.43 5,267.00
75.00
1 526167.82 $

371.71 6,144.51
50.00 1,530.90
333.94 7.00
8438.06

-133.90 $ 61.39
22917.42

282,436.64 $ 429,435.83 500053.56

22644.91 $ 1 211 926.03 $

282,302.74 429,497.22 501938.97 $
1~13738.93 $

21 032.01 21 032.01

320.00 $ 1,582.40
16,887.49
1,078.00 4.91
1,315.00
221.66 929.71
31,916.60 1,856.43

150.00 $ 270.00 29,902.50 996.10 75,231.38 1,250,000.00
3,482.50 1,733.00
735.00 2,709.01 3,941.76
300.00 529,734.70
32,800.69 873.40

3,333.00

38,248.00 17,449.00
1,700.00

177.09 375.93 4,530.92

51,343.00 1,966.00 600.00 666.70 3,199.00 7,963.69

70.91 645.51 567.95

195.00 120.00 160.43

65813.51 $ 2 056 490.86 $

200.00 $ 897.90 28,510.58 996.10 92,118.87 1,250,000.00
3,234.50
690.25 3,573.72 3,941.76
300.00 528,804.46
32,427.00 873.40
38,248.00 20,782.00
1,700.00
51,343.00 1,797.49 600.00 665.70 3,199.00 5,944.70
168.00 765.51 728.38
2 072 510.32 $

270.00 954.50 1,391.92
1,078.00 4.91
1,563.00 1,733.00
266.41 65.00
32,846.64 2,230.12
345.60 396.93 6,549.91
97.91
49794.05

99 992.18 $ 4 791 689.01 $
See acoompanying notes and Independent Accountant's Combined Report on Review d Financial Statements and Supplementary lnfonnation.
-29-

4 812 417.07 $

79 264.12

SOUTH GEORGIA COLLEGE CASH AND CASH EQUIVALENTS
JUNE 30 1995

SCHEDULE "6''

INTEREST BEARING ACCOUNTS
Coffee County Bank, Douglas, Georgia
Certificate of Deposit (6.8%)
Southeastern Bank, Douglas, Georgia
Certificates of Deposit (5.75%)
Trust Company Bank of Coffee County, Douglas, Georgia
N.O.W. Account (2.60%)
OTHER
Cash on Hand Petty Cash

$ 182,000.00 250,000.00 767,344.86 $ 1,199,344.86
9,515.00

$ 1,208,859.86

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

State Appropriations Allotment from the Board of R-nts of the Uniwrsity System of Georgia
Fede,al Grants and Contracts Research and Instruction Student Aid
State Grants and Contracts Student Aid
Othet' Georgia State Financing and Investment Commission Returned Checks Student Accounts student Notes
v..- Cred~ Memos
Othet'

~!Jil::J g1;QBg1a r;QLLl;gt; ~!i.!NI BEQl:l~BLI;
JUNE 30 1995

SCHEDULE '7"

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

PLANT FUND UNEXPENDED

TOTAL

200,000.00

95,554.40 n,969.2s
96,611.69

200,000.00
95,554.40 n,969.26
96,611.69

7,299.71 13,940.21
10,917.61 313.75

$ 1,062,108.86

15,478.00

15,478.00 7,299.71 13,940.21 1,062,108.86 10,917.61
313.75

232,471.28 $ 265,135.35 $ 1,062,108.86 $

15,478.00 $ 1,575,193.49

See accompanying notes and Independent Accountant's Combined Report on RIM8W of Financial Statements and Supplementary Information.
-31

SOUTH GEORGIA COLLEGE CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30 1995

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections

BALANCE JULY 1, 1994

CURRENT FUNDS UNRESTRICTED

$

173,321.48

15,404,091.57

981,806.49

1,859,583.65 $

146,784.65

1,099,098.33

34,577.59

$ 19,517,901.52 $ ===1=8:!1,=36=2=.2=4

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

SCHEDULE "8"

ADDITIONS
PLANT FUNDS RENEWALS ANO
UNEXPENDED REPLACEMENTS

GEORGIA STATE FINANCING ANO
INVESTMENT COMMISSION

DEDUCTIONS DISPOSALS/ DELETIONS/ ADJUSTMENTS

BALANCE JUNE 30, 1995

$

173,321.48

$

552,851.00 $

113,199.00 $

661,349.70

16,731,491.27

95,743.00

13,386.61

1,090,936.10

17,610.43

82,943.26

$

153,634.98

1,953,287.01

1,133,675.92

$

666,204.43 $

196,142.26 $

674,736.31 $

153,634.98 $ 21,082,711.78

-33-

SOUTH GEORGIA COLLEGE SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30 1995

NET INVESTMENT IN PLANT Investment in Plant Facilities
RESTRICTED Designated for Subsequent Years' Expenditures
UNRESTRICTED Designated For Intercollegiate Athletics For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures For Uncollectible Accounts Undesignated Surplus Regular Lottery for Education

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

LOTTERY FOR

AUXILIARY

EDUCATION

ENTERPRISES

$

16,600.00

4,968.00

$

27,653.80

74,626.12

-106,320.12 7,000.00

3,290.54

_____ $ ----=-o."'o.a..o

$

24,858.54 $

0.00 $ ---=2.,;,9"'5~9.-"-80;;..

$

24,858.54 $

o.oo $ _ _ _2_,9_5_9._ao_

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

SCHEDULE "9"

STUDENT ACTIVITIES

RESTRICTED

UNEXPENDED REGULAR

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 21,082,711.78 $ 21,082,711.78

$

51,670.13

$ _ _ _5_1~,6_70_._13_

$ 20,989.97

$

366,751.99

$

27,653.80

91,226.12

366,751.99

-85,330.15

11,968.00

$

$ 20,989.97

$

$ 20,989.97 $

51,670.13 $

0.42 0.42 $ _ _ _3~6~6~,7-"-5"'1..c.9_9_

3,290.96 0.00
$ _ _4~1~5-"',5~6-"0'-7'.-=-2

0.42 $

366,751.99 $ 21,082,711.78 $ 21,549,942.63

-35-

SOUTH GEORGIA COLLEGE SCHEDULE OF REVENUES
CURRENT FUNDS YEAR ENDED JUNE 30 1995

State Appropriations Allotments from the Board of Regents of the University System of Georgia Regular Special Funding Initiative Lottery Proceeds
other Revenues Retained Tuition and Fees Matriculation other
Federal Grants and Contracts Research and Instruction student Aid Contract Overhead
State Grants and Contracts Research and Instruction Student Aid
Endowment Income Student Aid
Sales and Services of Educational Activities
Sales and Services of Auxiliary Enterprises
other Sources Administrative Cost Allowances Cash Over-Short Interest Earned Rents other

RESIDENT INSTRUCTION

UNRESTRICTED

LOTTERY FOR

AUXILIARY

EDUCATION ENTERPRISES

$ 4,670,210.00 229,251.00 $
$ 4,899,461.00 $

35,000.00 35,000.00

$ 1,302,363.41 49,481.22

39,411.84

672,197.85
9.73 -198.00 2,305.43 26,259.03 $ 2,091,830.51

$

730,496.02

141.72 9,287.94

$

739,925.68

$ 6,991,291.51 $

35,000.00 $

739,925.68

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-36-

SCHEDULE "10"

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$ 4,670,210.00 229,251.00 35,000.00
$ 4,934,461.00

$ 4,670,210.00 229,251.00 35,000.00
$ 4,934,461.00

$ 1,302,363.41

$ 61,649.00

111,130.22

$ 1,302,363.41 111,130.22

$ 39,411.84

328,479.66 1,026,359.08

328,479.66 1,026,359.08
39,411.84

2,500.00 238,520.69

2,500.00 238,520.69

672,197.85 730,496.02

3,546.00

3,546.00 672,197.85 730,496.02

385.30

9.73 -56.28 9,287.94 2,305.43 26,644.33

9.73 -56.28 9,287.94 2,305.43 26,644.33

$ 62,034.30 $ 2,893,790.49 $ 1,599,405.43 $ 4,493,195.92

$ 62,034.30 $ 7,828,251.49 $ 1,599,405.43 $ 9,427,656.92

- 37 -

SOUTH GEORGIA COLLEGE CHEQULE OF EXPENDITURE BY OBJECT
CURRENT FUNDS
VFAB ENPfP JUNE 30 1995

PERSONAL SERVICES
-andWEmpk:,,w's Contributions for.
F.1.CA Relinlmenl Group Insurance Liability Insurance Unamployment Compensation Insurance Worirers' Compensation Insurance
OPERATING EXPENSES
Tmol
-..-v-"-
Supplies and Materials Repairs and Maintenance Utililieo R - (Olherlhan Real e.te) lnsunance and Bonding Tuition and Scholarships
College Work-study Program Scholarships, fellc::,Nships, Prizes, Awards and other Other Openlling " Publications and Printing Equip!Mffl Non-lnwnlory Computer Charge& Softwon, Telecommunications Per Diem, Feea and Contracts Per Diem and FeN
~ EquiplMffl
-..-Vehicle Pun:hMN -.iory
Q!!:!EB
EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND Other Coat& Supplies and Material& Equipment Non-kMlnlory Saftware Equipment -.iory
SPECIAi. FUNOING INITIATIVE Per8ona1Senrices Salaries and Wages Empk,yer'& Contribution& for: F.I.CA Retirement Group Insurance

RESIDENT INSTRUCTION

UNRESTRICTED

LOTTERY FOR

AUXILIARY

EDUCATION ENTERPRISES

3,509,803.39
197,467.40 387,833.68 456,301.24
32,100.00 2,438.00 67634.00
4653Sn.71

180,240.33 11,603.76 17,613.40 22,743.92
232 201.41

56,240.87 19,001.97 200,514.37 51,278.60 327,792.26 23,992.n 20,143.49
54,605.80 9,461.00 89,021.11 56,973.35
81,128.42 3,217.84
21,157.09 58,635.52
81,940.42 745,486.88
148825.73
2 049417.44

3,766.75 2,348.57 24,708.65 3,140.44 40,513.67 17,368.02 13,805.65
25,984.63 22,166.98
3,195.27
659.95
198.00 3,443.33
1,554.90 297,982.18
460836.99

1,557.36
3,880.76 2,671.00
26 890.88 35 000.00

197,584.67
64,855.27 11,346.12 12 505.20
286~91.26
286291.26 $

35000.00

See accompanying notes and Independent Accountant's Combined Report on Review or Financial Statement& and Supplementary Information.

-38-

$ 6989266.41 $

35,000.00 $ 693038.40

STUDENT ~ ~

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

2,913.75 $ 3,692,957.47 $

34.37

209,105.53 405,447.08 479,045.16
32,100.00 2,438.00
67 634.00

$ ~ $ 4888727.24 $

123,178.68 $ 3,816,136.15

8,176.74 12,642.63 8,503.20

217,282.27 418,089.71 487,548.36
32,100.00 2,438.00
67634.00

152 501.25 $ 5041 228.49

1,240.86 $
23,864.30 345.00
1,706.98

61,248.48 $ 21,350.54 248,087.32 54,764.04 368,305.93 43,067.n 33,949.14

21,028.62 6,836.42

54,605.80 35,445.63 132,216.71 67,005.04

1,388.65 239.64

83,177.02 3,217.64
21,355.09 62,318.49

795.45 5,188.84

84,290.77 1,048,657.90

5,025.64 ~

5,025.64 149445.72

$ 68280.39 $ ~ $

3,689.06 $
5,064.97 832.00
531.45

64,937.54 21,350.54 254,152.29 55,596.04 368,305.93 43,599.17 33,949.14

161,196.02 1,268,425.n
2,597.48 3,928.37

215,801.82 1,303,871.40
134,814.20 70,933.41

399.99 158.42

83,sn.01 3,217.64
21,513.51 62,318.49

80.64

84,371.41 1,048,657.90

5,025.64 149445.n

1 446.904.18 $ 4 025439.00

1,557.36
3,880.76 2,671.00
26890.88 $ 35 000.00

1,557.36
3,880.76 2,671.00 26890.88
35 000.00

197,584.67
64,855.27 11,346.12 12 505.20
$ 286291.26
$ 321 291.26

197,584.67
64,855.27 11,346.12 12 505.20
286 291.26
321 291.26

$ 71 228.51 $ 7 788 553.32 $ 1 599 405.43 $ 9,387,958.75

.39.

SOUTH GEORGIA COLLEGE SCHEDULE OF EXPENDITURES BY OBJECT
PLANT FUNDS YEAR ENDED JUNE 30 1995

SCHEDULE "12"

CAPITAL OUTLAY
Supplies and Materials Equipment
Non-Inventory Per Diem, Fees and Contracts
Per Diem and Fees Contracts Equipment Motor Vehicle Purchases Inventory

UNEXPENDED REGULAR

RENEWALS AND REPLACEMENTS

TOTAL

$

2,727.79

$

2,727.79

1,118.88 $

3,000.84

4,119.72

19,250.46 643,690.33

1,500.00 111,699.00

20,750.46 755,389.33

5,463.10 12,147.33

68,183.26 14,760.00

73,646.36 26,907.33

$

684,397.89 $

199 143.10 $

883,540.99

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-40-

SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS

SOUTH GEORGIA COLLEGE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

Audit Control Number

Status ofFinding

587-94-01 587-94-02

See Audit Control Number 587-95-02 See Audit Control Number 587-95-01

PRIOR YEAR

AUDIT FOLLOW-UP/RESOLUTION Matching Requirements Not Met Federal Financial Assistance Federal Supplemental Educational Opportunity Grant (84.007) Amount: $4,615.95 Audit Control Number: 587-95-01

The review report for the year ended June 30, 1994, noted that South Georgia College failed to meet its matching requirements, as required by Attachment E ofOMB Circular A-110, in the amount of$4,615.95. For the year under review, the College met the matching requirement; however, as of the date of this report, no response has been received from the U. S. Department of Education regarding the prior year matching requirement. The College should continue to seek resolution of this matter from the grantor.

PRIOR YEAR/CURRENT YEAR

FUND BALANCE Deficit to be Funded from Subsequent Years' Operations Financial Statements Audit Control Number 587-95-02

The review report for the year ended June 30, 1994, noted that Auxiliary Enterprises, excluding Intercollegiate Athletics, had a net deficit fund balance of$22, 172.38. The Board ofRegents' Policy Manual Section 702.02 states that auxiliary enterprises "shall be placed on a self-supporting basis, and the State will not make an appropriation to finance its operations". For the year under review, the College had a net deficit fund balance in the Auxiliary Enterprises, excluding Intercollegiate Athletics, of $24,694.00. The cause of this deficit is due to the lack ofsufficient funds to meet obligations. The College should budget and provide for adequate funds to cover this deficit.